This set of Industrial Engineering Multiple Choice Questions & Answers (MCQs) focuses on “Value Engineering – Set 2”.
1. Which of the following is true?
i. Value analysis is a cost reduction technique.
ii. Value analysis is a cost prevention technique.
a) i only
b) ii only
c) i and ii
d) Neither i nor ii
View Answer
Explanation: Value analysis is a systematic identification of unnecessary cost aimed at reducing the cost. Hence, value analysis is a cost reduction. Value engineering is a cost prevention technique. Both are used synonymously, but there exists a difference in the time and phase of product life-cycle in terms of the application of techniques.
2. Which of the following is primarily concerned with system engineering?
a) Physical system
b) Non-physical system/Information system
c) Physical/Non-information system
d) Non-information system
View Answer
Explanation: Industrial engineering is different from system engineering. System engineering is mainly concerned with the information system (or non-physical systems). Systems engineering came out of the information models that controlled the industries.
3. What is another name for value analysis?
a) Value engineering
b) Value assurance
c) Value management
d) Value engineering, Value assurance and Value management
View Answer
Explanation: Value analysis (VA) which is a cost reduction technique is also known as value engineering (or) value assurance (or) value management.
4. Which of the following is an example of an inanimate system?
a) The hospital along with staff and operating conditions
b) Thunderstorm
c) Government office
d) Retail store
View Answer
Explanation: A collection of interacting elements that operate to achieve a predetermined objective is known as a system. A system may be animate or inanimate. A thunderstorm is an example of an inanimate system.
5. Which of the following is not a system?
a) A human body
b) An industry
c) A transportation system
d) A water bottle
View Answer
Explanation: A human body, an industry and a transportation system have many interacting elements whereas a water bottle doesn’t have any interacting sub-system or elements.
6. Which of the following is not a technique of system analysis?
a) Operations research
b) PERT and CPM
c) Simulation
d) Routing
View Answer
Explanation: Routing is a technique of production planning and control. Operations research, simulation, PERT and CPM are techniques of system analysis.
7. Who developed value analysis?
a) Gilbreth
b) F W Taylor
c) Moscow
d) Lorry D Miles
View Answer
Explanation: Value analysis, a cost reduction technique is developed by Lorry D. Miles when working at G.E. in the USA in the year 1947. Subsequently, he became the president of SAVE, Society of American Value Engineers.
8. How a value (of the product or system) changes when the cost of the product is reduced keeping the function unchanged?
a) Increases
b) Decreases
c) Remains unchanged
d) Has no relation
View Answer
Explanation: Value of a product is increased by decreasing its cost for the same function as it varies indirectly with the cost of the product.
9. What is called as the cost of manufacturing a product or component?
a) Cost value
b) Use value
c) Esteem value
d) Exchange value
View Answer
Explanation: Cost value is the cost of manufacturing a product or component. Use value is the fundamental form of economic value. Esteem value is the cost incurred by the manufacturer beyond the use-value.
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