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Examination Paper
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Total Quality Management
Guidelines for paper
Total No. of Questions is 100.
The minimum passing marks is 50%.
Each Question carries 1 mark.
Answer all the Questions.
Multiple Choices: Total Marks: 100
1. In Total Quality Management, what does the ‘Quality’ word mean?
a) Degree of excellence a product or service
b) Degree of performance
c) Degree of work`
d) Strength of the company
2. Quality can be quantified as :
a) Q = P % E
b) Q = P / E
c) Q = P * E
d) None
Where P = Performance, and E = Expectations
3. What could be the dimension of Quality?
a) Conformance
b) Durability
c) Aesthetics
d) All above
4. An effective TQM program is often referred to as :
a) Listening to the voice of consumers
b) Listening to the voice of customers
c) Both (a) & (b)
d) None
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5. The most important consideration of an effective TQM is
a) Maximize profit
b) Provide high quality
c) Customer satisfaction
d) Minimize expenses
6. Who said this, “Even if you’re on the right track, you’ll get run over if you just sit there.”
a) Will Rogers
b) Shewhart
c) Joseph M. Juran
d) Phillip B. Crosby
7. “……………….” is we, not me; mission, not my show; vision, not division; and community,
Not domicile.”
a) Democracy
b) Membership
c) Management
d) Leadership
8. Knowledge is what to do; the desire is the motivation or wants to do; and the skill is the…..
a) When to do?
b) How to do?
c) What to do
d) None
9. A body of principles or standards of human conduct that govern the behavior of individuals &
organizations.
a) Synergy
b) Ethics
c) Conduct
d) Nature
10. Quality is judged by
a) Manager
b) Director
c) Government
d) Customers
11. A desired future stage of an organization is
a) Policies
b) Mission
c) Value
d) Vision
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12. A customer could be
a) Internal
b) External
c) Both (a) & (b)
d) None
13. A particular tool for obtaining opinions & perceptions about organizations its products &
services.
a) Customer questionnaire
b) Personal interview
c) Telephonic interview
d) All above
14. Clients are the people for whom the company doing the survey, and customers are the ones
a) Who checks the product or services
b) Who use the product or services
c) Who takes the information about product
d) None
15. 90% of all customers contact comes through an organization’s
a) Front – line employees
b) Back – line employees
c) Manager
d) Director
16. The connection between customers satisfaction and the bottom line is
a) Customer interest
b) Customer retention
c) Customer requirement
d) None
17. A useful tool which provides information to improve processes an establish realistic goals
a) SERVQUAL
b) Quality function deployment
c) Gap analysis
d) None
18. Who said, “Customer don’t buy products, they buy result.”
a) Joseph J. Juran
b) Phillip B. Crosby
c) Peter Drucker
d) Will Rogers
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19. A document that defines the team’s mission, boundaries, the background of the problem, team’s
authority, duties and resources.
a) Sponsor
b) Team charter
c) Team manager
d) Team leader
20. When one person proposes a decision and another agrees, we have the
a) Non-decision
b) Minority rule decision
c) Unilateral decision
d) Handclasp decision
21. Item that includes a process, such as brainstorming, affinity diagram, discussion, the presenters
and times guidelines is
a) Company’s logo
b) Company’s Name
c) An agenda
d) Moto
22. The most difficult stage as members start to realize the amount of works that lies ahead is
a) Forming
b) Worming
c) Performing
d) Storming
23. The S.T.A.R. = ‘Suggestions’, ‘Team’, ‘Actions’, ‘…………..’.
a) Response
b) Reliability
c) Results
d) None
24. An ongoing process that must occur if an organization is to continue to exist in the competitive
world is
a) Change
b) Repair
c) Revenue
d) None
25. The planning component of process involvement begins with
a) Internal customers
b) External customers
c) Both (a) & (b)
d) None
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26. Which problem occurs, when a structured system having standardized inputs, processes, and
outputs is performing unacceptably from the user’s view point?
a) Unstructured problems
b) Product design problems
c) Compliance problems
d) Process design problems
27. PDSA stands for
a) Plan – Do – Study – Act
b) Process Development Structured Analysis
c) Both (a) & (b)
d) None
28. Kaizen improvement focuses on which principle to produce only the units in the right quantities,
at the right time, and with the right resources.
