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

1. Pick up the correct step used for scheduling a project by C.P.M.
A. A project is divided into various activities
B. Required time for each activity is established
C. Sequence of various activities is made according to their importance
D. All of the above
Answer : D

2. The difference between the time available to do the job and the time required to do the job, is known as
A. Event
B. Float
C. Duration
D. Constraint
Answer : B

3. 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

4. Replacement studies are made on the following basis:
A. Annual cost method
B. Rate of return method
C. Total life average method
D. Any one of the above
Answer : D

5. Standard time is equal to
A. (Normal time) - (allowances)
B. (Normal time) + (allowances)
C. Representative time multiplied by rating factor
D. Normal time taken by an operation
Answer : B

6. 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

7. For ship vessel industry the following layout is best suited
A. Process layout
B. Product layout
C. Fixed position layout
D. Plant layout
Answer : C

8. Process layout is employed
A. Where low volume of production is required
B. Where similar jobs are manufactured on similar machines
C. Where machines are arranged on functional basis
D. All of the above
Answer : D

9. Which of the following wage incentive plan is applied to all workers?
A. Halsey plan
B. Gantt plan
C. Emerson's efficiency plan
D. Rowan plan
Answer : A

10. According to Rowan 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 : C

11. The first method invented for planning projects was
A. Bar chart method
B. Milestone chart
C. Critical path method (CPM)
D. Programme evaluation and review technique (PERT)
Answer : A

12. Line organisation is suitable for
A. Sugar industries
B. Oil refining industries
C. Spinning and weaving industries
D. All of these
Answer : D

13. A PERT network has three activities on critical path with mean time 3, 8 and 6 and standard deviations 1, 2 and 2 respectively. The probability that the project will be completed in 20 days is
A. 0.50
B. 0.66
C. 0.84
D. 0.95
Answer : C

14. For material transportation, conveyors are used when the prevailing conditions include
A. Loads are uniform
B. Routes do not vary
C. Materials move relatively continuously
D. All of these
Answer : D

15. The most important objective behind plant layout is
A. Overall simplification, safety of integration
B. Economy in space
C. Maximum travel time in plant
D. To provide conveniently located shops
Answer : A

16. The time by which the activity completion time can be delayed without affecting the start of succeeding activities, is known as
A. Duration
B. Total float
C. Free float
D. Interfering float
Answer : C

17. O on a PERT/CPM chart represents
A. An ordinary event
B. A significant event representing some milestone
C. An event to be transferred to other network chart
D. Dangling event
Answer : A

18. Father of industrial engineering is
A. Jack Gilbert
B. Gantt
C. Taylor
D. Newton
Answer : B

19. 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

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

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

22. 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

23. 'Value' for value engineering and analysis purposes is defined as
A. Purchase value
B. Saleable value
C. Depreciated value
D. Function/cost
Answer : D

24. 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

25. A diagram showing the path followed by men and materials while performing a task is known as
A. String diagram
B. Flow process chart
C. Travel chart
D. Flow diagram
Answer : D

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

27. 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

28. Bar charts are suitable for
A. Minor works
B. Major works
C. Large projects
D. All of the above
Answer : A

29. 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

30. A dummy activity in a net work diagram
A. Is represented by a dotted line
B. Is an artificial activity
C. Does not consume time or resources
D. All of these
Answer : D

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

32. CPM is
A. Synthesising in concepts
B. Is built of activities oriented programmes
C. Is used for repetitive works
D. All of the above
Answer : D

33. The salient feature of functional organisation is
A. Strict adherence to specification
B. Separation of planning and design part
C. Each individual maintains functional efficiency
D. All of the above
Answer : D

34. 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

35. Product layout is used for
A. Job production
B. Batch production
C. Mass production
D. Any one of these
Answer : C

36. 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

37. 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

38. 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

39. 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

40. 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

41. For handling materials during manufacture of cement, a _________ is widely used.
A. Belt conveyor
B. Bucket conveyor
C. Fork lift truck
D. Overhead crane
Answer : B

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

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

44. The technique for establishing and maintaining priorities among the various jobs of any project is known as
A. Event flow scheduling technique
B. Critical ratio scheduling
C. Slotting technique for scheduling
D. Short interval scheduling
Answer : B

45. In jobbing production
A. Highly skilled workers are needed
B. Unit costs are high
C. Operations are labour-intensive
D. All of these
Answer : D

46. 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

47. 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

48. 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

49. 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

50. 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