ICFAI Distance MBA Module 2 - Project Operation Management

7/23/2019 ICFAI Distance MBA Module 2 - Project Operation Management

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Model Question Paper

Project & Operations Management (SMB110) Answer all 100 questions. Each question carries one mark.1. Project management has derived most of its knowledge from other managementdisciplines and has evolved as aspecialized science over a period of time. hich of the following disciplines involves inidentif!ing resourcessuch as raw materials" equipment and services required for the project" preparing a list ofsuppliers andnegotiating with them for procuring the material and managing the transportations!stem#$a% &inance management$'% Personnel management$c% (perations management$d% Purchase and logistics management$e% )arketing management.2. hich of the following methods of project selection model ena'les the project manager

to rank all the projects'ased on a set of predetermined attri'utes" ignoring the attri'utes that do notdi*erentiate the project alternatives#$a% eighted factor scoring model$'% +terative rating method$c% Pro,ta'ilit! inde-$d% nweighted 0 / 1 factor model$e% nweighted factor scoring model..he project manager collects data from primar! sources and secondar! sources. hichof the following is not ane-ternal source of collecting primar! data#$a% Past and current sales of the ,rm$'% &eed'ack of the sales personnel$c% (pinions of the dealers

$d% ales trends$e% urve!.!. )r.2onn! wants to set up a sugar factor! in his home town. 3e prepared a projectproposal and approached!ndicate 4ank for a loan. 3e was asked '! the 'ank to su'mit the details pertaining tothe location" land and sitedevelopment" raw materials" manpower requirement" schedule of implementation etc." inorder to decide on theproposal. hich of the following anal!ses was 'eing carried out '! the 'ank in order togrant the loan to)r.2onn!#$a% )arket Anal!sis$'% Economic Anal!sis$c% echnical Anal!sis

$d% &inancial Anal!sis$e% )anagement Anal!sis.". A questionnaire is a formalized set of questions for generating information.5lassi,cation questions are one of thet!pes of questions in the questionnaire. hich of the following is6are true a'outclassi,cation questions#+. hese questions are a'out the present project and its products.++. hese questions are a'out the respondent7s characteristics" socio8demographic and'ehavioral information.


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+++. hese questions should 'e carefull! sequenced so as to 'e understood '! all segmentsof target customers.+9. hese include respondent identi,cation" interviewer identi,cation" date and place ofinterview etc.$a% (nl! $++% a'ove$'% (nl! $+9% a'ove$c% 4oth $+% and $++% a'ove

$d% 4oth $+++% and $+9% a'ove$e% All $+%" $++%" $+++% and $+9% a'ove.Page 2 of 28#. hich of the following forecasting techniques is used for estimating the demand for aparticular good or serviceon the 'asis of income and price elasticities of demand#$a% 5hain ratio technique$'% End use technique$c% :eading indicator technique$d% Econometric technique$e% 5onsumption level technique.$. )r. ;reg o'tained a loan on 1


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$c% erm loans$d% upplier credit$e% Purchase credit.Page of 2812. 5onducting a market and demand anal!sis involves a series of activities. hich of thefollowing is alse withrespect to situational anal!sis and o'jectives speci,cation activit! of market and demand

anal!sis#$a% ituational anal!sis helps the project manager in stud!ing customer preferences andtheir purchasingcapacit!$'% his activit! helps in stud!ing strategies of the competing ,rms and intermediaries$c% +t involves in8depth stud! of all technical aspects related to 'asic manufacturingoperations" detaileddesign" assem'ling" modeling and protot!pe testing$d% +n the process of performing this activit!" the project manager interacts with theproject stakeholders$e% he questions required for the surve! to elicit responses from the various projectstakeholders are to 'eframed after clear statement of the o'jectives.1. (ne of the important responsi'ilities of the project manager includes identif!ing theconstraints inuencing aproject. hich of the following is alse with respect to the common constraints inuencinga project#$a% Project costs are costs associated with all the activities in the planning andimplementation phases$'% ime" one of the important resources availa'le to a project manager" is directl! relatedto the cost of theproject$c% 2esources include not onl! the ph!sical and information resources 'ut also the peopleand ,nances$d% cope of a project descri'es the qualit! standards to 'e maintained in the project$e% A comprehensive qualit! management s!stem ensures e*ective utilization of scarceresources to achieve

the project o'jective.1!. hich of the following related to e*ective demand for a product or service is alse#$a% +n a perfect market" the e*ective demand for a particular product and its apparentconsumption are same$'% Apparent consumption is calculated as the sum of production and trade surplus6de,citminus changes instock level$c% Apparent consumption considers onl! the willingness and a'ilit! of the 'u!ers$d% E*ective demand is less than apparent consumption due to government controls overproduction anddistri'ution$e% E*ective demand considers the desira'ilit! of the 'u!ers.1". hich of the following characteristics of project selection models states that the modelshould e-plicitl! state the

o'jectives of the project manager and the ,rm in selecting a particular project#$a% 2ealism$'% &le-i'ilit!$c% Ease of use$d% 5apa'ilit!$e% 5ost.1#. hich of the following means of ,nancing a project is raised '! allotment of sharesand through retention ofearnings#$a% Preference capital