a) Do – it – fast
b) Just – in –time
c) Both (a) & (b)
d) None
29. The Greek symbol for the statistical measurement of dispersion called standard deviation
a) α
b) β
c) λ
d) σ
30. Competency levels of six sigma individuals use the Karate designations of
a) Green Belt
b) Black Belt
c) Master Black Belt
d) All above
31. The key element to a partnering relationship is
a) Long – term commitment
b) Trust
c) Shared vision
d) All above
32. Sourcing, which is the use of two or more suppliers for an item is
a) Sole sourcing
b) Multiple sourcing
c) Single sourcing
d) None
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33. The fourth and final phase, i.e., identity check occurs
a) When the customers perform identity checks
b) When the suppliers perform identity checks
c) When both the customers & suppliers perform identity checks
d) None
34. A supplier rating system is based on
a) Quality
b) Delivery
c) Service
d) All above
35. The score of a supplier can be calculated as
a) Performance matrix * price index
b) Target price * actual price
c) Performance matrix * actual price
d) None
36. OEMs must maintain supply chain development through
a) Zero defects
b) 100 % on time delivery
c) A process for continuous improvement
d) All above
37. A technique of ‘Performing Measure Presentation’ benchmarks the process & shows favorable &
unfavorable trends in the measure
a) Control chart
b) Time service graph
c) Capability index
d) Cost of poor quality
38. Costs can generally be considered the cost incurred for the inspection and/or test of purchased
suppliers or service to determine acceptability for use.
a) Operations appraisal costs
b) External appraisal costs
c) Miscellaneous quality evaluations
d) Purchasing appraisal costs
39. Purchasing failure cost are incurred due to
a) Defected item rejects
b) Purchased item rejects
c) Both (a) & (b)
d) None
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40. The efficiency of a business is measured in terms of
a) Rupees
b) Paisa
c) Dollars
d) Pound
41. An annual award to recognize U.S. organizations for performance excellence
a) Golden Peacock Award
b) IMC Ramakrishna Bajaj National Award
c) Malcolm Baldrige National Award
d) None
42. In the implementation of a quality cost program, to determine if the program can be beneficial to
the organization is
a) Last step
b) First step
c) Second step
d) None
43. An increasingly popular tool, used extensively by both manufacturing & service organizations,
including Xerox, AT&T, Motorola, Ford & Toyota to reach at a target point
a) SERQUAL
b) Benchmarking
c) QFD
d) QC
44. When deciding what to benchmark, it is best to begin by thinking about the
a) Mission and vision
b) Vision and critical success factors
c) Vision
d) Mission and critical success factors
45. Benchmarking can be
a) Internal
b) Competitive
c) Process
d) All above
46. Technique of conducting original research is
a) Questionnaires
b) Site visits
c) Focus on groups
d) All above
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47. Benchmarking is waste of time, if
a) Change does not occur as a result
b) Change occurs a result
c) There is no achievement
d) Can’t say
48. E – learning is offered in a variety of formats such as
a) CD – ROM based
b) LAN based
c) Web based
d) All above
49. The International Organization for Standardizations (ISO) was founded in Geneva, Switzerland,
in
a) 1952
b) 1948
c) 1961
d) 1946
50. The current quality system is
a) AS9100
b) ISO / TS 16949
c) TL 9000
d) All above
51. The supply chain is defined as
a) Suppliers → Organization → Customers
b) Organization → Suppliers → Customers
c) Suppliers → Customers → Organization
d) Organization → Customers → Suppliers
52. Which is not a step of ‘Implementation’ of a Quality Management System?
a) Top Management Commitment
b) Appoint an implementation team
c) Writing the documents
d) Appoint the management representatives
53. Technical committee 207 (TC 207) is formed by
a) RAB
b) SAGE
c) ASQ
d) None
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54. What is the global benefit of environmental management system?
a) Facilitate & remove trade barriers
b) Improve environmental performance of planet earth
c) Build consensus
d) All above
55. ‘Closely knit’ describes
a) TNC’s eternal relationship
b) TNC’s internal relationship
c) Both (a) & (b)
d) None
56. ………………, a golf equipment manufacturer recently was certified to both ISO 9000 & ISO
14000.
