ms4001_2025T1_Q1_NA.pdf

Industry 4.0 · Quiz 1 · Jan 2025

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Questions and published explanations below are available without starting a test. Some questions may not have a published solution yet.

Question 275 MCQ · 4.0 marks

Sahitya Inc. is considering two different projects, A and B, for investment and can choose at most one project to invest in. Project A costs Rs 12,000 and is expected to generate Rs 5,000 in year one and Rs 10,000 in year two. Project B costs Rs 10,000 and is expected to generate Rs 5,000 in year one, Rs 4,000 in year two, Rs 3,000 in year three, and Rs 2,000 in year four. Sahitya Inc.’s required rate of return for these projects is 5%. Suppose at most one project can be chosen. Which of the following is true?

Sahitya Inc. should prefer Project B as it has a higher net present value than Project A.
Sahitya Inc. should prefer Project A as it has a higher net present value than Project B.
Sahitya Inc. is indifferent between Project A and Project B as both have the same net present value.
Sahitya Inc. should not invest in either projects A or B as both have a negative net present value.

Published solution

**1. Given:** Required return \(r=5\%\). Choose the project with the higher NPV. **2. Formula:** \(NPV=-\text{Cost}+\sum\frac{CF_t}{(1.05)^t}\). **3. Project A:** \[ NPV_A=-12000+\frac{5000}{1.05}+\frac{10000}{1.05^2}=-12000+4761.90+9070.29\approx1832.19 \] **4. Project B:** \[ NPV_B=-10000+\frac{5000}{1.05}+\frac{4000}{1.05^2}+\frac{3000}{1.05^3}+\frac{2000}{1.05^4} \] \[ =-10000+4761.90+3628.12+2591.51+1645.41\approx2626.94 \] **5. Compare:** Both NPVs are positive, and \(2626.94>1832.19\). Only one project can be chosen, so choose B. Answer: A — Prefer Project B (higher NPV). A: **Correct:** Project B has NPV of about Rs 2,627, which is higher than Project A's NPV of about Rs 1,832. B: **Incorrect:** Project A's NPV (about Rs 1,832) is lower than B's. C: **Incorrect:** The NPVs are different (about Rs 1,832 and Rs 2,627). D: **Incorrect:** Both NPVs are positive, so investing is worthwhile.

Question 276 MCQ · 4.0 marks

Which of the following is not a credit rating agency?

Standard and Poor’s
Standard Chartered
Moody’s
Fitch **Industry 4.0** **Section Id :** 64065379961 **Section Number :** 14 **Section type :** Online **Mandatory or Optional :** Mandatory **Number of Questions :** 11 **Number of Questions to be attempted :** 11 **Section Marks :** 20 **Display Number Panel :** Yes **Section Negative Marks :** 0 **Group All Questions :** No **Enable Mark as Answered Mark for Review and** No **Clear Response :** **Section Maximum Duration :** 0 **Section Minimum Duration :** 0 **Section Time In :** Minutes **Maximum Instruction Time :** 0

Published solution

**1. Concept:** Credit rating agencies assess the creditworthiness of borrowers. The big ones are Standard and Poor's, Moody's and Fitch. **2. Check:** Standard Chartered is a bank, not a rating agency. **3. Conclude:** The question asks which one is NOT a credit rating agency, so choose Standard Chartered. Answer: B — Standard Chartered. A: **Incorrect:** S&P is a major credit rating agency, so it is not the answer. B: **Correct:** Standard Chartered is a bank, not a rating agency, so it is the answer. C: **Incorrect:** Moody's is a major credit rating agency. D: **Incorrect:** Fitch is a major credit rating agency.

Question 278 MCQ · 1.0 marks

Select the appropriate layout for Quadrants A, B, D in the following figure: [[IMAGE:7c00b0ffb1b9fa50_3_0]]

A: Group layout, B: Product layout , D: Process layout
A: Product layout, B: Process layout , D: Group layout
A: Process layout, B: Group layout , D: Product layout

Published solution

**1. Concept:** Layout depends on variety and volume. High variety with low volume suits a process layout. Low variety with high volume suits a product layout. Between them is the group layout. **2. Map the quadrants:** - A (high variety, low volume): process layout. - B (high variety, high volume): group layout. - D (low variety, high volume): product layout. **3. Conclude:** A: Process, B: Group, D: Product. Answer: C — A: Process layout, B: Group layout, D: Product layout. A: **Incorrect:** A needs a process layout, and D needs a product layout. B: **Incorrect:** A is not a product layout; B is not a process layout. C: **Correct:** A: Process, B: Group, D: Product matches the variety-volume chart.

