Industrial Engineering and Management MCQ PDF

20 Industrial Engineering and Management Industrial Engineering and Production Systems 21 MULTIPLE-CHOICE QUESTIONS...

20 Industrial Engineering and Management Industrial Engineering and Production Systems 21 MULTIPLE-CHOICE QUESTIONS (c) Agile manufacturing automation system (d) All of the above 1. Which of the following is NOT a factor that affects productivity? 10. Which of the following is the correct formula for total factor productivity? (a) design of the workspace (b) use of the Internet (c) standardizing processes (d) Bicycle Total output (a) Total factor productivity = Total input 2. Which of these factors affects productivity? (a) methods and technology (b) workers Total output − Materials and services purchased (b) Total factor productivity = (c) the management (d) all of the above (Labour + Capital) Inputs 3. In an assembly operation at a furniture factory, 8 employees assembled an average of 400 standard Total output − (Labour + Capital) (c) Total factor productivity = dining chairs per 5-day week. What is the labour productivity of this operation? Materials and services purchased (a) 80 chairs/worker/day (b) 40 chairs/worker/day (d) None of the above (c) 10 chairs/worker/day (d) 70 chairs/worker/day 11. Which of the following is NOT the reason of poor productivity? 4. Which formula correctly describes productivity? (a) Poor production planning and control (a) (Output–Input)/Output (b) (Input–Output)/Input (b) Low motivation of people (c) Output/Input (d) Input/output (c) Lack of coordination (d) Social activities 5. A measure of productivity which reflects a combination of some or all of the resources used to obtain a certain output is 12. Who is known as the Father of Scientific Management? (a) labour productivity (b) machine productivity (a) F. W. Taylor (b) F. B. Gilbreth (c) multi-factor productivity (d) materials productivity (c) Henry L. Gantt (d) W. A. Shewhart 6. Industrial engineering is concerned with the design, improvement and installation of integrated 13. The concepts of operations research evolved during systems of (a) Industrial revolution (b) World War I (a) men, machines, methods, materials, and energy. (c) World War II (d) Gulf War 2001 (b) marketing, sales and promotion. 14. Which of the following is the most flexible production system? (c) finance and accounting. (a) Job-shop production (b) batch production (d) product design and development. (c) mass production (d) continuous production 7. Which of the following is NOT concerned with scientific management? 15. Which of the following has highest productivity? (a) F. W. Taylor’s (b) Gilbreth (a) Job-shop production (b) batch production (c) Gantt (d) Taguchi (c) mass production (d) none of the above 8. Which of the following is NOT the part of Taylor’s four principles of scientific management? (a) Replace working by ‘rule of thumb,’ use the scientific method to study work and determine the Answers most efficient way to perform specific tasks. 1. (d) 2. (d) 3. (c) 4. (c) 5. (c) 6. (a) 7. (d) 8. (d) 9. (a) (b) Job specialization, i.e. rather than simply assign workers to do any job, match worker’s capability 10. (b) 11. (d) 12. (a) 13. (c) 14. (a) 15. (c) and motivation to their jobs, and train them to work at maximum efficiency. (c) Monitor worker performance, and provide instructions and supervision to ensure that they are using the most efficient ways of working. REVIEW QUESTIONS (d) Optimize order size of the product for purchasing or production. 1. Define the term ‘industrial engineering’. How it differs from industrial management? 9. What are the main types of production systems? 2. Discuss the various phases of conceptual development of industrial engineering. (a) Job shop production, batch production, mass production, continuous production 3. What do you mean by a production system? How do you classify the production system based on (b) Flexible manufacturing and lean manufacturing volume of items produced?  Facility Location and Layout 45 46 Industrial Engineering and Management 8. An assembly line consists of 4 tasks with times of 5, 8, 4, and 7 min. The cycle time for the line is SUMMARY 9 min. The proposed layout has 4 workstations. What is the efficiency of this layout? (a) 100% (b) 75% In this chapter, we have discussed about the factors for plant location, methods of plant layout, (c) 67% (d) 50% objectives of plant layout, GT, cellular manufacturing and FMS. Plant location is a crucial decision-making process in which a number of factors concerning technical, social, political, 9. A company wants to produce 60 units in an 8-hour day. The required cycle time is economic, etc. are considered. Plant layout plays an important role in increasing the productivity (a) 3 min (b) 10 min of an organization. GT and cellular manufacturing are used to provide the flexibility, improve (c) 6 min (d) 8 min productivity, minimize cycle time, etc. 10. Which of the following is usually NOT used for the facility location method? (a) Factor rating method MULTIPLE-CHOICE QUESTIONS (b) Transportation method for linear programming (c) Correlation and regression analysis 1. Which of the following is the advantage of process layout? (d) Cost–volume–profit ratio/Break-even analysis (a) Equipment used is generic (b) Low unit cost (c) Labour specialization (d) Low material handling cost 11. Which of the following layout has highest flexibility? (a) Product layout (b) Process layout 2. Locating all the milling machines in one work centre, lathes in another work centre, and grinding (c) Group layout (d) Fixed-position layout machines in yet another work centre represents what type of layout? (a) fixed-position layout (b) product layout 12. Which of the following layout has highest productivity? (c) process layout (d) group layout (a) Product layout (b) Process layout (c) Group layout (d) Fixed-position layout 3. A common goal in designing product layouts is (a) minimizing the number of workers 13. The systematic layout planning (SLP) is a tool used to arrange a workplace in a plant by (b) minimizing idle time (a) locating two areas with high frequency of material flows close to each other. (c) minimizing material handling costs (b) locating two areas with more area coverage close to each other. (d) maximizing the production rate (c) locating tow areas with less area coverage close to each other (d) all of the above 4. An assembly line consists of 4 tasks with times of 12, 15, 10, and 18 min. The cycle time for the line is 20 min. The theoretical minimum number of workstations for this situation is 14. Which of the following tool is used to visualize