a) Escorts
b) Hyundai
c) Ping
d) Tata
57. To ensure that EMS conforms to plans & is being properly implemented & maintained, is the
purpose of
a) Records
b) EMS Audit
c) Monitoring & Measuring
d) Nonconformance & Corrective
58. The Quality Function Deployment uses, to express information
a) Algebric values
b) Numeric values
c) Alphanumeric values
d) None
59. Quality Function deployment is a planning tool used to
a) Maximizing the profit
b) Minimizing the expenses
c) Fulfill customer expectations
d) Making goodwill
60. Which source of customers describes their expectations?
a) Voice of customers
b) Actions of customers
c) Nature of customers
d) All above
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61. Which method is well suited for gathering a large amount of data?
a) Interrelationship diagram
b) Tree diagrams
c) Cause – and – Effect diagrams
d) All above
62. The primary planning tool used in QFD is
a) QC
b) Gap Analysis
c) Benchmarking
d) HOQ
63. The absolute weight is calculated by
a) AW = (Importance to customer)*(scale up factor)*(sales points)
b) AW = (Importance to customer)*(scale up factor)
c) AW = (scale up factor)*(sales points)
d) None
64. Why the term ‘Sequential Engineering’ is used?
a) To describe the profit
b) To describe the process
c) To describe the performance
d) To describe the quality
65. The benefit of Quality by Design techniques is
a) Faster production development
b) Better quality
c) Less work in progress
d) All above
66. Tools which are mostly used in quality be design technique
a) CAD
b) CAM
c) Both (a) & (b)
d) None
67. A software which provides a means for individuals to communicate their opinions within a group
in a structured & creative manner is
a) Enterprise resource planning software
b) Product data management software
c) Electronic meeting software
d) None
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68. The finite element analysis software packages are3 widely regarded as the most powerful tool
available for
a) A design engineer
b) Documentation
c) Production
d) All above
69. FMEA. Is an analytical technique to identify foreseeable failure modes of a product or process &
plan for their elimination stands for
a) Failure Modification & Effect Analysis
b) Foreign Money Exchange and Analysis
c) Failure Mode & Effect Analysis
d) None
70. The type of FMEA is
a) Design FMEA
b) Process FMEA
c) Equipment FMEA
d) All above
71. How many stages of FMEA?
a) 8
b) 6
c) 4
d) 3
72. The effective of failure as perceived by the customer are called
a) Minor effect(s) of failure
b) Potential effect(s) of failure
c) High effe4ct(s) of failure
d) All above
73. Which section of the document is a relative of the assessment of the ability of the design control
to detect either a potential cause or the subsequent failure mode before the component, sub
system, or system is completed for production.
a) Occurrence(O)
b) Classification (CLASS)
c) Detection (D)
d) Security (S)
74. The concept ‘Caveat Emptor’, that resulted from Adam Smith’s “invisible Hand” theory of
commercial regulation, means
a) Let the buyers beware
b) Let the seller beware
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c) Let the consumer beware
d) Let the government beware
75. The first requirement of an expert technical witness is to be ……………………… in the area of
testimony.
a) Non – technical
b) Perfect
c) Technically competent
d) Knowledgeable
76. Technique, which is a product safety design technique is
a) Fault free analysis
b) Fail – safe concepts
c) Coded identifications for traceability
d) All above
77. If the product is referred to as “safe” & a person is injured that action establishes that the product
is
a) Good
b) Best
c) Defective
d) Not safe
78. A communication between market place and the organization concerning the performance of the
product is
a) A complaint
b) A claim
c) Both (a) & (b)
d) None
79. An adequate prevention program can substantially reduce the risk of damaging litigation. This
statement is as same as proverb
a) A ounce of prevention is worth a pound of cure
b) Barking dogs seldom bite
c) Old is gold
d) Two birds with single stone
80. The goal of TPM is
a) Maintaining & improving equipment capacity
b) Maintaining equipment for life
c) Encouraging input from all employees
d) All above
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81. Operating time can be calculated as
