PRODUCTION, PLANNING & CONTROL

Final Exam Probability Questions

Que1: Your organization wants to implement a JIT system. Your company is situated in a crowded city. You are of the
opinion that it is difficult to go for JIT philosophy in existing circumstances Your top management questions you why it is
not possible?
(i) Your suppliers are not capable of supplying the material in small quantities with high frequency. The
transportation cost will go up
(ii) Transportation vehicles are not in a good condition. Drivers of the truck are not trustworthy. They are not
committed to the job. Traffic conditions are hopeless. So guarantee cannot be given about their arrival time. If
they come late our production will stop which is not advisable
(iii) Store department will be overloaded because of continuously vehicles will be arriving
(iv) Frequent purchase orders will keep the purchase officer on the toe. A little forgetfulness will affect the
production severely
Que2: You are a purchase manager. You ask your subordinates to keep following up with suppliers to ensure timely
delivery. Your subordinate questions you what is the need for a follow-up? I have given him the required data and he has
given me the word/ delivery date. That's all. What will be your reply?
(i) You need to be in touch with the supplier. Check the progress of the activity. Is he lagging behind? In what
way you can support him to meet the deadlines. Does he require
(ii) You can get a feel of progress and if it is not up to the mark then you can look for another supplier
(iii) If he is delaying the delivery then warn him that a certain amount will be deducted from his pay cheque. So
under this threat supplier will complete the job in a timely manner
(iv) It is better to keep in touch with the supplier that develops the relationship which will help in collaboration
Que3: You are a General Manager of a manufacturing unit. You want to introduce Quality circle and Kaizen philosophy
in your company to improve the quality. Your colleagues are reluctant to implement it. They have fear during quality
circle meetings production time will be lost and workers will do time pass. It will be fruitless activity. You need to
convince them. What will be your approach?
(i) You explain, there is a lot of talent in our workmen and employees. This will be a good outlet to express
themselves. Employee participation will be helpful in the implementation of TQM. The overall atmosphere
will be friendly. We will give a reward also for the best suggestion. So there will be healthy competition
among workmen. The reward will motivate the employees
(ii) During meetings of the Quality circle, we will provide a cup of tea so a friendlier atmosphere will be created.
Employees will have active participation
(iii) It will be a refreshing session/time for the workmen so after the meeting is over they will be positively
charged and they will be committed to the job
(iv) We will mention about reward system. So it will serve as a carrot for the workmen and they will give
maximum suggestions which will be helpful to the management
Que4: To control the inventory cost of high cost items which inventory control system is useful?
(i) VED analysis
(ii) Economic Order quantity
(iii) Periodic review system
(iv) ABC Analysis
Que5: Which one of the following is not an objective of production management?
(i) To maintain quality
(ii) To maintain efficiency
(iii) To ensure cost maximization
(iv) To ensure optimum utilization of resources
Que6: Which of the following is not a reason for carrying the inventory?
(i) To maintain independence of operations
(ii) To take advantage of economic purchase order size
(iii) To make the system less productive
(iv) To meet variation in product demand

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Que7: What are the two key dimensions of the planning horizon?
(i) Time & Cost
(ii) Sales revenue and output produced
(iii) Productivity and cost
(iv) Cost and man hours
Que8: In today's cutthroat business and tough competition, companies are going for value analysis of the product what are
all the factors considered for value analysis?
(i) The technique is valuable for businesses since it helps reduce costs and improve the quality of products.
Besides, it enables a company to increase business efficiency and effectiveness of all processes involved.
(ii) The features which are not helpful for the customers you can delete those features and increase the profit
(iii) The activity on the production shop floor which does not add any value to the product needs to be deleted.
Which will subsequently increase the profit of the company
(iv) You call the employees and take their opinion about value-adding and non value-adding activity in the
organization
Que9: There is a complaint from a retailer that the goods sold by him the replenishment are not taking place in a timely
manner. So sometimes when the customers are coming to buy a product he does not have a stock to show. So the
opportunity of selling the product is lost. You are head of logistics department. What will you do?
(i) Send a sales representative and collect the data of the number of goods sold and what is the requirement of the
retailer
(ii) At a fixed time tell a retailer to make a phone call and give the requirement
(iii) Decide for either P type or Q type of inventory system and do the replenishment
(iv) Install an ERP system. Provide connectivity through EDI. So that the Point of Sale data can be captured.
Accordingly, replenishment on daily basis is possible
Que10: Which department is having an interface with the market and manufacturing unit?
(i) Sales Department
(ii) Production Department
(iii) Marketing Department
(iv) Planning Department
Que11: What is a finite capacity plan that operates within certain constraints?
(i) Resource requirement planning
(ii) Master production scheduling
(iii) Rough cut capacity planning
(iv) Capacity requirement planning
Que12: Which is not an inventory?
(i) Raw Material
(ii) Purchase parts
(iii) Semi finished assemblies
(iv) Machinery
Que13: A particular quantity to be produced but do the organization has capacity to do so? Which department is
responsible for assessing it?
(i) Production Department
(ii) Planning Department
(iii) Purchase Department
(iv) Plant engineering/ maintenance department
Que14: Which of the following does not have impact on Inventory management?
(i) Product Type
(ii) Lead Time
(iii) Machining Cost
(iv) Product Cost
Que15: Which quality management charts ranks defects the order of frequency of occurrence and is based on 80 - 20
principle?
(i) Pareto Diagram
(ii) Control Chart
(iii) Histogram
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(iv) Cause & Effect diagram
Que16: What is not a short term step for capacity management?
(i) Overtime
(ii) CRP
(iii) Hiring part of time workers
(iv) Self service
Que17: Which part is not a part of the total cost of inventory?
(i) Ordering cost
(ii) Machining cost
(iii) Holding cost
(iv) Shortage cost
Que18: Which factor is considered during infinite loading?
(i) Number of machines
(ii) Shifts per day
(iii) Working hour per shift
(iv) Due date of work order
Que19: Which one of the following is not a benefit of Production planning and control system?
(i) More rush order
(ii) More cost of production
(iii) Lower capital investment
(iv) Better Inventory Control
Que20: What is the method for solving assignment problems called?
(i) MODI method
(ii) Vogel’s approximation method
(iii) Hungarian method
(iv) Reduced matrix method
Que21: Which is a measure of variability?
(i) Mean
(ii) Mode
(iii) Skeward distribution
(iv) Standard deviation
Que22: You are a team leader of MNC. You have been assigned a job to find out an appropriate location for the car
manufacturing industry in India. You have the entire India in front of you. What will be the criteria applied for the
selection of location?
(i) Manpower is cheaply available. Community is acceptable
(ii) Seaport and airport is nearby and infrastructure is good
(iii) Management colleges are in the city
(iv) The cost of the land is less. So the initial investment will be less / minimum
Que23: Which of the following is not a principle of TQM?
(i) Management commitment
(ii) Employee detention
(iii) Systematic approach
(iv) Communications
Que24: Which one of the following is not a qualitative method?
(i) Jury method
(ii) Expert opinion
(iii) Moving average
(iv) Sales force component method
Que25: If input decreases while output remains constant, what will happen to productivity?
(i) It will increase
(ii) It will decrease
(iii) It will remain same
(iv) Difficult to tell