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$'% Ce'entures$c% erm loans$d% Equit! capital$e% rade credit.1$. &or the purpose of scanning the environment" the whole 'usiness environment can 'edivided into various sectors.+n which of the following sectors does the project manager o'serve the trends of the

income and consumptionpatterns of the target customers to asses the via'ilit! of new project ideas#$a% Economic sector$'% ;overnmental sector$c% echnological sector$d% ocio8demographic sector$e% 5ompetition.Page ! of 2818. hich of the following is a group creativit! technique that is administered '! acoordinator who notes down allthe ideas generated" including the positive and negative arguments of each idea" forfuture use#$a% Attri'ute listing method$'% 5hecklist method$c% 4lack 'o- technique$d% 4rainstorming technique$e% Dominal group technique.1%. 9arious kinds of market surve!s are conducted for o'taining primar! data. he surve!whose results are morerelia'le than sample surve!" 'ut the conduct of which is more e-pensive is referred to as$a% 5ensus surve!s$'% (pinion surve!s$c% Attitude surve!s$d% +nformation surve!s$e% &uture invention surve!s.20. )adura +nc. 'ought an equipment for 2s.1@"000. he annual cash inow from thisequipment would 'e 2s.@"@00

for @ !ears. After ,ve !ears" the equipment can 'e sold for 2s..


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$d% uccess 5riteria$e% Assumptions" 2isks and ('stacles.2. Cesign modi,cations" increased plant capacit! and newl! framed statutor!requirements of the government arethe reasons for$a% ime overruns$'% nforeseen contingencies

$c% cope changes$d% 2ecti,cations and replacements$e% 5ost overruns.2!. hich of the following aspects is not true regarding ork 4reakdown tructure $4%#$a% Each lower activit! should satisf! the test of completeness$'% An activit! at level n is said to 'e completed when its decomposed activities at levelnH1 are completed$c% +t ensures that the project includes no unnecessar! activities$d% Project goal statement is shown as a level 1 activit!$e% he decomposition process makes eas! for the project manager to estimate theresources required.Page " of 282". Ialpana Project orks is required to produce an innovative moulding machine. All thefeatures that are to 'eadded to the machine are designed" 'uilt" tested and then implemented. hich of thefollowing approaches isfollowed '! the compan! for de,ning delivera'les in the ork 4reakdown tructure$4%#$a% Doun8t!pe approaches$'% 9er'8t!pe approaches$c% ;eographical approach$d% Cepartmental approach$e% 4usiness functional approach.2#. &or a project activit!" the normal cost is 2s.1"@00" normal time is 1F weeks" crash costis 2s.


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F /G @G / @ 10$a% G@ da!s$'% G< da!s$c% G0 da!s$d% F> da!s$e% F@ da!s.0. hich of the following project stages concentrates on carr!ing out status reviews"design reviews and processreviews#$a% +nitial stages of the project life c!cle$'% Planning stage of the project life c!cle$c% +mplementation phase of the project$d% Project completion stage$e% Auditing phase of the project.Page # of 281. Cepending upon the degree of detail and the frequenc! of reporting" project statusreports can 'e classi,ed into,ve categories" spotlight report 'eing one of these categories. he spotlight reports usedi*erent color stickers toindicate the progress of project to the senior management. hich of the following stickersis6are used '! the saidreport#+. ;reen color stickers.++. (range color stickers.+++. 2ed color stickers.$a% (nl! $+% a'ove$'% (nl! $++% a'ove$c% (nl! $+++% a'ove$d% 4oth $+% and $+++% a'ove$e% 4oth $++% and $+++% a'ove.2. ome managers prefer comple- and custom made formats of audit reports for theirprojects. 3owever it is alwa!s'etter to have a simple and straight forward structure. hich of the following parts of

audit report providesinformation a'out the tasks that have 'een completed with the resources that have 'eenspent to achieve the task#$a% +ntroduction$'% 2isk anal!sis$c% Present project status$d% :imitations and assumptions$e% 5ritical management issues.. nder the conditions of uncertaint!" which of the following criteria is used '! theproject manager to identif! theminimum pa!o* values for each strateg! and to adopt the strateg! that has the highestpa!o* value#$a% )a-ima- criterion$'% )a-imin criterion

$c% )inima- regret criterion$d% )inimin criterion$e% 5riterion of realism.!. hich of the following aspects is not true regarding otal Kualit! )anagement $K)%#$a% K) is not a tool or a product" 'ut is a philosoph!$'% According to the concept" there are two categories of customers" viz." e-ternalcustomers and internalcustomers$c% +t seeks to improve qualit! '! merel! involving top management of the ,rm