the amount of movement that occurs between (a) 1 (b) 2 departments in a plant? (c) 3 (d) 4 (a) Transportation method (b) Linear programming (c) Block diagram (d) Flow diagram 5. Another name for a product layout is (a) line layout (b) functional layout 15. In an assembly line balancing problem, which of the following is used to find the theoretical number (c) mixed-model layout (d) group technology layout of workstations (b)? Production time per day 6. Another name for a process layout is (a) N t = Total number of units required peer day (a) line layout (b) functional layout (c) mixed-model layout (d) group technology layout Sum of task time (T ) (b) N t = Cycle time (C ) 7. Which of the following is an advantage of group layout? (a) It is easier to balance the flow of work through a cell Sum of task time (T ) (c) N t = (b) It requires less training of workers Actual number of work stations (N a ) × Cycle time (C ) (c) It has reduced work-in-process inventory (d) None of these (d) It requires less capital investment  Facility Location and Layout 47 Forecasting 71 16. Systematic layout planning is a concerned with Table 3-12: (Continued) (a) Sequence of operation Week (X) Demand (D) Forecast (F) |Dt – Ft| |(Dt – Ft) /Dt| × 100 (Dt – Ft )2 (b) Nature of machines 5 500 488.32 11.68 2.336 136.42 (c) Group technology 6 550 505.55 44.45 8.081 1975.80 (d) Frequency of material movements between two departments 7 480 522.78 42.78 8.912 1830.12 Answers 8 520 540.01 20.01 3.848 400.40 9 610 557.24 52.76 8.649 2783.61 1. (a) 2. (c) 3. (d) 4. (c) 5. (a) 6. (b) 7. (c) 8. (c) 9. (d) 10. (c) 11. (c) 12. (a) 13. (a) 14. (c) 15. (b) 16. (d) 10 570 574.47 4.47 0.784 19.98 11 600 591.17 8.83 1.471 77.96 12 590 608.93 18.93 3.208 358.34 REVIEW QUESTIONS Σ = 275.11 Σ = 53.86 Σ = 10409.61 1. Discuss the importance of plant location decision mentioning the factors influencing the plant location. 2. What are the mathematical techniques used to evaluate the plant locations? Discuss cost–volume–profit Solution: relationship used to evaluate the plant locations. 1 n 275.11 3. What are the objectives of plant layout? MAD = ∑ Dt − Ft = 12 = 22.92 n t =1 4. Discuss the advantages and disadvantages of product layout. 5. Discuss the advantages and disadvantages of process layout. 100 n Dt − Ft 53.86 6. Discuss the advantages and disadvantages of group layout. MAPE = ∑ n t =1 Dt = 12 = 4.48 per cent 7. Discuss the advantages and disadvantages of fixed-position layout. 8. Explain the process of systematic layout planning. 1 n 10409.61 9. Explain the use of the block diagram in the rearrangement of departments or facilities. MSE = ∑ n t =1 ( Dt − Ft ) 2 = 12 = 867.46 10. Differentiate the product layout and process layout. 11. What do you understand by line balancing? Discuss the steps used to balance the production line. 12. What do you understand by group technology? Enumerate the advantages and disadvantages of group SUMMARY technology. 13. Discuss the classification and coding systems used in group technology. In this chapter, we have studied about forecasting, and its various models. Forecasting is an 14. What is a flexible manufacturing system? What are its components? Why is an FMS capable of important part of production planning which affects the various industrial or production activities producing a wide range of lot sizes? as discussed in purposes of forecasting for different time horizons. Forecasting is always wrong, but its accuracy depends on the time horizon and analysis of the past data and present market scenario. We have discussed about both the qualitative and quantitative forecasting. Qualitative EXERCISES forecasting is normally used for the new product whose past data are not available and quantitative 1. In a university, a mechanical workshop has four shops, each dedicated to specific problems: foundry forecasting involves the past data assuming that the past will be repeated in future. shop (shop A), machine shop (shop B), forging shop (shop C), and fabrication shop (shop D). The workshop is 1000 feet long and 250 feet wide. Each room is 250 feet by 250 feet. The present location MULTIPLE-CHOICE QUESTIONS of rooms is A, B, C, D, that is, a straight line. The load summary shows the number of contacts that each superintendent in a shop has with other superintendents in the other shops. Assume that all 1. In trend-adjusted exponential smoothing, the trend-adjusted forecast consists of controllers are equal in this value. (a) the old forecast adjusted by a trend factor Load summary: AB = 15, AC = 25, AD = 35, BC = 20, BD = 15, CD = 25. (b) the old forecast and a smoothed trend factor (a) Evaluate this layout according to the material handling cost method. (c) an exponentially smoothed forecast and a smoothed trend factor (b) Improve the layout by exchanging functions within rooms. Show your amount of improvement. (d) an exponentially smoothed forecast and an estimated trend value 72 Industrial Engineering and Management Forecasting 73 2. The primary method for associative forecasting is 13. Moving average forecasting techniques is used for (a) Delphi method (b) executive consensus (a) immediately reflect changing patterns in the data (c) regression analysis (d) exponential smoothing (b) lead changes in the data 3. The mean absolute deviation (MAD) is used for (c) smoothening the variations in the data (a) estimating the trend line (b) eliminating the forecast errors (d) operate independently of recent data. (c) measuring the forecast accuracy (d) Seasonal adjustment 14. Which of the following forecasting techniques is based on the previous forecast plus a fixed fraction 4. Customer service levels can be improved by of the forecast error? (a) sampling plan (b) control charting (a) naive forecast (c) short-term forecast accuracy (d) customer selection (b) simple moving average forecast (c) exponentially smoothed forecast 5. In business, forecasts are the basis for (d) regression method (a) production planning (b) budgeting (c) sales planning (d) all of the above 15. In an exponential smoothing method, 6. The two basic classifications of forecasting are (a) all the past data have equal weights (a) mathematical and statistical (b) judgemental and qualitative (b) recent data has lesser weight than the past data (c) historical and associative (d) qualitative and quantitative (c) recent data has more weight than the past data (d) none of these 7. Which of the following is not a type of judgemental forecasting? (a) executive opinions (b) sales force opinions Answers (c) the Delphi method (d) time series analysis 1. (c) 2. (c) 3. (c) 4. (c) 5. (d) 6. (d) 7. (d) 8. (d) 9. (a) 8. A series of questionnaire is used in 10. (c) 11. (b) 12. (c) 13. (c) 14. (c) 15. (c) (a) expert opinion (b) sales force opinion (c) time series analysis (d) the Delphi method REVIEW QUESTIONS 9. In which of the following forecasting techniques, the last period actual demand is used as the forecasting for the current period? 