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Chapter 01: Production Management Quiz1
Que1: The term quality refers to?
(i) Controlling the intangible output
(ii) Reducing defects in process
(iii) Finding out causes of incidence
(iv) Utilizing raw material in effective and efficient manner
Que2: Which of the following is an example of production management?
(i) Tracking resources used in process
(ii) Preparing the feasibility report of the project
(iii) Ensuring the report is generated properly
(iv) None of these
Que3: Earliest evidence of production and operations management found in?
(i) 20th Century
(ii) 18th Century
(iii) 16th Century
(iv) None of these
Que4: ISO 9000, SIX SIGMA & ISI marks are?
(i) Compliance to quality concepts
(ii) Adherence to quality standards
(iii) Quality Standards
(iv) All of these
Que5: Which of the following is an example of a production process?
(i) Career bringing vegetables from the market
(ii) Caterers cooking for guests
(iii) Caterers making arrangements for the party
(iv) None of these
Que6: A highly customized expensive car is an example of ___?
(i) Batch Production
(ii) Mass Production
(iii) Process Production
(iv) Unit Production
Que7: Which of the following is an important factor in selecting plant location?
(i) Availability of Labour
(ii) Cost of the plant
(iii) Environment Issue
(iv) All of these
Que8: Which of the following is the oldest and popular manufacturing system?
(i) Custom manufacturing system
(ii) Continuous manufacturing system
(iii) Intermittent production system
(iv) Flexible manufacturing system
Que9: Which one of the following is not an objective of production management?
(i) To maintain quality
(ii) To maintain efficiency
(iii) To ensure cost maximization
(iv) To ensure optimum utilization of resources
Que10: Which one of the following is not an example of a production process?
(i) Electricity generations
(ii) Banking Services
(iii) Manufacturing of auto components
(iv) None of these

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Chapter 02: Basics of Production, Planning & Control Quiz: 2
Que1: Which one of the following is not a benefit of the Production planning and control system?
(i) More rush orders
(ii) More cost of production
(iii) Lower capital investment
(iv) Better inventory control
Que2: What does the routine function do in production planning and control?
(i) Decide the qty. and budget of products to be produced
(ii) Assign the orders of operations
(iii) Issue orders or instructions to start production activities
(iv) Determine the production schedule and job charts
Que3: What is the function of expediting department in the production control system?
(i) Release production orders and instructions to workforce
(ii) Implement the production plan
(iii) Oversee the movement of workers and machine within the factory premises
(iv) Take care of material management and control function
Que4: What are the two key dimensions of the planning horizon?
(i) Time & Cost
(ii) Sales revenue and output produced
(iii) Productivity and cost
(iv) Cost and manhours
Que5: Which element of production control is used to control the movement, storage, and handling of material and
product throughout the production process?
(i) Control of activity
(ii) Control of material
(iii) Control of planning
(iv) Control of material handling
Que6: In ________ process in production planning and control system will help the managers to compare actual versus
production performance with desired performance and identify gaps?
(i) Output Reporting
(ii) Performance Reporting
(iii) Progress Reporting
(iv) Status reporting
Que7: Grievance handling comes under _______ function of production control?
(i) Planning
(ii) Control function
(iii) Prior Planning
(iv) Performance
Que8: Move order is used to dispatch to handle the major movement of material?
(i) True
(ii) False
Que9: If expediting fails to address deviation, then it is essential to pre-plan the entire production?
(i) True
(ii) False
Que10: The ______ help the production manager address variance between current production performance and desired
production performance level?
(i) Production Output
(ii) Production Control
(iii) Production Planned
(iv) Production Status

