Operations Management Question 1:

________ is the process of selection of path, which each part of the product will follow.

1. Routing
2. Scheduling
3. Follow-up
4. Dispatching
Answer (Detailed Solution Below)

Option 1 : Routing
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Operations Management Question 2:

Which of the following is not an objective of operation management ?

1. To improve product quality

2. To reduce cost of production
3. Material cost control
4. Trading and equity

Answer (Detailed Solution Below)

Option 4 : Trading and equity

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Operations Management Question 3:

The objective of the transportation problem is to:

A. Maximise profit

B. Minimise proift

C. Neither Maximise profit nor Minimise profit

D. Maximising loses

Choose the correct answer from the options given below:

 1. A and C
2. B and D
3. A and B
4. A, B and D
5. None of the above

Answer (Detailed Solution Below)

Option 1 : A and C

Operations Management Question 3 Detailed Solution

The correct answer is A and C.

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Operations Management Question 4:

Which of the following methods of facility location is based on minimizing the total
transportation cost?

1. Centroid method
2. Break-even analysis
3. Transportation method
4. Modified gravity model

Answer (Detailed Solution Below)

Option 3 : Transportation method

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Operations Management Question 5:

What is the purpose of inventory management in operations management?

1. Optimizing inventory levels

2. Eliminating stockouts
3. Minimizing customers demands
4. Maximizing stock cosyts
Answer (Detailed Solution Below)

Option 1 : Optimizing inventory levels

Operations Management Question 5 Detailed Solution

The correct answer is Optimizing inventory levels.

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Operations Management Question 6

In Operations management of an organization, the activities that assure the actual

performance in accordance with planned performance are called:

1. Planning activities
2. Behaviour activities
3. Controlling activities
4. Organizing activities

Answer (Detailed Solution Below)

Option 3 : Controlling activities

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Operations Management Question 7

The first and foremost important feature for a project to be successful is:

1. It should have a legal support

2. It should have adequate financing
3. It should have a market
4. It should benefit society

Answer (Detailed Solution Below)

Option 3 : It should have a market

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Operations Management Question 8

Customers arrive at a reception counter at an average interval rate of 10 minutes and
the receptionist takes an average of 6 minutes for one customer. The average queue
length is:

1. 8/10
2. 9/10
3. 11/10
4. 7/10

Answer (Detailed Solution Below)

Option 2 : 9/10

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Operations Management Question 9

In Queuing Theory, statistical pattern by which customers arrive over a period of time,
follows

1. Binomial distribution
2. Normal distribution
3. Poisson distribution
4. Long-normal distribution

Answer (Detailed Solution Below)

Option 3 : Poisson distribution by 5 Crore+ Students

Operations Management Question 10

A transportation problem with m origins and n destinations becomes a trans-shipment

problem with

1. (m+n) sources and (m+ n) destinations

2. (m+n-1) sources and equal number of destinations
3. (m-n) sources and (m-n) destinations
4. (m+n-2) sources and (m+n-2) destinations

Answer (Detailed Solution Below)

Option 1 : (m+n) sources and (m+ n) destinations

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Operations Management Question 11

The following statements relate to decision tree analysis. Choose the correct code for
the statements being correct or incorrect.

Statement I: A decision tree contains the probabilities of outcomes and the

conditional monetary values attached to those outcomes.

Statement II : In a decision tree, 'nodes' at the left represent actions that occur before
nodes that fall farther to the right.

1. Both the statements I and II are correct.

2. Both the statements I and II are incorrect.
3. Statement II is correct, but I is incorrect.
4. Statement I is correct, but II is incorrect.

Answer (Detailed Solution Below)

Option 1 : Both the statements I and II are correct.

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Operations Management Question 12

Arrange the operations in production planning and control in correct sequence :

(i) Routing

(ii) Dispatching

(iii) Follow up

(iv) Scheduling

Choose the correct answer from the code given below:

1. (ii), (iv), (iii), (i)

2. (i), (iv), (ii), (iii)
3. (iv), (i), (iii), (ii)
 4. (i), (iv), (iiI), (ii),

Answer (Detailed Solution Below)

Option 2 : (i), (iv), (ii), (iii)

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Operations Management Question 13

Download Solution PDF

Identify the correct combination of properties of point estimates form the options given
below:

(a) Efficiency

(b) Consistency

(c) Adequacy

(d) Unbiasedness

Choose correct option:

1. (a), (b) and (c)

2. (b), (c) and (d)
3. (a), (c) and (d)
4. (a), (b) and (d)

Answer (Detailed Solution Below)

Option 4 : (a), (b) and (d)

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Operations Management Question 14

The situation of simultaneous satisfaction of row minima and column minima rule is
termed as

