Examination Paper: Quality
Management
IIBM Institute of Business
Management 1
IIBM Institute
of Business Management
Examination
Paper MM.100
Total Quality
Management
Section A:
Objective Type (30 marks)
· This section
consists of Multiple Choice questions & Short Answer type questions.
· Answer all the
questions.
· Part One
questions carries 1 mark each & Part Two questions carries 4 marks each.
Part One:
Multiple
Choices:
1. If the amount of energy
available for the intended function be ‘a’ and the amount of energy
wasted be ‘b’ then Signal to
noise ratio will be:
a. a/b
b. (a-b)/b
c. b/a
d. (a+b)/b
2. The number of orthogonal
arrays added by Taguchi to the original work of Sir R A Fischer, was:
a. 3
b. 2
c. 1
d. 4
3. If the α
for
each t test be 0.2 then for 4 ‘t’ tests the probability of a correct decision
will be:
a. 0.0008
b. 0.0016
c. 0.0002
d. None of the above
4. This is not a rapid prototype
technique.
a. Stereo lithography
b. Solid ground curing
c. Solid ground searching
d. None of the above
5. The multiplication of
importance of customer, scale up facture and sales point is called:
a. Relative weight
b. Absolute weight
c. Weight of scale
d. Weight of sales
6. In documentation Pyramid all
documentation moves from one level to next in:
a. Ascending order
b. Descending order
Examination Paper: Quality
Management
IIBM Institute of Business
Management 2
c. One down one up fashion
d. Two down one up fashion
7. The quality system other than
ISO 9000 is:
a. PS 9000
b. CS 9000
c. AS 9000
d. LS 9000
8. In the 5 S methodology for
workplace organization, ‘Seiton’ stands for:
a. Proper arrangement
b. Orderliness
c. Personal cleanliness
d. Discipline
9. The basic plan-do-study-act
(PDSA) cycle was first developed by:
a. Deming
b. Shewhart
c. Juran
d. Fleming.
10. One of the best approach
having three components, can be used for process improvement, is:
a. Loran trilogy
b. Turan trilogy
c. Sudan triology
d. Juran triology
Part Two:
1. Write a note on ‘Kano model’
of customer requirement.
2. Define Herzberg’s two factor
theory.
3. Write a note on Pareto
analysis.
4. What do understand by
Benchmarking?
5. Define “Degree of freedom”.
END OF SECTION A
Examination Paper: Quality
Management
IIBM Institute of Business
Management 3
Section B:
Caselets (40 marks)
· This section
consists of Caselets.
· Answer all the
questions.
· Each Caselet
carries 20 marks.
· Detailed
information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Philips India Ltd. previously
called Pieco Electronics Ltd., a MNC has Dutch parents and its major
plant in Calcutta. The company is
having a very sound corporate image in India for its electronic
products, namely TVs, Radios,
transistors, battery cells, electric bulbs, electric tubes, two-in-ones,
etc. Indians love to have
Phillips products, which are more costly than various Indian electronics
products brands, as they maintain
a better quality. Philips operates through forward integration with
its own authorized dealer’s
network in India. The company has maintained its corporate image and
reputation in Indian market over
the years. The labour trouble started in 1990. The company had its
ancient production system in its
main plant at Calcutta. Labour unions started agitations for salary
hike and asked for a number of
incentives and facilities to establish parity with other competing
electronic giants. “There was a
political clout of the labour unions which lead to increased
militancy” says the Chief
Executive Officer of the Phillips India Ltd. The situation of labour trouble
took such an ugly turn that the
Dutch parents of the Philips India decided to get out of India by
closing the plant. In 1995,
however, managers refused to give up and implemented TQM. The first
step was total employees
involvement. The management adopted the strategy of managing people
through involving, empowering and
motivating. The management re-established its future vision to
be an international design and
production center and decided to benchmark with international quality
system standards ISO 9000. The
main weakness of the company during 1990 started converting into
strength when labour unions
started participating intensively. A number of self-directed and selfdirected
and self-managing mini, micro and
mega-teams were formed and assigned responsibility
and accountability under dynamic
leaders. By 1995 the Calcutta plant of Philips India became a
model factory for its major
competitors to envy-its operations and turnaround. The R&D section
took the leading role for
spearheading the company with its smart people and well equipped
laboratories. The posters
claiming “quality” were exhibited in the premises and all working areas.
All this made the Calcutta plant
a showpiece of Philips. It became the company’s best bet for an
international manufacturing
center. The progress due to teamwork and quality orientation was so
impressive that it led the
company to achieve the internationally most coveted- The European
Quality Award. The company also
obtained certification of Environmental management system
EMS 14001 which gave it a further
boost in improving its sagging image during the previous 4-5
years from 1990 onwards.
