BBA Operation and Production Management pdf MCQs Notes 2025 for the preparation of academic and competitive exams!
BBA Operation and Production Management MCQs
1. Adam Smith introduced the concept of specialization of labor in the manufacturing process.
Ans. True
2. By the end of the eighteenth century, the internal combustion engine had been invented.
Ans. False
3. Digital manufacturing has disabled companies to rapidly build to order, maintain nonstop production and integrate their supply chains.
Ans. False
4. The term ___ is applicable to entities like manufacturing units, machinery, equipment, assembly lines, etc.
Ans. Production
5. Production theories and practices were being used in a broad range of ___ and conditions, which have very little or no link with industries or manufacturing.
Ans. Operations
6. A ___ comprises a process wherein an input is transformed or converted into the desired output with a feedback procedure.
Ans. System
7. The six Ms associated with the production process are ___, ___, ___, ___, ___, and ___
Ans. Man, machine, materials, money, method, management
8. The transformation process includes ___, ___, ___, and ___
Ans. The alteration, transportation, storage, output
9. Goods are tangible but ___ are intangible.
Ans. Services
10. Marketing establishes the demand for goods and sells what is produced.
Ans. True
11. Finance provides the capital for equipment and resources.
Ans. True
12. Human Resource Management provides and manages manpower.
Ans. True
13. An organization can survive only if its products satisfy the ___.
Ans. Customers
14. The ___ of the product should be competitive to achieve sales.
Ans. Pricing
15. Production and ___ management play a vital role in providing the product or service on time by effectively maintaining production schedules.
Ans. Operations
16. Layout planning deals with the study of how the factory or plant should be laid out for optimum production.
Ans. True
17. Material management deals with the study of the significance of material flow in an organization, the different methods of material handling, etc.
Ans. False
18. Materials handling deals with methods to control inventory, inventory analysis, etc.
Ans. False
19. ___ makes way for fast and efficient operations in manufacturing companies, as well as facilitates cost-saving measures.
Ans. Technology
20. Characteristics of a human being are not thought of as fixed quantities..
Ans. True
21. The ___ process starts by determining that which is required and then working on the pattern for achieving that target.
Ans. Planning
22. A company’s operation strategy is decided by framing its ___.
Ans. Key Success Factors (KSFs)
23.__ related competencies render firm competent to provide products at a lesser price than that offered by rivals.
Ans. Cost/Price
24. ___ priorities are necessary to design new products and services at operational levels.
Ans. Competitive
25. The functional-level managers and supervisors are not required to take timely initiatives and make quick decisions.
Ans. False
26. The common objectives of any kind of organization are ___, ___ and ___.
Ans. Customer satisfaction, profitability, timeliness
27. An effective POM needs to produce goods or render services of the right quality in the right quantities at the right time and at ___.
Ans. Minimal costs
28. The three most important functions in an organization are___, ___, ___, and ___.
Ans. Finance, operations, marketing and sales
29. Production process selection helps in evaluating different process options possible to produce the type of product in terms of volume and variety and other factors to select the best-suited process.
Ans. True
30. Purchasing management is responsible for making the input material available in time, at the right price and in the right quantity and quality.
Ans. True
31. Quality control is responsible for maintaining a minimum inventory of all critical materials and ensuring no overstocking takes place.
Ans. False
32. ___ is a measure of the quantity of output per unit of input.
Ans. Productivity
33. While ___ means doing something at the lowest possible cost, ___ means doing the right thing to create maximum value for the company.
Ans. Efficiency, effectiveness
34. Domestic austerity measures, rising unemployment rates and decelerating external demand for goods and services had a positive impact on growth in 2012.
Ans. False
35. Market analysis makes the assessment of the strength of the competitors for adopting or making changes in the strategy as per the needs of the buyer and offers cost-effective solutions.
Ans. True
36. Companies bring out goods as per the new technological advancement in automotive, electronics and all other fields that provide improved facilities and comforts to the buyers.
