1.

The most important objective behind plant layout is

(A) Overall simplification, safety of integration
(B) Economy in space
(C) Maximum travel time in plant
(D) To provide conveniently located shops
2. The correct sequence of operations in the Production Planning and Control process is:
A. Routing – Scheduling – Follow up – Dispatching
B. Scheduling – Follow up – Dispatching – Routing
C. Routing – Scheduling – Dispatching – Follow up
D. Dispatching – Routing – Scheduling – Follow up
3. Which of the following statements is correct?
A) Inspection is the most cost effective way of ensuring quality
B) Inspection separates acceptable from unacceptable products.
C) Inspection provides the management with the information necessary to improve
processes.
D) Inspection determines the root cause of product failures.
E) Inspection always ensures that customers will be satisfied with goods and services
4. Which of the following is true about stable process and capable process?
A) We can make process capability analysis for unstable process
B) Control charting is a process improvement tool and a conformance to specification
tool.
C) Process stability analysis is done by control charts and design specification analysis
can be done with process capability index.
D) Any stable process will be capable
5. If you want to analyze the number of defects in constant size units, which control chart is
more suitable?
A) U- chart C) np - chart
B) P- chart D) C- chart
6. When slack of an activity is negative
(A) It represents a situation where extra resources are available and the completion of
project is not delayed
(B) It represents that a programme falls behind schedule and additional resources are
required to complete the project in time
(C) The activity is critical and any delay in its performance will delay the completion of
whole project

1|Page
 (D) All of the above
7. The standard time for a job is a measure of
(A) Total work content
(B) Base time + relaxation time
(C) Total work content + basic time
(D) Total work content + delay contingency allowance
8. The national debt is approximately $4 trillion. What is the required payment per year to
completely pay off the debt in 20 years, assuming an interest rate of 6%?
A) $315 billion B) $325 billion C) $350 billion D) $415 billion
9. . From the following alternatives which one is not performance measuring Metrix tool
during system performance analysis?
A) Inter arrival time of customers to the system
B) Waiting time of customers in the system
C) Recourse utilization of the system with in the given time
D) Number of customers being served in the system
10. Gantt chart is mostly used for
A. Routing B) Scheduling C) Follow up D) Inspection and quality control
11. Why do ergonomists use task analysis?
A) to gain an understanding of what people do in the jobs they carry out
B) to identify job errors and improve job satisfaction
C) to make jobs more efficient
D) to discover interface issues
12. Total Quality Management put greater emphasis on ______________.
A) Company profitability C) Product quality
B) Customer satisfaction D) Employee training
13. ____________________ involves the prediction of the failure before it occurs,
identifying the root cause for those failures symptoms and eliminating those causes before
they result in extensive damage of the equipment.
C) Preventive maintenance C) Predictive Maintenance
D) Running Maintenance D) All of the above
14. Which of the following methods is used to verify the optimality of the current solution of
the transportation problem______________?
A) Least cost method
B) Vogel's Approximation method
C) Row minima method
D) Modified Distribution method

2|Page
15. Service time in queuing theory is usually assumed to follow
(A) Normal distribution
(B) Poisson’s distribution
(C) Erlang distribution
(D) Exponential law
16. For finding an optimum solution in transportation problem ______________ method is
used.
A) Simplex B) Big-M C) Modi D) Hungarian
17. __________ or __________ are used to "balance" an assignment or transportation
problem.
A) Destinations; sources
B) Units supplied; units demanded
C) Dummy rows; dummy columns
D) Large cost coefficients; small cost coefficients
E) Artificial cells; degenerate cells
18. Time study is used to
(A) Determine standard costs
(B) Determine the number of machines a person may run
(C) Provide a basis for setting piece price or incentive wages
(D) All of the above
19. Which of the following statements concerning acceptance sampling is false?

A) used when testing is expensive

B) used when testing is time consuming
C) Can be used when lots are heterogeneous
D) None of the above.

20. A garment manufacturing company currently produces trouser for men and women’s, but
research and development team share their idea to produce kid’s wear besides to the
previous product. In order to produce kid’s wear, the company asked them to know the
previous five years demand of the product and R&D team starts to gather the historical
demand from Ethiopian revenue and custom authority as follow.