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Chapter 03: Work Study Quiz: 3
Que1: Which of the following techniques used for measuring work?
(i) Time study
(ii) Work sampling
(iii) Pre determined time and motion study
(iv) All of these
Que2: It is a chart where activities of more than one subject (worker or equipment) are each recorded on a common time
scale to show their interrelationship?
(i) Single activity chart
(ii) Multi activity chart
(iii) Charting
(iv) None of these
Que3: The _____ systematic recording and critical examination of existing and proposed ways of doing work as a means
of developing new methods?
(i) Method study
(ii) Time booking
(iii) Time study
(iv) None of these
Que4: The ___ involves systematically recording, analyzing, synthesizing the times required to perform a motion?
(i) Method study
(ii) Motion study
(iii) Time study
(iv) All of these
Que5: If input decreases while output remains constant, what will happen to productivity?
(i) It will increase
(ii) It will decrease
(iii) It will remain same
(iv) Difficult to tell
Que6: A flow process chart is also known as an assembly process chart?
(i) True
(ii) False
Que7: Standard performance is defined as the rate of output that a skilled worker will attain as an average output in a
working day?
(i) True
(ii) False
Que8: The questioning technique comprises of?
(i) Primary Question
(ii) Secondary Question
(iii) Both a and b
(iv) None of these
Que9: Which of the following is not an objective of method study?
(i) To reduce extreme movement of material
(ii) To ensure optimum utilization of resources
(iii) To reduce ineffective operations and unbalanced workforce
(iv) To fix a standard time of a activity
Que10: Which of the following is not an objective of work-study?
(i) Work study helps in gaining a skilled workforce
(ii) Work study helps in keeping the check on optimum utilization of resources
(iii) It identifies the definite method of work
(iv) Work study helps in setting a standard time for performing an activity

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Chapter 04: Forecasting Quiz: 4
Que1: The _______ forecast predicts the technology to be used to meet current production needs and needs for technology
up-gradation in future?
(i) Technology
(ii) Business
(iii) Production
(iv) Sales
Que2: Which one of the following is not a Qualitative Method?
(i) Jury Method
(ii) Expert Opinion
(iii) Moving average
(iv) Sales force component method
Que3: The measure of forecast error which calculates the average square of the forecast errors is known as ______?
(i) Mean square error
(ii) Mean absolute error
(iii) Mean absolute percentage error
(iv) None of these
Que4: The measure of forecast error which calculates the average of absolute forecast errors as a percentage of the actual
demand is known as _____?
(i) Mean absolute deviation
(ii) Mean square error
(iii) Mean absolute percentage error
(iv) Mean error
Que5: What is the measure of forecast error which calculates average forecast error over N time period is known as ___?
(i) Mean error
(ii) Mean absolute deviation
(iii) Mean absolute percentage error
(iv) Mean square error
Que6: Which one of the following is not a step to help an organization perform effective forecasting?
(i) Understand the objective of effective forecasting
(ii) Integrate demand planning and forecasting throughout the supply chain
(iii) Identify and understand customer segment
(iv) Identify and understand supplier requirements
Que7: Forecasting forms the basis of both long term strategy and short term strategy formulation?
(i) True
(ii) False
Que8: Forecasting methodology can be ranked by accuracy, cost, and timing?
(i) True
(ii) False
Que9: Which of the following is the first step in demand forecasting?
(i) Deciding what to forecast
(ii) Setting the forecasting objectives
(iii) Estimating the time frame
(iv) Selecting the method of forecasting
Que10: Which of the following is the possible reason for forecasting error?
(i) Mistakes in calculating mathematical techniques
(ii) Room for human judgments
(iii) Wrong data entry or incorrect procedure of data collection
(iv) All of these

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Chapter 05: Inventory Management Quiz: 5
Que1: The cost of insurance and taxes are included in ________?
(i) Cost of ordering
(ii) Set up Cost
(iii) Inventory carrying cost
(iv) Cost of shortage
Que2: The time period between placing the order and receipt in stock is known as _________?
(i) Carrying Cost
(ii) Lead Time
(iii) Short Time
(iv) Overtime
Que3: Which of the following is not a reason for carrying the inventory?
(i) To maintain independence of operations
(ii) To take advantage of economic purchase order size
(iii) To make the system less productive
(iv) To meet variation in product demand
Que4: Inventory management consists of ________?
(i) Effective running of stores
(ii) State of merchandise methods
(iii) State of merchandise methods of stocks and maintenance
(iv) All of these
Que5: Set up cost is also known as _____?
(i) Holding Cost
(ii) Ordering Cost
(iii) Shortage Cost
(iv) None of these
Que6: Shortage cost is also known as stock out the cost?
(i) True
(ii) False
Que7: It is advisable to keep the raw material inventory as low as possible in order to avoid the blockage of money
unnecessarily?
(i) True
(ii) False
Que8: Which of the following is an objective of inventory management?
(i) To estimate cost of holding inventory
(ii) To estimate the cost of re ordering inventory
(iii) To estimate, storage cost, service cost, risk cost, capital cost
(iv) All of these
Que9: Which of the following does not have an impact on Inventory management?
(i) Product Type
(ii) Lead Time
(iii) Machining Cost
(iv) Product Cost
Que10: Which of the following is a motive for holding inventory in detail?
(i) Transaction Motive
(ii) Precautionary Motive
(iii) Speculative Motive
(iv) All of these