a) T = P + D
b) T = D – P
c) T = P – D
d) T = P * D
Where P = Planned operating time, D = Downtime
82. A tool, which could be a key to finding the root cause of a problem by focusing on the process
rather than on people is
a) Brain storming
b) Why Why tool
c) CAM
d) Tree Diagram
83. A tool, which is used to reduce any broad objective into increasing levels of details in order to
achieve the objective is
a) Matrix Diagram
b) Tree Diagram
c) Brain storming
d) Why Why tool
84. Prioritization matrices based on weighted criteria using a combination of
a) Tree & Matrix Diagram
b) Tree & Affinity Diagram
c) Affinity & Matrix Diagram
d) Brainstorming & Why Why Tool
85. The tool which can be used in a wide variety of situations and are simple to use by individuals
and / or teams is
a) Why Why tool
b) Forced Field Analysis
c) Nominal Group Technique
d) All above
86. The activity network diagram is also known as
a) PERT
b) CPM
c) Arrow diagram
d) All above
87. PDPC stands for
a) Process Decision Program Chart
b) Practice Decision Program Chart
c) Process Development
d) Path Decision Process Chart
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88. A Pareto diagram is a
a) Ending Process
b) Critical Process
c) Never Ending Process
d) Easy Process
89. Diagrams, which are used to investigate either a “bad” effect and to take action to correct the
cause that are effe4ct & to learn those causes that are responsible
a) Pareto diagrams
b) Tree diagrams
c) PERT diagrams
d) Cause & Effect diagrams
90. Which is the first “statistical” SPC technique?
a) Histogram
b) Ungrouped Data
c) Check Sheets
d) None
91. An arrangement of raw numerical data in ascending or descending order of magnitude is
a) Structure
b) Link List
c) Queue
d) Array
92. Statistics is defined as the science that deals with
a) Collection
b) Tabulation
c) Presentation
d) All above
93. Which tool of statistics describes how the data are spread out or scattered on which each side of
central value?
a) Measures of dispersion
b) Forced field analysis
c) Nominal group technique
d) Tree diagram
94. Experimental design can be used to
a) Improve a process by increasing its performance and
Eliminate troubles
b) Identify the variables to control the process
c) Improve an existing product or develop a new product
d) All above
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95. A statistical decision making process in which inferences are made about the population from a
sample is
a) Hypothesis Testing
b) Orthogonal Design
c) t- reference Distribution
d) None
96. What does the word ‘Orthogonal’ mean?
a) The final product is experimented
b) The design of the actual product is based
c) The experimental design is balanced
d) None
97. In any statistical study, analysis & calculations yield a single point or value, which is called a
a) Point estimate
b) Analytical point
c) Full factor
d) None
98. Which is a stage of product development?
a) Process design
b) Product design
c) Production
d) All above
99. Which is the fundamental part of the Taguchi approach?
a) Iron casting
b) Grill
c) Parameter design
d) Confirmation run
100. An ongoing process that must occur if an organization is to continue to exist in the competitive
world is called
a) Change
b) Renewal
c) Enhancement
d) None

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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
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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.
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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
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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

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Examination paper: Telecom Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Telecommunications Essentials
Section A: Objective Type (30 Marks)
•This section consists of Multiple Choice questions and short notes type questions.
•Answer all the questions.
•Part one questions carry 1 mark each & Part Two questions carry 4 marks each.
Part One:
Multiple Choices:
1. This band transmits uplink around the 6GHz range & downlink around the 4GHz range.
a. C-Band
b. Ku-Band
c. Ka-Band
d. L-Band
2. On these trunks, traffic flows in both the incoming & outgoing directions.
a. DOD trunks
b. DID trunks
c. Two-way local exchange trunks
d. None of the above
3. As networks become more digitized, fewer conversions take place, and voice can be carried at a
higher quality over fewer flower bits per second.
a. PCM
b. ADPCM
c. DCSs
d. DLCs
4. _____________ is a standard for storage & retrieval of moving pictures & audio on storage
media.
a. MPEG-1
b. MPEG-2
c. MPEG-4
d. MPEG-7
5. It is an open standard for digital video transmission over cable that was defined by ETSI &
ratified in 1994.
a. DVB-H
b. DVB-T
c. DVB-C
d. DVB-S & DVB-S2
Examination paper: Telecom Management
IIBM Institute of Business Management 2
6. It is the oldest of DSL technologies & a symmetrical service, measuring that it provides equal
bandwidth in the both directions.
a. HDSL
b. SDSL
c. G. SHDSL
d. ADSL
7. It is the newest spread spectrum technique, and its main purpose is to resolve the problems.
a. CDMA
b. TDMA
c. OFDM
d. ADPCM
8. It is a new concept in multimedia mobile broadcasting service, converging broadcasting and
telecommunications.