1. What is the objective of forecasting? Discuss the various steps involved in demand forecasting. (a) Naïve method (b) Moving average method 2. Explain the Delphi method of forecasting. How is it different from executive opinion method? (c) Exponential smoothing method (d) Regression method 3. How does the weighted moving average method overcome the limitations of the moving average method? 10. Gradual and long-term movement in time series data is called 4. How does the weighted average method differ from the exponential smoothing method regarding the (a) cycles (b) seasonal variation weight assignment to the recent data? (c) trend (d) None of these 5. What do you mean by seasonal variations in demand? How do you account the seasonality in 11. The basic difference between seasonality and cycles is forecasting problems? (a) the duration of the repeating patterns in seasonality is longer than cycles 6. What are the techniques used to find the forecasting errors? Explain in detail. (b) the duration of the repeating patterns in seasonality is shorter than cycles the magnitude of the 7. What are the advantages of regression method of forecasting over simple moving average method of variation forecasting? (c) the duration of the repeating patterns in seasonality may be longer or shorter than the cycles depends on the product EXERCISES (d) none of these 1. A company finds the relationships between the demand and economic index for the past 10 years 12. Smoothing constant in the Naïve method is as shown in Table 3.13. (a) Determine the coefficient of correlation between these two variables and (a) 0.2 to 0.5 (b) 0.5 to 0.7 (b) Determine the equation of the line of best fit. (c) Find the demand corresponding to economic (c) 1 (d) None of these index 130. 86 Industrial Engineering and Management Aggregate Planning 87 8. Hiring and firing as a strategy to meet the fluctuating demand is used under SUMMARY (a) a level production strategy (b) a chase demand strategy (c) both (d) none of these In this chapter, we have discussed the various strategies to meet the fluctuating demand in the intermediate range of planning. Level strategies are used to level the inventory as per demand, 9. Linear programming is used for but in chase strategies, the fluctuating demand is chased by various strategies such as overtime (a) only hiring and firing strategy (b) only constant workforce strategy production, subcontracting, changing the workforce level, etc. Also, we have discussed the linear (c) only overtime production strategy (d) all the above and mixed strategy programming and LDR as a tool to formulate the mixed strategy. 10. Aggregate planning (a) is used for only single product (b) may be used for a group of product MULTIPLE-CHOICE QUESTIONS (c) is based on long range forecasting (d) none of these 1. Aggregate planning is capacity planning for 11. Aggregate planning is used for (a) the long range (b) the intermediate range (a) the best way to utilize the limited resources of a firm (c) the short range (d) typically one to three months (b) minimizing the overall production cost (c) meeting the fluctuating demand in the market 2. A chase demand strategy is used when (d) all of the above (a) material cost is high (b) labour cost is high (c) inventory costs are high (d) all of the above 12. Which of the following strategies is used to adjust the capacity to match demand? (a) using part-time labourers (b) changing price 3. Which of the following aggregate planning method is an optimal solution? (c) backordering (d) none of these (a) linear programming (b) search decision rule (c) trial and error with a spreadsheet (d) none of these 13. Which of the following strategies is known for lower employee morale? (a) hiring and firing strategy (b) constant workforce strategy 4. Which of the following statements regarding aggregate planning for services is NOT true? (c) overtime production strategy (d) subcontracting strategy (a) Services cannot be inventoried (b) Demand is difficult to predict (c) Capacity is easy to predict (d) Labour is a big constraint 14. Which of the following strategies is used to manipulate the demand of the product? (a) hiring and firing strategy (b) constant workforce strategy 5. Which of the following statements is NOT true for level production strategy of aggregate planning? (c) overtime production strategy (d) pricing strategy (a) Level production strategy sets production rate constant (b) The main costs of level production involve hiring and firing 15. Which of the following strategies is a demand option? (c) Level production strategy uses inventory to absorb variations in demand (a) changing workforce level (b) changing inventory level (d) All of the above (c) changing production level (d) changing price level 6. Level strategy is used when Answers (a) inventory costs are low as compared to the costs of fluctuating the workforce 1. (b) 2. (c) 3. (a) 4. (c) 5. (b) 6. (d) 7. (a) 8. (b) 9. (d) (b) efficient production is the primary goal 10. (b) 11. (d) 12. (a) 13. (a) 14. (d) 15. (d) (c) costs of subcontracting are high (d) all of the above REVIEW QUESTIONS 7. Overtime as a strategy to meet the fluctuating demand is used when (a) overtime cost is less than the inventory cost 1. What do you mean by aggregate planning? How does it differ from long-term planning? (b) subcontracting cost is less than the inventory cost 2. How does the chase strategy differ from level strategy? (c) inventory cost is less than the cost of hiring and firing of the workers 3. What are the actions taken for chasing the fluctuating demand? (d) none of these  Capacity Planning: MRP, MRP II and ERP 103 104 Industrial Engineering and Management Managerial benefits: Better resource management, improved decision-making and planning, and 5. MRP process involves the following steps performance improvement. (a) Net requirements = (Gross requirements + Allocations) − (On hand) − Scheduled receipts (b) Net requirements = (Gross requirements + Allocations) + (On hand) − Scheduled receipts Strategic benefits: Support for business growth, support for business alliance, building business innovations, building cost leadership, generating product differentiation, building external (c) Net requirements = (Gross requirements + Allocations) − (On hand) + Scheduled receipts linkages, enabling