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Chapter 06: Inventory Control System Quiz: 6
Que1: What is not the use of storing inventory?
(i) Economics of scale
(ii) Maximization of item cost
(iii) Precautions against uncertainty of demand and supply
(iv) Hedge against inflation
Que2: What are the two most important points considered by the inventory control system?
(i) How much to order and cost of order
(ii) When to order and how much to order
(iii) When to order and cost of order
(iv) How much to order and whom to order
Que3: Which is not an inventory?
(i) Raw material
(ii) Purchased parts
(iii) Semi finished parts
(iv) Machinery
Que4: Which part is not a part of the total cost of inventory?
(i) Ordering cost
(ii) Machining cost
(iii) Holding cost
(iv) Shortage cost
Que5: What is not an input of MRP?
(i) Planned lead time
(ii) Bill of material
(iii) Planned order release
(iv) Inventory status
Que6: The process of ensuring whether an organization can manufacture the required products within a given period of
time is called ______?
(i) Product management
(ii) Demand management
(iii) Capacity management
(iv) Material requirement management
Que7: What is not a short-term step for capacity management?
(i) Overtime
(ii) CRP
(iii) Hiring part time workers
(iv) Self service
Que8: The process of organizing continuous value stream is called _______?
(i) Flow
(ii) Pull
(iii) Value
(iv) Value stream
Que9: Which of the following is the primary output of MRP?
(i) Change
(ii) Performance control report
(iii) Planning report
(iv) Exception report
Que10: The benefits of an effective and planned inventory control system are ________?
(i) Accurate demand estimate
(ii) Optimum use of financial resources
(iii) Timely and necessary supply provision
(iv) All of these

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Midterm Quiz from Chapter 01 to Chapter 06
Que1: You are a team leader of MNC. You have been assigned a job to find out an appropriate location for the car
manufacturing industry in India. You have the entire India in front of you. What will be the criteria applied for the
selection of location?
(i) Manpower is cheaply available. Community is acceptable
(ii) Seaport and airport is nearby and infrastructure is good
(iii) Management colleges are in the city
(iv) The cost of the land is less. So the initial investment will be less / minimum
Que2: You are a production manager. The raw material is getting converted into finished products. You are monitoring
the process on a continuous basis. Your colleague asks you the reason for monitoring the process. What will you answer?
(i) I want to ensure the production target/quantity is achieved
(ii) If there is a shortfall in the quantity I will deploy more manpower to ensure the target has been achieved
(iii) I want to ensure the quantity and quality both are achieved with the sanctioned manpower and predetermined
consumption of material only
(iv) By achieving the company's target and please top management and elevate my image in the organization
Que3: Your organization is in the process of launching a new product in the market. You insist that there should be design
review meetings with all departments once in three weeks. The design manager asks you why it is necessary, let me
complete the design, and then I will show it to all. You have a different opinion?
(i) Let all the department managers understand the status of the new product
(ii) To bring the sales & design departments on a common platform to check whether the requirements of the
sales department, are incorporated in the design or not
(iii) Production manager will calculate required man power so as to streamline the production
(iv) Store manager will get idea the floor space required for him to keep the material
Que4: The break-even analysis is required to be calculated at the beginning of the new product launching process since?
(i) How many units are required to sell so as to achieve a no-profit / no loss situation? Initial investments in
designing a new product, buying machinery, etc. will be recovered
(ii) To check how the new product is affecting the balance sheet of the company
(iii) Management gets the idea how much percentage in salary rise can be given to employees
(iv) For cost-cutting, the necessary steps can be taken by management
Que5: You are a production manager. You notice that the efficiency of the workmen on the shop floor is going down. He
calls his colleagues of the production department to discuss and sort out the issue?
(i) There is a need to compel the worker to work faster to improve the efficiency
(ii) Take the help of the Industrial engineering department and check the work involved in the job and the method
used by the workman is right or not. Improve the process
(iii) Buy a sophisticated computerized machine/robot so the human element will not be there and obviously the
efficiency will improve
(iv) Recruit skilled manpower and improve the efficiency
Que6: You are the CEO of an organization. In your organization, finished goods inventory is sky-high. Your colleagues in
senior management advise you to give layoff/holidays for 3 months. You ponder the question/suggestion?
(i) Three-month holidays will send a misleading word in the market. But a substantial amount of money will be
saved. So some recovery can be achieved
(ii) The morale of employees will go down so some of them will resign. So automatically manpower reduction /
cut down in expenses can be achieved
(iii) You can negotiate with the union and convince them layoff at half salary rate + there will be saving of factory
running expenses
(iv) You care for your people. You do not want employees to suffer. So you put them on quality circle / Kaizen
activity. Carry out a 5S activity. Arrange training programs for all level employees. And talk to them about a
temporary phase that will boost their morale.

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Que7: Economic order quantity is powerful to optimize the inventory from a quantity and cost point of view. Due to some
constraints, it is difficult to implement since?
(i) It adds the burden on the store department for continuously loading/unloading the material
(ii) The inspection department is very busy checking the material continuously as it is coming in small lots
(iii) Maybe the demand is not stable. There will be changes in the price structure. Economic quantity may not be
available in standard packing in the market. The price of transportation is changing. So difficult to implement
EOQ
(iv) The purchase department is busy in generating purchase order on regular basis
Que8: To improve the efficiency and productivity on the shop floor general manager advises to take the help and carry out
work measurement on production shop because?
(i) Work measurement is the application of techniques designed to establish the time taken by a qualified
workman at a defined level of performance
(ii) Work measurement tells you what is the total work content involved in producing
(iii) While doing the work-study you can assess the better method of doing the work
(iv) Work-study gives the guidelines to workman how to achieve the desired quality of the product
Que9: You are appointed as a General Manager of a company which is not doing a good business. What will be your
approach to improve the situation?
(i) Check the various expenses of the organization and try to reduce them so some percentage of the losses will
be minimized
(ii) Talk to senior staff of the company and find out the data regarding sales and company's market share,
production cost, material cost, the status of new product in the design stage, resources of the company, total
salary expenses on all employees, customer's satisfaction/dissatisfaction reasons
(iii) Inventory in stores and available areas of the store.
(iv) Finished goods inventory and reasons for piling of the inventory. Amount of money blocked in finished goods
inventory
Que10: You have joined a company which is not doing well. After joining you notice that sales orders are there but the
manufacturing unit is unable to fulfill requirements. After joining you realize that a lot of inventory is there. Jobs are
pending. The required material is not there. Overtime is done. So it is an additional expense?
(i) The suggestion is to stop the overtime which will cut down the expenses. So some recovery from the losses
can be achieved
(ii) Study the required manpower and remove additional manpower so a reduction in expenses can be achieved
(iii) Ask the senior managers to prepare B.O.M. Give instructions to the purchasing department to study/discuss
lead time with suppliers. Study the standard time to manufacture a product. Retain the manpower as per the
standard time only. Purchase the material as per B.O.M. only
(iv) Ask the H.R. manager to identify nasty workmen and suspend them so cost-cutting can be achieved.
Similarly, the nonperforming management staff is also to be removed so the burden on the pay package will
reduce
Que11: There is a complaint from a retailer that the goods sold by him the replenishment is not taking place in a timely
manner. So sometimes when the customers are coming to buy a product he does not have a stock to show. So the
opportunity of selling the product is lost. You are head of logistics department. What will you do?
(i) Send a sales representative and collect the data of the number of goods sold and what is the requirement of the
retailer
(ii) At a fixed time tell a retailer to make a phone call and give the requirement
(iii) Decide for either P type or Q type of inventory system and do the replenishment
(iv) Install an ERP system. Provide connectivity through EDI. So that the Point of Sale data can be captured.
Accordingly, replenishment on daily basis is possible

