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

1. Slack represents the difference between the
A. Latest allowable time and the normal expected time
B. Latest allowable time and the earliest expected time
C. Proposed allowable time and the earliest expected time
D. Normal allowable time and the latest expected time
Answer : B

2. 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

3. In a functional organisation
A. Quality of work is better
B. Wastage of material is minimum
C. Specialised knowledge and guidance to individual worker is provided
D. All of the above
Answer : D

4. Work study is done with the help of
A. Process chart
B. Material handling
C. Stop watch
D. All of the above
Answer : C

5. A-B-C analysis is used in
A. CPM
B. PERT
C. Inventory control
D. All of these
Answer : C

6. The interchangeability can be achieved by
A. Standardisation
B. Better process planning
C. Bonus plan
D. Better product planning
Answer : A

7. For a small scale industry, the fixed cost per month is Rs. 5000. The variable cost per product is Rs. 20 and sales price is Rs. 30 per piece. The break even production per month will be
A. 300
B. 460
C. 500
D. 1000
Answer : C

8. Under the Apprenticeship Act
A. All industries have to necessarily train the apprentices
B. Industries have to train apprentices according to their requirement
C. All industries employing more than 100 workers have to recruit apprentices
D. Only industries employing more than 500 workers have to recruit apprentices
Answer : D

9. 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

10. The time taken by a trained worker to perform an operation, while working a steady pace, is known as
A. Standard time
B. Normal time
C. Representative time
D. None of these
Answer : A

11. Which of the following statement is correct?
A. When slack of an activity is zero, it falls only on critical path.
B. CPM technique is useful to minimise the direct and indirect expenses.
C. Critical path of a net work represents the minimum time required for completion of project.
D. All of the above
Answer : D

12. 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

13. Break-even analysis can be used for
A. Short run analysis
B. Long run analysis
C. Average of above two run analysis
D. There is no such criterion
Answer : A

14. 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

15. Micro motion study is
A. Analysis of a man-work method by using a motion picture camera with a timing device in the field of view
B. Motion study observed on enhanced time intervals
C. Motion study of a sequence of operations conducted systematically
D. Study of man and machine conducted simultaneously
Answer : A

16. 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

17. 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

18. 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

19. Direct expenses include
A. Factory expenses
B. Selling expenses
C. Administrative expenses
D. None of these
Answer : D

20. 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

21. Pick up the incorrect statement from the following. A critical ratio scheduling
A. Establishes the relative priorities among various activities on a common basis
B. Determines the status of each activity
C. Adjusts automatically changes in activity progress
D. None of the above
Answer : D

22. According to MAPI formula, the old machine should be replaced by new one when (CAM = Challenger's Adverse minimum DAM = Defender's Adverse minimum)
A. CAM < DAM
B. CAM > DAM
C. CAM = DAM
D. There is no such criterion
Answer : A

23. 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

24. 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

25. The time required to complete a job is established and a bonus is paid to the worker based on the exact % of time saved. This type of incentive plan is known as
A. Dry work Plan
B. Halsey Premium Plan
C. Taylor Plan
D. Rowan Plan
Answer : D

26. Which of the following organisation is preferred in automobile industry?
A. Functional organisation
B. Line organisation
C. Staff organisation
D. Line and staff organisations
Answer : D

27. The purpose of micro-motion study is to
A. Assist in finding out the most efficient way of doing work
B. Train the individual operator regarding the motion economy principles
C. Help in collecting the motion time data for synthetic time standards
D. All of the above
Answer : D

28. Frederick W. Taylor introduced a system of working known as
A. Line organisation
B. Line and staff organisation
C. Functional organisation
D. Effective organisation
Answer : C

29. Works cost implies
A. Primary cost
B. Factory cost
C. Factory expenses
D. Primary cost + factory expenses
Answer : D

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

31. Job evaluation is the method of determining the
A. Relative worth of jobs
B. Skills required by a worker
C. Contribution of a worker
D. Contribution of a job
Answer : A

32. The type of layout used for manufacturing steam turbines, is
A. Product layout
B. Process layout
C. Fixed position layout
D. Any one of these
Answer : C

33. A graphical device used to determine the breakeven point and profit potential under varying conditions of output and costs, is known as
A. Gantt chart
B. Flow chart
C. Breakeven chart
D. PERT chart
Answer : C

34. In A-B-C analysis, which class of items are generally large in number?
A. A
B. B
C. C
D. None of these
Answer : C

35. 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

36. When slack of an activity is negative
A. It represents a situation where extra resources are available and the completion of project is not delayed
B. It represents that a programme falls behind schedule and additional resources are required to complete the project in time
C. The activity is critical and any delay in its performance will delay the completion of whole project
D. All of the above
Answer : B

37. Basic motion time study gives times for basic motions in ten thousandths of
A. Second
B. Minute
C. Hour
D. Day
Answer : B

38. The technique of value analysis can be applied to
A. Complicated items only
B. Simple items only
C. Crash programmer items only
D. Any item
Answer : D

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

40. If TL is the largest allowable event occurrence time, total activity slack (s) is equal to
A. Latest start time earliest start time
B. Latest finish time earliest finish time (EFT)
C. TLEFT
D. All of the above
Answer : D

41. In Emerson's efficiency plan of wage incentive system, bonus is paid to a worker
A. Whose output exceeds 67% efficiency
B. On the percentage of time saved
C. On the percentage of time worked
D. On the percentage of standard time
Answer : A

43. 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

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

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

46. According to Muther, the basic principle of best layout is
A. Principle of overall integration
B. Principle of flow
C. Principle of flexibility
D. All of these
Answer : D

47. PERT stands for
A. Programme Estimation and Reporting Technique
B. Process Estimation and Review Technique
C. Programme Evaluation and Review Technique
D. Planning Estimation and Resulting Technique
Answer : C

48. 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

49. The probability distribution of activity times in PERT follows following distribution
A. Normal
B. Binomial
C. Beta
D. Exponential
Answer : C

50. In break even analysis, total cost consists of
A. Fixed cost + sales revenue
B. Variable cost + sales revenue
C. Fixed cost + variable cost
D. Fixed cost + variable cost + profit
Answer : C