In a nutshell, five beliefs
helped the management in its revival. These five beliefs are: (i) mission
statement, (ii) revolve around
valuing, (iii) trusting and creating trustworthiness, (iv)respecting the
people and using their brainpower
in teams, and (v) continuously motivating them. A few other
things which helped the company
are: propagating employee ship. TQM was used to bring about the
much needed culture change, open
communication, sharing information, sharing problems openly,
and an appeal to labour unions to
uphold the pride of Calcutta. Moreover, the company started
operating in 3 shifts instead of
only general shift over the previous time period. The continuous
improvement through structured
Kaizen activities was adopted as a way of day-to-day work
improvement in assignments. A
suggestion scheme was introduced which started getting a record
number of practical and
implementable suggestions. Cross-functional groups and small group
improvement activities did a
wonderful job. Rewards and recognition system was introduced.
Examination Paper: Quality
Management
IIBM Institute of Business
Management 4
Regular surveys on employee
motivation were undertaken to know and further boost the employees’
morale and participation in
decisions of the company. Focus on customer and their delightment was
increased by customer surveys,
defect tracking, undertaking defect repairs, meeting the warranty
claims, making after sales
service better, customer helpline documents, promptness in delivery, etc.
Internal customer satisfaction
was improved by strengthening internal supplier-internal customer
chain with self-appraised vendor
services. The inputs from the internal customers were obtained
regularly for carrying out
performance appraisal of the officers. The practice kept the officers on
their toes. “Today. The company
has not only recovered from its previous labour trouble but also has
counted has counted itself
amongst the few world-class companies: It has obtained recognition the
world-over by winning the most
coveted award- The European Quality Award”, says the Chief
Executive of the company. “Philips
India Ltd. has become a benchmark for various competitors in
India and abroad”, the CEO of the
company adds further.
Questions:
1. Discuss the various labour
troubles which compelled the company management and its Dutch
parents to decide to wind up the
Calcutta plant. What were the problems?
2. How would you apply the
Phillips India policy to help other electronics companies in India to
implement TQM?
Caselet 2
Siemens is a short and simple
word. But Siemens is at the top. Top covers a vast gambit. The patent
for a miniaturized hearing aid is
TOP. Futuristic business and technology roadmaps are Top.
Shareholder returns are also top.
In Germany, a new performance-linked management ranking
system is Top. In Turkey, process
time optimization is Top. In India, Taguchi methods for quality
monitoring are Top. Value chains
are Top. Top means different things in different countries,
companies, business and even
divisions. But today, what began as an acronym for time-optimized
processes has become a term
applicable to any management initiative-in R&D, human resources,
shop floor management,
communication, organizational restructuring. The movement, as it has
become today, spans the Siemens,
worldwide network though it is at various stages of
implementation and development in
different countries, and is not implemented uniformly across
divisions. The Top movement
started about three years ago by Siemens AG as increasing costs of
production and a stagnating
European market forced this German multinational to take a close look
at itself. The Top movement is
based on a simple model: productivity, innovation, and new markets
are the pillars; the base is
corporate culture; and the Top of the temple is customer-orientation and
profit ability. According to
Heinrich Von Pierer, President, Siemens AG, the Top initiative is not
about re-engineering or
cost-cutting, the core theme is growth through innovation. “The motor
driving the Top initiative is
cultural change-we must focus on our customers,” he says. However,
Top is not only about encouraging
cultural change. In 1996, in the course of three years, it has
achieved cost savings of DM 20
billion. The Top innovation initiative is made up of eight modules:
mobilization, communication, idea
initiatives, teaching of operational skills, and cooperation with
non-industrial research, patent
initiatives, white space projects, and strategic innovation projects. The
viewpoints and business
objectives are different at different places. For instance, in high-wage
Germany, Top is an integral part
of Siemens AG’s human resources and management motivation
exercise. The central unions are
also involved. It was also an integral part of the company’s R&D
drive. Siemens AG spends DM 7.3
billion on R&D every year. “A company’s innovative strength
ultimately determines its
long-term competitive viability,” says Claus Weyrich, member of the
managing board, Siemens AG. For
instance, the company has announced the ‘Siemens Inventor
Examination Paper: Quality
Management
IIBM Institute of Business
Management 5
Prize’. The 12 German recipients
of the prize in 1996 hold 400 patents among them. Starting from
1997, the prize has gone
international. The aim is that Siemens AG’s annual total of 2,500 patents
goes up. As a precursor to
complete internationalization, Siemens had launched an international
‘innovation competition 1997’,
with a special category for young innovators whose innovations may
not have yet achieved practical
applicability. Forty winners from regional centers will be feted at
Siemens’ 150 years celebrations
next year. The fact that Siemens take its Top initiative very
seriously. Indeed it is apparent
from its system of implementation through Top champions. Top
champions are senior managers who
work full times as Top coordinators. Internationally, the Top
movement is coordinated through a
Top center in Munich, which even has a home-page on the
Internet to interact and
coordinate with Top manager across the world. All this is besides annual
international conferences held
within and outside Germany. At Siemens India Ltd, Ranjeet Dalvi is a
full-time General Manager in
charge of the Top program. Besides, the company’s 13 divisions each
have at least one Top champion -
a senior manager with a large circle of influence, who is the
divisional Top coordinator, and reports
directly to the divisional head. The resonance between Top
champions or divisions in various
countries with each other and with Germany also differs.
