Paper 9 Operations Management and Strategic Management | CMA Intermediate True or False with answer

 

CMA INTERMEDIATE EXAMINATION

Paper 9 Operations Management and Strategic Management




Paper 6 Operations Management and Strategic Management

A. State whether the following are True or False  

1) A work stoppage generally reduces the cost of production. False

2) Depending on the need, the maintenance activity may be centralized or decentralized. True

3) Piece wage system is a substitute for proper supervision. False

4) Most suitable layout for continuous production is Matrix Layout. False

5) Addition of value to raw materials through application of technology is production. True

6) Breakdown maintenance doesn’t require use of standby machines. False


B. State whether the following are True or False  

1) The primary concern of production planning and control is the delivery of products to customers or to inventory stocks according to some predetermined schedule. True

2) Capacity refers to the minimum load an operating unit can handle. False

3) Job-shop process is used when a very highly standardized product is desired in high volumes. False

4) The productivity is a measure of how much input is required to achieve a given output. True

5) One of the limitations of Gantt Chart is that it does not clearly indicate the details regarding progress of activities. True

6) Preventive maintenance ensures greater safety to workers. True


C. State whether the following are True or False  

1) Short-term forecasting is useful to serve the purpose of estimating the inventory requirement. True

2) The life cycle of a product has many points of similarity with the human life cycle. True

3) The Linear Programming problem has two basic parts: the objective function and the constraint set. True

4) The most widely used index of productivity is to work out the output per machine-hour. False

5) PERT is designed for repetitive projects, whereas CPM is suitable for non-repetitive projects. False

6) Wear and obsolescence are two main causes for replacement of machinery in every aspect of life. True


D. State whether the following are True or False  

1) Customer service is a key objective of operations management. True

2) In general short term forecasting will be more useful in production planning. True

3) If the total float value is zero, it means the resources are just sufficient to complete the activity without any delay. True

4) Job Evaluation is a systematic approach to ascertain the labour worth of a job. True

5) Load control is typically found wherever a particular bottleneck machine does not exist in the process of manufacturing. False

6) The term "aesthetics" which appeals to the human sense does not add value to the product. False


E. State whether the following are True or False  

1) Operations management in an organisation is not responsible for producing goods and/or services. False

2) One of the important steps in forecasting is gathering information to be used in forecasting both from primary and secondary sources. True

3) The concept of product failure is applicable only for existing products and not for new products. False

4) Simulation models are useful for determining optimal solutions. False

5) The most common financial ratio for measuring productivity is Added Value/ Labour Costs. True

6) A good product design does not ensure maintainability. False


F. State whether the following are True or False  

1) Merit Rating is used to determine the cost of a product. False

2) Project costs increase as the duration of the project increases. True

3) In carrying out Job Evaluation studies, point system is the best method. True

4) Production planning and control is essentially concerned with the control of Finished goods. False

5) A Productivity Index is a device of expressing the ratio between outputs and the inputs of the resources numerically. True

6) If the total float value is zero, it means the resources are just sufficient to complete the activity without delay. True