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Execution and Control of Operations
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Question 1 of 30
1. Question
In synchronous scheduling, the critical factor is
Correct
In synchronous scheduling we try to get everything working at the same pace. As the bottleneck dictates the pace, the answer is 1
Incorrect
In synchronous scheduling we try to get everything working at the same pace. As the bottleneck dictates the pace, the answer is 1
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Question 2 of 30
2. Question
The planned rate of output from a work center is 180 standard hours per week, and the planned input rate was 175, 190, 170, 190 per week respectively. If the planned queue at the end of the next 4-week period is 150 hours, what is the actual queue at the beginning?
Correct
Total planned input = 725; planned output = 720. Therefore the queue is planned to increase by 5. If the planned ending queue is 150, then the planned opening queue is 145.
As plans have to be based on reality – we can only start from where we are – then the planned queue at the beginning and the actual queue at the beginning are identical. The Actual opening queue therefore is 145
Incorrect
Total planned input = 725; planned output = 720. Therefore the queue is planned to increase by 5. If the planned ending queue is 150, then the planned opening queue is 145.
As plans have to be based on reality – we can only start from where we are – then the planned queue at the beginning and the actual queue at the beginning are identical. The Actual opening queue therefore is 145
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Question 3 of 30
3. Question
An order that cannot be released through the normal procedures may have to be rescheduled. Without affecting the delivery date, this is most easily accomplished by which of the following?
Correct
The best answer in this case is 2. In a job shop, up to 80% of the lead-time is inter-operation time, of which queue time accounts for the greatest amount. Prioritizing the job through the queues in the various work centers will probably enable the job to finish on time even if started late. If that does not work, we still have the overtime option to add on to try to get it finished on time
Incorrect
The best answer in this case is 2. In a job shop, up to 80% of the lead-time is inter-operation time, of which queue time accounts for the greatest amount. Prioritizing the job through the queues in the various work centers will probably enable the job to finish on time even if started late. If that does not work, we still have the overtime option to add on to try to get it finished on time
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Question 4 of 30
4. Question
Which of the following statements are true of standard costs?
Correct
Option 1 is untrue because not only they are used in setting the budget, they are also used as a standard against which to review actual performance.
2 is untrue; they are updated at predefined times, and differences between standard and actual are reported as variances – a measure of operational performance.
3 is untrue – they can be used in all environments.
4 is true – in setting the standard we will use the BOM and purchase costs to identify the material content of the standard cost, and the routing to identify the amount of work required to make a product so that labour costs can be calculated
Incorrect
Option 1 is untrue because not only they are used in setting the budget, they are also used as a standard against which to review actual performance.
2 is untrue; they are updated at predefined times, and differences between standard and actual are reported as variances – a measure of operational performance.
3 is untrue – they can be used in all environments.
4 is true – in setting the standard we will use the BOM and purchase costs to identify the material content of the standard cost, and the routing to identify the amount of work required to make a product so that labour costs can be calculated
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Question 5 of 30
5. Question
To maintain accurate inventory records using backflushing, all of the following must be in place except
Correct
Backflushing depletes stock, using the information contained in the bill of material, when a works order is complete. Reporting the completion of the job also demands that scrap is reported – e.g. if 49 units are reported complete on a job for 50 in which 1 unit was scrapped, we must report both the completion of the 49 and the scrapping of the 1. As this is done at the completion of the job, reporting of job progress (option 4) does not affect the backflushing. The answer is 4
Incorrect
Backflushing depletes stock, using the information contained in the bill of material, when a works order is complete. Reporting the completion of the job also demands that scrap is reported – e.g. if 49 units are reported complete on a job for 50 in which 1 unit was scrapped, we must report both the completion of the 49 and the scrapping of the 1. As this is done at the completion of the job, reporting of job progress (option 4) does not affect the backflushing. The answer is 4
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Question 6 of 30
6. Question
The most effective way to reduce the level of WIP inventory is through?