a. DMB
b. OFDM
c. VF
d. None of the above
9. It is a Niche broadband wireless technology that at first appears to complete for market share with
mobile WiMax & Mobile-Fi.
a. HiperAccess
b. HiperMan
c. iBursrt
d. ETSI BRAN
10. In-FUSIO’s (www. Infusion.com) __________ is best known for its business model, which
supports a variety of revenue models, including pay-per-level and SMS high scores.
a. JavaME
b. BREW
c. EXEn
d. Mophun
Part Two:
1. State the protocols & implementations which are associated with Mesh Network.
2. Write a short note on HFC Architecture and draw the topology of an HFC network.
3. What is the IP multimedia system?
4. What is Symmetric Encryptions?
5. Briefly explain the major layers of IPT network taxonomy.
END OF SECTION A
Examination paper: Telecom 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
“DoCoMo (meaning ‘anywhere’ in Japanese) is a NTT subsidiary and Japan’s biggest mobile service
provider, with over 31 million subscriber as of June 2000. In February 1999, NTT DoCoMo launched its
i-mode service. Within one year, it had over four million subscribers, and within another six months it
went up to eight million and had overtaken other Japanese Internet service providers (ISPs) that provide
service to the desktop. DoCoMo’s i-mode is the only network in the world that now allows subscribers
continuous access to the Internet via mobile telephone. The service lets uses send and receive e-mail,
exchange photographs, do online shopping and banking, obtain financial information, download
personalized ringing melodies for their phones, and navigate among more than 7,000 specially formatted
Web sites.” Additional content such news and games is offered on a subscription basis in the range of $ 1
to $ 3 per month.
Since i-mode service is used through cell phones with tiny screens, the types of interaction and graphical
displays expected by World Wide Web users are not possible. I-mode was built using IP and a subset of
HTML. The initial version operated at only 9.6 Kbps, slower than the 56 Kbps modems that often seem
very slow for downloading Internet graphics. The 9.6 Kbps data rate was initially adequate, however,
because most of the data was text.
I-mode’s pricing model is totally different from the fixe4d-rate U.S. model or a time-metered European
model. I-mode charges are based on the number of packets of data sent per month. The more requests for
Web pages or e-mail that a user sends, the higher the total charge. I-mode users pay a $3 flat monthly fee
for unlimited access to mobile data services. Additional charges are applied on a per packet basis.
Another source of revenue for DoCoMo a 9% gross commission. Although pay-per-use content accounts
for only 20% of all i-mode content, 70% of i-mode users subscribe to these services, generating an
additional $1 per customer per month in billing and collection commissions for DoCoMo
I-mode is so popular in Japan that the primary method of Internet access in Japan could soon be through
mobile phones and other portable devices. DoCoMo announced that Internet access would be an option
on every phone it sells.
NTT DoCoMo has looked at ways to penetrate the U.S. market. Some observers are skeptical about
whether i-mode would succeed elsewhere. They note that Japan may be a unique market, with unique
characteristics that, may not exist elsewhere, such as a huge audience interested I using the Internet,
culturally specific content, and a huge commuting population. According to one analyst, successful
mobile applications are highly specific to cultures and national demographics. What flies in Japan won’t
necessarily fly in the States or Europe.
Questions:
1. How does this case demonstrate the importance of data transmission rates in business? Does it
imply that people in Japan are willing to accept lower data rates than people in the U.S.?
2. Some people say that the Internet fosters globalization by providing world wide access to the
Web. Discuss arguments for and against this statement.
Examination paper: Telecom Management
IIBM Institute of Business Management 4
Caselet 2
Transmeta Corporation was founded in 1995 to build a new type of computer chip directed at mobile
applications that rely on battery power to run laptop computers and other portable devices. The company
said nothing about its product until an unveiling on January 19, 200. By October 2000, NEC, Sony, and
Fujitsu had all launched notebook computers based on its Crusoe chip. Sony said it will use the processor
in its new Vaio Picture Book CIVN notebook, and Transmeta claimed that Crusoe should nearly double
the battery life of the new model. Transmeta’s Crusoe product is actually a family of processors. The
TM3200 is designed to pro-vide a full a day of Web browsing on a single battery charge for mobile
Internet devices weighing one to two pounds. The TM5400 and TM5600 are designed to solve the
problems of poor battery life and sub-par performance in the ultra-light mobile PCs. Per-forming at 700
MHz, TM5400/5600-based laptops can last up to eight hours on battery power when running everyday
office applications, and three to four hours running heavy-duty multimedia applications like DVD
movies.