e-governance, sustaining competitiveness, etc. (d) None of these IT infrastructure benefits: Building business flexibility for current and future changes, IT cost 6. MRP II reduction, increased IT infrastructure capability, etc. (a) does not replace MRP (b) is not an improved version of MRP Organizational benefits: Changing work patterns, facilitating organizational learning, (c) represents an effort to expand the scope of production resource planning and to involve other empowerment, building a common vision, shifting work focus, increased employee morale and functional areas of the firm in the planning process satisfaction. (d) all the above 7. ERP is a management tool used for planning SUMMARY (a) manufacturing activities (b) marketing activities In this chapter, we have learnt about the capacity planning. We have discussed about MRP, (c) financial activities manufacturing resource planning, ERP and BPR. The main focus of the chapter was to minimize (d) all the business activities the cost of the product by minimizing the inventory cost, improving the quality and providing the product on time to the customer. Finally, we introduced the management tool, ERP, which is used 8. BPR (Business Process Reengineering) to integrate all the resources available in the enterprise. (a) is a tool used to redesign the business processes to achieve dramatic improvements in critical areas such as cost, quality, service and speed (b) is a tool of ERP MULTIPLE-CHOICE QUESTIONS (c) both is correct 1. MRP means (d) none of these (a) Maximum retail price 9. The demand for a given item is known as dependent if (b) Material requirement planning (a) The item has many children (c) Manufacturing resource planning (b) There is a deep bill of materials (d) Money resource planning (c) The finished products are mostly services 2. MRP is used for (d) The item belongs to a clearly identifiable parent (a) Dependent demand 10. The master production schedule represents the (b) Independent demand (a) Financial requirements for the production (c) Reserve stock (b) Starting time components manufacturing (d) Spare parts (c) Finishing time of components manufacturing 3. Which of the following is NOT an input required for MRP? (d) Starting and finishing time of different products (a) Bill of material 11. The MPS calls for 120 units of product A. There are 20 units of product A on hand. One unit of A (b) Master production schedule requires 3 units of B and 5 units of C. There are 50 units of B and 130 units of C on hand. The net (c) Inventory on hand requirement of B is (d) Financial status of the company (a) 200 4. The hierarchy of components requires to produce a final product is represented by (b) 250 (a) Bill of material (b) Components directory (c) 300 (c) Lead time (d) Master file (d) 350  Capacity Planning: MRP, MRP II and ERP 105 126 Industrial Engineering and Management 12. The MPS calls for 120 units of product A. There are 20 units of product A on hand. One unit of A Example 6.8: requires 3 units of B and 5 units of C. There are 50 units of B and 130 units of C on hand. The net A small shop has an average demand of 45 jackets per day and the standard deviation in average requirement of C is demand is 6 jackets. The fixed time between orders is 16 days and the lead time is 8 days. (a) 250 (b) 300 Inventory in stock is 40 jackets. For 95 per cent of service level what should be the order (c) 350 (d) 370 quantity? 13. Material requirement planning specifies (a) the quantity of materials required to produce the products Solution: (b) quantities and timings of planned order to be released Q = d (t b + L ) + Z σ d t b + L − I (c) capacity requirement to produce the product = 45 (16 + 8) + 1.65 × 6 × 16 + 8 − 40 (d) all the above = 1088.49 jackets 14. ERP is (a) severely limited by MRP computer systems (b) not related to MRP SUMMARY (c) an advanced MRP-II systems integrated with customers and suppliers In this chapter, we have discussed about the importance of inventory and classification of (d) not related to MRP-II items in inventory based on their value, availability and consumption rate. In addition to 15. Dependent and independent demand of an item differ in that these discussions, various inventory models have been explained with numerical illustrations. (a) for any items, the demands of all the components are dependent demand Also, reorder point has been explained with variable demand, variable lead time and variable (b) the quantity of independent demand is to be forecasted demand and lead time both. Finally, the order size for variable demand has been illustrated in this text. (c) the quantity of dependent demand is to be calculated (d) all the above MULTIPLE-CHOICE QUESTIONS Answers 1. Which of the following DOES NOT belong to the assumption of economic batch quantity (EBQ)? (a) Only two or more items are involved 1. (b) 2. (a) 3. (d) 4. (a) 5. (a) 6. (d) 7. (d) 8. (c) 9. (d) 10. (d) 11. (b) 12. (d) 13. (b) 14. (c) 15. (d) (b) Annual demand is known (c) Usage rate is constant (d) Usage occurs continually REVIEW QUESTIONS 2. Inventory carrying costs are influenced by 1. What do you mean by capacity resource planning? Discuss its importance in production management. (a) only ordering (b) only holding carrying cost per unit. 2. What is MRP? Discuss the various inputs required for MRP. What are the outputs of MRP? (c) both ordering and holding (d) only production cost 3. How does the MRP differ from MRP-II? 3. Which of the following statements concerning the basic EOQ model is true? 4. What is ERP? What are the advantages of ERP? (a) a decrease in demand will increase the EOQ value 5. Define BPR and discuss its utilization in ERP. (b) the annual holding cost is less than the annual ordering cost for a smaller-order quantity compared 6. What are the influencing factors for the success of ERP implementation? to EOQ (c) an increase in holding cost will increase the EOQ value EXERCISES (d) as annual ordering costs increase, so do annual carrying costs 1. A firm manager receives an order of 200 units of a product A. The order is to be delivered at the 4. ABC analysis deals with end of 7th week from now. He had 50 units of product A in the inventory at the time of the order (a) ordering cost (b) flow of materials receipts. The product structure is shown in Figure 5.5. The lead times to manufacture the components (c) ordering schedule of the materials (d) the cost involved with the materials  Inventory Control 127 128 Industrial Engineering and Management 5. Which of the following are differences between periodic inventory and continuous inventory systems? 