1.

Maintenance consist of the following action(s)

(A) Replace of component
(B) Repair of component
(C) Service of component
(D) All of the above
2.The time elapsed from the point the machine fails to perform its function to the point it is
repaired and brought into operating condition is known as
(A) Down time
(B) Break Down time
(C) Both (A) and (B)
(D) Idle time
3. The down time cost consists of
(A) Loss of production
(B) Wages paid to the workers
(C) Reduction in sales
(D) All of the above
 4. The following is not a classification of maintenance
(A) Corrective maintenance
(B) Timely maintenance
(C) Scheduled maintenance
(D) Preventive maintenance
5. Belt of an electric motor is broken, it needs
(A) Corrective maintenance
(B) Scheduled maintenance
(C) Preventive maintenance
(D) Timely maintenance
 6. The following is (are) scheduled maintenance
(A) Overhauling of machine
(B) Cleaning of tank
(C) Whitewashing of building
(D) All of the above
 7. Scheduled maintenance is _______ between breakdown maintenance and the preventive
maintenance.
(A) Joint
(B) Compromise
(C) Bridge
(D) In
 8. Equipment history cards are meant to record
(A) The way equipment behaves
(B) Total down time of the equipment
(C) The rate at which different components wear off
(D) All of the above
9. The ____ goes on increasing with the increase in degree of maintenance efforts.
(A) Cost of down time
(B) Cost of spares and maintenance
(C) Labour and Overhead Cost
(D) All of the above
 10. With the increase in preventive maintenance cost, breakdown maintenance cost
(A) Increases
(B) Decreases
(C) Remain same
(D) Any of the above
 11. A systematic approach for maintenance is
(A) Problem – Cause – Diagnosis – Rectification
(B) Problem– Diagnosis – Cause – Rectification
(C) Problem – Measure – Diagnosis – Rectification
(D) Problem– Diagnosis – Measure – Rectification
12. (Down time in hours / Available hours) =
(A) Maintenance effectiveness
(B) Frequency of breakdown
(C) Effectiveness of maintenance planning
(D) None of the above
 13. (Number of breakdowns / Available machine hours) =
(A) Maintenance effectiveness
(B) Frequency of breakdown
(C) Effectiveness of maintenance planning
(D) None of the above
 14. Total productive maintenance aims at
(A) Less idle time
(B) Increase in productivity
(C) Zero down time
(D) None of the above
 15. Total Productive maintenance (TPM) approach has the potential of providing almost a
seamless integration between
(A) Production and Quality
(B) Quality and Maintenance
(C) Production and Maintenance
(D) All of the above
16. What is the economic life of an asset?
A) The service life that accounts for the costs of an asset replacement
B) The service life that minimizes the marginal cost of an asset
C) The service life that maximizes revenues generated by an asset
D) The service life that minimizes the average cost of an asset over time
17.. A new laptop has just come onto the market that you estimate will have an equivalent annual
cost of $500. You could sell your current laptop right away for $1 000, or you could spend $500 on
an upgrade. At the end of this year, after the upgrade, it will have a resale value of $800, going down
by $200 a year. Once its salvage value reaches zero, its physical life is over. If both laptops provide
equivalent functionality, when should you replace your current laptop? Your MARR is 5%.

A) Replace it now.

B) Replace it in 2 years.

C) Replace it in 3 years.

D) Replace it in 5 years.

18. A stamping machine currently has a salvage value of $10 000, and this will drop by 20% per year
from now on. Its expected maintenance costs are $1 000 for this year, but in the following year it is
expected to need a major overhaul, costing $3 500.  In the year following the overhaul, its
maintenance costs will be $500, and these will then go up by 30% per year. Your MARR is 10%.
There is a challenger available that will do the same job for an EAC of $3 400. When should you
replace the old machine?

A) right now

B) in two years time

C) in four years time

D) in eight years time

19. Which of the following can be treated as a part of installation costs?

A) the costs of purchasing new equipment

B) the costs of personnel retraining

C) the costs of the loss in capacity value

D) the difference between the purchase price and the salvage value

20. What is the economic life of the following asset, given that its purchase price is $60 000 and the
MARR = 10% ?

YEAR SALVAGE VALUE OPERATING COST

1 $40 000 $20 000
2 $20 000 $20 000
3 $10 000 $40 000
4 $5 000 $50 000

A) more than 4 years since EAC is increasing over 4 years

B) 1 year and EAC = $46 000

C) 2 years and EAC = $45 048

D) 3 years and EAC = $47 147

21. Capital costs are usually:

A) variable costs that directly depend on the level of production.

B) fixed costs that do not directly depend on the level of production.

C) negligible compared with operating costs.

D) the most important factor in determining the economic life of an asset.

22. When making a replacement decision

A) capital costs of the challenger are irrelevant.

B) capital costs of the defender are irrelevant.

C) operating costs of the defender are irrelevant.

D) capital costs of the defender incurred in the past are irrelevant.

23.  If it is said that the economic life of a challenger is four years it means that

A) the payback period is four years.

B) four years are required for the challenger to recover its initial investment.

C) four years are required for the challenger to recover its operating and maintenance costs.

D) the equivalent annual cost in year four is at its minimum.