Major challenges in designing Transmeta’s Crusoe chip centered on reducing the chip’s power
consumption while still supporting applications that ran on Intel’s 86xx line of processors. Transmeta
applied a unique design that shifted the balance of work between hardware and software. According to
Transmeta, “The hardware component is a very simple, high-performance, low-power VLIW (very Long
Instruction Word) engine with an instruction set that bears no resemblance to that of x86 processors.
Instead, it is the surrounding software layer that gives programs the impression that they are running on
86x hardware. This innovative software layer is called the Code Morphing software because it
dynamically ‘morphs’ x86 instructions into the hardware engine’s native instruction set. This unique
approach to executing x86 code eliminates million of transistors, replacing them with software. As first,
Transmeta chips were being incorporated into portable products there was some controversy about the
importance of the power saving afforded by the Crusoe chip. Transmeta claimed that “the chip consumes
around one watt of power when running, compared with an Intel Pentium’s 15 to 20 watts. This means it
uses significantly less battery power, and enables light-weight notebooks to work for up to eight hours. In
standby mode, the chip consumes around 20 milliwatts of power”. A Toshiba product manager was not
greatly impressed, saying that the chip does give an increase in battery life but that the back light on a sub
notebook computer also consumes a lot of power. He thought the battery life advantage in this market
would be no more than 30% to 40%. After IBM decided not to go ahead with the Crusoe for its new
product, a spokes-woman said, “The IBM 480 notebook has a battery life of 4.5 hours and it was hoped
that Crusoe would extend this to eight hours. However, Crusoe only managed 5.5 hours in IBM’s
benchmarking test.” A Gartner Group consultant said,” The main issue is performance. The chip uses
emulation or ‘code morphing’ and therefore does not give the same performance as you get with
Intel…..the reason IBM moved away from the chip is that either there was not enough power or there was
not enough performance.” There was no guarantee that the Crusoe chip or Transmeta would succeed,
especially since Intel and other companies were developing chips for the same market.
Questions:
1. Why might portable computing and desktop computing call for different types of microprocessors?
2. Review the performance variables. In which areas did the Transmeta chip try to excel?
END OF SECTION B
Examination paper: Telecom Management
IIBM Institute of Business Management 5
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 from the part of your answer (Word limit 200 to 250 words).
1. DNS is a distributed database system that operates on the basis of a hierarchy of names. Explain
the statement & also explain how DNS servers work.
2. Explain the workings of GSM, UWC, CdmaOne & PDC technologies of digital cellular.
END OF SECTION C

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Examination Paper: Supply Chain Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Supply Chain 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 carry 1 mark each & Part Two questions carry 2 marks each.
Part One:
Multiple Choices:
1. When demand is steady, the cycle inventory for a given lot size (Q) is given by:
a. Q/4
b. Q/8
c. Q/6
d. Q/2
2. There are two firms ‘x’ and ‘y’ located on a line of distance demand(0-1) at ‘a’ and ‘b’
respectively, the customers are uniformly located on the line, on keeping the fact of splitting of
market, the demand of firm ‘x’ will be given by:
a. (a+b)/2
b. a+(1-b-a)/2
c. (1+b-a)/2
d. a+(a-b)/2
3. Push process in supply chain analysis is also called:
a. Speculative process
b. Manufacturing process
c. Supplying process
d. Demand process
4. If the Throughput be ‘d’ and the flow time be ‘t’ then the Inventory ‘I’ is given by:
a. I *d=t
b. I=t+d
c. d=I*t
d. I =d*t
5. Forecasting method is:
a. Time series
b. causal
c. Qualitative
d. All the above
Examination Paper: Supply Chain Management
2
IIBM Institute of Business Management
6. Component of order cost include:
a. Handling cost
b. Occupancy cost
c. Receiving costs
d. Miscellaneous costs
7. How many distinct types of MRO inventory are there?
a. One
b. Four
c. Three
d. Two
8. Supply chain driver is:
a. Inventory
b. Return ability
c. Fulfillment
d. All of above
9. SRM stands for:
a. Strategic Relationship Management
b. Supply Return ability Management
c. Supplier Relationship Management
d. None of the above
10. Discount factor equals to, where k is the rate of return.
a. 1/1+k
b. 2/1+k
c. 1/1-k
d. 1/2+k
Part Two:
1. Explain “zone of strategic fit”.
2. Explain “scope of strategic fit”.
3. What do you understand by “Stimulation Forecasting Method”?
4. Write a note on “Obsolescence (or spoilage) cost”.
5. Define “Square Law” in safety inventory of supply chain management.
6. What does the word “postponement” signifies in supply chain?
7. What do you understand by the term “tailored sourcing”?
8. Explain the term “Outsourcing”.
9. Write a note on “threshold contracts” for increasing agent efforts.
Examination Paper: Supply Chain Management
3
IIBM Institute of Business Management
10. What is “dynamic pricing”?
END OF SECTION A
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
Orion is a global co. That sells copiers. Orion currently sells 10 variants of a copier, with all inventory
kept in finished-goods form. The primary component that differentiates the copiers is the printing
subassembly. An idea being discussed is to introduce commonality in the printing subassembly so
that final assembly can be postponed and inventories kept in component form. Currently, each copier
costs $1,000 in terms of components. Introducing commonality in the print subassembly will increase
component cost to$1.025.One of the 10 variants represents 80 percent of the total demand. Weekly
demand for this variant is normally distributed ,with a mean of 1,000 and a standard deviation of
200.Each of the remaining nine variants has a weekly demand of 28 with a standard deviation of
20.Orion aims to provide a 95per level of services .Replacement lead time for components is four
weeks. Copier assembly can be implemented in a matter of hours. Orion manages all inventories
using a continuous review policy and uses a holding cost of 20 percent.
Questions:
1. How much safety inventory of each variant must Orion keep without component commonality?
What are the annual holding costs?
2. How much safety inventory must be kept in component form if Orion uses common components
for all variants? What is the annual holding cost? What is the increase in component cost using
commonality? Is commonality justified across all variants?
3. At what cost of commonality will complete commonality be justified.
4. At what cost of commonality will commonality across the low-volume variants be justified.
Caselet 2
An electronic manufacturer has outsourced production of its latest MP3 player to a contract
manufacturer in Asia. Demand for the players has exceeded all expectations whereas the contract
manufacturers sell three types of players- a 40-GB player, a 20-GB player, 6-GB player. For the
upcoming holiday season, the demand forecast for the 40-GB player is normally distributed, with a
mean of 20,000and a standard deviation Dard deviation of 11,000, and the demand forecast for the 6-
GB player has a mean of 80,000 and a standard deviation of 16,000. The 40-GB player has a sale
Examination Paper: Supply Chain Management
4
IIBM Institute of Business Management
price of $200, a production cost of $100, and a salvage value of $80 .The 20-GB player has a price of
$150, a production cost of $70, and a salvage value of $50.
Questions:
1. How many units of each type of player should the electronics manufacturer order if there are no
capacity constraints?
2. How many times of each type of player should the electronics manufacturer order if the available
is 140,000? What is the expected profit?
END OF SECTION B
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. Consider two products with the same margin carried by a retail store. Any leftover units of one
product are worthless. Leftover units of the other product can be sold to outlet stores. Which
product should have a higher level of availability? Why?
2. McMaster-Carr sells maintenance, repair, and operations equipment from five warehouses in the
United States. W.W. Grainger sells products from more than 350 retail locations, supported by
several warehouses. In both cases, customers place orders using the Web or on the phone. Discuss
the pros and cons of the two strategies.
END OF SECTION C
Examination Paper: Supply Chain Management

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Examination paper: Telecom Management
IIBM Institute of Business Management 6
IIBM Institute of Business Management
Examination Paper MM.100
Telecom Technologies
Section A: Objective Type (30 marks)
•This section consists of Multiple Choice questions & short notes type questions.
•Answer all the questions.
•Part one questions carry 1 mark each & Part Two questions carry 4 marks each.
