Question Bank of OSCM (205)

Objective Questions
Unit No:-1

Introduction to Operations Management

Q.1) The Customer’s view of quality means

A) Meeting Requirements

B) Doing it in the right way

C) Fit for use

D) Doing it on time

Q.2) Operations Management is applicable

A) Mostly to service sector

B) Mostly to manufacturing sector

C) To services exclusively

D) To manufacturing and service sectors

Q.3) One of the important functions of operations management

A) Larger Investment

B) To arrange or assemble

C) Balancing the flow

D) Product selection and Design

Q.4) The process of transforming raw material (inputs) into finished goods (output) is called

A) Operation System

B) Facility Layout

C) Mass Production

D) Volume

Q.5) Internal Customers are

A) Customers

B) Employees

C) Manufacturers

D) None of these

Q.6) Abbreviations of SQC is

A) Strategic Quality Control

B) Structured Quality Control

C) Statistical Quality Control

D) None of these

Q.7) Which of the following is not the process characteristic in operations?

A) Variety

B) Flow

C) Volume

D) Quality
Q.8) In an organisation, generally the operations management is a

A) Line functions

B) Staff functions

C) Line and Staff functions

D) None of these

Q.9) All the following decisions fall within the scope of operations management except for

A) Location of facilities

B) Quality Management

C) Financial Analysis

D) Facility Management

Q.10) Which is not perspective of quality

A) Customers view

B) Manufacturer view

C) Production view

D) Product view

Q.11) “Quality is an asset which may be offered to the potential customer of a product or
service” Defination given by

A) C.D.Lewis

B) Edward Deming

C) C.W.Kennedy

D) ISO 8402
Q.12) Which is not type of Quality

A) Quality of Design

B) Quality of Conformance

C) Quality of Structure

D) Quality of Performance

Q.13) The average quantity of the products produced in a manufacturing system is called

A) Flow

B) Continuous Flow

C) Volume

D) Variety

Q.14) Which is not Which is not a benefit of Sort?

A) Reduce the waste of searching

B) Reduced set-up times

C) Increased productivity

D) Improved machine dependability

E) Improved safety

Q.15) Set-In-Order includes making changes to the layout of the area.

A) True

B) False

C) None of these
Q.16) In the Set-In-Order phase, where should tools be stored that are used daily?

A) In personal tool boxes where they won't be stolen

B) At the point of use

C) Where the supervisor can keep an eye on them

D) In a company owned locking cabinet

Q.17) TQM stresses three principles, Which of the following is not included?

A) Customer Satisfaction

B) Continuous improvement in Quality

C) Strict Managerial Control

D) None of the above

Q.18) Which item is not a part of the Sort phase?

A) Clear the area

B) Use of red tags

C) 48 hour rule

D) Disposition red tag items

E) Putting tools at point of use

Q.19) Juran defines Quality as a

A) Conformance to requirements

B) Predictable degree of uniformity and dependability at low cost and suited to the market.

C) Fitness for Use

D) None of the above

Q.20) In a general sense, quality may be defined as meeting or exceeding the expectations of the
customer. Identify which of the following is not a typical customer expectation.

A) Conformance to specification

B) Value

C) Support

D) None of these

Q.21) In a fishbone diagram, some potential causes to consider are

A) Material

B) Process

C) People

D) All of the above

Q.22) The analysis tool for a quality problem that involves selecting the problem, identifying the
major categories of potential causes, and associating likely specific causes is:

A) Pareto Chart

B) Fishbone Diagram

C) Scatter Diagram

D) Checklist
Q.23) A Japanese concept called kaizen refers to:

A) The Deming Wheel

B) Continuous improvement

C) Product Reliability

D) Benchmarking

Q.24) Which one is NOT a benefit of Shine?

A) Less production downtime

B) Happier employees

C) Improved quality

D) Inventory reduction

Q.25) To sustain 5S you must...

A) Have a 5S audit checklist for each area

B) Have management support

C) Perform audits for each area regularly

D) Train employees on 5S and expectations

E) All of the above

Q.26) Which phase of 5S are you in when you clean machines, windows, floors etc.

A) Sort

B) Set-In-Order

C) Shine

D) Standardize
Q.27) Which of these benefits of 5S are of value to your company?

A) Improved employee morale

B) Improved safety

C) Increased productivity

D) Increased profitability

E) All of the above

Q.28) What are the 5 phases of 5S?

