CMA INTERMEDIATE EXAMINATION
Paper 9 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