Production and Operations Management Test 5

21. The loss caused by non-absorption of overheads for ttributed to machine break down is called as _____.

a. Cost of repairs
b. Added setup cost
c. Opportunity cost
d. Down time cost

Answer: d. Down time cost

22. What are the advantages of Critical Path Analysis?

i] It ensures a through pre-planning
ii] It indicates the optimal start and finish times of each activity of the project
iii] It provides equal weightage to control all activities
iv] It improves task coordination

a. Only i and ii
b. Only i and iii
c. Only ii and iv
d. All i, ii and iv

Answer: d. All i, ii and iv

23. This type of maintenance anticipates failures and adopts necessary actions to check them before they occur.

a. Preventive maintenance
b. Shutdown Maintenance
c. Corrective Maintenance
d. Design-out Maintenance

Answer: a. Preventive maintenance

24. Which of the following are the basis to establish activity time?

i] Judgement
ii] Experience from past
iii] Actual measurement
iv] Historical data

a. ii and iv
b. iii and iv
c. ii, iii and iv
d. All the above

Answer: c. ii, iii and iv

25. What do you call the amount of time the master schedule extends into future?

a. Planning Horizon
b. Supply Chain
c. Critical Path
d. Time Fence

Answer: a. Planning Horizon