Question 279 MCQ · 1.0 marks

Which of the following is an advantage of Process Layout?

Low material handling
Total production time per unit is small
Low training cost for the operators
It can accommodate high variety of products

Published solution

**1. Concept:** A process layout groups similar machines or functions together. It is flexible but has long, mixed routes. **2. Check:** Low material handling, short production time per unit and low training cost are advantages of a product layout, not of a process layout. Process layout needs skilled operators and has heavy movement of materials. **3. Conclude:** Its advantage is that it can handle a high variety of products. Answer: D — It can accommodate high variety of products. A: **Incorrect:** Process layout has high material handling because routes differ for each job. B: **Incorrect:** Process layout has long production time because jobs move between departments. C: **Incorrect:** Process layout needs skilled operators, so training cost is not low. D: **Correct:** Flexibility for many products is the main advantage of process layout.

Question 280 MCQ · 1.0 marks

Following is the layout from an aircraft manufacturing company. Identify the layout from the figure below. [[IMAGE:7c00b0ffb1b9fa50_4_1]]

Product layout
Process Layout
Group layout
Fixed position layout.

Published solution

**1. Concept:** In a fixed position layout, the large product stays in one place and workers, materials and equipment move to it. **2. Apply:** Aircraft are too large and complex to move through stations, so assembly takes place in a fixed location. **3. Conclude:** The layout is a fixed position layout. Answer: D — Fixed position layout. A: **Incorrect:** A product layout moves work along a line of stations. B: **Incorrect:** A process layout groups similar machines, not one large product. C: **Incorrect:** A group layout forms cells for families of parts. D: **Correct:** Large products like aircraft stay in one place during assembly.

Question 281 MCQ · 1.5 marks

[[IMAGE:7c00b0ffb1b9fa50_4_2]]

1.0:CNC, 2.0:Mass production, 3.0: Digitization, 4.0:Steam Engine
1.0:Steam Engine, 2.0:mass production, 3.0: Digitization, 4.0:CNC
1.0:Mass production, 2.0:Steam Engine, 3.0: Digitization, 4.0:CNC
1.0:Steam Engine, 2.0:mass production, 3.0: CNC, 4.0: Digitization

Published solution

**1. Recall the eras:** Industry 1.0 = steam engine (mechanization). Industry 2.0 = mass production (electricity, assembly lines). Industry 3.0 = automation (CNC, computers). Industry 4.0 = digitization (smart, connected systems). **2. Conclude:** 1.0: Steam Engine, 2.0: Mass production, 3.0: CNC, 4.0: Digitization. Answer: D — 1.0: Steam Engine, 2.0: Mass production, 3.0: CNC, 4.0: Digitization. A: **Incorrect:** Steam engine is 1.0 and digitization is 4.0; this mapping is reversed. B: **Incorrect:** CNC belongs to 3.0 and digitization to 4.0. C: **Incorrect:** Mass production is 2.0 and steam engine is 1.0. D: **Correct:** Matches all four eras correctly.

Question 282 MSQ · 2.0 marks

When will of the following scenarios, a facility layout problem is relevant?

A new facility is added
A new product is introduced
A new service is introduced
Shift in technology

Published solution

**1. Concept:** A facility layout problem arises whenever the arrangement of work areas needs to be decided or revised. **2. Check:** A new facility needs a layout. A new product or service changes the flow of work. A shift in technology changes equipment and flow. **3. Conclude:** All four scenarios make the layout problem relevant. Answer: A, B, C, D — all four scenarios. A: **Correct:** A new facility needs a layout. B: **Correct:** A new product changes the process flow. C: **Correct:** A new service changes the work flow. D: **Correct:** New technology changes equipment and flow.