1. Unboundedness
2. Infeasibility
3. Degeneracy
 4. Post-optimality analysis

Answer (Detailed Solution Below)

Option 3 : Degeneracy

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Operations Management Question 15

Match List I with List II

List I List II
Rule of determining
the order in which
Markovian
A. I. members of the
property
queue are selected to
begin service
The time of next
arrival is completely
Waiting time in
B. II. uninfluenced by when
system
the last arrival
occurred
The queueing is in
after operating for
Steady state
C. III. some time with a
condition
fixed utilisation factor
less than one
Elapsed time that an
individual customer
D. Queue discipline IV. spends in queue, both
before service and
during service

Choose the correct answer from the options given below:

1. A - II, B - I, C - III, D - IV
2. A - II, B - I, C - III, D - IV
3. A - II, B - IV, C - III, D - I
4. A - III, B - IV, C - II, D - I
Answer (Detailed Solution Below)

Option 3 : A - II, B - IV, C - III, D - I

1. OPERATIONS MANAGEMENT is concerned with the transformation of ‘inputs’ into

‘outputs’ that meet the needs of the customer.

1.
A. False
B. True

2. Operations management refers to the activities required to produce and deliver a

product or a service.

1.
A. True
B. False

3. Operation management includes:

1.
A. Purchasing
B. Warehousing
C. Transportation
D. All of the above

4. At its simplest, operations management tries to ensure that organizations are run
as efficiently as possible.

1.
A. Correct
B. Incorrect

5. An organization can achieve significant competitive advantage over its rivals

through superior operating capabilities of its resources, examples include:

1.
A. Assets
B. Work force skills
C. Supplier relationships
D. All of the above
6. The objectives for operations should be consistent with the perceived requirements
of customers. Suggest suitable performance objectives in following situations.

1.
• When customers want a low-priced product.
A. The performance objectives in operational strategy should focus
mainly on reducing costs and producing a low-cost output
B. The performance objectives in operational strategy should focus on
achieving the required quality standards
C. The operational objective should be to set targets for reliability
D. All of the above
• When customers want a product or service with certain quality characteristics and
willing to pay more for better quality.
A. The operational objective should be to set targets for reliability
B. The performance objectives in operational strategy should focus on
achieving the required quality standards, with costs in certain limits
C. The operational objective should be to achieve sufficient flexibility to
handle the variations in customer requirements.
D. None

•
• When customers want fast delivery of a product or service.

1.
1.
A. The operational performance objective will concentrate on speed of
operations.
B. The performance objective will be making the product or service more
readily available.
C. Either A or B
D. None

•
• When customers want reliability.

1.
1.
1. The performance objective should be to set targets for reliability and
ensure that these are met.
2. The performance objectives in operational strategy should focus on
achieving the required quality standards
3. The performance objectives in operational strategy should focus mainly
on reducing costs and producing a low-cost output
4. None
 •
• When customers want products or services to be designed to their own
specification.

1.
1.
A. The performance objectives in operational strategy should focus mainly
on reducing costs and producing a low-cost output.
B. The performance objectives must be to achieve sufficient flexibility
to handle the variations in customer requirements, and provide
differing products/service accordingly.
C. Either A or B
D. None

•
• When customers want to alter the timing or delivery of services they receive.

1.
1.
A. The performance objectives in operational strategy should focus on
achieving the required quality standards
B. The performance objectives in operational strategy should focus mainly
on reducing costs and producing a low-cost output
C. The main operational objective will be flexibility.
D. None

7. Identify the parts, as suggested by Mintzberg, that an organization is made of.

1.
A. Operational core and Strategic apex
B. Techno structure, middle line, Support staff
C. Neither of above
D. All of the above

8. ‘Operations’ is the term covering the central core of the organization. This central
core is known as the ‘operating core’ and refers to those individuals who perform
the task of rendering the product or service.

1.
A. The above statement is correct
B. The above statement is incorrect

9. Middle line – the hierarchy linking the strategic apex to the operating core. Usually
comprises first line supervisors up to senior managers.
1.
A. False
B. True

10. Strategic Apex –:

1.
A. Formulates and implements strategy – and if applicable links the
organization to those who own or control it.
B. Co-ordinates work through standardizing processes, outputs and skills, e.g. HR
managers includes expert advice, research and work study.
C. Provide services and assistance outside the work flow, e.g. catering, cleaning, PR.
D. None

11. Technostructure –:

1.
A. Formulates and implements strategy – and if applicable links the organization to
those who own or control it.
B. Co-ordinates work through standardizing processes, outputs and skills, e.g.
HR managers includes expert advice, research and work study.
C. Provide services and assistance outside the work flow, e.g. catering, cleaning, PR.
D. None

