1. The production line is to be assigned for a job with 5 tasks. The tasks are 2.4 mins, 1.

4 mins, 0.8 mins, 0.9 mins and 1.7

mins. Compute for the maximum and minimum cycle times.
7.2; 2.4

2. Janah’s shop produces cast bronze valves on assembly line currently producing 2000 valves per shift. If the production is
increased to 2200 valves per shift, labor productivity will increase by:
10%

3. It is an amount of time required to produce a unit.

A.Takt Time B. Standard Time C. Cycle Time D.Normal Time

4. RCC Inc. produces manhole covers. Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be
increased by 20%, it would be then be.
14.4 Covers/hr

5.Refer to questions # 4, if labor productivity is increased by 40%, how many manhole covers produce?
168 Covers

Questions 6-7
A line has a balanced to achieve an output of 240 units per 8-hour day. Task times and precedence relationships are as
follows.

Task Time (min) Immediate predecessor

A 0.2 B

B 0.4 C

C 0.2 F

D 0.4 E

E 1.2 G

F 1.2 G

G 1.0 End

6. Determine the total cycle time.

4.6

7. Minimum number of workstations needed.

3

8. In synchronous servicing, determine the cycle time of the operator servicing the machine.
A. (l+m)/l B. l+m C.l+w D. None of the above

9. A work-study sample of a manufacturing activity conducted over a 40-hour period shows that a worker with an 85% rating
produced 12 parts. The worker’s idle time was 10% and the allowance factor was 12%. Find the standard time for this
activity in a day.
2.900 hours
10. Tom Leonard, of Leonard, Spitz, and Wareham, takes 3 hours and 25 minutes to write an end-of-month report. Tom is
rated at 95% (work pace is 95%) and the office has a personal time allowance of 8%. There is no delay time or fatigue time.
Determine the standard time in writing the end-of-month report.
210 mins

11. How many seconds is the standard eye focus time?

0.0263 sec

12.Vinalay Inc. produces 500 packing boxes in 2 10-hour shifts. Due to higher demand, they have decided to operate 3-8
hour shifts instead. They are now able to produce 600 boxes per day. What has happened to production?
Increased by 20%

13.Standard time is always _________ as compared to normal time.

A.Greater B.Less than C.Equal D.None of the above

14.It is an analysis of man-work method by using a motion picture camera with a timing device in the field view.
A.Work Instruction B.Man-Machine Chart C.Micro-Motion Study D.Work Measurement

15.What does symbol “O” imply in work study?

A.Operation B.Transportation C.Delay D.Waiting

16.This refers to the effective rate performance of a conscious, self-paced, qualified employee when working neither fast nor
slow and giving due consideration to the physical, mental or visual requirements of the specific job.
A.Standard time B.Takt Time C. Standard pace D.None of the above

17.This is a performance rating method that considers only the rate of work per unit time.
A.Effectiveness Rating B. Speed Rating C.Work measurement D.Productivity

18.Which chart gives simultaneous information about the progress of work and machine loading?
A.Man-machine Chart B.Operation Process Chart C.Flow Process Chart D.Control Chart

19. As per the principles of motion economy which one of the following is NOT a pivot for a classified movement of human
body?
A.Knee B.Elbow C.Torso D.Wrist

20. It is a process chart in which the activities ofa worker’s hand (limbs) is recorded in their relationship to one another.
A.Si-Mo Chart B.Man-Machine Chart C.Operation Chart D.Flow Process Chart

Given the following, find the standard time (in minutes)

Average observed time =4.0 minutes
Working rating =90%
21. Allowance factor (as fraction of total workday)=15%
4.24 minutes

Questions 22-23
Four jobs are to be run on three successive processes. The jobs are listed in the following table with their time requirements
on the three processes.
Job Process 1 (min) Process 2 (min) Process 3(min)

A 6 4 7

B 5 2 4
 C 9 3 10

D 7 4 5

22. Using Johnson’s rule, determine the best sequence.

A.A-C-D-B B.A-C-B-D C.A-B-C-D D.A-B-D-C

23.What is the total flow time in the sequence?

37 mins

24.What is the total idle time in Process 2?

11 mins

25. What is takt time?

A.The time it takes to build 100 cars C.Total production time available divided by total customer requireme
B.Total available production time D.The time it takes from start of pitch to pokayoke alarm

For items 26-27 Summer bank employs three loan officers, each working eight hours per day. Each officer processes an
average of five loans per day. The bank’s payroll cost for the officers is $820 per day, and three is a daily overhead expense
of $500.

26. Compute the labor productivity.

0.625

27. Compute the multi-factor productivity.

0.011

28.Identify what therblig is illustrated below.

A.Grasp B.Position C.Hold D.Use

29.He was an early advocate of scientific management and a pioneer of motion study, but is perhaps best known as the
Activity Precedent Activity Task Time(mins) father and central figure of cheaper by dozen.