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Que12: Your organization wants to implement a JIT system. Your company is situated in a crowded city. You are of the
opinion that it is difficult to go for JIT philosophy in existing circumstances. Your top management questions you why it
is not possible?
(i) Your organization wants to implement a JIT system. Your company is situated in a crowded city. You are of
the opinion that it is difficult to go for JIT philosophy in existing circumstances Your top management
questions you why it is not possible?
(ii) Transportation vehicles are not in a good condition. Drivers of the truck are not trustworthy. They are not
committed to the job. Traffic conditions are hopeless. So a guarantee cannot be given about their arrival time.
If they come late our production will stop which is not advisable
(iii) Store department will be overloaded because of continuously vehicles will be arriving
(iv) Frequent purchase orders will keep the purchase officer on the toe. A little forgetfulness will affect the
production severely
Que13: You are running a chemist's shop. A medical representative offers you a heavy discount if you buy a particular
medicine in large quantity. You are tempted to accept the offer. What precautions do you need to take?
(i) In the same way, you offer discount to customers also and increase the sale and turnover of the shop
(ii) As a CSR activity, you can donate the medicine to old people caretaking institutes and earn some good name
in society
(iii) Check the consumption pattern of that medicine in the last year. Check the expiry date of the medicine. Then
study that during that time medicine will get sold or not and based on this take the decision
(iv) If the medicines do not get sold then as a part of environmental activity contact the medicine manufacturing
pharma company and return it to them
Que14: A trader offers a substantial discount on a variety of products he is selling. As a retailer what should be your
approach when you receive the offer?
(i) Grab the opportunity and buy a large number of products which will fetch me huge profit in future
(ii) Check the sales pattern of an individual product. Study product life cycle and find out in which stage the
product is. Study the cost part of it. Carry out ABC analysis of products and based on all of this take the
buying decision
(iii) Suspect something fishy in the offer, maybe defective pieces, etc. and turn down the offer
(iv) Considering the unnecessary investment in the material inventory, funds getting blocked, buy some quantity
Que15: A builder is providing amenities in his huge construction complex. You come across 3/4 builders offers. Before
finalizing the decision what you will consider?
(i) One builder is giving priority to 24 hrs. water, sewage facility and providing a lift
(ii) The second builder promises to give Swimming tank, gymnasium, club house in another year or so
(iii) The third builder says the entire housing complex will be marked by strong protective walls, CCTV camera,
and development of the site from greenery point of view
(iv) The fourth builder says he will have a playground for children, school up to 10th standard in premises and a
shopping mall

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Chapter 07: Product Planning Quiz: 7
Que1: What is not a level in the agile product planning process?
(i) Idea
(ii) Vision
(iii) Product strategy
(iv) Product tactics
Que2: Which of the following is not a cause of product failure?
(i) Poor design
(ii) Higher than estimated costs of development
(iii) Underestimated market size
(iv) Ineffective marketing
Que3: Which of the following is a primary activity in Porter's Value Chain?
(i) Human resources management
(ii) Procurement
(iii) Control
(iv) Service
Que4: Which secondary activity in Porter's value chain is related to equipment?
(i) Firm infrastructure
(ii) Inbound logistics
(iii) Technology development
(iv) Services
Que5: If a company keeps on piling new features to a product, then the product value will _______?
(i) Decline
(ii) Increase
(iii) Remain stable
(iv) None of these
Que6: Profit rises in ______ stage of a product life cycle?
(i) Maturity
(ii) Introduction
(iii) Growth
(iv) None of these
Que7: Product adaption to different markets is not an advantage of product standardization?
(i) True
(ii) False
Que8: Which company story is a lesson on the disastrous consequences of lack of product planning?
(i) Apple
(ii) Motorola
(iii) Kodak
(iv) IBM
Que9: Which is the first phase of value analysis?
(i) Evaluation
(ii) Information
(iii) Orientation
(iv) Creation
Que10: The continuous process of searching for new product ideas, developing into tangible products, and launching them
in the market is called ___?
(i) Production Planning
(ii) Product Planning
(iii) Product development
(iv) Product concept development