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$d% he concept ensures that the product meets the set of speci,cations required '!customers$e% +t focuses to improve the qualit! at ever! stage of the production process.". hich of the following relates to the time '! which the start of an activit! can 'edela!ed without a*ecting theearliest start of an! activities following immediatel!#$a% &ree oat

$'% otal event slack$c% otal oat$d% 3ead slack$e% +ndependent oat.#. As the project has a life c!cle" a project audit too has a life c!cle. +n which of thefollowing stages of project auditlife c!cle has the o'jective of setting performance standards to ena'le the auditor tomeasure project performanceand achievements against them#$a% Audit initiation$'% Ce,ning the project 'aseline$c% etting up an audit data'ase$d% Preparing audit report$e% Project audit termination.Page $ of 28$. 9arious stakeholders are involved in project management. hich of the followingstakeholders of projectarranges the resources for the project#$a% Project manager$'% 5ustomers$c% Project team mem'ers$d% ponsor$e% Parent organization.8. hich of the following risks refer to the sudden 'reakdown of ke! machiner! ande-ponential rise in installationand maintenance costs#$a% Economic risks

$'% Production risks$c% echnical risks$d% 3uman risks$e% &inancial risks.%. +f for order placed '! a client for iron rods of length


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!1. Ceveloping an appropriate risk response requires certain criteria. he characteristicthat de,nes the time withinwhich the responses need to 'e completed is referred to as$a% Appropriate$'% A*orda'le$c% Actiona'le$d% Achieva'le

$e% Agreed.!2. hich of the following t!pes of insurance policies for projects covers all the risksarising out of perils like ,re"'urglar!" and machiner! 'reakdown and 'oiler e-plosion in case of a project#$a% Projects and advance loss of pro,ts insurance$'% Erection all risks insurance$c% +ndustrial all risks insurance$d% &ire and natural calamities insurance$e% orkmen7s compensation insurance.Page 8 of 28!. 5ost of qualit! is referred to as the costs incurred '! a ,rm to improve the qualit!. hiscost of qualit! can 'eclassi,ed into three t!pes" such as cost of prevention" cost of appraisal and cost of failure.hich of the followingcosts is6are the e-ample$s% of costs of failure#+. )aintenance of test equipment.++. arrant! charges.+++. 5osts of rework.$a% (nl! $+% a'ove$'% (nl! $++% a'ove$c% 4oth $+% and $++% a'ove$d% 4oth $+% and $+++% a'ove$e% 4oth $++% and $+++% a'ove.!!. hich of the following is not an advantage of Lust8in8ime $L+% purchasing s!stem#$a% Administrative eMcienc!$'% +mproved qualit!$c% +ncreased responsiveness

$d% Production improvements$e% +ncreased capital requirements.!".here are four wa!s in which a project can 'e closed/'! e-tinction" '! addition" '!integration and '! starvation.hich of the following is not true when a project manager chooses to close the project '!addition#$a% his method is adopted when in8house projects are to 'e closed$'% he project is made a part of the parent ,rm in a slow and a phased manner$c% he project can either 'e added to the parent organization as a department or as anindependent su'sidiar!depending on the project7s a'ilit! to 'e economicall! independent$d% he resources of the project are transferred from the account of the successful projectto the account ofthe newl! created department or su'sidiar!

$e% he project7s e-istence comes to an end as a result of declining 'udgets.!#. hich of the following statements is6are true in the conte-t of an organization adoptinga matri- structure#+. +n this structure" onl! project managers 'ear all the responsi'ilit! for directing work ofindividuals assignedto the project.++. +n this structure" project managers command a superior authorit! over functionalmanagers.+++. +n this organizational set up" sta* mem'ers report to the functional managers as wellas the project


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managers.$a% (nl! $+% a'ove$'% (nl! $++% a'ove$c% (nl! $+++% a'ove$d% 4oth $+% and $++% a'ove$e% 4oth $++% and $+++% a'ove.!$. Dew project ideas help ,rms to achieve their o'jectives in an eMcient manner. hese

ideas can come fromdi*erent sources such as+. 5ustomers.++. 5ompetitors.+++. Emplo!ees.$a% (nl! $+% a'ove$'% (nl! $+++% a'ove$c% 4oth $+% and $++% a'ove$d% 4oth $+% and $+++% a'ove$e% All $+%" $++% and $+++% a'ove.Page % of 28!8. (rganizations emplo! market surve! as a useful method of o'taining primar! data. Amarket surve! is useful fordetermining+. otal market demand.++. Cemand growth rate in di*erent segments of the market.+++. +nner motives of the customers.+9. nsatis,ed needs of the customers.$a% 4oth $+% and $++% a'ove$'% 4oth $+++% and $+9% a'ove$c% $+%" $++% and $+++% a'ove$d% $++%" $+++% and $+9% a'ove$e% All $+%" $++%" $+++% and $+9% a'ove.!%. Dumeric models of project selection are of two t!pes such as pro,ta'ilit! models andscoring models. hich ofthe following is a scoring model that gives equal weightage to the opinions of all theraters and produces an

e-plicit ,nal result#$a% +terative rating method$'% nweighted 081 factor model$c% eighted factor scoring model$d% Pro,ta'ilit! inde- method$e% nweighted factor scoring model."0.he per capita annual demand for wheat in the countr! is @ kg and the elasticit! ofdemand for wheat is 1.0@. +fthe projected per capita annual income three !ear hence is 1F= more than the present"then the projected demandfor wheat will 'e$a% B0.F kg$'% B


