Industrial Engineering & Production Management Test 1000+ MCQ with answer for CLAT PG

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

2. 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

3. Earliest finish time can be regarded as
A. Earliest start time + duration of activity
B. Earliest start time duration of activity
C. Latest finish time + duration of activity
D. Latest finish time duration of activity
Answer : A

4. Breakeven point is the point where
A. Fixed and variable cost lines intersect
B. Fixed and total cost lines intersect
C. Variable and total cost lines intersect
D. Sales revenue and total expensive lines intersect
Answer : D

5. The unit cost in case of batch production is ________ as compared to jobbing production.
A. Same
B. Low
C. High
D. None of these
Answer : B

6. 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

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

8. 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

9. 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

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

11. An activity of the project is graphically represented by ________ on the network diagram.
A. A circle
B. A straight line
C. An arrow
D. None of these
Answer : C

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

13. Acceptance sampling is used in
A. Job production
B. Batch production
C. Mass production
D. All of these
Answer : C

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

15. PERT is applied for
A. Marketing programmes and advertising programmes
B. Installation of machinery
C. Research and development of products
D. All of these
Answer : D

16. 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

17. Which of the following statement is correct?
A. A-B-C analysis is based on Pareto's principle
B. Simulation can be used for inventory control
C. Economic order quantity formula ignores variations in demand pattern
D. All of the above
Answer : A

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

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

20. Pick up the incorrect statement from the following
A. An activity of the project is denoted by an arrow on the net work
B. The tail of the arrow indicates the start of the activity
C. The head of the arrow indicates the end of the activity
D. The arrows are drawn (to scale from) left to right
Answer : D

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

22. 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

23. Military organisation is known as
A. Line organisation
B. Line and staff organisation
C. Functional organisation
D. All of the above
Answer : A

24. In ABC control policy, maximum attention is given to
A. Those items which consume money
B. Those items which are not readily available
C. Those × items which are in more demand
D. Those items which consume more money
Answer : D

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

26. 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

27. 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

28. In a PERT chart
A. All activities should be numbered
B. Only important activities should be numbered
C. Only critical activities are numbered
D. Only selected activities are numbered
Answer : A

29. M.T.M. is used to
A. Improve existing methods
B. Establish time standards
C. Develop effective methods in advance of the beginning of production
D. All of the above
Answer : D

30. 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

31. Which of the following type of layout is suitable for automobile manufacturing concern?
A. Product layout
B. Process layout
C. Fixed position layout
D. Combination layout
Answer : A

32. PERT/CPM, techniques can be used for following applications
A. Once through project
B. Maintenance jobs
C. Research and development
D. All of the above
Answer : D

33. Which one of the following represents a group incentive plan?
A. Scanlon Plan
B. Rowan Plan
C. Taylor Differential Piece Rate System
D. Halsey Premium Plan
Answer : A

34. In the perpetual inventory control, the material is checked when it reaches its
A. Minimum value
B. Maximum value
C. Average value
D. Alarming value
Answer : A

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

36. At the breakeven point,
A. Total cost is more than the sales revenue
B. Total cost is less than the sales revenue
C. Total cost is equal to sales revenue
D. Fixed cost is equal to variable cost
Answer : C

37. ABC analysis deals with
A. Analysis of process chart
B. Flow of material
C. Ordering schedule of job
D. Controlling inventory costs money
Answer : D

38. 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

39. In queuing theory, the nature of the waiting situation can be studied and analysed mathematically if
A. Complete details of items in, waiting line are known
B. Arrival and waiting times are known and can be grouped to form a waiting line model
C. All variables and constants are known and form a linear equation
D. The laws governing arrivals, service times, and the order in which the arriving units are taken into source are known
Answer : D

40. 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

41. 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

42. Travel charts provide
A. An idea of the flow of materials at various stages
B. A compact estimate of the handling which must be done between various work sections
C. The information for changes required in rearranging material handling equipment
D. An approximate estimate of the handling which must be done at a particular station
Answer : B

43. The production scheduling is simpler and high volume of output and high labour efficiency are achieved in the case of
A. Product layout
B. Process layout
C. Fixed position layout
D. A combination of line and process layout
Answer : A

44. 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 instantaneous 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

45. In order that linear programming techniques provide valid results
A. Relations between factors must be linear (positive)
B. Relations between factors must be linear (negative)
C. Either (A) or (B)
D. Only one factor should change at a time, others remaining constant
Answer : C

46. The bonus increases in proportion to the increase in efficiency. This statement applies to
A. Halsey plan
B. Gantt plan
C. Emerson's efficiency plan
D. Rowan plan
Answer : C

47. 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

48. 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

49. Break-even analysis shows profit when
A. Sales revenue > total cost
B. Sales revenue = total cost
C. Sales revenue < total cost
D. Variable cost < fixed cost
Answer : A

50. Positive slack on a PERT indicates that project is
A. Ahead of schedule
B. Beyond schedule
C. As per schedule
D. On critical path
Answer : A