14. A firm has consumption rate of the material is 20 units per week and lead time of supply of the raw (a) Continuous inventory systems are time-phased while periodic inventory systems are not material is two weeks. Which of the following will be the reorder point? (b) Periodic inventory systems have regular order times while continuous inventory systems have (a) 20 units (b) 40 units irregular order times (c) 60 units (d) 80 units (c) Periodic inventory systems have regular order quantities while continuous inventory systems have 15. In the basic model of EOQ with instantaneous supply irregular order quantities (a) Ordering cost will be less than the holding cost. (d) none of the above (b) Ordering cost will be equal to the holding cost. 6. A fixed time between orders and a variable order quantity are characteristics of a (c) Ordering cost will be more than the holding cost. (a) continuous inventory system (b) two-bin system (d) There is no relationship between ordering cost and holding cost. (c) periodic inventory system (d) MRP system Answers 7. The function of inventory is (a) to meet the fluctuating demand of the market 1. (a) 2. (c) 3. (b) 4. (d) 5. (b) 6. (c) 7. (d) 8. (a) 9. (d) (b) to make smooth production systems 10. (c) 11. (b) 12. (d) 13. (d) 14. (b) 15. (b) (c) to kelp hedge against price increase (d) all of the above REVIEW QUESTIONS 8. VED analysis of inventory deals with 1. What are the various types of inventory maintained in a manufacturing organization? (a) utility of the materials (b) cost of the materials 2. What are the objectives of inventory? (c) availability of the material (d) consumption of the material 3. Discuss the functions of inventory. 9. FSN analysis of inventory deals with 4. Write short notes on the following (a) utility of the materials (b) cost of the materials (a) ABC analysis (c) availability of the material (d) consumption of the material (b) VED analysis (c) FSN analysis 10. SDE analysis of inventory deals with (d) SDE analysis (a) utility of the materials (b) cost of the materials 5. Derive an expression for economic order quantity subject to instantaneous supply, no shortage, and (c) availability of the material (d) consumption of the material without any discount. 11. Which of the following is NOT the part of assumptions of basic EOQ model? 6. Discuss the reorder point for variable demand and variable lead time. (a) Demand is known with certainty and is relatively constant over time. (b) Shortages are allowed. EXERCISES (c) Lead time for the receipt of orders is constant. (d) The entire order quantity is received at once and instantaneously. 1. A company ABC is planning to stock a product A. The company has developed the following information: 12. Which of the following EOQ model assumes that material cost is the variable cost? Annual usage = 6000 units (a) Basic EOQ model with instantaneous receipt. Cost of the product = Rs 350 /unit (b) EOQ model without instantaneous receipt. Ordering cost = Rs 50 per order (c) EOQ model with shortages. Carrying cost = 25 per cent of the materials cost per unit per year. (d) EOQ model with quantity discount. (a) Determine the optimal number of units per order 13. To determine the reorder point, which of the following information is required? (b) Find the optimal number of orders/year (a) Demand rate (b) Lead time (c) Find the annual total inventory cost (c) Safety stock (d) All the above 146 Industrial Engineering and Management Product Design and Development 147 8. Standardization in product designing means SUMMARY (a) Minimization of variation in specification of the product components (b) Improve the utilization of parts across a product family In this chapter, the process of product design with steps has been discussed in detail. Various (c) Improving the quality and reducing the rework of the parts phases of product life cycle have been discussed and explained. Standardization, simplification, (d) All the above differentiation and the concept of interchangeability have been introduced. The concepts of sequential engineering and CE have also been discussed. The design and development concepts 9. Simplification means may be used for new as well as existing products. (a) Reducing the variety (b) Boosting to standardization MULTIPLE-CHOICE QUESTIONS (c) Better after sales planning and reducing the inventory (d) All the above 1. Need recognition can be done by (a) Modelling and simulation (b) Customer survey 10. Interchangeability means (c) Product testing (d) All the above (a) ability of an item to be used in place of another without any change (b) differentiate the product form another available in the market 2. Which of the following is not the part of engineering design process? (c) diversify the products to expand the market (a) Need recognition (b) Problem formulation (d) none of these (c) Synthesis (d) Pareto chart 11. Modular design means 3. Product specification means (a) design the different components of the system separately (a) details of the customers using the product for long time (b) design the different components of the system as in the integrated form (b) the detail of technical description expected by the customer (c) different modules of the design of the same components (c) the technical description of the product which helps to perform the functions of the product (d) none of these satisfactorily (d) details of product’s cost and price 12. Concurrent engineering means (a) Using the current technology in product design 4. Brain storming is used to (b) Using the current technology in product manufacturing (a) increase the creativity of the people (c) various engineering activities in the product development run in parallel (b) generate of the ideas for product development (d) all the above (c) sort out the ideas for product development (d) both (b) and (c) 13. Sequential engineering means (a) Using the current technology in product design 5. Sales are the highest in which of the following phase of product life cycle? (b) Using the current technology in product manufacturing (a) Introduction phase (b) Growth phase (c) the different engineering activities in the product development run in sequence (c) Maturity phase (d) Declining phase (d) all the above 6. Price of the product is reduced and some additional offer in made in which of the following phase of product life cycle? 