12. Support staff –:

1.
A. Formulates and implements strategy – and if applicable links the organization to
those who own or control it.
B. Co-ordinates work through standardizing processes, outputs and skills, e.g. HR
managers includes expert advice, research and work study.
C. Provide services and assistance outside the work flow, e.g. catering,
cleaning, PR.
D. None

13. The transformation process could be:

1.
A. A physical transformation
B. A change in nature or form (for example, a transformation of data into
information),
C. A change in location, a change in ownership, or, in the case of customers, a
psychological change (e.g. giving enjoyment)
D. All of the above
14. Inputs to the transformation process can be categorized as:

1.
A. Transformed resources
B. Transforming resources
C. Either A or B
D. None

15. Transformed resources –:

1.
A. are manipulated and formed into a different condition by the process. These
resources can be materials, information or customers themselves.
B. are the resources that are used to alter the condition of the transformed
resources. These consist of the work force of the organization and facilities such
as buildings, equipment and vehicles.
C. Both A&B
D. None

16. Transforming resources –:

1.
A. are manipulated and formed into a different condition by the process. These
resources can be materials, information or customers themselves.
B. are the resources that are used to alter the condition of the transformed
resources. These consist of the work force of the organization and facilities
such as buildings, equipment and vehicles.
C. Both A&B
D. None

17. Four Vs is a method of analyzing the differences between transformational

processes.

1.
A. True
B. False

18. The four Vs are –:

1.
A. Volume, variety
B. Variation in demand and visibility
C. Both A&B
D. None
19. VALUE CHAIN – ‘Sequence of business activities by which, in the perspective of the
end-user, value is added to the products or services produced by an entity.’

1.
A. True
B. False

20. Primary activities are those directly related with production, sales, marketing,
delivery and services.

1.
A. False
B. True

21. Porter identified primary activities as:

1.
I. Inbound logistics – are those activities involved with receiving, handling and
storing inputs to the production system.
II. Operations – are those activities which convert resource inputs into a final
product. In a manufacturing business, this is relatively easy to identify as the
factory. In a service company, operations include those activities which make up
the basic service.
III. Outbound logistics – are those activities relating to storing the product and its
distribution to customers.
IV. Marketing and sales – are those activities that relate to informing customers
about the product, persuading them to buy it, and enabling them to do so.
V. After-sales service – includes activities such as installing products, repairing them
and providing spare parts.
A. All of the above
B. (I) (III) and (V) only
C. (I) (III) only
D. None

22. Support activities are those which provide purchased inputs, human resources,
technology and infrastructural functions to support the primary activities. Support
activities include:

1.
A. Procurement – consists of those activities which acquire the resource inputs to
the primary activities (eg purchase of materials, subcomponents, equipment).
B. Technology development – (in the sense of apparatus, techniques and work
organization). These activities are related to both product design and to
improving processes and/or resource utilization.
 C. Human resource management – is the activities of recruiting, training, developing
and rewarding people.
D. Firm infrastructure – the systems of planning, finance, quality control and
management are activities which Porter believes are crucially important to an
organization’s strategic capability in all primary activities.
E. All of the above

23. There are several different types of production process. Identify the type of
production from the followings.

1.
A. Job method
B. Batch method
C. Flow method
D. All of the above

24. Job method: The complete task is performed by single worker or team. Milestones,
dates and stages of job are clearly defined.

1.
A. The above is correct
B. The above is incorrect

25. Batch method: The task is divided into parts or operations. Each operation is
completed through the whole batch before the next operation is performed. This
method of production results in labour efficiency but entity needs to ensure that
plant is not idle.

1.
A. True
B. False

26. The main objectives of batch method of production are:

1.
A. Specialization
B. High utilization of plant
C. Both A&B
D. None

27. A drawback of batch method might be the ______________ as completed batch

waiting for their turn for the next operation.

1.
 A. Insufficiency of material
B. Danger of significant work in progress
C. Limited resources
D. None

28. In Flow method idle production capacity is controlled and batch queuing is
eliminated.

1.
A. True
B. False

29. In Flow method idle production capacity is controlled as the work on a task at one
stage is completed then it is directly passed to next stage without waiting for the
remaining stock in the batch. In next stage work is started immediately.

1.
A. The above statement is incorrect
B. The above statement is correct

30. Which of the following statement is correct regarding ‘plant maintenance’?

1.
A. Plant maintenance process should be considered early during plant design.
B. Plant maintenance should consider safety rules and environmental protection
requirements.
C. Entity should store and manage maintenance processes and best practices for
reuse in future plants. This data base can then be replicated and shared and new
information should be added to support training.
D. All of the above