This set of Production Planning and Control Multiple Choice Questions & Answers (MCQs) focuses on “Manufacturing Versus Service Operations”.
1. What is meant by inventory?
a) Conceal
b) Estimate
c) Need
d) Directory
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Explanation: Inventory means the goods which are in stock and conceal means not allowed to be seen, estimate means roughly calculating some value and need is something which is necessary.
2. Three general trends have shaped the environment affecting the operations functions. Which is of the following is not one of them?
a) Technological environment
b) Discontinuities in technology
c) Changes to health and safety legislation
d) Global activity and cost reduction
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Explanation: Changes to health and safety legislation falls under the industry trend that but technological environment, discontinuities in technology and global activity and cost reduction falls under global trend.
3. Discontinuities in technological change represent radical breaks with the technologies of the past and different to predict. What two phases characterize the strategic response of firms after such a break?
a) The decline and withdrawal phases
b) The analysis and response phases
c) The development and consolidation phases
d) The evaluation and investment phases
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Explanation: The decline and withdrawal phase is the phase when the product is declined from the market and have to be removed, analysis and response phases is one in which the response of the new product is seen after it is launched, the evaluation and investment phases is one in which all the evaluation of the planning is made and investment is made accordingly and the development and consolidation phase refers to the combination of the companies to gain a large portion of overall market share and to take advantage of synergies.
4. What is the authorization of initiation of work in the work shop of production planning and control?
a) Loading chart
b) Dispatch order
c) Schedule order
d) Route plan
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Explanation: Loading chart is the making a list of all the orders, schedule order is to make list of projects milestones, route plan is the plan to deliver all the product at their place and dispatch order means the order has been dispatched from the warehouse.
5. What is the industry activity that will make loading and scheduling activities difficult?
a) Batch production
b) Single product continuous
c) Continuous production with multi products
d) Process production
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Explanation: If the industry is producing products in batch then the loading and scheduling activities become a bit difficult as after one batch finishes it takes time to input for the second batch making it difficult.
6. Operations strategy faces two major structural constraints – what are they?
a) Operations resources are inflexible and benefit from large production runs
b) Operations resources are expensive and have a long life
c) Operations resources take time to plan and build and are expensive to change
d) Operations resources are highly specialized and depreciate rapidly
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Explanation: While building strategy it takes a lot of time as it is the final plan to be executed for the operations to be done and all the equipments are brought according to that and so it becomes very expensive to change the strategy also.
7. Which of the following is not one of the ways operations can contribute to competitive advantage?
a) Identifying new product opportunities
b) Achieving low cost in manufacture
c) Market adaptability
d) Delivering human resources objectives
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Explanation: Identifying a new product opportunity is the largest way to contribute in a competitive environment as it leads to making of new product before any other company does so it increases the possibility to stay on the top or aside from other companies.
8. Effective operations strategy depends on strong links with another functional area. Which is it?
a) Personnel
b) Purchasing
c) Finance
d) Marketing
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Explanation: Having funds available for new equipment and factories is vital but it is not the key issue when considering competitive advantage in the market place.
9. Which of the following are the key issues to consider when devising a manufacturing strategy?
a) Factory location, processes, capacity, infrastructure and links with other functions
b) Quality, cost, competitiveness, benchmarking and flexibility
c) Waste minimization, recycling, energy conservation and emission control
d) Operations strategy, production planning, low cost
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Explanation: While making a manufacturing strategy the key factors are factory location as it should be opened where demand is high, the process and capacity should be maximum it should be easy to make link with other functions.
10. Which of the following is a controlling activity?
a) Scheduling
b) Routing
c) Dispatching
d) Expediting
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Explanation: Scheduling is the process to optimize the work and reduce the production time, routing is the process of deciding the path of manufacturing operations, dispatching is the process of taking the products to the market from the ware house and expediting is the process of controlling activities like progress of manufacturing, packing, timely delivery of goods, etc.
11. Which of the following is not a distinguishing feature of a service?
a) Inseparability
b) Heterogeneity
c) Tangibility
d) Ownership
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Explanation: Inseparability is used in marketing to describe a key quality of services that distinguishes them from goods, heterogeneity refers to the variation in the same service from day to day or from customer to customer and tangibility falls under service quality which includes various factors like customer satisfaction both external and internal.
12. In analyzing the operations contribution to corporate strategy, which of the following is not an area that is looked into?
a) Ability to add value
b) Key factors for success identified for an industry
c) Remuneration of employees
d) Achievement of corporate objectives
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Explanation: Remuneration of employees refers to the reward or compensation given to the employees for their work performances which has nothing to do with the contribution to corporate strategy.
Sanfoundry Global Education & Learning Series – Production Planning and Control.
To practice all areas of Production Planning and Control, here is complete set of Multiple Choice Questions and Answers.
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