24. Which of the following can be called the challenger?

A) a revenue generated by a company

B) machinery that a company wants to acquire

C) an assembly line that a company wants to replace

D) a piece of land that a company owns

25. Which of the following can be called the defender?

A) a building that a company owns

B) a bank account that a company owns

C) a loan that a company has just taken from a bank

D) a fleet of trucks that a company is currently planning to purchase

26. What is the equivalent annual cost (EAC)?

A) annual cost of the initial investment in an asset spread over its economic life

B) average annual cost of owning and operating an asset over its economic life

C) the market cost of replacing the service provided by an asset

D) the sum of the asset’s depreciation and its operating costs in any given year

27. Preventive maintenance is used to ensure that breakdowns:

A. are eliminated.
B. are reduced.
C. are less costly.
D. cannot happen.

28. In regards to maintenance, breakdown maintenance is __________, while preventive maintenance

is __________.

A. proactive; cheaper
B. cheaper; reactive
C. reactive; proactive
D. cheaper; more productive

29. Companies usually find that minimizing the total cost of maintenance requires them to:

A. shift completely over to preventive maintenance.

B. abandon breakdown maintenance as a policy.
C. find some balance between preventive and breakdown maintenance.
D. outsource breakdown maintenance but in-source preventive maintenance.

30. Predictive maintenance is used to determine:

A. when preventive maintenance was last performed.
B. when preventive maintenance should be performed.
C. which resources should be maintained via preventive maintenance.
D. which resources should be maintained via breakdown maintenance.

31. A group of workers being held responsible for maintaining, on an ongoing basis, the machines they
operate is referred to as total _________ maintenance.

A. Reactive
B. productive
C. preventative
D. proactive

32. Breakdown programs usually involve all of these except:

A. standby or backup equipment.

B. well-trained repair people.
C. operators who know when to call in help for minor repairs.
D. inventories of spare parts.

33. Which of the following would not typically be a consideration in the equipment replacement
question?
A. forecasts of future demand
B. expertise workers had on the old equipment
C. the cost of the replacement equipment
D. the cost to maintain the old equipment

34. Predictive maintenance involves:

A. performing maintenance activities in a consistent, predictable manner.
B. performing maintenance on a regular, predictable schedule so workers know when to expect it.
C. determining the best time to perform preventive maintenance on equipment.
D. determining when to outsource maintenance.

35. Which type of maintenance is not directly included in the total maintenance cost, but might be a
component of total overall cost?
A. Preventive
B. Breakdown
C. Predictive
D. Prescriptive

36. The group replacement policy is suitable for identical low cost items which are likely to
(A) fail over a period of time
(B) fail suddenly
(C) fail completely
(D) none of the above

37. Group replacement policy is most suitable for

(a)Trucks
(b) Infant machines
(c)Street light bulbs
(d) New cars

38. The production manager will not recommend group replacement policy
(a)When large numbers of identical items are to be replaced
(b)In case Low cost items are to be replaced, where record keeping is a problem
(c)For items that fail completely
(d)For Repairable items

39. In replacement analysis the maintenance cost is a function of:

(a)Time
(b)Function
(c)Initial investment
(d)Resale value

40. What is concerned with the prediction of replacement costs and determination of the most
economic replacement policy ?
a) Search Theory
b) Theory of replacement
c) Probabilistic Programming
d) None of the above

41. Replacement Model is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ model

a) Static
b) Dynamic
c) Both A and B
d) None of the above

42. The following is not a classification of maintenance

a) Corrective maintenance
b) Timely maintenance
c) Scheduled maintenance
d) Preventive maintenance

43. Continually monitoring performance for signs of need of maintenance is known as:
a) Preventive maintenance (PM)
b) Run to breakdown (RTB)
c) Condition-based maintenance (CBM)
d) All of the above
44. If a batch of 200 electronic components is tested for 400 hours and 5 fail during the test, what is
the failure rate as a percentage?
a) 2.5%
b) 1.25%
c) 5%
d) 10%

45. The number of failures over a period of time is called:

a) The mean time between failures
b) The average failure point
c) The failure rate
d) None of the above

46. Which of the following are primary functions of maintenance

department?
(A) Maintenance of existing plant and equipments.
(B) Inspection and lubrication of equipments.
(C) Proper distribution of utility service
(D) All of above

47. Which of the following is not the responsibility of maintenance

department ?
(A) Breakdown maintenance
(B) Protection against fire hazards
(C) To keep machine in good condition
(D) None of the above

48. ______________has two components. (i) Initial cost or first cost (ii) Salvage value at the
time of disposal.
A. Capital recovery cost
B. Operating cost
C. Total cost
D. Fixed cost

49. _____________________of an asset is the summation of capital recovery cost of the asset
and the annual equivalent operating cost of the asset.
A. Operating cost
B. Maintenance cost
C. Total cost or annual equivalent cost

D. Preventive cost
50. A firm is considering replacement of equipment, whose first cost is Rs. 4,500 and the scrap
value is negligible at the end of any year. Based on experience, it was found that the maintenance
cost is zero during the first year and it increases by Rs. 250 every year thereafter. When should
the equipment be replaced if i = 0%

A. 3rd year
B. 4th year
C. 5th year
D. 6th year