In India, the evolution of the
Top program has been naturally different from that in Germany. The
aims differ, to fit in with
Siemens Ltd’s objectives: to increase its global presence substantially, and
ensure that it stays ahead of
opportunities in the local market. “It is no longer enough that we serve
the local market. Every global
competitor is here; we have to identify opportunities and adapt to
them”, says AV Chindarkar,
Director-in-charge of switch gear, motors, drivers, automations, power
transmission and distribution.
Siemens Ltd had already began an organization restructuring and
business process re-engineering
program, which has then called core-an acronym for corporate reengineering.
All of Siemens Ltd’s process
re-engineering was an in-house exercise, largely focused
on mapping and optimizing
processes, using the time parameter; that by itself would ensure
reduction in process costs and
improvement of productivity. The aim is to: “stay fit for future”.
When the Top program came along,
it was integrated into the core initiative. “Top has become an
umbrella for all kinds of initiatives
and management changes. It has become to mean all new things
it helps to create a euphoria
within the company”, says Ranjeet Dalvi. Though the Top program is
still nascent at the newer
divisions such as telecom and software, it is act quite and advanced stage at
the traditional business. Says
Dalvi, “BPR is a stage. Once you have finished re-engineering a
process, theirs just so much you
can do. Then you have to move on to innovation.” Chindarkar
believes that Siemens India has
moved into the innovation phase. “Much of the skill of
indigenization that we are forced
to learn in a closed economy may today become the key to grater
innovation,” he says. Siemens
India Ltd’s vision: to become a Siemens competence centre in South
east Asia. A competence centre
has been define as a Siemens arm with special competencies in
specific businesses in a
particular country, that in term can serve Siemens concerns in other
countries.“We have to innovate
many solutions that we provide, such as in automation. Existing
global technologies often do not
fit in local customer need.” Says Chindarkar. With Siemens AG
having re-affirmed its commitment
to the Asia-Pacific region, Siemens Ltd is today looking at
networking itself into the global
scene, through innovations and unique products. Naturally, the Top
initiative will be crucial in
this effort. What perhaps makes the Top program so easy to adopt and
implement is its flexibility.
What could otherwise become disjointed management concept or
practices are united in Top’s
common temple model at Siemens.
Questions:
1. What is the Top initiative in
Siemens AG? Discuss it various aspects.
2. What are the Top eight
initiatives for innovation in Siemens AG? Evaluate their impact on
quality and TQM.
END OF SECTION B
Examination Paper: Quality
Management
IIBM Institute of Business
Management 6
Section C:
Applied Theory (30 marks)
· This section
consists of Applied Theory Questions.
· Answer all the
questions.
· Each question
carries 15 marks.
· Detailed
information should form the part of your answer (Word limit 200 to 250 words).
1. Mechanical products such as
cars do break down. Cars often are serviced by the car dealer.
How can a car dealer use the
service department to enhance future car sales?
2. Using trade journals,
professional society magazines, periodicals, and your networking
ability, identify two examples of
quality by design success stories and explain their results.
END OF SECTION C
Examination Paper: Quality
Management
IIBM Institute of Business
Management 7
IIBM Institute
of Business Management
Examination
Paper MM.100
Quality Control
Section A:
Objective Type (30 marks)
· This section
consists of Multiple choices/Fill in the blanks & Short Answer type
questions.
· Answer all the
questions.
· Part One questions
carries 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple
Choices:
1. A curve that shows the amount
inspected by both the consumer and the producer for different
percent nonconforming values.
a. ASN curve
b. ATI curve
c. AOQ curve
d. None of the above
2. The producer’s risk is
represented by the symbols:
a. Alpha
b. Beta
c. Gamma
d. None of the above
3. The International Committee of
Weights and Measures revised the metric system in:
a. 1970
b. 1960
c. 1950
d. 1999
4. ASRS stands for……………………………………………………………………..
5. A recent survey of retail
customers by the ……………………………………………..
6. A cause-and-effect diagram was
developed by ………………………………………
7. Variables that exhibit gaps
are called ………………………………
8. How many techniques used to
discard data?
a. One
b. Two
c. Three
d. None of the above
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