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Chapter 08: Process Planning Quiz: 8
Que1: Routing describes the?
(i) Proper utilization of machines
(ii) Proper utilization of manpower
(iii) Flow of material in the plant
(iv) Inspection of final product
Que2: A flow chart identifies the current status of the process and how it can be improved?
(i) True
(ii) False
Que3: Which of the following is not a step of process analysis?
(i) Identifying the opportunity
(ii) Defining the scope
(iii) Documentation process
(iv) Creating a production schedule
Que4: The correct sequence of operations in production planning and control is?
(i) Scheduling- Routing- Dispatching- Follow up
(ii) Routing- Scheduling- Dispatching- Follow up
(iii) Dispatching- Routing- Scheduling- Follow up
(iv) Routing- Scheduling- Follow up- Dispatching
Que5: Process planning bridges the gap between design and manufacturing?
(i) True
(ii) False
Que6: CAPP has two approaches which are variant and generative?
(i) True
(ii) False
Que7: Which of the following is true for routing?
(i) It is a flow of work in the plant
(ii) Route sheets includes a list of machine tools that are to be followed
(iii) It depends upon material handling facilities
(iv) All of these
Que8: One part of process planning involves selecting the equipment?
(i) True
(ii) False
Que9: In computer-aided process planning, the determination of the process sequence of any part design without pre-
defined standard plans are known as ______?
(i) Variant process type process planning
(ii) Retrieval type process planning
(iii) Generative type process planning
(iv) None of these
Que10: Value stream mapping is also known as time function mapping?
(i) True
(ii) False

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Chapter 09: Production Scheduling Quiz: 9
Que1: Which factor is considered during infinite loading?
(i) Number of machines
(ii) Shifts per day
(iii) Working per shifts
(iv) Due date of work order
Que2: What risk is most likely to happen in infinite loading?
(i) Incorrect priorities assigned to work orders
(ii) Customers are not informed of new due dates in advance
(iii) Important work orders are pushed to a later date
(iv) The production process over runs the estimated period
Que3: A restaurant works under which type of loading?
(i) Finite loading
(ii) Infinite loading
(iii) Assignment loading
(iv) Schedules loading
Que4: What is the method for solving assignment problems called?
(i) MODI Method
(ii) Vogel’s approximation method
(iii) Hungarian method
(iv) Reduced matrix method
Que5: You are loading workers to machines based on cost. What is the purpose of using the Hungarian method?
(i) It increase the saving
(ii) It assigns all activities to single workers
(iii) It adds on workers to which cost can be assigned
(iv) It minimize the cost
Que6: Programming is the first level of production control?
(i) True
(ii) False
Que7: Scheduling is the ______ of manufacturing products at various departments?
(i) Manual
(ii) Diary
(iii) Time table
(iv) Calculator
Que8: Which process is used for manufacturing products against an estimated sales forecast?
(i) Forward scheduling
(ii) Reverse scheduling
(iii) Master scheduling
(iv) Shop floor scheduling
Que9: Forward scheduling helps to determine?
(i) Start date of production
(ii) Total cost of production
(iii) Slack time
(iv) Earliest time of order delivery
Que10: Scheduling maximizes manufacturing cycle time?
(i) True
(ii) False

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Chapter 10: Sequencing and Dispatching Quiz: 10
Que1: Scheduling gives information about?
(i) When work should start and how much work should be completed during a certain period
(ii) When work should complete
(iii) How idle time can be minimized
(iv) Proper utilization of machines
Que2: Which technique of job sequencing is used to help in cash-constrained situations?
(i) Last in First out (LIFO)
(ii) First in First out (FIFO)
(iii) Shortest of time first (SOTF)
(iv) Longest operation time first (LOTF)
Que3: Which scheduling technique should be employed when due dates are important for an order?
(i) Loading
(ii) Dispatching
(iii) Backward scheduling
(iv) Master scheduling
Que4: Which of the following dispatching rules allows easy updates?
(i) First come First Out
(ii) Shortest Processing Time
(iii) Earliest Due Date
(iv) Critical Ratio
Que5: The orders are processed in the sequence in which they arrive if the _______ rule sequences the job?
(i) Earliest due date
(ii) Slack time remaining
(iii) First come first served
(iv) Critical ratio
Que6: The process of prioritizing the jobs is called scheduling?
(i) True
(ii) False
Que7: Which processing and scheduling operation is sharp in contrast of FIFO?
(i) EDD- Earliest due date
(ii) LIFO- Last in First out
(iii) SPT- Shortest processing time
(iv) CR- Centralized ratio
Que8: Which of the following types of dispatching involves the exercise of controls over dispatching function at a single
location?
(i) Decentralized scheduling
(ii) Short term scheduling
(iii) Centralized scheduling
(iv) Long term scheduling
Que9: Flight landing on a runway at the airport is not an example of sequencing?
(i) True
(ii) False
Que10: A dispatcher is responsible for the training of the entire workforce of an organization?
(i) True
(ii) False

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Chapter 11: Word Class Concepts Related to Productivity Management Quiz: 11
Que1: Which of the following is not a principle of TQM?
(i) Management commitment
(ii) Employee detention
(iii) Systematic approach
(iv) Communication
Que2: What do you mean by quality?
(i) Zero defect
(ii) Cost
(iii) Problem
(iv) Requirement specification
Que3: How can you reduce random variation in a process measured by standard deviation?
(i) Increasing the frequency of quality inspection
(ii) Improving the production system
(iii) Using control charts to indentify patterns of variation
(iv) Using Pareto Charts effectively
Que4: Which is a measure of variability?
(i) Mean
(ii) Mode
(iii) Skewed distribution
(iv) Standard deviation
Que5: Which quality management charts rank defects in the order of frequency of occurrence and is based on the 80 - 20
principle?
(i) Pareto diagram
(ii) Control charts
(iii) Histogram
(iv) Cause & Effect diagram
Que6: Which process is followed mostly by quality circles?
(i) Fishbone diagram
(ii) PDCA
(iii) ANOVA
(iv) DMADV
Que7: What is not the value of quality culture?
(i) Customer Focus
(ii) Fact based decision making
(iii) Individual excellence over team work
(iv) Continuous improvement
Que8: Which of the following is an ISO standard for quality management?
(i) ISO 9001
(ii) ISO 14001
(iii) ISO 27000
(iv) ISO 22000
Que9: Which Six Sigma methodology is used for the existing process?
(i) DMADV
(ii) DMAIC
(iii) DFSS
(iv) DIDO
Que10: Which company first introduced the six sigma concept?
(i) IBM
(ii) Motorola
(iii) GE Electricals
(iv) General Motors