Correct
WIP inventory is a function of manufacturing lead time. To reduce WIP inventory therefore we must reduce lead-time. The major element of lead-time is queue time, so the most effective way to reduce the inventory is to reduce the queue. Each of the others will also reduce lead time, but typically not by as much as reducing the queue. The answer is 4
Incorrect
WIP inventory is a function of manufacturing lead time. To reduce WIP inventory therefore we must reduce lead-time. The major element of lead-time is queue time, so the most effective way to reduce the inventory is to reduce the queue. Each of the others will also reduce lead time, but typically not by as much as reducing the queue. The answer is 4
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Question 7 of 30
7. Question
The benefits of partnering with suppliers includes which of the following
Correct
While supplier partnering may reduce prices through lowering costs, the primary benefit is in the use of he supplier’s expertise and involvement in new product introduction thus reducing time to market. The answer is 3
Incorrect
While supplier partnering may reduce prices through lowering costs, the primary benefit is in the use of he supplier’s expertise and involvement in new product introduction thus reducing time to market. The answer is 3
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Question 8 of 30
8. Question
Which of the following measurements could be used to measure quality?
I. Scrap rate
II. Number of training hours per employee on quality issues.
III. Bill of material accuracy
IV. Supplier quality performance
Correct
All of these contribute to quality, so the best answer is 4. While I and IV are obvious, investing time in increasing quality awareness and building quality skills in employees will result in improved quality and BOM accuracy contributes to information quality and a reduction in problems arising from poor quality information
Incorrect
All of these contribute to quality, so the best answer is 4. While I and IV are obvious, investing time in increasing quality awareness and building quality skills in employees will result in improved quality and BOM accuracy contributes to information quality and a reduction in problems arising from poor quality information
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Question 9 of 30
9. Question
Revaluing the inventory upwards would affect which of the following?
I. The balance sheet
II. The Profit and Loss (income) Account
III. Inventory levels
IV. Projected cash flow
Correct
As inventory is a financial asset, increasing its value will impact on the balance sheet. The increased value will also be reported as a profit, so I and II are true. Unless the increased value results in higher prices for purchases or sales, it will not directly impact on cash flow, so IV is false. Regardless of how we value the inventory, the inventory levels will not be affected, we will still have the same levels as before,so III is false
Incorrect
As inventory is a financial asset, increasing its value will impact on the balance sheet. The increased value will also be reported as a profit, so I and II are true. Unless the increased value results in higher prices for purchases or sales, it will not directly impact on cash flow, so IV is false. Regardless of how we value the inventory, the inventory levels will not be affected, we will still have the same levels as before,so III is false
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Question 10 of 30
10. Question
Assuming that the lot sizing rules applied to all items is lot for lot, how many sets of wheels per day should a bicycle manufacturer produce given the following maximum capacities:
Final assembly: 450 per day
Frame manufacture and assembly: 2000 per week
Gear manufacture and assembly: 2500 per week
Correct
Assuming lot for lot, then all material movement will be dictated by the pace of the bottleneck process, which in this case is frame manufacture and assembly that can only produce 400 per day. So, even though we have the capacity to assemble 450 bicycles per day, we can do only 400 as that is all of the frames that we will have. Therefore we will need only 400 sets of wheels. The answer is 2
Incorrect
Assuming lot for lot, then all material movement will be dictated by the pace of the bottleneck process, which in this case is frame manufacture and assembly that can only produce 400 per day. So, even though we have the capacity to assemble 450 bicycles per day, we can do only 400 as that is all of the frames that we will have. Therefore we will need only 400 sets of wheels. The answer is 2
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Question 11 of 30
11. Question
Which of the following is true regarding an increase in labour productivity?