14. Benefit of concurrent engineering is (a) Introduction phase (b) Growth phase (a) reduction in time to market (c) Maturity phase (d) Declining phase (b) reduced cost of production (c) increased level of group productivity 7. Morphology of design is (d) all the above (a) the study of a product throughout its entire life cycle (b) treatment at the end of the use of the product 15. Ergonomic considerations in design include (c) rejection of the design due to poor performance of the product (a) Safety (b) Convenience (d) none of these (c) Adaptability under various conditions (d) All the above 148 Industrial Engineering and Management 168 Industrial Engineering and Management Answers Product decision: Product decision is based on market information, availability of resources, product mix and delayed product differentiation. In push-based system, production decision is 1. (b) 2. (d) 3. (c) 4. (d) 5. (c) 6. (d) 7. (a) 8. (d) 9. (d) based on long-term forecasting while pull-based system is demand driven (Simchi-Levi et al. 10. (a) 11. (a) 12. (c) 13. (c) 14. (d) 15. (d) 2002). There should be strong information channel to know the changing market behaviour. REVIEW QUESTIONS Market information system: The market information system is a base for AMS. Agility means dancing to the tune of the market. Therefore, the strong market information system is required to 1. What do you mean by the term ‘engineering designs’? What are the steps used in engineering design? know the changing customer needs and its behaviour with competitor’s strategies. It is also very Discuss them. helpful to forecast the demand and to customize the product according to customer requirements. 2. What do you mean by feasible design and optimal design? 3. Explain the importance of brain storming in product design. Product mix: The product mix is a set of similar or dissimilar products of various configurations and specifications provided by same manufacturer. This may help to satisfy the diversified 4. What do you mean by product life cycle? Explain all the phases of product life cycle. demand of customers. The product mix is very helpful to design and produce a new or customized 5. Discuss in detail about morphology of design. product with short lead time. For example, Maruti-Suzuki started to produce Marui-800 model 6. Explain the terms: standardization, simplification, differentiation and diversification. at beginning and now producing a new model of car in every 2–4 years according to requirement 7. Explain interchangeability and modular design. of Indian market. 8. Differentiate concurrent engineering and sequential engineering. Write the advantages of concurrent engineering over the sequential engineering. Product postponement: Product postponement is a delay in time when a product gets its identity. 9. Write a short note on aesthetic considerations in engineering design. Using a high level of part commonality at early stages of the manufacturing process can delay 10. Write a short note on ergonomic considerations in engineering design. the product differentiation. For example, in an apparel industry, traditionally, the manufacture of clothing starts with the dyeing of the yarn followed by the knitting of the garment. This process may result in out of stock of desired colour and over inventory of unpopular colour. In a market characterized by very short product life cycles, this mismatch of inventory and customer demand REFERENCES AND FURTHER READINGS cannot be corrected using a traditional manufacturing approach. The typical result is the end of 1. Baldwin, C. Y. and Clark, K. B. (1997), ‘Managing in the Ages of Modularity’, Harvard Business season markdown. Benetton uses the bleached yarn and delay dyeing until information on the Review, Harvard, Boston, Massachusetts, pp. 84–93. preferred colours became available through EDI to reduce the inventory size. 2. Fujita, K. (2002), ‘Product Variety Optimization under Modular Architecture’, Computer-aided Design, 34(12): 953–965. 3. Huang, C. C. and Kusiak, A. (1990), ‘Modularity in design of products and systems’, IEEE Transactions on Systems, Man, and Cybernetics, Proceedings... Part A, 28(1): 66–77. SUMMARY 4. Krishnan, V. and Ulrich, K. T. (2001), ‘Product Development Decisions: A Review of Literature’, In this chapter, we have discussed about the manufacturing systems, including the concepts Management Science, 47(1): 1–21. of FMS, lean manufacturing, and agile manufacturing. Flexible manufacturing is a type of 5. Kumar, P. and Ramaswami, M. (2006), Fundamentals of Design and Manufacturing (New Delhi: programmable automation of manufacturing systems in which the changes required may be Kataria & Sons). easily accommodated. Lean manufacturing is focused on the elimination of different types of the 6. Mahajan, V. and Muller, E. (1979), ‘Innovation Diffusion and New Product Growth Models in wastes. The agile manufacturing is focused on the rapid response to the changes required as per Marketing’, Journal of Marketing, 43 (Fall): 55–68. requirement of the market. We have also discussed about the CAD/CAM, NC, CNC and DNC in 7. Mikkola, J. H. (2001), Modularity and Interface Management: The Case of Schindler Elevators brief under the topic FMS. (Copenhagen Business School: Dept. of Industrial Economics and Strategy). 8. Spears, N. E. and Germain, R. (1995), ‘A Review of Product Life Cycle and Diffusion of Innovation: Current and Historical Perspectives’, Proceedings of the 7th Conference on Historical Research in MULTIPLE-CHOICE QUESTIONS Marketing & Marketing thought, East Lansing, MI: Michigan State University, May 25–28, Vol. VII, 1. In a manufacturing system, computer system is required pp. 349–362. (a) to control the functions of the machines 9. Ulrich, K. (1995), ‘The Role of Product Architecture in the Manufacturing Firm’, Research Policy, (b) to participate in the overall coordination 24: 419–440. (c) to perform the management of the manufacturing system 10. Ulrich, K. and Eppinger, S. D. (1995), Product Design and Development (New York: McGraw-Hill). (d) all the above  Manufacturing Systems 169 170 Industrial Engineering and Management 2. Which of the following is NOT a part of flexible manufacturing system? (c) retrieval CAPP is based on the determination of routesheet by an engineer whereas generative (a) a highly automated group technology machine cell CAPP is based on part family and automated search of route sheet. (b) a group of processing stations (d) none of these (c) forecasting 10. DNC system (d) an integrated computer system (a) can control more than one machines simultaneously 3. Which of the following is NOT a part of FMS workstations? (b) generate the program automatically (a) Moulding machines (b) Machining centres (c) is used to discharge the product after finishing the operations (c) Head changers (d) Milling modules (d) dispose off the scrape produced 4. Part program file consists of 11. Lean manufacturing is concerned with the minimization of (a) alternate route sheets (a) inventory (b) delays (b) part programs for each workstations (c) scrapes (d) all the above (c) tool records 12. The inventor of Toyota production system was (d) record of tool lives (a) Taiichi Ohno (b) Kiichito Toyoda 5. Part production file consists of (c) Eiji Toyoda (d) Deming (a) production rates for various machines 13. Just-In-Time concepts was developed by (b) in-process inventory (a) Taiichi Ohno (b) Kiichito Toyoda (c) inspection required (c) Eiji Toyoda (d) Deming (d) all the above 14. Who is known as the father of Kanban System? 