1000+ Industrial Engineering & Production Management Test Multiple Choice Question Answer [Solved]

1. Pick up the correct statement. Dummy activity on a PERT/CPM chart means, it
A. Consumes time, but no resources
B. Consumes resources but no time
C. Consumes neither time nor resources
D. Is a dangling event
Answer : C

2. In the cost structure of a product, the selling price is determined by the factors such as
A. Sales turn over
B. Lowest competitive price
C. Various elements of the cost
D. All of the above
Answer : D

3. Bin card is used in
A. Administrative wing
B. Workshop
C. Foundry shop
D. Stores
Answer : D

4. The correct sequence of phases in value engineering is
A. Creative phase, information phase, investigation phase, evaluation phase
B. Information phase, creative phase, investigation phase, evaluation phase
C. Investigation phase, information phase, creative phase, evaluation phase
D. Creative phase, investigation phase, evaluation phase, information phase
Answer : A

5. In Lincoln plan (one type of group incentive plan), the amount of the profit which an employee receives in addition to the guaranteed basic pay/wages, is based on:
A. A standard rating system
B. A merit rating system
C. A job evaluation system
D. His individual performance
Answer : B

6. If a worker gets a daily wage of Rs HA, then according to Rowan plan, his maximum daily earnings can be
A. 2 HA
B. 1.33 HA
C. 1.5 HA
D. 1.15 HA
Answer : A

7. The average time recorded by work study man for an operation is called
A. Standard time
B. Normal time
C. Representative time
D. None of these
Answer : C

8. Pick up the correct statement from the following
A. Programmer evaluation and review technique is event oriented
B. Programmer evaluation and review technique is not event oriented
C. Critical path method is event oriented
D. None of the above
Answer : D

9. What does symbol 'D' imply in work study?
A. Inspection
B. Transport
C. Delay/temporary storage
D. Permanent storage
Answer : C

10. Monte Carlo solutions in queuing theory are extremely useful in queuing problems
A. That can't be analysed mathematically
B. Involving multistage queuing
C. To verify mathematical results
D. All of the above
Answer : A

11. Which of the following depreciation system ensures that the interest be charged on the cost of machine asset every year on the book value, but the rate of depreciation every year remains constant
A. Sinking fund method
B. Straight line method
C. ABC charging method
D. Annuity charging method
Answer : D

12. Which of the following layouts is suited for mass production?
A. Process layout
B. Product layout
C. Fixed position layout
D. Plant layout
Answer : B

13. Which of the following incentive plans ensures a part of the swing to the worker and rest to the employer?
A. Emerson efficiency plan
B. Taylor plan
C. Halsey premium plan
D. Gilbert plan
Answer : C

14. If (R) is the base rate guaranteed per hour, (S) is the standard time for the job and (T) is the actual time, then according to Halsey 50-50 plan, wages for the job will be
A. TR
B. TR + [(S - T)/2] × R
C. TR + (S - T) × R
D. TR + [(S - T)/S] × R
Answer : B

15. The allowed time for a job equals standard time plus
A. Policy allowance
B. Interference allowance
C. Process allowance
D. Learning allowance
Answer : A

16. The grouping of activities into organisational units is called
A. Corporate plans
B. Higher level management
C. Functional authority
D. Departmentation
Answer : D

17. Which of the following is not wage incentive plan?
A. Differential piece rate system
B. Rowan plan
C. Emerson plan
D. Taylor plan
Answer : D

18. The factors which are to be considered while developing a good wage incentive plan will include
A. Adequate incentive
B. Ease of administration
C. Guaranteed basic pay
D. All of these
Answer : D

19. One of the basic essentials of an incentive plan is that
A. A differential piece rate system should exist
B. Minimum wages should be guaranteed
C. Provide incentive to group efficiency performance
D. All standards should be based on time studies
Answer : D

20. Performance rating is equal to
A. Observed performance + normal performance
B. Observed performance - normal performance
C. Observed performance × normal performance
D. None of the above
Answer : D

21. For a product layout the material handling equipment must
A. Have full flexibility
B. Employ conveyor belts, trucks, tractors etc.
C. Be a general purpose type
D. Be designed as special purpose for a particular application
Answer : D

22. Valve analysis is particularly of interest when
A. Jobbing work economics are involved
B. Production is on large scale
C. Only few components are involved
D. Costly equipment is used
Answer : B

23. Inventory management consists of
A. Effective running of stores
B. State of merchandise methods of storing and maintenance etc.
C. Stock control system
D. All of the above
Answer : D

