Q.1 What is the primary objective of operations management?
Maximizing profits at all costs
Efficiently converting inputs into outputs
Minimizing employee workload
Increasing the number of products without quality control
Explanation - Operations management focuses on designing, controlling, and improving production processes to efficiently convert inputs (resources) into outputs (goods/services).
Correct answer is: Efficiently converting inputs into outputs
Q.2 Which of the following is an example of a qualitative forecasting method?
Time series analysis
Delphi method
Exponential smoothing
Moving average
Explanation - The Delphi method gathers expert opinions to make predictions, which is qualitative, unlike statistical time-series methods.
Correct answer is: Delphi method
Q.3 In inventory management, EOQ stands for:
Economic Order Quantity
Estimated Optimal Quantity
Efficient Operations Quotient
Exponential Order Queue
Explanation - EOQ is a formula used to determine the optimal order quantity that minimizes total inventory costs, including holding and ordering costs.
Correct answer is: Economic Order Quantity
Q.4 Which technique is primarily used for scheduling in operations management?
PERT/CPM
SWOT analysis
Porter's Five Forces
Benchmarking
Explanation - PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are used to schedule, coordinate, and control complex projects.
Correct answer is: PERT/CPM
Q.5 Which of the following is NOT a function of production management?
Planning
Organizing
Controlling
Advertising
Explanation - Production management focuses on planning, organizing, and controlling production processes, while advertising is a marketing function.
Correct answer is: Advertising
Q.6 Just-In-Time (JIT) inventory system aims to:
Maintain high inventory levels
Reduce inventory holding costs
Increase lead times
Maximize warehouse usage
Explanation - JIT minimizes inventory levels by receiving goods only when needed, reducing holding costs and waste.
Correct answer is: Reduce inventory holding costs
Q.7 Which concept ensures continuous improvement in quality management?
Kaizen
Six Sigma
Lean Manufacturing
Benchmarking
Explanation - Kaizen is a Japanese philosophy of continuous improvement involving all employees to improve processes and efficiency.
Correct answer is: Kaizen
Q.8 Capacity planning primarily focuses on:
Determining the production rate needed to meet demand
Hiring more employees
Reducing marketing expenditure
Designing product packaging
Explanation - Capacity planning ensures that an organization has adequate production capability to meet future demand efficiently.
Correct answer is: Determining the production rate needed to meet demand
Q.9 Which of the following is a key principle of Lean Management?
Maximizing inventory
Eliminating waste
Increasing batch sizes
Extending lead times
Explanation - Lean management aims to increase efficiency by eliminating waste in processes, including time, materials, and effort.
Correct answer is: Eliminating waste
Q.10 Which type of layout is most suitable for mass production?
Process layout
Product layout
Fixed-position layout
Cellular layout
Explanation - Product layout arranges resources sequentially according to production steps, ideal for high-volume, standardized products.
Correct answer is: Product layout
Q.11 In operations management, bottleneck refers to:
The fastest process in production
The stage limiting overall output
A storage area in the warehouse
An unnecessary process step
Explanation - A bottleneck is a process stage that restricts the total throughput of the system.
Correct answer is: The stage limiting overall output
Q.12 Which of the following is a quantitative method of forecasting?
Market research
Expert opinion
Time series analysis
Delphi technique
Explanation - Time series analysis uses historical numerical data to predict future demand, making it a quantitative forecasting method.
Correct answer is: Time series analysis
Q.13 Which inventory system triggers reordering only when stock reaches a specific level?
Periodic system
Fixed-order quantity system
JIT system
ABC analysis
Explanation - In a fixed-order quantity system, a new order is placed when inventory falls to the reorder point.
Correct answer is: Fixed-order quantity system
Q.14 Which of the following is used to analyze the sequence of operations in a production process?
Flowchart
Histogram
Scatter diagram
Pareto chart
Explanation - A flowchart visually represents the sequence of operations, helping to analyze and improve the process.
Correct answer is: Flowchart
Q.15 Which method reduces variation and defects in a process?
Six Sigma
Kaizen
JIT
Lean
Explanation - Six Sigma is a data-driven methodology that aims to reduce process variation and defects to near perfection.
Correct answer is: Six Sigma
Q.16 Which of the following is considered a fixed cost in production?
Raw material cost
Factory rent
Hourly wages
Packaging cost
Explanation - Fixed costs remain constant regardless of the level of production, e.g., rent or depreciation.
Correct answer is: Factory rent
Q.17 Which technique is used to monitor the performance of a project against planned schedule?
Gantt chart
Flowchart
Histogram
Scatter diagram
Explanation - Gantt charts provide a visual representation of project schedules, tracking progress and comparing planned vs actual timelines.
Correct answer is: Gantt chart
Q.18 Which of the following best describes 'Total Quality Management (TQM)'?
A method to reduce costs by minimizing labor
An approach involving all employees to continuously improve quality
A technique to forecast demand
A method to increase production speed
Explanation - TQM is a management approach where all employees participate in improving processes, products, and culture of quality.
Correct answer is: An approach involving all employees to continuously improve quality
Q.19 Which of the following is a key principle of supply chain management?
Optimizing the entire chain, not just individual entities
Maximizing inventory levels at each node
Focusing only on manufacturing efficiency
Reducing communication with suppliers
Explanation - Supply chain management emphasizes overall efficiency and coordination across suppliers, manufacturers, and distributors.
Correct answer is: Optimizing the entire chain, not just individual entities
Q.20 Which of the following is an example of preventive maintenance?
Repairing equipment after it breaks down
Regularly lubricating machines as per schedule
Replacing machinery only when obsolete
Running machines until they fail
Explanation - Preventive maintenance involves scheduled inspections and servicing to prevent breakdowns.
Correct answer is: Regularly lubricating machines as per schedule
Q.21 Which of the following is a key benefit of automation in operations?
Increased human error
Consistency and higher productivity
Higher dependency on manual labor
Reduced quality control
Explanation - Automation improves consistency, reduces errors, and enhances production efficiency.
Correct answer is: Consistency and higher productivity
Q.22 Which method classifies inventory based on value and usage rate?
ABC analysis
JIT
EOQ
FIFO
Explanation - ABC analysis categorizes inventory into A (high value), B (moderate value), and C (low value) items for better control.
Correct answer is: ABC analysis
Q.23 Which of the following is a characteristic of a service operation compared to manufacturing?
Tangible output
High inventory levels
Simultaneous production and consumption
Standardized products
Explanation - Services are intangible and often consumed as they are produced, unlike manufacturing goods which can be stored.
Correct answer is: Simultaneous production and consumption
Q.24 Which of the following is NOT a part of process design?
Selecting equipment
Layout planning
Work study
Pricing strategy
Explanation - Process design focuses on operational efficiency, including equipment, layout, and work methods, not marketing pricing decisions.
Correct answer is: Pricing strategy