Ans. True
37. Resources can be hired but not purchased by the management.
Ans. False
38. The planning of operational strategy and execution is the inherent job to be done by the management.
Ans. True
39. According to ___ (1994), ‘an organization needs a sense of where it is going and what forces in its environment are going to help or hinder it in achieving its goal’.
Ans. Mintzberg
40. A top-down hierarchical approach to strategy consists of three main levels of strategy: ___, ___, and ___.
Ans. Corporate, business, and functional
41. Strategy means a planned methodology to complete a given job.
Ans. True
42. Operations strategy is a set of decisions taken across the organization to help support the implementation of competitive business strategies.
Ans. True
43. The ___ crisis dominated the headlines in 2012 as policymakers attempted to rescue it from the break-up.
Ans. Euro Zone
44. The sales forecasting for a year or lesser period is known as long-run forecasting.
Ans. True
45. The grassroots method suffers from the disadvantage of being highly subjective.
Ans. True
46. Delphi method was developed by the Rand Corporation in the 1950s.
Ans. True
47. Time series method uses ___ data to predict the future.
Ans. Historical
48. The simple average method smoothens random ___.
Ans. Fluctuation
49. Forecasting means to predict ___ events by the best possible means or tools.
Ans. Future
50. Sales forecasting is the basis for planning various activities, such as production activities, price policies, marketing planning, programmes policies and ___.
Ans. True
51. Product selection and development take place in a single step.
Ans. False
52. In product selection, idea generation means searching for new products.
Ans. True
53. Ideas are listed by companies into three categories: ___ ideas, ___ ideas and ___.
Ans. Promising, marginal, rejects
54. ___ refers to the process of creating new products or modifying the existing ones in a pre-defined time frame.
Ans. Product development
55. Introducing a new product adds to the ___ for an organization by an increase in sales.
Ans. Profitability
56. ___ implies an economical process used for converting raw material into finished goods.
Ans. Process selection
57. ___ is associated with the sequences of operations necessary to meet product specifications.
Ans. Product design
58. Forecast symbolizes a commitment on the part of the sales department and each of its divisions for expected sales.
Ans. Strategies
59. ___ is placing people with the right talent at the right place at the right time for achieving organizational goals.
Ans. Manpower planning
60. In the ___ environment, goods are produced before customers place orders.
Ans. Make-to-Stock
61. Operations technology includes computer software, hardware, etc.
Ans. True
62. The full form of CAD is ___.
Ans. Computer-Aided Design
63. The full form of FMS is ___.
Ans. Flexible Manufacturing System
64. Continuous Production System (CPS) involves the continuous physical flow of material.
Ans. True
65. Process Production is used for ___ items for which the demand is continuous or high.
Ans. Manufacturing
66. An ___ consists of two or more computer-controlled machines linked by handling devices such as robots and transport systems.
Ans. FMS
67. A ___ is a programmable machine designed to handle materials or tools in the performance of a variety of tasks.
Ans. Robot
68. ___ combines several management functions into a logically integrated system and allows the flow of information across these functions.
Ans. ERP
69. ERP is designed to model and automate basic processes across the organization over a ___ database and discards the need for disparate systems maintained by various units of the organization.
Ans. Centralized
70. ERP systems grew to replace the islands of information by integrating these traditional business functions.
Ans. True
71. ERP system provides a tremendous boost to the efficiency of daily transactions such as order fulfillment, timely shipment, vendor performance, quality management, invoice reconciliation, sales realization, and cash management.
Ans. True
72. Routing means the determination of the sequence of operations for manufacturing a product or service.
Ans. True
73. Dispatching means the preparation and distribution of work orders and manufacturing instructions to the concerned departments in accordance with the details worked out under routing and scheduling functions.
Ans. True
74. ___ means comparing the actual with the written or expected specifications and assessing whether they have been met.
Ans. Master Production Schedule
75. A ___ is a planned schedule of completing the end items.
Ans. Job sequencing
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