A) Shine, Shut-Up, Sustain, Sort, Standardize

B) Sustain, Sort, Standardize, Sushi mi, Shine

C) Standardize, Sort, Sustain, Shine, Set-in-Order

D) Sort, Sustain, Sushi, Shine, Standardize

Q.29) Basic principles of lean thinking are

A) Value

B) Perfection

C) Pull

D) All of the above

Q.30) Cause effect diagram can also be called as

A) Fish Bone Diagram

B) Smelt Bone Diagram

C) Bone Diagram

D) Impact Diagram
 Unit No:-2

Operations Processes

1) The average quantity of the products produced in a manufacturing system is called

A) Flow

B) Continuous flow

C) Volume

D) Variety

2) Continuous flow system is the specialized manufacture of

A) Automatic Product

B) Identical Product

C) Variety of Products

D) Equipments

3) Characteristics of job production includes

A) The product manufactured is custom made.

B) Volume of output is generally small.

C) Machines and Equipments are arranged at one place.

D) All of the above

4) Highly specialized people and machines allow high rates of throughout and low unit costs in

A) Assembly lines

B) Batch Production

C) Project Production

D) Job Production

5) Process layout is also called as

A) Processing layout

B) Straight line layout

C) Flow-line layout

D) Job shop layout

6) Product layout is useful under

A) Simple and repetitive manufacturing process

B) Capital Investment

C) Service Facilities

D) Quality Control

7) The process in which the consumers participate and through which the product is created and
delivered to customers is called

A) Spatial layout

B) Service Complexity

C) Service System Design

D) Service cape
8) The phase of a service system where customers are present is referred to as the

A) Job Design

B) Front Office

C) Back Office

D) Off stage

9) ______ refers to the arrangement of machinery equipment and other industrial facilities

A) Cellular manufacturing layout

B) Fixed position layout

C) Facility layout

D) Product layout

10) Factors affecting facility layout changes includes

A) Improved Quality control

B) Avoidance of bottlenecks

C) Economies in handling

D) None of these

11) The major product being produced fixed at one location is called

A) Fixed position layout

B) Process layout

C) Hybrid layout

D) Product layout
12) The term_________is used to reinforce the idea that services need to be carefully design
with a blueprint of its own

A) Service Specifications

D) Delivery Specifications

C) Service Blueprinting

D) Design Specification

13) Service capes design include

A) The space and function where the service takes place

B) The ambient conditions, such as music, temperature, décor and noise

C) Signs, Symbols and art facts

D) All of the above

14) A process with a high variety and low volume is likely to have a

A) Cell layout

B) Fixed position layout

C) Product layout

D) Process layout

15) The different activities involved in creating an organisation’s products and services are
called

A) Operations

B) Productivity

C) Capitalism

D) Creative endeavors
16) The production system of an organization refers to

A) How the flow of work is configured

B) The enterprise system software in use

C) The people who make the product

D) How the organization trains its employees on production equipment.

17) Firms that use_____ production systems charge higher prices to recoup their costs.

A) Assembly line

B) Large Batch

C) Job shop

D) Continuous flow

18) A job shop is an example of

A) Repetitive Process

B) Continuous Process

C) Line Process

D) Intermittent Process

19) Which of the following phrases best describes process focus?

A) Low volume, High variety

B) Operators are modestly skilled

C) High fixed costs, Low variable costs

D) Raw material inventories are high relative to the value of the product.
20) Service Blueprinting

A) Provides the basis to negotiate prices with suppliers

B) Determines the best time for each step in the process.

C) Focuses on the provider’s interaction with the customer

D) Can only be successful with two dimensional processes

21) In a jobbing process the main order winning criterion is generally

A) Time

B) Cost

C) Volume

D) Capacity

E) Capability

22) The type of layout which features departments or other functional groupings in which similar
activities are performed is

A) Process

B) Product

C) Fixed Position

D) Mass
23) Which of the following is true for process layouts, but false for product layout?

A) Low in process inventories

B) Low variety of products

C) Flexibility in equipment and labour assignments

D) High volume of output

24) Which of the following is not the process characteristic in operations?

A) Variety

B) Flow

C) Volume

D) Quality

25) Jobbing Productions means

A) Product Design and Manufacture strictly according to Manufacturer’s Specifications

B) Product Design and Manufacture strictly according to Suppliers’ Specifications

C) Product Design and Manufacture strictly according to Customer’s Specifications

D) None of these

26) Batch Production means

A) Produced large quantity of products

B) Produced small quantity of products

C) Produced limited number of products

D) None of these
27) Process Production means

A) Manufacture huge quantity of products

B) Manufacture only single type of product

C) Manufacture less quantity of products

D) Manufacture according to customer’s requirement

28) Process layout means

A) All similar machineries are grouped together

B) All machineries are arranged sequential order

C) All machineries are operating simultaneously

D) None of these

29) Mass production means

A) Less quantity of production

B) Production based on available resources

C) Goods manufactured by using multiple machineries

D) Goods manufactured by using single machine only.

