Industrial Engineering & Production Management Test MCQ Solved Paper for XAT

1. 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

2. 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

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

4. The start or completion of task is called
A. An event
B. An activity
C. A duration
D. None of these
Answer : A

5. 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

6. 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

7. Break-even analysis consists of
A. Fixed expenses
B. Variable cost
C. Sales revenue
D. All of these
Answer : D

8. The production cost per unit can be reduced by
A. Producing more with increased inputs
B. Producing more with the same inputs
C. Eliminating idle time
D. Minimising resource waste
Answer : B

9. 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

10. 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

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

12. 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

13. An optimum project schedule implies
A. Optimum utilization of men, machines and materials
B. Lowest possible cost and shortest possible time for project
C. Timely execution of project
D. To produce best results under given constraints
Answer : B

14. The main object of scientific layout is
A. To produce better quality of product
B. To utilise maximum floor area
C. To minimise production delays
D. All of these
Answer : D

15. 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

16. 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

17. 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

18. The objective of time study is to determine the time required to complete a job by
A. Fast worker
B. Average worker
C. Slow worker
D. New entrant
Answer : B

19. 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

20. 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

21. 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

22. 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

23. Which of the following plans motivates supervisors by paying a premium on time saved by workers?
A. Halsey plan
B. Rowan plan
C. Haynes plan
D. Emerson's plan
Answer : C

24. Travel charts are used to
A. Analyse material handling
B. Determine inventory control difficulties
C. Plan material handling procedure and routes
D. All of the above
Answer : D

25. Templates are used for
A. A planning layout
B. Flow of material
C. Advancing a programme in automatic machines
D. Copying complicated profiles
Answer : A

26. 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

27. Which of the following is independent of sales forecast?
A. Productivity
B. Inventory control
C. Production planning
D. Production control
Answer : A

28. Abbreviated work factor data is applied for
A. Material handling operation
B. Maintenance operation
C. Packing and shipping operation
D. All of these
Answer : D

29. 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

30. The most popular type of organisation used for Civil Engineering Constructions is
A. Line organisation
B. Line and staff organisation
C. Functional organisation
D. Effective organisation
Answer : A

31. Time study is carried out
A. By finding all the significant informations regarding the job, work place and machine tool etc.
B. By breaking up each operation into small elements which are measurable with the help of the measuring device accurately
C. By observing and recording the time taken by the operator for an operation
D. All of the above
Answer : D

32. The term 'value' in value engineering refers to
A. Total cost of the product
B. Selling price of the product
C. Utility of the product
D. Manufactured cost of the product
Answer : C

33. Work study involves
A. Only method study
B. Only work measurement
C. Method study and work measurement
D. Only motion study
Answer : C

34. 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

35. In PERT analysis, critical path is obtained by joining events having
A. +ve slack
B. -ve slack
C. Zero slack
D. Dummy activities
Answer : C

36. In which of the following layouts, the lines need to the balanced
A. Process layout
B. Product layout
C. Fixed position layout
D. Plant layout
Answer : B

37. Process layout is also known as
A. Analytical-layout
B. Synthetic layout
C. Static product layout
D. None of these
Answer : A

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

39. 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

40. 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

41. 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

42. Which of the following organisations is best suited for steel plants
A. Functional organisation
B. Line organisation
C. Staff organisation
D. Line, staff and functional organisations
Answer : D

43. 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

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

45. 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

46. 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

47. Micro-motion study is
A. Enlarged view of motion study
B. Analysis of one stage of motion study
C. Minute and detailed motion study
D. Subdivision of an operation into therbligs and their analysis
Answer : D

48. 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

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

50. 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