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$d% 5ross functional integration$e% 3orizontal diversi,cation."2. hich of the following is6are the component$s% of forecast#+. 4ase demand.++. Promotional component.+++. )ean forecast error.$a% (nl! $+% a'ove

$'% (nl! $++% a'ove$c% (nl! $+++% a'ove$d% 4oth $+% and $++% a'ove$e% All $+%" $++% and $+++% a'ove.".he reorder quantit! of an electronic equipment is 1">?0 units. +t takes da!s toreceive the order. he averagedail! demand of the equipment is$a% 110 units$'%


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$'% 9EC$c% &DC$d% L+$e% 2&+C."%. 5omputerization has 'rought a'out signi,cant improvement in the production process.+t has also helped indeveloping new concepts and technologies in the 1BB0s. hich of the following

technologies helpsprogramma'le machines to perform multiple tasks that are repetitive or hazardous for ahuman 'eing to perform#$a% 5omputer aided design$'% 5omputer aided manufacturing$c% &le-i'le manufacturing s!stem$d% 2o'ots$e% Automated storage and retrieval s!stem.#0. )anagement uses di*erent models for aggregate planning. hich of the following is aheuristic model that usesthe regression method to identif! capacit! requirements 'ased on the management7spast decisions#$a% :inear Programming$'% :inear Cecision 2ules$c% )anagement 5oeMcient )odel$d% 5omputer earch )odel$e% ;raphical )odel for Aggregate (utput Planning.Page 11 of 28#1.he c!cle time of an assem'l! line is o'served as 0.? min. +f the assem'l! line worksfor hours a da!" thee-pected output from the assem'l! line per da! will 'e$a% >00 units$'% 00 units$c% B00 units$d% 1000 units$e% 1100 units.#2. hich of the following steps of nominal group technique allows group mem'ers to

write down theirsuggestions regarding the question6pro'lem posed '! a mediator#$a% ;eneration of ideas$'% 2ound ro'in collection of ideas$c% Preliminar! voting$d% Ciscussion$e% &inal voting.#. hich of the following aggregate planning strategies maintains sta'le emplo!ment ofpersonnel and level ofproduction#$a% 9ar!ing production rates through overtime or idle time$'% 9ar!ing the workforce size in response to the output requirements$c% 4ack8ordering during high8demand periods$d% u'contracting

$e% 9ar!ing the size of inventor!.#!. +n a linear programming pro'lem" let the decision varia'le jx represent the num'er ofunits of product Jj 7produced" and J j c 7 the quantit! of input utilized in producing a unit of product. &orproducing J n 7 units ofproduct" Jj 7 consumes J n 7 times of the quantit! of input J j c 7. hich assumption of linearprogramming isconsidered in the present conte-t#$a% Proportionalit!


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$'% Additivit!$c% Projectivit!$d% 5ertaint!$e% Civisi'ilit!.#". NO compan! procures automo'ile components in lots of @00 units to ful,ll the annualrequirement of F"@00units. he component cost is 2s.1@0 per unit and the ordering cost is 2s.1@0 per lot.

5arr!ing cost is estimated at


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molding machine which will result in annual ,-ed costs of 2s."000. 9aria'le costs forla'or" materials andvaria'le overheads are estimated at 2e.0.@0 per case. hat volume of production is morepro,ta'le to producethe cases in8house rather than purchase them from outside supplier#$a% A'ove


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$e% $++%" $+++% and $+9% a'ove.$". hich of the following includes the cost incurred in counting items when the materialis received at thewarehouse or plant#$a% etup cost$'% (rdering cost$c% 5arr!ing cost

$d% tockout cost$e% 3olding cost.$#. hich of the following departments involve monitoring the ow of raw materials"determining and adjustinginventor! storage capacit!" and identif!ing material ow 'ottlenecks#$a% Purchasing department$'% 2eceiving department$c% Production department$d% 2aw materials inventor! department$e% &inished goods inventor! department.Page 1! of 28$$. +mplementation of Lust8in8ime $L+% manufacturing s!stem requires the totaltransformation of the methods ofdesigning products and services" assigning responsi'ilities to workers and organizingwork. hich of thefollowing statements is6are true relating to L+ s!stem#+. +t helps in reducing the production lead time '! keeping work8in8process inventor! aslow as possi'le.++. +n this s!stem" all components and inventor! items are stored in advance so thatdela!s in the e-ecution ofoperations can 'e avoided.+++. +t helps organizations to maintain consistentl! high qualit! in their products andprocesses '! ensuring theactive participation of emplo!ees.$a% (nl! $+++% a'ove$'% 4oth $+% and $++% a'ove$c% 4oth $+% and $+++% a'ove

