Production and Operations Management

261. The goal of motion study is to achieve:

  1. Cost minimization.
  2. Maximum efficiency.
  3. Profitability.
  4. All of the given options.
Correct answer: (B)
Maximum efficiency.

262. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the ______________ function.

  1. operation.
  2. marketing.
  3. purchasing.
  4. finance.
Correct answer: (D)
finance.

263. What is credited with gains in industrial productivity, increased standards of living and affordable products?

  1. personal computers .
  2. the internet.
  3. mass transportation.
  4. assembly lines.
Correct answer: (D)
assembly lines.

264. Service strategy development begins by selecting which of the following as an operating focus or performance priority?

  1. Price.
  2. Quality.
  3. Variety.
  4. Treatment.
  5. All of the above.
Correct answer: (E)
All of the above.

265. Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ______________.

  1. flexibility; pressure to be more efficient.
  2. off shoring; need to promote domestic production.
  3. sustainability; threat of global warming.
  4. technology; impact of random variation.
  5. forecasting; stabilization of demand.
Correct answer: (C)
sustainability; threat of global warming.

266. Which of the following statements about variation is FALSE?

  1. Variation prevents a production process from being as efficient as it can be.
  2. Some variation can be prevented.
  3. Variation can be either assignable or random.
  4. Any variation makes a production process less productive.
  5. Random variation generally cannot be influenced by managers.
Correct answer: (D)
Any variation makes a production process less productive.

267. Which one of the following is not a typical question dealt with by operations managers?

  1. How much capacity will be needed in the months ahead?.
  2. What is a satisfactory location for a new facility?.
  3. Which products/services should be offered?.
  4. All are typical of operations decisions.
Correct answer: (D)
All are typical of operations decisions.

268. When the flow of materials is variable,

  1. layout by process is most suitable.
  2. b layout by product is most suitable.
  3. layout by fixed position is most suitable.
  4. line balancing is most suitable.
Correct answer: (A)
layout by process is most suitable.

269. Which of the following refers to a continuous measurement of an organization’s products and processes against a company recognized as a leader in that industry?

  1. Benchmarking.
  2. Gap analysis.
  3. Statistical process control.
  4. Continuous improvement.
Correct answer: (A)
Benchmarking.

270. Budgeting, analysis of investment proposals, and provision of funds are activities associated with the ______________ function.

  1. Operation.
  2. Marketing.
  3. Purchasing.
  4. finance.
Correct answer: (D)
finance.
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