30) Product Layout also called as

A) Functional Layout

B) Layout by Sequence

C) Fixed Position Layout

D) Combined Layout
 Unit No:-3

Production Planning and Control

1) Production planning deals with

A) What production facilities are required and how these facilities should be laid out in
space available?

B) What to produce and when to produce and where to sell?

C) What should be the demand for the product in future?

D) What is the life of the product?

2) Production planning will be effective when it is done

A) By a group of planners

B) By an individual

C) Progressively

D) Combination of (A), (C) & (B)

3) Last stage of production planning, where production activities are co-ordinated and projected
on a time scale are referred as

A) Scheduling

B) Loading

C) Expediting

D) Routing
4) Scheduling indicates

A) Total cost of production

B) Total material cost

C) Which resource should do which job and when

D) The flow line of materials

5) Scheduling deals with

A) Number of jobs to be done on the machine

B) Number of machine tools used to do job

C) Different materials used in the product

D) Fixing up starting and finishing times of each operation in doing a job

6) The study of relationship between the load on hand and capacity of the work centers is known
as

A) Scheduling

B) Loading

C) Routing

D) Controlling

7) One of the objectives of Loading

A) To finish the job as early as possible

B) To minimize the material utilization

C) To improve the quality of the product

D) To keep operator idle time, material waiting time and ancillary machine time at
minimum
8) Method used in scheduling a project is

A) A schedule of breakdown of orders

B) Outline Master Programme

C) PERT & CPM

D) Schedule for large and integrated work

9) Production planning in the intermediate range of time is known as

A) Production planning

B) Long range production planning

C) Scheduling

D) Aggregate Planning

10) One of the requirements of Aggregate planning is

A) Both output and sales should be expressed in a logical overall unit of measuring

B) Appropriate Time period

C) List of all resources available.

D) List of operations required

11) The act of releasing the production documents to production department is known as

A) Routing

B) Scheduling

C) Expediting

D) Dispatching
12) One of the important charts used in programme control is

A) Material Chart

B) Gantt Chart

C) Route Chart

D) Inspection Chart

13) The act of assessing the future and make provisions for it is known as

A) Planning

B) Forecasting

C) Assessment

D) Scheduling

14) For production planning

A) Short-term forecasting is useful

B) Medium term forecasting is useful

C) Long-term forecasting

D) Forecasting is not useful

15) To plan for future manpower requirement

A) Short term forecasting is used

B) Long range forecasting is used

C) Medium range forecasting is used

D) There is no need to use forecasting, as future is uncertain

16) The first step one has to follow while making forecasting is

A) To search for a product for which the forecast is to be made

B) To determine the objective of the forecast

C) To search for the method of forecasting

D) To fix the forecasting horizon

17) In aggregate planning, one of the methods in modification of demand is

A) Differential Pricing

B) Layoff of Employees

C) Overtime working

D) Sub-contracting

18) The time horizon selected for forecasting depends on

A) The salability of the product

B) The selling capacity of salesman

C) Purpose for which forecast is made

D) Time required for production cycle

19) Forecast accuracy as the time period covered by the forecast

A) Increases or decreases

B) Decreases or increases

C) Is eliminated continuous

D) Continuous is eliminated
20) The capacity planning process does not include which of the following?

A) Estimate future requirements

B) Implement selected alternative

C) Access key quantitative issues

D) Identify alternatives

21) When are forecast made?

A) Weekly

B) Monthly

C) Quarterly

D) Annually

E) All of the above

22) What type of relationship is between accuracy and the forecast horizon?

A) Positive

B) Inverse

C) Zero

D) Exponential

23) The first steps of capacity planning and control do not include

A) Measuring aggregate demand and capacity

B) Studying the effect of queuing theory

C) Identifying the alternatives capacity plans

D) Choosing the most appropriate capacity plan

24) Which of the following is not an element of a good forecast?

A) The forecast should be timely

B) The forecast should be accurate

C) The forecast should be oral

D) The forecast should be reliable

25) Which of the following is not a determinant of effective capacity planning?

A) Supply Chain

B) External forces

C) Human Considerations

D) Operational Factors

E) All of the above

26) Organisations generally use demand forecasts to develop

A) Financial Plans

B) Facilities Plans

C) Marketing Plans

D) All of these

27) The bill of material does not consist of

A) Part number

B) Specifications of part

C) Name of the part

D) Price of the part

28) ________ is the capability of manufacturing to produce goods and services

A) Capacity

B) Priority

C) Planning

D) Control

29) The________________ is a plan for the production of individual and items.