$d% 4oth $++% and $+++% a'ove$e% All $+%" $++% and $+++% a'ove.$8. +n order to achieve the desired standards in 'usiness processes" organizations need toreengineer their currentprocesses. he o'jectives of 'usiness process reengineering include+. 2educing process c!cle time.++. 2educing the num'er of decision points.+++. (ptimizing the information ow 'etween di*erent functions and departments.$a% (nl! $+% a'ove$'% (nl! $+++% a'ove$c% 4oth $+% and $+++% a'ove$d% 4oth $++% and $+++% a'ove$e% All $+%" $++% and $+++% a'ove.$%. ;antt charts displa! graphicall! the use of resources over a period of time. hich of

the following statement$s%is6are true relating to ;antt charts#+. he time estimates used in the workload charts are o'tained from standard timeestimates.++. cheduling charts ena'le the manager to plan for routine maintenance for each facilit!.+++. cheduling charts are useful when a particular jo' requires the use of severalmachines.$a% (nl! $++% a'ove$'% (nl! $+++% a'ove$c% 4oth $+% and $++% a'ove


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$d% 4oth $+% and $+++% a'ove$e% All $+%" $++% and $+++% a'ove.80. +n a repetitive production process" the movement of materials can 'e minimized '!placing the equipment incells instead of keeping them in functional departments. hich of the followingarrangement of cells facilitatese-i'le production process#

$a% traight :ine$'% :8form$c% erpentine form$d% 8form$e% 8form.81. hich of the following statement$s% is6are true in the conte-t of sequencing of jo's#+. he! are used for reduction of the processing costs of the ,rm in speci,ed time.++. he! help in minimization of processing time and idle time.+++. he! help in minimization of idle time in a single stage of production.$a% (nl! $++% a'ove$'% (nl! $+++% a'ove$c% 4oth $+% and $++% a'ove$d% 4oth $+% and $+++% a'ove$e% All $+%" $++% and $+++% a'ove.Page 1" of 2882. +n 'ackward scheduling method" orders are scheduled according to their due dates.hich of the following is6arenot true with respect to the 'ackward scheduling method#+. he start and ,nish times of the jo's are assigned according to the earliest availa'letime slot.++. (perations manager determines the latest point as to when the production activit! can'e started forcompleting the order on time.+++. he work8in8process inventor! level is high.$a% (nl! $+% a'ove$'% 4oth $+% and $++% a'ove$c% 4oth $+% and $+++% a'ove

$d% 4oth $++% and $+++% a'ove$e% All $+%" $++% and $+++% a'ove.8. hich of the following forces" shaping the suppl! chain" focuses on ,nding a 'alance'etween cost and qualit!"and customization and availa'ilit! without compromising on an! one of them#$a% 5onsumer demand$'% ;lo'alization$c% 5ompetition$d% +nformation and communication$e% Environment.8!.he department which prepares reports as a part of the production control functioncontaining information on thequantit!" price" description and other technical speci,cations of the incoming materials isreferred to as

$a% Purchasing department$'% 2eceiving department$c% Accounts department$d% Production department$e% 2aw materials inventor! department.8". Productivit! is a measure of the eMcienc! of an organization in terms of the ratio of theoutputs to inputs. (utputscomprise+. :eadership skills.++. he num'er of customer requests processed in a 'ank.


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+++. 5ustomer satisfaction.+9. heat produced in a !ear.$a% 4oth $+% and $++% a'ove$'% 4oth $+% and $+9% a'ove$c% $+%" $++% and $+++% a'ove$d% $++%" $+++% and $+9% a'ove$e% All $+%" $++%" $+++% and $+9% a'ove.8#. egmenting the customers is one of the principles of suppl! chain management. hichof the following isconsidered to 'e the appropriate strateg! in segmenting customers" in order to servethem properl!#$a% egmenting customers 'ased on industr!$'% egmenting customers 'ased on service needs$c% egmenting customers 'ased on trade channel$d% egmenting customers 'ased on product$e% egmenting customers 'ased on their income levels.8$. hich of the following is6are not true regarding L+ manufacturing s!stem#+. +t maintains zero inventor! storage and maintenance costs.++. +t 'ene,ts in reduced investment in inventor!.+++. +t requires separate departments for correcting defects and maintaining qualit!.$a% (nl! $+% a'ove$'% (nl! $++% a'ove$c% (nl! $+++% a'ove$d% 4oth $+% and $++% a'ove$e% 4oth $++% and $+++% a'ove.Page 1# of 2888. A tractor manufacturing compan! uses infrared imaging to e-amine the pro'lem areasidenti,ed withoutdismantling the machine so that the e-tent of damage can 'e determined 'efore stoppingthe machine. his is ane-ample of$a% 2emedial )aintenance$'% Predictive )aintenance$c% 5entralized )aintenance

