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P&L Exam Questions and Answers

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45 views5 pages

P&L Exam Questions and Answers

Uploaded by

Lola Lahaye
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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P&L – EXAM QUESTIONS

1. Which is NOT a benefit of Lean manufacturing?


a) Expansion of job requirements
b) Reduced waste
c) Greater flexibility
d) Quicker response to customer's demands
e) Lower supervision cost

2. What is NOT a disadvantage of Total Quality Management?


a) TQM may result in products customers do not want
b) TQM is regarded as management-by-stress
c) TQM has too high focus on quality
d) TQM creates bureaucraucy of working parties, comittes
e) TQM delegates determination of quality to the average employee

3. Which is NOT a step in Value Stream Mapping (VPM)?


a) Identify the product
b) Create a current VPM
c) Implement the final plan
d) Correct and return to the problem area
e) Evaluate the current map, identify problem

4. Which is NOT a Jidoka principle?


a) Detect the abnormality
b) Fix the immediate condition
c) Compare to the competitive environment and improve
d) Investigate the cause and install a measure
e) Stop the operations

5. Which is NOT one of the five principles of economic utility adding value to a product?
a) Form
b) Time
c) Quantity
d) Place
e) Service

6. Which is NOT a Lean manufacturing element?


a) 6S
b) Andon
c) Muda
d) Kanban
e) Total Quality Management (TQM)
7. Calculate the COGS in the following example: Opening stock: 1000$; Purchases=2000$; Closing
stock= 1800$; Revenues= 3600$.

COGS= Beginning inventory cost (1000$)+ Additional inventory cost (2000$) – Ending inventory
cost (1800$)= 1000+2000-1800= 1200

a) 1100
b) 1200
c) 1000
d) 600
e) 800

8. What is NOT a reason why organizations keep inventory?


a) Take advantage of price and quantity discounts
b) Reduce the risk of supplier failure
c) In times of high inflation or a policy of speculation
d) Ensure rapid replenishment of items not often in demand
e) Protect against lead time uncertanties

9. 3D printing can be compared to traditional manufacturing. What is NOT a characteristic of 3D


printing?
a) 3D printing is inflexible
b) 3D printing uses relatively low-cost equipment
c) A pasta is being made with 3D printing
d) 3D printing can be made close to the customer needs
e) 3D printing can reduce inventory costs

10. What is NOT a characteristic of a 'continuous process'


a) Low skilled workers (operators)
b) Highly specialized equipment
c) Operations run 24 hours
d) Line stoppage is costly
e) Products follow no sequence

11. What is NOT a factor of batch process?


a) High flexibility
b) Tight linked sequence of steps
c) High amount of stock
d) Moderate volumes
e) Specialization leads to increased productivity

12. What is NOT a factor of 'continuous flow process'?


a) Highly fixed costs and flexible (Note: Highly fixed costs and inflexible)
b) Cannot be broken into a smaller units
c) Large production volumes
d) Production materials are liquids
e) Automation
13. What is NOT a characteristic of 'cellular manufacturing'?
a) Setup times are reduced
b) Workers are dedicated to a cell
c) Efficiency can be increased
d) Inventory is increased
e) Processing time is reduced

14. What does NOT 'order processing' consists of:


a) Making orders with suppliers
b) Filling orders
c) Receiving orders
d) Communicating orders
e) Checking the order status

15. You learned about supplier benefits of e-supply chain management. What are supplier
benefits?
a) Enable outsourcing of activities
b) More cost-effective material sourcing
c) Collaborate with other suppliers
d) Enhancement of forecasting ability
e) Improved customer relationship management

16. You learned about procurement. Companies are using procurement mannuals for
communicating information. Which factors will NOT be indicated in the procurement mannual?
a) Regulations
b) Procedures
c) Policies
d) Instructions
e) Information systems

17. Which is NOT a disadvantage of outsourcing?


a) Specialists carry out high quality work
b) Subcontractors may hire illegal, unqualified workers
c) Outsourcing may lead to redundancies
d) Outsourcing may be associated with unethical practices
e) Outsourcing may affect the level of staff morale

18. What is NOT an objective of JIT?


a) Zero lead-time
b) Maintaining buffer-stock
c) Zero defects
d) Maximizing TQM
e) Lot size one
19. What is NOT a reason for companies to seek supplier relationships?
a) Seek higher supplier flexibility
b) Reduce employee cost
c) Realize short lead times
d) Obtain lower inventories
e) Improve supplier quality

20. What is NOT an advantage of supplier management system – categorical system?


a) Flexible system
b) Requires minimal data
c) Easy to implement
d) Low-cost system
e) Quality assurance

21. What is NOT a part of the context of a due dilligence?


a) Experience of partnering relationships
b) Reliance of sub-contracting
c) Existence of five-year business plan
d) Robustness of IT system
e) Marketing robustness

22. What activities are mostly outsourced?


a) Subject to long-term fluctuating patterns
b) Not easily seperated from other work
c) Available from niche suppliers
d) Resource intensive
e) Require little client-side management

23. Which is NOT a typical business which is outsourced?


a) Cleaning
b) Public Relations
c) Information Communication Systems
d) Human Resource Management
e) Security Services

24. When e-market places are applicable?


a) Product specifications can be shared transparently
b) High communication costs of suppliers
c) Markets are large and many small suppliers
d) Information is transparently available
e) High transports costs of suppliers

25. Which factor is not an element of categorical system?


a) Easy to implement
b) Requires various data
c) Low-cost system
d) Start-up firm
e) All of the above
26. What are not possible results of the 'Bullwhip effect'?
a) High material costs, overtime expenses
b) Cash flow problems
c) Improved customer service

27. Which factor is not an element of 'weighted-point' system?


a) Focuses on unit price
b) Low implementation cost (Note: Moderate implementation cost)
c) Flexible implementation
d) Possible to implement manually
e) All of the mentioned items

28. Sometimes outsourcing can take the form of an alliance (partnership). What could not be a
reason that partnerships fail?
a) Lack of risk sharing
b) Lack of trust
c) Top management differences
d) Too many shared goals
e) Changes in the market

29. You learned about key-metric to evaluate efficiency. What key-metric?


a) Inventory Turnover
b) Safety stock calculation
c) Lead time
d) Total cost of ownership
e) Cost of goods sold

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