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

1. Value engineering aims at finding out the
A. Depreciation value of a product
B. Resale value of a product
C. Major function of the item and accomplishing the same at least cost without change in quality
D. Breakeven point when machine requires change
Answer : C

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

3. 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

4. Two alternatives can produce a product. First have a fixed cost of Rs. 2000 and a variable cost of Rs. 20 per piece. The second method has a fixed cost of Rs. 1500 and a variable cost of Rs. 30. The break even quantity between the two alternatives is
A. 25
B. 50
C. 75
D. 100
Answer : B

5. Bar chart is suitable for
A. Large project
B. Major work
C. Minor work
D. All of these
Answer : C

6. String diagram is used
A. For checking the relative values of various layouts
B. When a group of workers are working at a place
C. Where processes require the operator to be moved from one place to another
D. All of the above
Answer : D

7. The time of completing a project in network analysis is given by following time of the critical activity meeting at the final triode
A. Early finish
B. Early start
C. Late start
D. Late finish
Answer : A

8. 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

9. A milestone chart
A. Shows the inter dependences of various jobs
B. Depicts the delay of jobs, if any
C. Points outgoing ahead of schedule of jobs, if any
D. None of the above
Answer : D

10. Linear programming can be applied successfully to
A. Chemical industry
B. Oil industry
C. Banks
D. All of these
Answer : D

11. Time study is carried out to determine the time required to complete job by
A. A slow worker
B. A fast worker
C. An average worker
D. An apprentice
Answer : C

12. Gantt charts are used for
A. Forecasting sales
B. Production schedule
C. Scheduling and routing
D. Linear programming
Answer : B

13. 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

14. Standing orders which are statutory are applicable to
A. All industries
B. All process industries and thermal power plants
C. Only major industries
D. All industries employing more than 100 workers
Answer : D

15. If F is the fixed cost, V is the variable cost per unit (or total variable costs) and P is the selling price of each unit (or total sales value), then breakeven point is equal to
A. (F × V)/P
B. (F × P)/V
C. F/[1 + (V/P)]
D. F/[1 - (V/P)]
Answer : D

16. 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

17. The basic difference between PERT and CPM is that
A. PERT deals with events and CPM with activities
B. Critical path is determined in PERT only
C. Costs are considered on CPM only and not in PERT
D. Guessed times are used in PERT and evaluated times in CPM
Answer : D

18. A device used for lifting or lowering objects suspended from a hook at the end of retractable chains or cable is called
A. Hoist
B. Jib crane
C. Portable elevator
D. Chain conveyor
Answer : A

19. In manufacturing management, the term 'Dispatching' is used to describe
A. Dispatch of sales order
B. Dispatch of factory mail
C. Dispatch of finished product of the user
D. Dispatch of work orders through shop floor
Answer : D

20. In the Halsey system of wage incentive plan, a worker is
A. Paid as per efficiency
B. Ensured of minimum wages
C. Not paid any bonus till his efficiency
D. Never a loser
Answer : B

21. Which of the following statement is wrong?
A. An activity consumes time and resources whereas an event does not consume time or resources.
B. The performance of a specific task is called an activity.
C. An event is an instananeous point in time at which an activity begins or ends.
D. The turning of a job on lathe is an event whereas job turned is an activity.
Answer : D

22. In product layout
A. Specialised and strict supervision is required
B. Machines can not be used to their maximum capacity
C. Manufacturing cost rises with a fall in the volume of production
D. All of the above
Answer : D

23. Work sampling observations are taken on the basis of
A. Detailed calculations
B. Convenience
C. Table of random numbers
D. Past experience
Answer : C

24. F. W. Taylor introduced a system of organisation known as
A. Line organisation
B. Functional organisation
C. Line and staff organisation
D. Line, staff and functional organisation
Answer : B

25. In CPM, the cost slope is determined by
A. Crash cost/Normal Cost
B. (Crash Cost - Normal cost)/ (Normal time - Crash time)
C. Normal Cost/Crash cost
D. (Normal cost - Crash cost)/ (Normal time - Crash time)
Answer : B