$d% Cecentralized )aintenance$e% 5ontract )aintenance.8%. )aintenance in a ,rm is carried out in three major areas such as mechanical" civil andelectrical. hich of thefollowing activities come under the purview of civil maintenance#+. )aintenance of ,re ,ghting equipment.++. )aintenance of transport vehicles.+++. )aintenance of waste disposal.+9. )aintenance of materials handling equipment.$a% 4oth $+% and $+++% a'ove$'% 4oth $++% and $+9% a'ove$c% $+%" $++% and $+++% a'ove$d% $+%" $+++% and $+9% a'ove$e% All $+%" $++%" $+++% and $+9% a'ove.

%0. hich of the following drivers of uppl! 5hain )anagement 'rings proper coordinationamong various entitiesthat helps in improving the eMcienc! of the suppl! chain s!stem#$a% +nventor!$'% ransportation$c% &acilities$d% +nformation$e% Price.%1. Automated torage and 2etrieval !stems $A6A2% are computer8controlled andmechanicall!8operated


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materials handling s!stems. hich of the following are those semi8automatic s!stemsthat can 'e speci,call!used to store and retrieve inventor! items from stock#$a% traddle trucks$'% Ph!sicall! operated ro'ots$c% 3!draulics$d% 3and pallet trucks

$e% Automated guided vehicles.%2. A Ian'an s!stem uses three t!pes of cards to initiate material transactions. hich ofthe following is6are thecard$s% that descri'e$s% the list of materials needed for continuing the production process#+. Production authorization card.++. 9endor authorization card.+++. 5onve!ance authorization card.$a% (nl! $+% a'ove$'% (nl! $++% a'ove$c% (nl! $+++% a'ove$d% 4oth $+% and $++% a'ove$e% 4oth $++% and $+++% a'ove.Page 1$ of 28%. ;ap anal!sis helps identif! the areas that are not handled '! the standard s!stem. &orwhich of the following gapscan the steering committee take action#+. ;aps that can 'e eliminated with minimal programming.++. ;aps that require e-tensive rework and additional resources.+++. ;aps that cannot 'e handled '! the s!stem.$a% (nl! $+% a'ove$'% (nl! $++% a'ove$c% (nl! $+++% a'ove$d% 4oth $+% and $++% a'ove$e% 4oth $++% and $+++% a'ove.%!. (ne of the critical steps of E2P implementation is development of an integrated datamodel. +n connection withthis" which of the following statements are true#

+. +t increases connectivit! 'etween departments.++. +t helps in smooth ow of information 'etween departments.+++. +t increases data redundanc!.+9. +t ensures availa'ilit! of right information.$a% 4oth $+% and $++% a'ove$'% 4oth $++% and $+++% a'ove$c% $+%" $++% and $+++% a'ove$d% $+%" $++% and $+9% a'ove$e% All $+%" $++%" $+++% and $+9% a'ove.%". +n which of the following stages of a t!pical E2P implementation program areperformance standards set for eachprocess" '! using 'enchmarking techniques#$a% +dentif! the needs for the E2P package$'% Evaluating the Qas8isR situation of the 'usiness

$c% Cecisions a'out the desired Qwould8'eR situation for the 'usiness$d% 2eengineering of 'usiness processes to achieve the desired results$e% Evaluation of availa'le E2P packages.%#. hich of the following are the principles of suppl! chain management#+. 5ustomize the logistics network.++. Enhance a'ilit! to meet customer requirements.+++. +mprove relationships with the suggestions.$a% (nl! $+% a'ove$'% 4oth $+% and $++% a'ove$c% 4oth $+% and $+++% a'ove


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$d% 4oth $++% and $+++% a'ove$e% All $+%" $++% and $+++% a'ove.%$. 2educing the setup time is one of the characteristics of L+ s!stems. &irms adopt aprocedure to reduce setuptimes. hich of the following does not form a part of the procedure to reduce setup times#$a% Anal!ze e-isting setup procedures$'% eparation of internal and e-ternal setup activities

$c% 5onversion of e-ternal setup activities into internal setup activities$d% 5leaning$e% treamline work.%8. hich of the following is an important measure for managers to track progress interms of the eMcient use ofresources in producing goods and services#$a% 5ost of returned products$'% Process capa'ilit! anal!sis$c% Productivit!$d% &lowchart$e% (rder ful,llment accurac!.Page 18 of 28%%.he ratio of goods or services produced to the quantit! of raw material andcomponents used is known as$a% ingle factor productivit!$'% )ultifactor productivit!$c% :a'or productivit!$d% )aterial productivit!$e% otal productivit!.100. Kualit! control charts" for attri'utes of a product from a manufacturing s!stem" arecalled