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Chapter 12: Recent Trend in Production Planning & Control Quiz: 12
Que1: What is a finite capacity plan that operates within certain constraints?
(i) Resource requirement planning
(ii) Master production scheduling
(iii) Rough cut capacity planning
(iv) Capacity requirement planning
Que2: The file that enables the MRP system to estimate the gross number of component parts to manufacture a finished
product is called ___?
(i) Bill of material
(ii) Master schedule
(iii) Purchase order
(iv) Material life
Que3: The elapsed time between order placement and the product/material delivery is called _____?
(i) Lost time
(ii) Lead time
(iii) Slack time
(iv) Float time
Que4: Orders for items purchased from outside a company are called ____?
(i) External expenses
(ii) Purchase order
(iii) Shop orders
(iv) Sell order
Que5: MRP II system is evolved from?
(i) Machine requirement planning
(ii) Manufacturing requirement planning
(iii) Manpower requirement planning
(iv) Material requirement planning
Que6: This activity of MRP II determines the level of production, staffing, inventory & overtime for a long time. What is
it called?
(i) Inventory planning
(ii) Aggregate planning
(iii) Forecasting
(iv) Resource planning
Que7: MRP II system can be used to perform "what if" analysis?
(i) True
(ii) False
Que8: Among the following computer integrated production planning systems the least integrated are?
(i) MRP II
(ii) ERP
(iii) MRP
(iv) Web Integrated MRP
Que9: Which component of ERP software provides useful insight to enable an organization to make data-driven decision?
(i) SCM
(ii) Engineering/ Production
(iii) CRM
(iv) BI
Que10: Which is the longest phase in the ERP life cycle?
(i) ERP rollout
(ii) Optimization
(iii) Maintenance
(iv) Re- implementation

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End term Quiz from Chapter 07 to Chapter 12
Que1: During the planning phase nowadays it is recommended to use Computer-aided process planning (CAPP). The
benefit of CAPP technology is?
(i) It is efficient. It saves time and money. Planning can be done with minimum human intervention
(ii) Computers are the new thing in the market. To keep yourself updated one must go for it
(iii) It is easy to have interaction with all departments within the organization through computerized systems
(iv) You have a strong technical knowledge staff so communication will be very easy among the employees
Que2: When you want to start a service industry at that time you must have a service blueprint with you before actually
going for it?
(i) Service blueprint gives you a rough idea of how much will be an investment required before starting the
business
(ii) You come to know how much area in totality is available for the business
(iii) You can think of the entry point/exit point of customer. Location of service provider and back-office location
to provide support to front-line employees. You can re-route the process which will be convenient for the
customer
(iv) Capacity planning can be done with the help of a service blueprint
Que3: In a manufacturing unit scheduling is one of the key areas of planning because?
(i) Every day when people go to the manufacturing unit they know what is to be done
(ii) It increases the efficiency and productivity of the workmen
(iii) Material procurement and unloading and issuing it to the production department becomes very easy
(iv) Scheduling is the art of planning your activities so that you can achieve your goals and priorities in the time
you have available. When it's done effectively, it helps the planner to achieve the goal
Que4: You are a design manager in a company. The top management has decided to launch a new product in the market.
Hence they call you and ask you to prepare a road map for that and submit it to management. What will be the important
areas you will focus on?
(i) First of all, there is a need to determine the timeline of the project. Milestones in the project are to be
identified. The product launching date is to be finalized with a discussion with management. Total work
content to be understood and accordingly, Gantt chart is to be prepared
(ii) Share this good news with your department colleagues and tell them it is a time when we need to work hard
and complete the project successfully
(iii) Start thinking about probable project team members in your department
(iv) It is a good opportunity given by management so it is time to work hard and show good results to
management
Que5: If a production planning and giving the product in a timely manner to the sales department, but giving it in a
delayed manner, will result into?
(i) Huge inventory will get piled in the warehouses at a different location
(ii) In the face of inadequate product planning, a company risks losing its customers as it will not be able to meet
their changing needs, preferences, and tastes. Customers will be dissatisfied
(iii) Funds of the organization will get blocked and it will get reflected on the balance sheet at the end of the year
(iv) The products received in a delayed manner need to be stored now. So more space of warehouse is to be taken
on rental basis. It will increase the expenses
Que6: In today's cutthroat business and tough competition, companies are going for value analysis of the product what are
all the factors considered for value analysis?
(i) The technique is valuable for businesses since it helps reduce costs and improve the quality of products.
Besides, it enables a company to increase business efficiency and effectiveness of all processes involved
(ii) The features which are not helpful for the customers you can delete those features and increase the profit
(iii) The activity on the production shop floor which does not add any value to the product needs to be deleted.
Which will subsequently increase the profit of the company
(iv) You call the employees and take their opinion about value-adding and non value-adding activity in the
organization