A) MPS

B) JIT

C) MRP II

D) MRP

30) Gantt chart is mostly used for

A) Routing

B) Scheduling

C) Follow Up

D) Inspection and Quality Control

 Unit No:-4

Inventory Planning and Control

1) Organisations maintain finished goods inventory to

A) Avoid bottlenecks in production process

B) Avoid backlogs in customer order

C) Smoothen the production flow

D) Reduce the material handling costs

2) Which of the following adds to the carrying costs?

I) Pilferage

II) Breakages

III) Obsolescence

A) I &II

B) I &III

C) II&IV

D) I, II, & III

3) Which of the following is not an inventory classification method?

A) ABC

B) FIFO

C) FSN

D) VED
4) Organisation maintain buffer stocks to face a situation where

A) Demand is greater than expected

B) Supply is more than expected

C) Demand is less than expected

D) Supply matches demand

5) Which of the following is an aim of Economic Order Quantity Purchasing?

A) Minimising the total cost

B) Minimising the transport cost

C) Minimising the storage cost

D) Minimising the ordering cost

6) Organisations fix the reorder level for raw materials on the basis of

A) Recommendations for the finance managers

B) Estimated demand during lead time

C) Recommendations of the suppliers

D) Estimated sales for a financial year

7) Which of the following is not an assumption that underlines the EOQ model?

A) Demand and lead time are known and constant

B) Purchase costs do not vary with the quantity ordered

C) Ordering and carrying cost expressions include all relevant costs, and these costs are constant

D) The quantity ordered always remain constant

8) Which of the following are the important factors that a purchase department should consider
while purchasing materials and supplies from a supplier?

I) Low Price

II) High Quality

III) Good after sales service

A) I & II

B) I & III

C) II & III

D) I, II & III

9)Which of the following departments directly deals with other companies that supply the
services,components,materials and supplies to an organization?

A) Operations Department

B) Purchase Department

C) Marketing Department

D) Finance Department

10) Value analysis is an organized effort to control the costs of

A) Purchased material

B) Exporting material

C) New product development

D) Marketing efforts
11) Which of the following does not help in managing the purchase process?

A) Bills of Materials

B) Purchase indents

C) Requests for quotations

D) Purchase orders

12) Which of the following is not the responsibility of purchase department?

A) Vendor development

B) Selection of suppliers

C) Contract negotiations

D) Communication interface

13) What is determined by estimating the expected usage of inventory during the lead time plus
safety stock required?

A) Reorder point

B) Stock out point

C) Buffer stock level

D) Service level
14) In which inventory classification model, the items are classified on the basis of their
importance in production process

A) ABC

B) VED

C) FSN

D) FIFO

15) If the rate of inventory replenishment is less than the demand rate, then this leads to

A) Stock out cost

B) Replenishment cost

C) Production cost

D) Direct cost

16) The raw material inventory department’s tasks include

A) Repackaging and labeling incoming stock

B) Storing and protecting raw materials

C) Auditing existing raw materials

D) A & B

17) The tasks of a purchasing department in an organization include

A) Processing requisition for materials and supplies

B) Locating suppliers and vendors

C) Negotiating purchasing contracts

D) All of the above

18) Identify the activity in which a purchasing manager is not involved

A) Procurement requests

B) Safety of procured material

C) Contract execution

D) Negotiation process

19) Inventory control does not include

A) Standardisation

B) Machines

C) Quality Control

D) Economic Order Quantity

20) ABC is a method of

A) Inventory Control

B) Financial Control

C) Cost Control

D) Accounting Control

21) FSN analysis is used in

A) Inventory model

B) Transportation model

C) PERT

D) CPM
22) In VED analysis, D stands for

A) Desirable

B) Demand

C) Distribution

D) Dividend

23) ABC analysis may be used in

A) Inventory model

B) Financial model

C) PERT

D) CPM

24) Functions of inventory management include

A) Buying in lots

B) To meet seasonal demand

C) Smoothing out irregularities in supply

D) All of these

25) Which of the following is/are functions of inventory?

A) To meet anticipated demand

B) To project against stock outs

C) To take advantage of order cycles

D) All of these
26) Inventory models include

A) EOQ

B) Ordering Cost

C) Carrying Cost

D) All of these

27) Which of the following is/are restrictive assumptions of EOQ mode?