24. Expediting function consists in keeping a watch on
A. Operator's activity
B. Flow of material and in case of trouble locate source of trouble
C. Minimising the delays
D. Making efficient despatching
Answer : B

25. Product layout is employed for
A. Batch production
B. Continuous production
C. Effective utilization of machine
D. All of the above
Answer : B

26. Scheduling
A. Prescribes the sequence of operations to be followed
B. Determines the programme for the operations
C. Is concerned with starting of processes
D. Regulates the progress of job through various processes
Answer : B

27. The time which results in the least possible direct cost of an activity is known as
A. Normal time
B. Slow time
C. Crash time
D. Standard time
Answer : B

28. Which of the following equations is not in conformity with others?
A. Organisation performance × motivation = profits
B. Knowledge × skill = ability
C. Ability × motivation = performance
D. Attitude × situation = motivation
Answer : A

29. A dummy activity
A. Is artificially introduced
B. Is represented by a dotted line
C. Does not require any time
D. All of the above
Answer : D

30. The type of organisation preferred for an automobile industry, is
A. Line organisation
B. Functional organisation
C. Line and staff organisation
D. Line, staff and functional organisation
Answer : C

31. Which one of the following represents a group incentive plan?
A. Halsey Premium Plan
B. Lincoln Plan
C. Rowan Plan
D. Taylor Plan
Answer : B

32. PERT is
A. An analytic tool in concept
B. Limit up of event oriented diagrams
C. Used for research and development projects
D. All of the above
Answer : D

33. The important file in making a PERT is
A. An event can't be accomplished until activities leading to it are completed
B. No activity from any event can be started from preceding event till it is completed
C. Length of arrow has nothing to do with time
D. All of the above
Answer : D

34. The main objective of work measurement is to
A. Plan and schedule of production
B. Formulate a proper incentive scheme
C. Estimate the selling prices and delivery dates
D. All of the above
Answer : D

35. The reasons which are basically responsible for the formation of a queue should be that
A. The average service rate Hess than the average arrival rate
B. Output rate is linearly proportional to input
C. Output rate is constant and the input varies in a random manner
D. All of the above
Answer : D

36. Actual performance of a task is called
A. An event
B. An activity
C. A duration
D. None of these
Answer : B

37. Queueing theory deals with problems of
A. Material handling
B. Reducing the waiting time or idle time
C. Better utilization of man services
D. Effective use of machines
Answer : B

38. A critical activity has
A. Maximum slack
B. Minimum slack
C. Zero slack
D. Average slack
Answer : C

39. Material handling and plant location is analysed by
A. Gantt chart
B. Bin chart
C. Emerson chart
D. Travel chart
Answer : D

40. Simplex method is the method used for
A. Value analysis
B. Network analysis
C. Linear programming
D. Queuing theory
Answer : C

41. If (R) is the base rate guaranteed per hour, (S) is the standard time for the job and (T) is the actual time, then according to Rowan plan, wages for the job will be
A. TR
B. TR + [(S - T)/2] × R
C. TR + (S - T) × R
D. TR + [(S - T)/S] × R
Answer : D

42. Indirect expenses include
A. Factory expenses
B. Selling expenses
C. Administrative expenses
D. All of these
Answer : D

43. PERT and CPM are
A. Techniques to determine project status
B. Decision making techniques
C. Charts which increase aesthetic appearance of rooms
D. Aids to the decision maker
Answer : D

44. The essential condition for the decompression of an activity is that
A. The project time should change due to decompression
B. After decompression the time of an activity invariably exceeds its normal time
C. An activity could be decompressed to the maximum extent of its normal time
D. None of the above
Answer : C

45. Gantt chart gives information about
A. Scheduling and routing
B. Sales
C. Production schedule
D. Machine utilisation
Answer : C

46. Job enrichment technique is applied to
A. Reduce labour monotony
B. Overcome boring and de-motivating work
C. Make people happy
D. All of the above
Answer : D

47. The type of organisation preferred for a steel industry, is
A. Line organisation
B. Functional organisation
C. Line and staff organisation
D. Line, staff and functional organisation
Answer : D

48. One time measurement unit (TMU) in method time measurement system equals
A. 0.0001 minute
B. 0.0006 minute
C. 0.006 minute
D. 0.001 minute
Answer : B

49. Critical path method
A. Helps in ascertaining time schedules
B. Makes better and detailed planning possible
C. Provides a standard method for communicating project plans schedules and to time and cost performance
D. All of the above
Answer : D

50. Pessimistic time is
A. The maximum time which an activity might require
B. The average time required for a job
C. The most probable time considering all conditions
D. The minimum time in which an activity can possibly be accomplished
Answer : A