6. Geometric modelling is concerned with (a) Taiichi Ohno (b) Kiichito Toyoda (a) the mathematical description of the geometry of an object (c) Eiji Toyoda (d) Deming (b) the stress–strain calculations 15. Agile manufacturing is concerened with (c) interference checking routings (a) flexibility with speed (b) speed (d) the documentation (c) flexibility (d) quality of product 7. CAM is mainly used for (a) Computer-aided process planning Answers (b) Computer-assisted NC part programming 1. (d) 2. (c) 3. (a) 4. (b) 5. (d) 6. (a) 7. (d) 8. (c) 9. (a) (c) Computer-aided line balancing 10. (a) 11. (d) 12. (a) 13. (b) 14. (a) 15. (a) (d) All the above 8. CAPP is used for REVIEW QUESTIONS (a) preparation of route sheet 1. Explain the term ‘manufacturing systems’. (b) determining the sequence of operations 2. What do you mean by flexible manufacturing system (FMS)? What are the components of FMS? (c) both (a) and (b) 3. Explain the various types of layout configurations used in an FMS. (d) none of these 4. Discuss the advantages of FMS. 9. The main difference between retrieval and generative CAPP is 5. Write short notes on (a) CAD/CAM, (b) CAPP, (c) CNC and (d) DNC. (a) Retrieval CAPP system is based on part family and automated search of route sheet whereas 6. Explain the concept of lean manufacturing and also discuss the term TPS (Toyota Production System). generative CAPP is based on artificial expert that a human planner would use to generate route 7. Write notes on Muda, Mura and Muri. sheet. 8. Discuss the concept of just-in-time manufacturing. (b) generative CAPP is based on part family and automated search of route sheet whereas retrieval CAPP system is based on logical procedures a human planner would use to generate route sheet.  Material Handling Systems 185 186 Industrial Engineering and Management and customers. The major types of identification and communication equipment are bar codes, 3. Which of the following is NOT an objective of material handling systems? radio-frequency tag, magnetic strips, machine vision, electronic data interchange, etc. (a) to increase the space utilization by keeping the materials in racks, one above the other (b) to improve the quality of the product to be manufactured Selection of Material Handling Equipments (c) to improve the operating efficiency by reducing material handling Selection of the material handling devices is based on the following factors: (d) to ensure on-time delivery of the materials at different work centres/facilities 1. Size, shape, weight and volume of the materials. 4. Materials handling covers the following processes except 2. Types of materials to be moved. (a) Storing the product (b) Handling the materials 3. Layout of the plant, production centre and other facilities. (c) Moving an assembly (d) Surface finishing 4. Types of buildings, width of roads, corridors, pavements, floor levels, doors, height ceiling, size of rooms and storing places, single-storey buildings and multi-storey buildings. 5. Material handling process can be justify with the process characteristics 5. Methods, direction and movement of materials. (a) high repeatability (b) high volume 6. Types of machines and equipments used for production. (c) line flows (d) all the above 7. Production processes and methods of manufacturing. 6. When encountering bottlenecks in a process, the AGV generally responds in the following manners 8. Material handling cost. (a) Fixes the problems causing the bottlenecks 9. Cost of material handling equipments. (b) Reroutes the materials to alternative workstations 10. Material handling efficiency and automation needed. (c) Halts the process and sounds the alarm 11. Life of equipment. (d) All the above 12. Safety of equipments. 13. Maintenance of material handling equipments. 7. Material handling in automobile company is done by 14. Ease of operation. (a) Overhead crane (b) Trolley (c) Belt conveyor (d) All the above 8. Which of the following material handling equipment has counter balance type weight? SUMMARY (a) Gravity conveyor (b) Forklift In this chapter, we have discussed about objectives, functions and principles of material handling (c) Overhead crane (d) Robot equipments. Different types of handling equipments are introduced. Finally, the bases for 9. A device used for lifting or lowering an object suspended from a hook at the end of retractable chains equipment selection have been explained. The main purpose of the chapter was to familiarize the is called readers with material handling equipments frequently used in industries. (a) Jib crane (b) Hoist (c) Portable elevator (d) Chain conveyor MULTIPLE-CHOICE QUESTIONS 10. Which of the following devices is used in part orientation in an automated assembly line? (a) Part feeder (b) Manipulator 1. Material handling is defined as (c) Dock leveller (d) Rotary indexing table (a) the activities of material management 11. In a chemical industry, frequently used conveyor is (b) the function of purchasing of the materials for manufacturing (a) belt conveyor (b) roller conveyor (c) the movement, storage, control and protection of materials and products throughout the production process (c) screw conveyor (d) all the above (d) quality testing of the materials 12. Which of the following is a positioning equipment? 2. Which of the following is NOT a function of material handling systems? (a) belt conveyor (b) trolley conveyor (c) trucks (d) industrial robot (a) to minimize the movement of materials and material transportation time. (b) to optimize the speed of material handling equipments and devices. 