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 PRODUCTION, PLANNING & CONTROL
Que7: Your Company’s management calls and asks whether we should have a centralized or decentralized dispatching
process. You prefer decentralized dispatches. You need to give reasons for not opting for a centralized dispatching
process?
(i) In a centralized dispatching system, the manager is in the head office is not aware of local requirements
(ii) Centralized management resembles a dictatorial form of leadership where employees are only expected to
deliver results according to what the top executives assign them. There can be delays in the work, a lack of
employee loyalty. Remotely controlled system. It is not favorable
(iii) There is a fear of parts getting misplaced and wrong consignment getting dispatched
(iv) Work is likely to get delayed which will result in losses and customer dissatisfaction
Que8: You are a purchase manager. You ask your subordinates to keep following up with suppliers to ensure timely
delivery. Your subordinate questions you what is the need for a follow-up? I have given him the required data and he has
given me the word/ delivery date. That's all. What will be your reply?
(i) You need to be in touch with the supplier. Check the progress of the activity. Is he lagging behind? In what
way you can support him to meet the deadlines. Does he require additional input in the form of
material/drawing/specification etc? Is there an ambiguity in understanding the drawing/specification etc
(ii) You can get a feel of progress and if it is not up to the mark then you can look for another supplier
(iii) If he is delaying the delivery then warn him that a certain amount will be deducted from his pay Cheque. So
under this threat supplier will complete the job in a timely manner
(iv) It is better to keep in touch with the supplier that develops the relationship which will help in collaboration
Que9: You are a process quality engineer in a manufacturing unit. You notice deviation in the process after plotting the X
bar and R chart. Now you need to bring back the process within specifications?
(i) Pareto analysis is an appropriate way to find out the major reason for the deviation. So corrective action can
be taken
(ii) You will put the problem in the Quality circle forum and allow the technicians to brainstorm on the problem
and get the answer from them
(iii) Display it on the board and let everybody participate and through KAIZEN platform select the best solution to
eliminate the problem
(iv) Draw an Ishikawa diagram (Cause & effect ) find out the root cause for the deviation and take the corrective
action and eliminate the problem
Que10: You are a General Manager of a manufacturing unit. You want to introduce Quality circle and Kaizen philosophy
in your company to improve the quality. Your colleagues are reluctant to implement it. They have fear during quality
circle meetings production time will be lost and workers will do time pass. It will be fruitless activity. You need to
convince them. What will be your approach?
(i) You explain, there is a lot of talent in our workmen and employees. This will be a good outlet to express
themselves. Employee participation will be helpful in the implementation of TQM. The overall atmosphere
will be friendly. We will give a reward also for the best suggestion. So there will be healthy competition
among workmen. The reward will motivate the employees
(ii) During meetings of the Quality circle, we will provide a cup of tea so a friendlier atmosphere will be created.
Employees will have active participation
(iii) It will be a refreshing session/time for the workmen so after the meeting is over they will be positively
charged and they will be committed to the job
(iv) We will mention about reward system. So it will serve as a carrot for the workmen and they will give
maximum suggestions which will be helpful to the management
Que11: You have recruited a new person in the role of a dispatcher. During induction training, you brief him about his
duties and expectations of management from him. Mainly you will focus on which topic?
(i) Dispatching should be done on day to day basis and consignments should reach the destiny in a timely
manner
(ii) He should provide training to his staff. He should maintain a record of the workflow of operations. He should
maintain good relations with buyers and suppliers. He should maintain transparency with stakeholders
(iii) Provide training sessions to the employees in his department. Have job rotation scheme so all will have
thorough knowledge about department's functioning
(iv) Teach them how to make entries in the ERP system and share the data with all concerned departments

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Que12: You are the PPC manager. There is a great demand for a product your company is manufacturing. On a particular
day, there is a shortfall in achieving that day's production target. Vehicles have come to collect the product?
(i) You will advise the production manager to do overtime and meet the target. But he says he cannot afford to
go late in the evening
(ii) Since overtime is costly, the company needs to pay double the amount to workmen doing extra work. So you
will accept the status of the shortfall
(iii) Since vehicles have come and if the company goes not load the products then the company will have to pay
demurrage charges. And there is a demand for the product in the market, you will convince production
manager to work for extra time and take care of the sales department
(iv) You will inform management that the next day morning production will supply the goods and it will save the
company's money in the form of overtime
Que13: Slack time is a frequently used term by top management of a manufacturing unit. What exactly slack time means?
(i) It is an idle time for workmen because the material has not come in a timely manner. Hence it is a no-work
situation
(ii) The sale of the company is down. So top management has taken a decision to cut down the production. So
there is no urgency in completing the job. It is performed leisurely. It is slack time
(iii) Slack time refers to the amount of time for which a project can experience delays beyond the earliest start
date, without affecting project completion by its deadline
(iv) It is a time during the slack period of business
Que14: You are a PPC manager. Top management tells you to prepare a production schedule for the coming six months
based on the sales plan of the business year. What information do you require to prepare MPS?
(i) Available manpower in the company. So you will approach the HR manager to get the information
(ii) Contact purchase department to assess the material situation & capacity of suppliers to provide the required
material
(iii) Machine capacity. So you will approach the production manager to get the machine capacity information
(iv) Approach sales department ask them their requirement from manufacturing unit regarding what do they plan
to sell in coming six months
Que15: You are a PPC manager. The purchase department informs you there are constraints on the supplier's capacity to
fulfill production requirements. So it suggests you slash down the production plan. But the sales department is selling the
product quite aggressively. In such a situation what will you do?
(i) Accept the reality and cut down the production plan which will match the material input
(ii) Buy ready products from a third party to bridge the gap between sales requirements and production capacity.
But it is proving to be a little expensive
(iii) Approach top management and seek permission to import the material and inform the purchasing department
to procure the material from outside India. It will take care of the sales department also
(iv) Contact sales department and request them to increase the selling price to compensate the revenue loss due to
shortage of production

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