A - 0.3 A.Frank B. Gilbreth B.Henry Ford

C.Frederick W. Taylor D. Ralph M. Barne
B - 0.6

C A 0.4 30.It refers to the effective use in utilizing inputs.

A.Methods Engineering B.Six Sigma
D B 1.2 C.Productivity D. Lean System

E C 0.2 For questions 31-35, consider the line balancing

problem as presented in the table below.
F D 0.6
Operating minutes in a day is 440 minutes.
G E 0.1 Desired output per day is 275 units.

H G 0.5

I H 0.
31. Compute for its cycle time.
1.6

32. Compute the optimal number of workstations.

3

33.Determine % idle time in the designed line.

2.5%

34. Determine the efficiency of the line.

87.5%

35. Determine the bottleneck of this line

A.Activity A B.Activity D C.Activity E D. Activity G

36. A laser printer is designed to print 24 pages per minute. However, because of occasional warm-ups before printing starts,
it can only print as fast as 18 pages per minute. If an actual, only 48pages were printed in three minutes, how efficient is the
printer?
0.8889

37. Who is referred to as the father of Industrial Engineering?

A.Marvin Mundel B.Shigeo Shingo C.Elton Mayo D. Frederick Taylor

38. Below are the few of the wastes defined by Ohno except one:
A.Transporation B.Incentive plans C.Motion D. Waiting

Questions 40-41. An assembly line with 23 tasks is to be balanced. The longest task is 25 minutes, and the total time for all
tasks is 25 minutes. The line will operate for 450 minutes per day.

40. What is the minimum number of workstations needed if the maximum output rate is be sought?
25 minutes

41 If the assembly line opts to utilize a 15-minute cycle time, what could be the potential output?
30 units
42. Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a
standard deviation of 5 drives. Management wants a 97% service level. Value of z is 1.88. How many drives be carried as
safety stock.
10 drives

43. A certain firm has the capacity to produce 650,000 units of product per year. At present, its operating capacity at 62%
capacity. The firm’s annual income is P4, 160, 000. Annual fixed costs are P1, 920, 000, and the variable costs are equal to
3.56 per unit of product. What is the firm’s annual profit or loss?
P805, 320

44-45 XYZ chemical company has a problem with its flow process. Analyze the following diagram and table.

A B D

Department Capacity(gallons per hour)

A 110
B 90
C 40
D 150
The ratio for mixing the outputs from department B & C is 3:1 as input to Department D.
44.What is the system’s capacity?
120gph

45. Which department is the bottleneck?

A.D B.C C.B. D.A

46.How much slack (unused capacity) is available on the Department A?

20

47. How much to add the bottleneck to increase the system capacity?
21

48. A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per
hour. One machine will result in a fixed cost of $ 2, 000 per day, while two machines will result in a fixed cost of $3, 800 per
day. Variable costs will be $ 20 per customer and revenue will be $45 per customer. Determine the breakeven point for each
range.
1=80; 2=152

Questions 49-52
A local distributor for an umbrella company expects to sell approximately 19, 600 umbrellas of a certain style next year.
Annual carrying cost is 15% of the selling cost per watch and ordering cost $88 per order. The distributor operates 280 days a
year and is selling the watches at $95 per umbrella per umbrella.

49.What is the ordering quantity of the watches so as to minimize total cost incurred by the distributor?
492 umbrellas

50. How many times per year does the distributor reorder?
40 times

51. What is the length of an order cycle?

7 days

52. What is the total annual holding and ordering cost if the EOQ is ordered?
$7, 011

Questions 53-55
An electronics firm is currently manufacturing an item that has a variable cost of $0.60 per unit and a selling price of $ 1.00
per unit. Fixed costs are $10,000 for the current volume of 30, 000 units. The firm can substantially improve the product
quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable cost would increase to $0.70, but
the volume should jump to 45, 000 units. The electronics firm is considering the new equipment with a price increase of
$0.15 per unit.

53.How much profit generated from the current state of operation?

$2, 000.00

54.How much profit can be generated from acquiring the new equipment?
2, 250.00

55.Compute the total cost incurred from acquiring the new equipment?
47, 500

Questions 56-58
Data shown below are the forecasted and actual number of cars sold in a dealership from January to June.
Month Forecasted Sales (Cars) Actual Sales (Cars)

January 1, 410 1, 263

February 1, 720 1, 693

March 1, 246 1, 145

April 1, 676 1, 232

May 1, 333 1, 871

June 1, 485 1, 526

56.What is the forecast in July using a simple 4-month weighted moving average using 0.25 as weighted per month?
1, 444

57.What is the forecast in July using exponential smoothing method with a smoothing constant equal to 0.20
1, 493 cars

58.Compute MAD and MSE.