Correct
An increase in labour productivity means that more output per hour at work is being produced. This means that here will be a corresponding reduction in the labour cost per unit, so 1 is false and 3 is true. 2 is false because the increase can arise from increased utilization as well as increased efficiency. 4 is false because productivity increases are not necessarily limited to direct employees – indirect employees can also increase their productivity. The best answer is 3
Incorrect
An increase in labour productivity means that more output per hour at work is being produced. This means that here will be a corresponding reduction in the labour cost per unit, so 1 is false and 3 is true. 2 is false because the increase can arise from increased utilization as well as increased efficiency. 4 is false because productivity increases are not necessarily limited to direct employees – indirect employees can also increase their productivity. The best answer is 3
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Question 12 of 30
12. Question
A work center is expected to produce and deliver 100% quality output. This is an example of
Correct
This is an example of 4 – the workcenter is taking responsibility for the quality of its own output
Incorrect
This is an example of 4 – the workcenter is taking responsibility for the quality of its own output
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Question 13 of 30
13. Question
Shutting down a machine on detection of defective output is known as
Correct
Shutting down a process on detection of a problem so that the problem does not result in further defects is called Autonomation
Incorrect
Shutting down a process on detection of a problem so that the problem does not result in further defects is called Autonomation
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Question 14 of 30
14. Question
The introduction of cellular manufacturing brings which of the following benefits
I Reduction in machine downtime
II Reduction in setup times
III Reduction in overhead costs
IV Reduction in scrap rates
Correct
Work cells imitate repetitive manufacturing. In this regard setup times are reduced, quality is improved and the simpler planning and control reduce overhead costs. Machine downtime is not not necessarily reduced, as machines will only be used as they are needed for the products to which they have been dedicated in the cell
Incorrect
Work cells imitate repetitive manufacturing. In this regard setup times are reduced, quality is improved and the simpler planning and control reduce overhead costs. Machine downtime is not not necessarily reduced, as machines will only be used as they are needed for the products to which they have been dedicated in the cell
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Question 15 of 30
15. Question
It is most difficult to apply input/output control to which of the following situations?
Correct
In three of the above scenarios input is received from only one “feeder” source, the ability to plan input is less difficult than in the fourth. These three are:
1 and 3: The gateway work centres – the workstation where production commences.
4: Mass production downstream – on a production line all material flows in a standard route.
In mass production, also, output is much more easy to plan as output is usually measured in units per time period, whereas in a job shop environment output has to be converted into some common unit of measure – usually standard hours.
The answer therefore is 2, where work will arrive from a multitude of workcenters depending on the routing of the products being manufactured, and input and output has to be converted into the standard unit of measure
Incorrect
In three of the above scenarios input is received from only one “feeder” source, the ability to plan input is less difficult than in the fourth. These three are:
1 and 3: The gateway work centres – the workstation where production commences.
4: Mass production downstream – on a production line all material flows in a standard route.
In mass production, also, output is much more easy to plan as output is usually measured in units per time period, whereas in a job shop environment output has to be converted into some common unit of measure – usually standard hours.
The answer therefore is 2, where work will arrive from a multitude of workcenters depending on the routing of the products being manufactured, and input and output has to be converted into the standard unit of measure
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Question 16 of 30
16. Question
An order that cannot be released through the normal procedures may have to be rescheduled. This can be done by which of the following techniques?
I. Changing due date and order priority.
II. Job splitting
III. Operations overlapping
IV. Sending the customer an overdue report
Correct
Rescheduling the start of an order does not necessarily mean that the completion also has to be rescheduled. We should be attempting to maintaining customer service by achieving on-time completion. A late start therefore can be compensated for by reducing the lead-time. This can be achieved by splitting the batch – thus reducing the run-time – or by overlapping operations – having different elements of the work being done in parallel rather than sequentially. The answer therefore is 2
Incorrect
Rescheduling the start of an order does not necessarily mean that the completion also has to be rescheduled. We should be attempting to maintaining customer service by achieving on-time completion. A late start therefore can be compensated for by reducing the lead-time. This can be achieved by splitting the batch – thus reducing the run-time – or by overlapping operations – having different elements of the work being done in parallel rather than sequentially. The answer therefore is 2
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Question 17 of 30
17. Question
If the actual lead time is longer than the planned lead time, and backlogs are excessively large, which of the following is the best course of action?
Correct
If the leadtime is extending it invariably means that queues are extending. The surest way to reduce queues is to delay the entry new work to the queues and to speed up the completion of work towards the end of the queue.
To delay the entry of new work we would decrease the MPR planned lead-time. This will delay the planned order release dates, so the answer must be 3 or 4.