A) Demand is known with certainty and is relatively constant over time

B) No shortages are allowed

C) Lead time for the receipt of orders is constant

D) All of these

28) The EOQ inventory model attempts to minimize

A) The number of items ordered

B) The number of orders placed

C) Total inventory costs

D) The safety stock

29) Inventory control includes

A) Stores management

B) Quality Control

C) Receiving

D) All of these
30) In inventory control theory, the economic order quantity is

A) Optimum lot size

B) Average level of inventory

C) Lot size corresponding to break-even analysis

D) Capacity of a warehouse

Unit No:-5

Supply Chain Management

1) A sequence of business and information links is called as_______

A) Logistics Network

B) Distribution Network

C) Sales Channel

D) Supply Chain

2) Supply Chains link operators to suppliers in _______

A) Layers

B) Groups

C) Tiers

D) Channels
3) Activities which are undertaken before the final operation are termed ________activities.

A) Upstream

B) Primary

C) Secondary

D) Downstream

4) In the automotive supply chain information flows in which direction?

A) Towards the end user only

B) Towards the supplier only

C) Between the end user and the operation only

D) Both towards the end user and the supplier

5) How do automotive companies mainly sell their new products?

A) Over the internet

B) Through retail distributors

C) Via a trade magazine

D) Directly to customers

6) Selecting suppliers and purchasing items is called_______

A) Negotiation

B) Procurement

C) Contracting

D) Selection
7) The main benefit to an operation of having multiple sourcing is______

A) Consistent quality

B) Speed of delivery

C) Continuity of supply

D) Flexibility of Products

8) Which of the following is an advantage of single sourcing?

A) Continuity of supply

B) Ability to keep prices down

C) Increased flexibility of supply

D) Lower administration cost

9) When an organization owns its suppliers it is known as_______

A) Downstream supplier collaboration

B) Upstream vertical integration

C) Downstream vertical integration

D) Upstream supplier collaboration

10) Logistics is the term for which activities?

A) Procurement of raw material

B) Distribution of goods to customers

C) Accounting for raw materials in transit

D) All of the above

11) The key strategic choice for any supply chain is the_________ it seeks

A) Locations of suppliers

B) Cost of production

C) Level of responsiveness

D) Level of service

12) SCM is focused on planning, while ERP is focused on _________

A) Implementing

B) Supplying

C) Execution

D) Production

13) The basic concept of supply chain management relates to _____of the complete chain

A) Globalisation

B) Distribution

C) Planning

D) Optimisation

14) Equivalent words for procurement are

A) Procurement or buy

B) Ownership or buy

C) Purchase or buy

D) Order or purchase
15) The vendor completes the supplies as per the terms of the_____

A) Policy

B) Memo

C) Purchase order

D) Order

16) The higher the supply chain_________, the more successful the supply chain

A) Global issues

B) Location

C) Profitability

D) Inventory

17) The supply chain encompasses all activities associated with the flow and ___________of
goods

A) Transformation

B) Transportation

C) Services

D) Inventory

18) The order processing system is the main center of the _________and supply chain

A) Customer

B) Demand Forecast

C) Logistics

D) Information
19) A market orientation helps the _______of Supply Chain Management

A) Promotion

B) Relation

C) Execution

D) Upstream

20) Choice of marketing_____should support the firm’s overall strategy

A) Concept

B) Channels

C) Orientation

D) Relationships

21) ______aims to co-ordinate planning tasks of independent supply chain partners

A) Trade Exchange

B) Order generation

C) Point of sale

D) Collaborative planning

22) Most original equipment manufacturers (OEMs) no longer compete solely as

______corporations

A) Bureaucratic

B) Partnering

C) Dependent

D) Autonomous
23) Sourcing and outsourcing have direct relevance for the supply chain management because of
their implications for________

A) Make and buy

B) Control and Flexibility

C) Supplier and Selection

D) Adherence and timely delivery

24) In a manufacturing organization, raw material enters its premises through

A) Supply System

B) Sales Department

C) Production Department

D) Purchase Department

25) Supply chain is network of

A) Suppliers

B) Distributors

C) Manufacture

D) All of the above

26) Supply chain management deals with

A) Planning of supply chain activities

B) Monitoring the supply chain activities

C) Execution of supply chain

D) All of the above

27) How many flows involve in Supply Chain Management

A) 2

B) 3

C) 4

D) None of these

28) The scope of Supply Chain Management is

A) Functional Scope

B) Organisational Scope

C) Both (i) & (ii)

D) None of these

29) Supply chain dynamics have been defined as

A) Inventory level

B) Delivery level

C) Resource level

D) None of these

30) Enablers of SCM

A) Facility

B) Transportation

C) Inventory

D) All of the above

Note: - All answers are given in BOLD letters

 Unit No:-4

Inventory Planning and Control

Unit No:-5

Supply Chain Management