$a% - charts$'% 2 charts$c% P charts$d% cheduling charts$e% orkload charts.' O* Q+'S,-O PP'/

Page 1% of 28Suggested nsers

Project & Operations Management (SMB110)nser /'SO

1. C Purchase and logistics management involves in identif!ing resources such as rawmaterials"equipment and services required for the project" preparing a list of suppliers andnegotiating withthem for procuring the material and managing the transportation s!stem for smoothimplementation of the project.2. 4 +terative rating method is used '! project managers as an alternative to the scoringmodels. 3ere"the project manager ranks all the projects 'ased on a set of predetermined attri'utes. heattri'utesthat do not di*erentiate the project alternatives are ignored. 3ence" option $'% is theanswer.. A Past and current sales of the ,rm are not an e-ternal primar! source for collection ofdata. +t isconsidered as the source for internal primar! data.3ence the answer is $a%.!. 5 echnical evaluation of a project idea is a ver! crucial aspect and an! wrong decisionat this stage


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will have far8reaching implications for the via'ilit! of a project. echnical anal!sis of aprojectidea includes an in depth stud! of the location" land and site development" raw materials"manpower requirement and schedule of implementation etc. o" the correct answer is $c%". A tatement $++% is true a'out classi,cation questions. hese questions are a'out therespondent7scharacteristics" socio8demographic and 'ehavioral information is true a'out classi,cation

questions.3ence the answer is $a%.#. E 5onsumption level technique estimates the demand for a particular product or serviceon the 'asisof income and price elasticities of demand.$. C Present 9alue of a cash ow can 'e determined as P9 S$ %nk" n&9&9+&S$1?0.0G 0.0G5P S S ? 0.00>YSUU UV0.01.B0G 1.B00.0G?0 units.:ead time $:% S da!s.2eorder point S d :here d S average dail! demand: S :ead timeAverage weekl! demand $d% S 2eorder point 1>?0


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V2equired output per da! S S#2. A J;eneration of ideas7 is the ,rst step of a nominal group technique. +n this stage"groupmem'ers write down their suggestions regarding the question6pro'lem posed '! amediator.#. E nder the strateg! Jvar!ing the size of inventor!7" an organization maintains sta'leemplo!ment of

personnel and constant level of production.#!. A +n linear programming" we assume that the contri'ution of individual decisionvaria'les in theo'jective function is proportional to their numeric value. +f the decision varia'le jxrepresents thenum'er of units of product Jj 7 produced and J j c 7 is the quantit! of input utilized inproducing aunit of product. &or producing J n 7 units of product Jj 7 consumes J n 7 times of thequantit! ofinput J j c 7. 3ence" the raw8material consumption per unit produced remains constant.his refersto the assumption Jproportionalit!7.#". 4 (rder quantit! $K% S @00

Annual demand SF"@00 units5ost per unit $5p % S 2s.1@05arr!ing cost per unit $5h %S


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involving ma-imum of two decision varia'les. &ormulation of linear programming is generall! iterative.#8. E$in units%&orecast $&t% Actual $At% At 8&t At 8&t 100AtZ


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scheduling.$". 4 (rdering costs are associated with the process of purchasing inventor!. hese costsinclude costassociated with preparing the purchase order" postage" and telephone calls to thevendors and5ounting items etc. etup costs are production change costs and include items such as arranging speci,c

equipment setups" ,lling out the required paper" etc. 5arr!ing cost includes costs for storage" facilities" insurance" etc. i.e." cost incurred forholding inventor!. tockout cost is when the stock of an item is depleted.3olding cost is the same as carr!ing cost.$#. 5 Production department involve monitoring the ow of raw materials" determiningand adjustinginventor! storage capacit!" and identif!ing material ow 'ottlenecks.$$. 5 L+ s!stem alwa!s keeps work8in8process inventor! as low as possi'le" there'!reducingproduction leads times. 3ence" statement $+% is correct.&irms can achieve high qualit! and coordination onl! with the active participation"involvementand cooperation of all its emplo!ees. 3ence" statement $+++% is correct.According to the L+ s!stem" all components and other inventor! items arrive as and whenrequired $i. e. just 'efore the start of an operation% and it is not kept in advance. 3ence"statement$++% is wrong.$8. E +n order to achieve the desired standards in 'usiness processes" organizations needto reengineertheir current processes. he o'jectives of 'usiness process reengineering includereducing processc!cle time" reducing the num'er of decision points" optimizing the information ow'etweendi*erent functions and departments" etc. 3ence" statements $+%" $++% and $+++% are correct.$%. C ork load charts helps in planning for routine maintenance for each facilit!" notscheduling

charts. 3ence" statement ++ is not correct.80. C 8form cells make the production process more e-i'le.81. 5 +n a single stage of production" jo's can 'e simpl! scheduled one after the otherbhence idle timedoes not e-ist. +n two or more stages of production" it helps in minimizing the idle time.Statement ---4alse