To speed up the completion of work, it is best to start by clearing out the queues at the ending workcenters so that work can be pulled through more quickly. (Just as in a busy supermarket queues are reduced by opening more checkout stations.) In addition, the reduction of the workload in the gateway work centres will be achieved by delaying the issuing of new work. The best answer therefore is 4
Incorrect
If the leadtime is extending it invariably means that queues are extending. The surest way to reduce queues is to delay the entry new work to the queues and to speed up the completion of work towards the end of the queue.
To delay the entry of new work we would decrease the MPR planned lead-time. This will delay the planned order release dates, so the answer must be 3 or 4.
To speed up the completion of work, it is best to start by clearing out the queues at the ending workcenters so that work can be pulled through more quickly. (Just as in a busy supermarket queues are reduced by opening more checkout stations.) In addition, the reduction of the workload in the gateway work centres will be achieved by delaying the issuing of new work. The best answer therefore is 4
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Question 18 of 30
18. Question
Which of the following statements is correct?
Correct
Since nothing happens “always” (and nothing happens “never”) options 2 and 4 must be false – and anyway schedules can be generated from either the start date (forward) or end date (backward).
Scheduling techniques primarily PLAN the work – and as planning is part of managing statement 3 is partially true.
Analysis of performance must be against some yardstick or objective. The scheduling techniques give us a plan against which performance can be measured – so statement 1 is true and is the best answer
Incorrect
Since nothing happens “always” (and nothing happens “never”) options 2 and 4 must be false – and anyway schedules can be generated from either the start date (forward) or end date (backward).
Scheduling techniques primarily PLAN the work – and as planning is part of managing statement 3 is partially true.
Analysis of performance must be against some yardstick or objective. The scheduling techniques give us a plan against which performance can be measured – so statement 1 is true and is the best answer
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Question 19 of 30
19. Question
All of the following statements about scheduling in flow production are correct except
Correct
Flow production operates on the basis of FIFO – what is started is processed, and the process follows an unchangeable sequence of operations. Consequently dispatching does not come into play except at the very start of the process.
It does require immediate attention to problems, as a problem may bring the entire process to a halt; scheduling only is required at the start of the process because of the reasons above, and conformance to plan is by relating actual input and output rates (gallons, litres, tons,) to the planned rates.
The best answer is 1
Incorrect
Flow production operates on the basis of FIFO – what is started is processed, and the process follows an unchangeable sequence of operations. Consequently dispatching does not come into play except at the very start of the process.
It does require immediate attention to problems, as a problem may bring the entire process to a halt; scheduling only is required at the start of the process because of the reasons above, and conformance to plan is by relating actual input and output rates (gallons, litres, tons,) to the planned rates.
The best answer is 1
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Question 20 of 30
20. Question
Current Capacity: 20 hours per week. At the end of week 4, the projected queue at this workstation is how many hours?
Correct
Total Load = open orders + planned orders = 90 + 20 = 110
Total capacity = hours per week x no. of weeks = 20 x 4 = 80.
Queue = Load – capacity = 110 – 80 = 30.
The answer is 3
Incorrect
Total Load = open orders + planned orders = 90 + 20 = 110
Total capacity = hours per week x no. of weeks = 20 x 4 = 80.
Queue = Load – capacity = 110 – 80 = 30.
The answer is 3
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Question 21 of 30
21. Question
Determining labour productivity requires information about all of the following except
Correct
Labour productivity relates to output, efficiency and utilisation.
2 is output; 3 affects utilisation and 4 is used to calculate efficiency. Pieces input, in a job shop, refers to the rate at which work merely arrives to be processed, therefore it is not a measure of labour productivity. In repetitive manufacturing, the difference between pieces input and pieces output is scrap, which is a measure of process or material productivity, not necessarily labour productivity.
The answer is 1
Incorrect
Labour productivity relates to output, efficiency and utilisation.
2 is output; 3 affects utilisation and 4 is used to calculate efficiency. Pieces input, in a job shop, refers to the rate at which work merely arrives to be processed, therefore it is not a measure of labour productivity. In repetitive manufacturing, the difference between pieces input and pieces output is scrap, which is a measure of process or material productivity, not necessarily labour productivity.
The answer is 1
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Question 22 of 30
22. Question
True statements about lead time control include which of the following?