MAD = 216, MSE = 104, 160

For questions 59-61. A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two
alternatives, A&B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs
would be $40, 000 for A and $30, 000 for B; and variable costs per unit would be $10 for A and $12 for B; and revenue per
unit would be $15 for A and $16 for B.

59. Determine the breakeven point each alternative.

A, 8000 units; B, 7500 units

60. At what volume of output would the two alternatives yield same profit?
10, 000 units

61. If expected annual demand is 12, 000 units, which alternative would yield the higher profit?
Alternative A

62. It takes for a product to go through the production process with no waiting.
Throughput time

63.Refers to theoretical maximum output that can possibly be attained under ideal conditions.
Design capacity

64.Refers to breaking up a production process into small tasks, so that each worker performs a small portion of the overall
job.
Division of labor

65.It is a system of lights used at each workstation to signal problems or slowdowns.

Andon

66. This is the method for locating a distribution center that minimized distribution cost.
Transportation model

Questions 67-
Planner of the company has the following information:
Period Forecast
1 200
2 200
3 300
4 400
5 500
6 200
Cost: Regular time $2 per unit
Overtime $3 per unit
Subcontract $6 per unit
Inventory $1
Backorders $5 per unit per period

67. Prepare an aggregate plan and determine its cost using steady rate of regular-time output, mainly using inventory to
absorb the uneven demand but allowing some backlog. Assume zero inventory on hand on the first period.
$4, 700

68.Given the capacity of regular production of 280 units per month only, develop a plan and determine its cost. Maximum
amount of overtime output per period is 40 units. Assume zero inventory on hand on the first period.
$4, 640

69.What does OEE stand for?

A.Overall Equipment Efficiency B.Overall Equipment Effectivenes
C.Overall Efficiency and Effectiveness D.None of the above

70.Consistency of performance over time, average time for the unit fail.
A.Performance B.Service C.Reliability D.Conformance

71. Meeting specifications or industry standards, workmanship

A.Performance B.Service C.Reliability D.Conformance

72.Which of the following processes most likely uses batch production?

A.Sugar Refinery B.Plastic part manufacturer C.Consumer electronics D.Oil refinery

73.Under ideal conditions, a picture frame manufacturing facility can produce 480 frames per day. Under normal conditions,
the company schedules 135 frames per day. Current market conditions and production strategy have combined to limit
production to 120 frames per day. What is the approximate utilization relative to effective capacity?
89%

74.When capacity is relatively fixed, services are sold in advance, and the marginal cost of making a sale is relatively low,
which of the following capacity plans may be most appropriate?
A.Yield management B.Chase demand plan C.Mixed plans D.Level capacity plan

75.The inventory that is dependent on alternative modes of transportation is known as _______________

A.Safety inventory B.Cycle inventory C.Seasonal inventory D.Pipeline inventory

76.Utilization is measured by _________________.

A.Actual capacity/design capacity B.Actual output/Effective capacity
C.Design capacity/actual output D.Effective capacity/design capacity

77.He is the father of scientific management.

A.Walter A. Shewart B.William Edwards Deming C.Joseph Juran D.Frederick Taylor

78. Process layout is employed for:

A.Batch production B.Continuous type of production
C.Effective utilization of machines D.All of the above

79.Inventory carried for the purpose of providing flexibility to each decision-making unit to manage its operations
independently is known as ________________.
A.Seasonal inventory B.Cycle inventory C.Safety inventory D.Decoupling inventory

80.Which of the following is ensuring that one individual does not carry the burden of a whole work task preferred to?
A.Work specialization B.Work schedule C.Work design D. work shift

For items 81-83 ABC manufacturing has received a forecast of 30,000 units of fashion accessories for the next month from its
marketing department. Fixed cost of $25,000 per month and unit variable cost $ 0.37 is allocated to the manufacturing
process.

81.Find the break-even quantity if fashion accessories sell $1 each.

39, 863 units

82. What will be the effect in the break-even quantity if the selling price is increased by $0.50 each?
A. Increased by 22, 124 units B. Decreased by 22, 124 units
C. Increased by 17, 559 units D. Decreased by 17, 559 units

83. At what price must the accessories be sold to obtain a monthly profit of at least $15, 000 assuming that forecast
materializes?
$1.71 per unit

84 A manager has received an analysis of the alternatives for the new location of their office. The data are tabulated and 10
as being the highest. Using the assigned weight, what is the score earned for the locations?