Year 2005 2006 2007 2008 2009

(EC)
Demand 1,204,921 1,542,247, 1,715,878 1,767,069 2,213,702
The company asks you to forecast the demand for 2012 EC using simple average forecasting
approach. How much demand is expected for 2012 EC? (Hint: use 2 period moving average)

3|Page
 A) 1,990,386 units C) 2,102,044 units
B) 2,046,215 units D) 2,205,456 units

21. Simulation modeling can be used:

A) as an analysis tool for predicting the effect of changes to existing systems
B) as a design tool to predict the performance of new systems
C) as an analysis tool for predicting the performance of newly designed system
D) A and B are right answers
22. Hungarian Method is used to solve
A) A transportation problem
B) A travelling salesman problem
C) A LP problem
D) Both a & b
23. Ethical and environmentally friendly processes include which of the following?
A) emission controls
B) reduction of waste by-products
C) efficient use of resources
D) recycling E) all of the above
24. Costs, quality, and human resource decisions interact strongly with the _______ decision.
A) layout design
B) process and capacity design
C) supply chain management
D) goods and service design
E) All of the above are correct.
25. Which alternative shows the six sigma stages correctly?
A) Plan-Do-Check-Act C) List-Plan-Organize-Act
B) Define-Measure-Analyse-Improve-Control D) Define-Plan-Control Implement
26. Which of the following is not a current trend in operations management?
A) just-in-time performance
B) global focus
C) supply chain partnering
D) mass customization
E) All of the above are current trends.
27. A key element in a market economy between similar businesses is

A) Competition C) Low prices B) Service D) Exporting

28. Which of the following statements concerning acceptance sampling is false?

4|Page
 A) used when testing is expensive
B) used when testing is time consuming
C) can be used when lots are heterogeneous
D) None of the above.
29. All of the following are the benefit the analysts gain from simulation modelling except--?

A) save money and time D) Eliminating uncertainties

B) Visualization E) None
C) insight into dynamics
30. The basic definition of Ergonomics in the working station is /is?
A) Using relaxed posture
B) Fitting the employee to the workstation
C) Fitting the workstation to the employee
D) B and C
31. ________ is the probability that an item performs its intended task without failure.
A) Functionality C) Reliability
B) Durability D) operationally

32. In A – B – C control policy maximum attention is given to

A) those items which consumes low money
B) proper quality assurance programs
C) those items which are in more demand
D) those items which consumes more money

33. The average arrival rate in a single server queuing system is 10 customers per hour and
average service rate is 15 customers per hour. The average time that a customer must wait
before it is taken up for service shall be ______________minutes.
A) 6 C) 10
B) 8 D) 12
34. “Process of planning, implementing and controlling the efficient, cost-effective flow of
raw materials, in-process inventory, finished goods and related information from the point
of consumption to the point of origin for the purpose of recapturing value or proper
disposal”
A) Logistics C) Forward logistics
B) Supply chain D) Reveres logistics

5|Page
35. _________ is the process by which a company structures and manages the supply chain in
order to identify the right balance between inventory, transportation, and manufacturing
cost.
A) Supply chain C) Logistics
B) Supply Chain Design D) None
36. Which of the following is usually not one of the top considerations in choosing a country
for a facility location?
A) availability of labor and labor productivity
B) exchange rates
C) attitude of governmental units
D) zoning regulations
37. Which of the following is not a typical service attribute?
A) intangible product
B) easy to store
C) customer interaction is high
D) simultaneous production and consumption
E) difficult to resell
38. The recent trend in the Production/Operations management which suggests the use of
minimal amount of resources to produce a high volume of high quality goods with some
variety is referred to as:
A. SCM
B. TQM
C. Lean Production
D. Just-In-Time
39. Which decision activity/s can be performed in medium period (3 months to 1 year) time
horizon demand forecasting type?
A. Inventory management
B. Facility location
C. Staff planning
D. Capacity planning
40. The collection of variables necessary to describe the system at any time, relative to the
objectives of the study________?
A) Entity B) Activity C) Attribute D) State

6|Page