I. The smoother the shop’s input rate, the less backlog required
II. The longer the lead time between an order’s release and its completion, the greater the visibility of machine load in each work center
III. When actual lead times exceed planned lead times, planned lead times must be increased
Correct
Statement I is true; with a steady predictable flow of work the less work will be needed in the queue.
Statement II is false; load is based on the accumulation of planned and open orders. Extending leadtime merely transfers data from planned to open.
Statement III is false; when lead times are growing queues grow. To reduce queues, delaying the issuing of extra work into the queue is accomplished by reducing the planned lead time and consequently delaying the planned release dates. With the shorter queues, work will flow more quickly.
Therefore the answer is 1, as both II and III are not correct statements
Incorrect
Statement I is true; with a steady predictable flow of work the less work will be needed in the queue.
Statement II is false; load is based on the accumulation of planned and open orders. Extending leadtime merely transfers data from planned to open.
Statement III is false; when lead times are growing queues grow. To reduce queues, delaying the issuing of extra work into the queue is accomplished by reducing the planned lead time and consequently delaying the planned release dates. With the shorter queues, work will flow more quickly.
Therefore the answer is 1, as both II and III are not correct statements
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Question 23 of 30
23. Question
Which of the following statements is true of good planning and control systems?
Correct
A good planning and control system consists of 4 steps:
1.Create a plan (PLAN)
2.Execute the plan (DO)
3.Monitor performance against the plan (CHECK)
4.Apply the appropriate corrective actions (CORRECT).
In any normal environment, step 4 will be required as a result of the other steps. The best answer therefore is 4, which is the corrective action.
Dispatch lists are means of communicating priorities, including changes.
No plan, however good, can guarantee material availability.
3 is a contradiction of 4, and reschedules can be needed for a whole series of different reasons – including changes in customer needs
Incorrect
A good planning and control system consists of 4 steps:
1.Create a plan (PLAN)
2.Execute the plan (DO)
3.Monitor performance against the plan (CHECK)
4.Apply the appropriate corrective actions (CORRECT).
In any normal environment, step 4 will be required as a result of the other steps. The best answer therefore is 4, which is the corrective action.
Dispatch lists are means of communicating priorities, including changes.
No plan, however good, can guarantee material availability.
3 is a contradiction of 4, and reschedules can be needed for a whole series of different reasons – including changes in customer needs
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Question 24 of 30
24. Question
Which of the following have the greatest influence on an employee’s evaluations and promotion?
Correct
In a JIT or TQM environment – where quality and service is defined as meeting or exceeding the customer needs – we need employees who can create improvements without increasing costs. For this, the ability to identify and resolve problems is a key attribute. The answer therefore is 4. (Each of the others will merely create a performance level in relation to production costs, but ignore the other two major objectives of increasing customer service and reducing inventory investment)
Incorrect
In a JIT or TQM environment – where quality and service is defined as meeting or exceeding the customer needs – we need employees who can create improvements without increasing costs. For this, the ability to identify and resolve problems is a key attribute. The answer therefore is 4. (Each of the others will merely create a performance level in relation to production costs, but ignore the other two major objectives of increasing customer service and reducing inventory investment)
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Question 25 of 30
25. Question
Long term agreements with suppliers may include which of the following types of special arrangements
I Simplified paperwork systems
II Returnable containers
III Specially designed containers
IV Effective personal contacts at each site
Correct
Each of the above options I, II, III and IV are elements that may be contained in long-term supplier agreements, so the answer is 4
Incorrect
Each of the above options I, II, III and IV are elements that may be contained in long-term supplier agreements, so the answer is 4
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Question 26 of 30
26. Question
Four-wall inventory control would most likely include which of the following practices?
Correct
Four –wall inventory control does not recognize specific locations for material within the plant, so the number of transactions to be processed will reduce and material usage – and consequently available inventory status – will be recorded by backflushing. ABC analysis is based upon annual usage, regardless of whether or not we are using a four-wall process, and likewise cycle counting will increase accuracy again regardless of whether or not we are using the four-wall process. The best answer therefore is 4
Incorrect
Four –wall inventory control does not recognize specific locations for material within the plant, so the number of transactions to be processed will reduce and material usage – and consequently available inventory status – will be recorded by backflushing. ABC analysis is based upon annual usage, regardless of whether or not we are using a four-wall process, and likewise cycle counting will increase accuracy again regardless of whether or not we are using the four-wall process. The best answer therefore is 4
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Question 27 of 30
27. Question
Which of the following would not result from the achievement of a high level of inventory accuracy?