Factor Weight A B C

Convenience 0.15 3 8 7

Taxes 0.22 6 5 4

Rental Cost 0.25 7 6 7

Business Services 0.38 9 5 5

A.A=6.94, B=5.70, C=5.58

85. The frequency of breakdown of a machine per month is shown in the table. The cost of breakdown is $6,000 and the cost
of preventive maintenance is $15, 250 per month. If preventive maintenance is performed the probability of a machine
breakdown is negligible. Which is more economical, breakdown or preventive maintenance and by how much is the cost
advantage?
Number of breakdowns 1 2 3 4

Probability of occurrence 0.15 0.35 0.45 0.05

A.Breakdown maintenance, $580 per month B.Breakdown maintenance, $850 per month
C. Preventive maintenance, $850 per month D.Preventive maintenance, $580 per month

86. Product A is assembled from two units of S1 and three units of S2. S1 is made of one unit of C1, four units of C2, and one
unit of C3. S2 is made of three units of C2 and 2 units of C3. How many C3s are needed to fill an order for 100As?
A. 800

87. Refer to Problem #86, How many C1s are needed to fill an order for 200As?
400

88. Determine which location is preferred based on the highest factor rating given the following information. Specify also its
corresponding factor rating.
Factor Weight A B

Labor cost 0.25 20 10

Material cost 0.30 10 30

Transportation 0.20 40 20

Supplier base 0.10 25 15

Power cost 0.15 20 25

Location A=21.50

89. Suppose a family is planning a trip , family members check a road atlas. They determine that Orlando is approximately a
2,200-mile round trip from their home. From records kept on the family car, the family estimates that the car will achieve 23
miles per gallon (mpg) on the highway. The average cost of a gallon of gasoline is estimated at $.95.Determine the total cost.
$90.87

For items 90-91 The following data are student credit hours for the fall term in the Department of Information Systems and
Operations Management (ISOM) at State University.
Year Students

1983 3,724

1984 5,368

1985 5,968

1986 7,188

1987 7,572

1988 7,576

1989 7,064

1990 4,600

90. Estimate ISOM’S Enrollment for the academic year 1991 using five-year moving average.
7, 073

91. Use regression analysis to project enrollment for 1991.

7, 914

92. Given the following information on maximum production rate and hours worked, determine the capacity per week.
Maximum production rate=240 units/hour
Number of hours (two shifts)=80 hours/week
Overtime =10hrs/week
Preventive maintenance (preventive on third week)=0
Equipment failure=5% of planned hours
20, 520 units/week

For items ABC Company has two alternatives in building the new facility located in Indianapolis and Lexington. The new
facility is scheduled to produce 45, 000 units per year. The costs and revenues for both sites are listed below. (The incentives
are to be subtracted from the initial investment.)
Indianapolis Lexington
Variable costs $100.46/unit $95.77/unit
Annual overhead $2, 100, 000/year $1, 900, 000/year
Initial investment $175, 000, 0000 $168, 000, 000
Incentives $25, 000, 000 $10, 500,000

93.Over a five-year period, which facility has the lower cost?

$183, 103, 500, Indianapolis

94. At what point in time will the costs of these two sites be equal?
18.25 years

95.How many units must be sold each year for five years if costs are equal?
277, 186 units/year

96. The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar
needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of
customers in the targeted segment.
A.Market study B.Market segmentation C.Geographic segmentation D.Demographic segmentation

97. Effective desire or want for a community which is backed up by the ability and willingness to pay it.
A.Need B.Want C.Demand D.None of the above

98.This calls for dividing the market into different geographical units such as nations, states, regions, states, etc.
A.Market study B.Market segmentation C.Geographic segmentation D.Demographic segmentation

99. A manager must decide among three alternatives: Machine A costing P2 million, Machine B costing P1.5 million, or
Machine C costing P4million. Product forecasts and processing times on the machines are as follows:
Product Annual demand Processing Time per Unit (minutes)

Machine A Machine B Machine C

1 16, 000 3 4 2

2 12, 000 4 4 3

3 6, 000 5 6 4

4 30, 000 2 2 1

Which machine would give the lowest total cost and what would be the corresponding total cost?
Assume machines operate 10 hours a day and 250 days a year.
A.Machine A, P4million B. Machine B, P3million C. Machine C, P4million D.Machine A,
P2million

100. It refers to an amount to order at one time that theoretically minimizes total annual cost of ordering and holding
inventory.
A.Economic Order Quantity B.Economic Production Quantity C.Quantity Discount Model D.Andon

101. It is the difference between the time the order is placed and the delivery of the product.
A.Throughput time B.Takt time C.Cycle time D.Lead time

102. It is a Japanese word meaning “visible record”.

A.Visual factory B.Autonomation C.Andon D.Kanban

103.It refers to a timetable that specifies what is to be made and when.

A.Master Production Schedule B.Level scheduling C.Mixed strategy D.Mixed strategy

104. It refers to the length of time a job is at a particular workstation.

A.Job flow time B.Takt time C.Cycle time D.Lead time
105. It refers to the concept that results in material being produced only when requested and moved to where it is needed
just as it is needed.
A.Visual factory B.Pull system C.One iece flow D.Kanban