Question 283 MSQ · 2.0 marks

Identify the examples for Offshoring from the list below:

Shell, an oil company based in Netherlands, setting up a data science team in India.
Western Australia’s electricity network agency assigns Tata Consultancy Services at Pune, to support it with an overhaul of its legacy IT systems, aimed at delivering cheaper and more reliable power.
Target Corporation, a retail giant based in US, setting up Supply Chain Optimization team at Bengaluru.
Tata Motors assigns the manufacturing of its braking system to TACO group.

A published solution is not available for this question yet.

Question 284 MSQ · 2.0 marks

Select the correct statements from below:

Optimal solution in a facility location problem using Euclidean method will result in a region
Optimal solution in a facility location problem using Euclidean method rarely matches the center of gravity
Optimal solution in a facility location problem using Euclidean method will result in a point
Optimal solution in a facility location problem using Euclidean method matches the center of gravity in not of the cases

Published solution

**1. Concept:** In the Euclidean (straight-line distance) single-facility location problem, we minimize the total weighted straight-line distance. The solution is a single point. **2. Compare with center of gravity:** The center of gravity minimizes the weighted squared distance, which is a different objective. So the two usually do not coincide, and only rarely match. **3. Check the options:** - Region: false, the solution is a point. - Rarely matches the center of gravity: true. - Result is a point: true. - 'Matches in none of the cases': false, since they sometimes match (for example, with one demand point). Answer: B, C — the optimal solution is a point and rarely matches the center of gravity. A: **Incorrect:** The optimal solution is a single point, not a region. B: **Correct:** The Euclidean optimum and the center of gravity minimize different objectives, so they rarely match. C: **Correct:** The Euclidean solution is a single point. D: **Incorrect:** They can match in some special cases, so 'none of the cases' is too strong (the wording of this option is also unclear).

Question 285 MSQ · 1.5 marks

There are four demand points at A(1,2), B(2,3), C(3,5), D(4,1). The respective demand at these points are 7, 1, 3, 5. Select the optimal location based on cross-median approach.

(2,2)
(3,2)
(2.5,2)
(2,3)

Published solution

**1. Concept:** The cross-median method finds the median location separately for x and y, weighted by demand. Total demand \(=7+1+3+5=16\), so half is 8. **2. x-coordinate:** Sort by x and add demand: x=1 (7), x=2 (cumulative 8), x=3 (11), x=4 (16). Cumulative demand reaches exactly 8 at x=2, so any x between 2 and 3 is optimal. **3. y-coordinate:** Sort by y: y=1 (5), y=2 (cumulative 12), y=3 (13), y=5 (16). Cumulative demand first passes 8 at y=2, so the optimal y is 2. **4. Check options:** Points with \(2\le x\le3\) and \(y=2\) are optimal: (2,2), (3,2), (2.5,2). The point (2,3) has \(y=3\), which is not optimal. Answer: A, B, C — (2,2), (3,2) and (2.5,2). A: **Correct:** x=2 is in the median range and y=2 is the median, so it is optimal. B: **Correct:** x=3 is the end of the median range and y=2, so it is optimal. C: **Correct:** x=2.5 is in the median range and y=2, so it is optimal. D: **Incorrect:** y=3 is not the weighted median of y (it is 2), so it is not optimal.

Question 286 NAT · 1.0 marks

A factory works for two 8-hour shifts each day and produces a total of 30,000 electric bulbs using a set of workstations. There are 8 activities required to manufacture the bulb, such that the sum of all activity times is equal to 12 seconds. Answer the given subquestions:

What is the cycle time (in seconds) at any workstations (round your answer to one decimal).

Published solution

**1. Given:** Two 8-hour shifts, so total time per day \(=2\times8\times3600=57{,}600\) s. Output \(=30{,}000\) bulbs. **2. Formula:** Cycle time \(=\frac{\text{available time}}{\text{output}}\). **3. Calculate:** \[ CT=\frac{57600}{30000}=1.92\approx1.9\text{ s} \] Answer: \(1.9\) seconds.

Question 287 NAT · 1.0 marks

What is the theoretical minimum number of workstations required?

Published solution

**1. Formula:** Theoretical minimum number of workstations \(=\frac{\sum t}{CT}\), rounded up. **2. Calculate:** \(\sum t=12\) s and \(CT=1.92\) s: \[ \frac{12}{1.92}=6.25\;\Rightarrow\;7 \] **3. Conclude:** We round up because stations cannot be fractional. Answer: \(7\).