Correct
High levels of material accuracy would reduce the need for safety stock, reduce the incidence of surprise material shortages and increase output by eliminating the disruptions caused by shortages on the factory floor. Batch quantities, however, can only be reduced by reducing the fixed cost of ordering – set-up cost for manufactured parts
Incorrect
High levels of material accuracy would reduce the need for safety stock, reduce the incidence of surprise material shortages and increase output by eliminating the disruptions caused by shortages on the factory floor. Batch quantities, however, can only be reduced by reducing the fixed cost of ordering – set-up cost for manufactured parts
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Question 28 of 30
28. Question
Practices that apply to tooling include which of the following:
I Some tooling may be duplicated to support manufacturing cells.
II Some tooling may be changed to expedite internal set-ups.
III Plant-wide central tooling storage must be established
Correct
Option I is a good choice, as it gives each work-cell the opportunity to operate on the products that it needs to produce regardless of the actions in each other cell. Option II is a good choice as it will enable set-up reduction, those reducing inventory and increasing flexibility. Option III is not a good choice as tooling may be unavailable when needed – through non-return or in use elsewhere – and it adds time and movement to the process as the tooling will need to be requisitioned, issued and returned. The best answer therefore is 2
Incorrect
Option I is a good choice, as it gives each work-cell the opportunity to operate on the products that it needs to produce regardless of the actions in each other cell. Option II is a good choice as it will enable set-up reduction, those reducing inventory and increasing flexibility. Option III is not a good choice as tooling may be unavailable when needed – through non-return or in use elsewhere – and it adds time and movement to the process as the tooling will need to be requisitioned, issued and returned. The best answer therefore is 2
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Question 29 of 30
29. Question
An order that cannot be released through the normal procedures may have to be rescheduled. This can be done by which of the following techniques?
I. Changing due date and order priority
II. Job splitting
III. Operations overlapping
IV. Sending the customer an overdue report
Correct
If the release of an order is delayed for any reason, that order can still be completed on schedule through either job splitting – expediting through making less than the originally planned quantity – or operations overlapping – an expediting technique that allows time to be saved by moving part of the order forward to the next work-center while the remainder is still being processed.
Changing the due date is an acknowledgement that nothing can be done to get the order back on schedule, which may result in the need to inform the customer. However, the best answer is II and III because the rescheduling involved in these steps will minimize the effect on the customer through getting the order finished on time
Incorrect
If the release of an order is delayed for any reason, that order can still be completed on schedule through either job splitting – expediting through making less than the originally planned quantity – or operations overlapping – an expediting technique that allows time to be saved by moving part of the order forward to the next work-center while the remainder is still being processed.
Changing the due date is an acknowledgement that nothing can be done to get the order back on schedule, which may result in the need to inform the customer. However, the best answer is II and III because the rescheduling involved in these steps will minimize the effect on the customer through getting the order finished on time
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Question 30 of 30
30. Question
Backward scheduling is used in which of the following?
I. CRP
II. Delivery date estimations.
III. MRP
IV. Operation-by-operation scheduling
Correct
CRP and MRP both use backward scheduling. Operation by operation scheduling for normal scheduling of work through a factory backdates all activity from the scheduled completion date, again backwards scheduling. However, for delivery date estimations scheduling commences from “today” and looks forward at the activities that have to be carried out before the delivery can be made. Therefore option II is forward scheduling, each of the other three is backward scheduling. The answer is 3
Incorrect
CRP and MRP both use backward scheduling. Operation by operation scheduling for normal scheduling of work through a factory backdates all activity from the scheduled completion date, again backwards scheduling. However, for delivery date estimations scheduling commences from “today” and looks forward at the activities that have to be carried out before the delivery can be made. Therefore option II is forward scheduling, each of the other three is backward scheduling. The answer is 3