26. In process layout
A. Handling and backtracking of materials is too much
B. Production control is more difficult and costly
C. Routing and scheduling is more difficult
D. All of the above
Answer : D

27. The aim of value engineering is to
A. Find the depreciation value of a machine
B. Determine the selling price of a product
C. Minimise the cost without change in quality of the product
D. All of the above
Answer : C

28. PERT requires
A. Single time estimate
B. Double time estimate
C. Triple time estimate
D. None of these
Answer : C

29. Inventory control in production, planning and control aims at
A. Achieving optimisation
B. Ensuring against market fluctuations
C. Acceptable customer service at low capital investment in inventory
D. Discounts allowed in bulk purchase
Answer : C

30. In steel plant the most important system for materials handling is
A. Conveyors
B. Cranes and hoists
C. Trucks
D. Locos
Answer : D

31. 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

32. The factors to be considered for production scheduling are
A. Component design
B. Route sheet
C. Time standards
D. All of these
Answer : D

33. A CPM family includes
A. CPA (Critical Path Analysis)
B. CPP (Critical Path Plotted)
C. CPS (Critical Path Scheduling)
D. All of the above
Answer : D

34. Which of the following conditions are necessary for applying linear programming?
A. These must be a well defined objective function.
B. The decision variables should be interrelated and nonnegative.
C. The resources must be in limited supply.
D. All of the above
Answer : D

35. If E is the duration, ES and EF are die earliest start and finish times, LS and LF are latest start and finish times, then the following relation holds good
A. EF = ES + D
B. LS = LFD
C. LF = LS + D
D. All of the above
Answer : D

36. Merit Rating is the method of determining worth of
A. A job
B. An individual employee
C. A particular division in workshop
D. Machine
Answer : B

37. The main advantage of line organisation is its
A. Effective command and control
B. Defined responsibilities at all levels
C. Rigid discipline in the organisation
D. All of the above
Answer : D

38. CPM requires
A. Single time estimate
B. Double time estimate
C. Triple time estimate
D. None of these
Answer : A

39. PERT has following time estimate
A. One time estimate
B. Two time estimate
C. Three time estimate
D. Four time estimate
Answer : C

40. A low unit cost can be obtained by following
A. Product layout
B. Functional layout
C. Automatic material handling equipment
D. Specialisation of operation
Answer : A

41. The wastage of material in the store is taken into account by the following method in the evaluation of the material issued from the store
A. Inflated system
B. Primary cost method
C. Current value method
D. Fixed price method
Answer : A

42. The probabilistic time is given by (where t_o = Optimistic time, t_p = Pessimistic time, and t_n = Most likely time)
A. (t_o + t_p + t_n)/3
B. (t_o + 2t_p + t_n)/4
C. (t_o + 4t_p + t_n)/5
D. (t_o + t_p + 4t_n)/6
Answer : D

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

44. Work sampling is applied for
A. Estimation of the percentage utilisation of machine tools
B. Estimating the percentage of the time consumed by various job activities
C. Finding out time standards, specially where the job is not repetitive and where time study by stop watch method is not possible
D. All of the above
Answer : D

45. 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

46. PMTP (predetermined motion time systems) include
A. MTM (method time measurement)
B. WFS (work factor systems)
C. BNTS (basic motion time study)
D. All of the above
Answer : D

47. Service time in queuing theory is usually assumed to follow
A. Normal distribution
B. Poissons distribution
C. Erlang distribution
D. Exponential law
Answer : D

48. A feasible solution to the linear programming problem should
A. Satisfy the problem constraints
B. Optimise the objective function
C. Satisfy the problem constraints and non-negativity restrictions
D. Satisfy the non-negativity restrictions
Answer : C

49. The two bin system is concerned with
A. Ordering procedure
B. Forecasting sales
C. Production planning
D. Despatching and expediting
Answer : A

50. Routing is essential in the following type of industry
A. Assembly industry
B. Process industry
C. Job order industry
D. Mass production industry
Answer : A