13. Industrial truck is frequently used in (c) to eliminate or minimize the material handling cost. (a) Warehouses (b) Manufacturing work of shop floor (d) to minimize the material costs. (c) Both (a) and (b) (d) None of these  Material Handling Systems 187 Production Planning and Control 197 14. Automatic guided vehicle can be controlled by 8. Design changes: Design changes by R & D and the engineering department forces the (a) a software (b) sensors using wire, tape, paints PPC to change the input materials and process. (c) lasers (d) all the above 9. Rejection and replacement: There are many occasions when sub-assemblies or finished goods are rejected during production stage or final inspection. PPC must cater for 15. Which of the following devices is used for vertical and horizontal translation and rotation of loads? contingency plans to take care of rework without affecting scheduled quality. (a) Manipulator (b) AGV (c) Lift table (d) Rotary index table Answers SUMMARY 1. (c) 2. (d) 3. (b) 4. (d) 5. (d) 6. (b) 7. (a) 8. (b) 9. (b) In this chapter, we have discussed all the functions of PPC. The production planning is divided 10. (a) 11. (c) 12. (d) 13. (c) 14. (d) 15. (a) into three parts: preplanning, planning and control. Preplanning covers the functions performed before production of the components, and planning consists of the functions performed during REVIEW QUESTIONS production, and control is used to alter the process to meet the target of the performance level. Objectives and factors affecting the PPC are discussed in detail. 1. Define the term ‘material handling systems’ and highlight the relationship between material handling and plant layout. 2. Explain the functions of material handling systems. MULTIPLE-CHOICE QUESTIONS 3. Explain the objectives of material handling systems. 1. Gantt chart is used for 4. Discuss the principles of material handling systems. (a) Forecasting (b) Production schedule 5. What are the various types of material handling equipments used in a manufacturing industries? (c) Inventory control (d) Routing Explain in brief. 6. Diferntiate the use of positioning equipments and the use of transport equipments. 2. Routing presents 7. Write short notes on automated guided vehicle (AGV). (a) Utilization of manpower (b) Utilization of machine 8. Write short notes on automated storage (AS) and automated retrieval (AV). (c) Flow of materials in plant (d) Inspection of materials 3. The routing function is a production system design, which is concerned with (a) Production schedule (b) Loading of the machine REFERENCES AND FURTHER READINGS (c) Quality assurance of the product (d) None of the above 1. Amstead, B. H., Ostwald, P. F. and Begeman, M. L. (1979), Manufacturing Process, 7th edn, pp. 33–35 4. Scheduling (New York: John Wiley and Sons). (a) prescribes the sequence of operations to be performed 2. Apple, J. M. (1972), Material Handling System Design (New York: Ronald). (b) is concerned with the starting of processes 3. Apple, J. M. (2000), ‘Lesson Guide Outline on Material Handling Education’, in R. L. Shell and (c) determine the programme for the operations E. L. Hall (eds), Handbook of Industrial Automation (New York: Marcel Dekker Inc.), pp. 99–109. (d) none of the above 4. Bolz, H. and Stocker, H. E. (1951), Basics of Material Handling, 2nd edn, pp. 22–33 (Englewood 5. In manufacturing management, the term ‘dispatching’ is used to describe Cliffs, N.J.: Prentice Hall Inc.). (a) dispatch of sales order (b) dispatch of factory mail 5. Frazelle, E. (2002), World-Class Warehousing and Material Handling (New York: McGraw-Hill). (c) dispatch of work order through shop floor (d) none of the above 6. James, M. A. (1977), Plant Layout and Material Handling, 3rd edn, pp. 75–99 (New York: John Wiley and Sons). 6. Loading is the process of 7. Kulwiec, R. A., (ed.) (1985), Materials Handling Handbook, 2nd ed., (New York: Wiley). (a) calculating the workload on the machine (b) assigning specific jobs to the machines (c) balancing the load on the machines (d) none of these 198 Industrial Engineering and Management Work Study and Ergonomics 231 7. Make or buy decision is a part of Murrell’s Ergonomics Check List (Murrell 1971) (a) Production planning (b) Production control 1. What role is man expected to play? (c) Preproduction planning (d) None of these 2. How will the equipment fit the man? 8. Forecasting is a part of 3. Can operator sits/stands while operation? (a) Production planning (b) Production control 4. Is the equipment operated partly fully? 5. Is the operator man/woman? (c) Preproduction planning (d) None of these 6. What information does operator need to do the job? 9. Production planning includes 7. What controls will be needed/type, operating body part? (a) sequencing of operations (b) routing 8. What physical work operator is required to do? Is it per his/her capability? (c) time schedule for manufacturing (d) all the above 9. What form of communication will take place between different components of the system? 10. Expediting ensures that, 10. What ambient conditions likely to be? (a) the production is carried out as per the plan and delivery schedules are met 11. What are the physical and mental demands? (b) product are delivered to the customer as per schedule 12. What are the expected maintenance requirements? (c) materials are purchased as per date of receipt (d) none of these 11. Production planning and control (PPC) SUMMARY (a) is tool to coordinate all the manufacturing activities In this chapter, three major topics have been covered; these topics are work study, wage (b) is used to recognize the need of customers determination and ergonomics. Work study is an important management technique to improve (c) is used to chase the competitors in the market the efficiency and economy of an organization. Various tools and techniques related to method (d) none of the above study, time study, work sampling have been discussed in detail. Job rating and merit rating have 12. Which of the following is NOT a part of production control? been introduced that are used in the determination of wage incentive and wage differential. (a) dispatching (b) expediting Finally, ergonomics has been introduced and shown the men–machine relationship. (c) replanning (d) master schedule 13. Which of the following is NOT a part of preproduction planning? MULTIPLE-CHOICE QUESTIONS (a) Forecasting (b) Make or buy decision 1. Work study is concerned with (c) Loading (d) Product design (a) Improving the present method and finding the standard time 14. Order writing is a part of (b) Improving the production schedules (a) preproduction planning (b) production planning (c) Motivating the workers (c) production control (d) none of these (d) Meeting the production target 15. Route sheets consist of the following information 2. The symbol ‘O’ in work study is used for (a) the required operations and desired sequence (a) operation (b) inspection (b) machines, tools, jigs and fixtures or equipments to be used (c) delay (d) storage (c) set-up time and operation time 3. The symbol  in work study is used for (d) all the above (a) operation (b) inspection