equencing of jo's helps in minimization of processing time" increases eMcienc! ofoperationsand it results in reduction of the processing costs of the ,rm. Statements - and -- ; ,rue82. 5 +n 'ackward scheduling" the start and ,nish times of the jo's are assignedaccording to thelatest availa'le time slot / statement $+% is wrong +n 'ackward scheduling" operations manager determine the latest point when theproduction

activit! can 'e started / statement $++% is correct. +n forward scheduling" the work8in8process inventor! level is high / statement $+++% iswrong.8. A 5onsumer demand is the force shaping the suppl! chain management thatemphasizes that the ke!focus of an organization is to ,nd a 'alance 'etween cost and qualit!" and customizationandavaila'ilit! without compromising on an! one of them. he o'jective of suppl! chainmanagement


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is to keep the customers satis,ed '! providing them with what the! want" when the!want it and ata price the! can a*ord.8!. 4 he materials receiving report prepared '! the receiving department consists of theinformation onthe quantit!" price" description and other technical speci,cations of the incomingmaterials.

Page 2$ of 288". C A leadership skill is an intangi'le input. he num'er of customer requests processed in a 'ank" the num'er of goods produced"production of wheat in a !ear and customer satisfaction all are outputs.ote7 5ustomer satisfaction is an intangi'le output.8#. 4 )ost organizations segment customers 'ased on the industr!" product or tradechannel. +n order toserve customers properl!" organizations should segment customers 'ased on serviceneeds i.e." thespeci,c needs of the customers. +t is one of the principles of suppl! chain management.8$. 5 L+ ,rms do not maintain separate departments for correcting defects. Eachemplo!ee has toidentif! and correct his or her own mistakes and send it to his or her immediate customer.A 'etter coordination 'etween L+ ,rm and supplier results in achieving zero inventor!storageand maintenance costs.88. 4 he set of +rregular Preventive )aintenance activities" which detect pro'lems whiletheequipment is still performing at satisfactor! levels and rectif! the pro'lems when theequipmentis not scheduled to 'e used are referred to as Predictive )aintenance activities. Dewl!developedsophisticated technologies are used in this t!pe of )aintenance.3ence" from a'ove discussion" we can infer that option $'% is correct.8%. A 5ivil maintenance includes maintaining ,re ,ghting equipment and waste disposal.)aintenance of transport vehicles and materials handling equipment come under thepurview of

mechanical maintenance.%0. C +nformation is one of the ke! drivers of suppl! chain management" which 'ringspropercoordination among various entities that helps in improving the eMcienc! of the suppl!chains!stem. ith proper information" organizations can predict the quantit! to produce" whenit isneeded and where it is needed. his makes the suppl! chain more e*ective andresponsive tomarket demand.%1. E A6A2 s!stems are computer8controlled and mechanicall!8operated materialshandling s!stemswhich can also perform comple- operations of loading and unloading the inventor! withtheir

dozens of automated pallet movers. Automated ;uided 9ehicles $A;9s% are the s!stemsthat can'e used speci,call! to store and retrieve inventor! items from stock. he semi8automaticA;9s$a com'ination of computer and human control% can move independentl! on their guidedpaths toa speci,c workstation and then signal $using 'uilt8in horns or lights% to the operator toperformthe required operation.$)C010>8010B81


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%2. A he production authorization card authorizes the production department to start theproductionprocess and descri'es the product7s name" identi,cation num'er and description and thelist ofmaterials needed for continuing the production process.%. E &or the ,rst categor! of gaps" the project team can take action" while for the secondand third

categories" the steering committee should take action such as allocating e-tra resourcesifrequired.%!. C +ntegration of data across departments helps in 'etter connectivit! and smooth owofinformation. +t reduces data redundanc! and ensures availa'ilit! of right information totheconcerned department or personnel.%". 5 (nce the structure of the current processes is identi,ed" the ne-t stage involves theidenti,cationof desired attri'utes for each of the processes. Performance standards are set for eachprocess '!using 'enchmarking techniques.%#. E hese all are the principles of suppl! chain management.%$. 5 &irms adopt the following procedure to reduce setup timesTAnal!ze e-isting setup procedureseparation of internal and e-ternal setup activities5onvert internal setup activities into e-ternal setup activities3eating5leaningtreamline work.Page 28 of 28%8. 5 Productivit! is an important measure for managers to track progress in terms of theeMcient useof resources in producing goods and services.%%. 4 )ultifactor productivit! S;oods and6or services produced $output%

Kuantit! of raw material and components used $input%)ultifactor productivit! uses a com'ination of factors. +t takes into consideration morethan onefactor of production such as la'or and materials.100. 5 P charts are qualit! control charts for attri'utes of a product.< TOP OF THE DOCUMENT >

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ICFAI Distance MBA Module 2 - Project Operation Management