Part One:
Multiple Choices:
1. Which technology is among the early starter in providing VoWiFi solutions for enterprises with
wireless networks?
a. Symbol Technologies
b. Vocera Technologies
c. Spectra link Technologies
d. None of the above
2. In wireless networks ___________ refers to the measure of the performance for a system
reflecting its transmission quality & service availability.
a. Internet speeds
b. Quality of Service (QOS)
c. Interoperability
d. Line of Sight
3. A single IP-based core network handling the full range of telecom services.
a. Power line Communication (PLC)
b. VOIP
c. OFCOM
d. Next Generation Networks
4. Which country has the strong competitive broadband market with a penetration of 16%?
a. India
b. USA
c. Japan
d. China
5. Out of the following which project aims to substantially replace all of Bt’s existing network
platform (PSTDN, ISDN etc) with a single unified IP platform.
a. ADSL2
b. 21CN
c. ATM
d. SHDS
Examination paper: Telecom Management
IIBM Institute of Business Management 7
6. Which generation of mobile telephony will serve both voice & data applications?
a. 1G
b. 2G
c. 3G
d. 4G
7. This is a high bandwidth wireless networking service that operates in the frequency spectrum of
28-31 GHz range.
a. MMDS
b. LMDS
c. BW
d. None
8. Which management establishes the right architecture to deliver more products, better leveraging
development & deployment expenditures?
a. Product Portfolio Management
b. Partner Management
c. Platform Management
d. None of the above
9. ___________ Frequencies allow multiple service providers to utilize the same section of the
spectrum & compete with each other for customers.
a. Licensed
b. Unlicensed
c. Both
d. None of the above
10. LAS-CDMA stands for ____________________.
Part Two:
1. What is Backhauling solution?
2. What is Broadband?
3. What is WiMAX?
4. What is THIPON?
5. What is a VOWiFi?
END OF SECTION A
Examination paper: Telecom Management
IIBM Institute of Business Management 8
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
Recently the FCC has adopted new rules governing “broadband wire line Internet access services” that
remove regulatory obligations on the local telephone companies, while imposing regulation on ISPs. The
results could have a significant effect on the market for broadband information services.
In the Broadband ISP Order, the FCC ruled that, following a one –year transition period, local telephone
companies that provide broadband Internet access over their facilities will no longer be required to
comply with the Computer Rules. As a result, ISPs will no longer have a legal right to purchase
broadband transmission services from the local telephone companies at regulated tariff rates. The
commission asserted that the Computer Rules are no longer necessary because “ a wide variety of
competitive and potentially competitive providers and offerings- such as cable broadband transmission,
satellite, wireless and power line-are emerging.”According to Commission the Computer Rules actually
harmed ISPs by decreasing operators’ incentives to invest in broadband infrastructure. The Commission
also noted that this would result in telephone companies being regulated in the same manner as cable
operators, which generally are not required to provide “open access” to ISPs.
At the same time that the FCC released the wire line carriers from their historic regulatory obligations, the
agency asserted that the Communications Act gives it right to impose on currently unregulated ISPs
regulatory obligations that “mirror” those traditionally imposed on telephone companies.
Because of this ISPs that want to provide a high-speed service rather than purchasing broadband
transmission services from local telephone companies at regulated, tariff rates, will need to either:
negotiate commercial agreements with telephone companies and cable operators; deploy their own
transmission facilities; or be acquired by a facilities-based operator. Negotiating commercial agreements
may be difficult. Several major telcos are already discussing the possibility of charging premium prices to
ISPs that use their network. The end result is likely to be significant consolidation in the US information
services market. This, in turn, could lead to higher prices, reduced innovation and less service
diversification.
At the same time, introduction of new regulation could slow deployment of new services, such as VoIP,
which have generally been treated as unregulated information services. The FCC has already ruled that
“interconnected” VoIP providers must comply with existing rules-previously applied only to telephone
companies-requiring operators to provide emergency operator services and assistance to law enforcement.
Because the FCC has not adopted a definition of what entities constitute “wire line broadband Internet
access providers,” the FCC could seek to apply these regulatory requirements to any service provider that
offers a suite of IT/information services that includes the ability to access the Internet over a broadband
wire line connection.
Question:
1. Comment on the strategy which is adopted by the FCC “broadband wire line Internet access
services” is fruitful or not?
Examination paper: Telecom Management
IIBM Institute of Business Management 9
Caselet 2
When operators and investors consider starting down the road of network building, they need
considerable information to prove their business plan and persuade their spectrum regulator to provide
sufficient allotment. This was exactly the situation when a consultancy group approached ATDI on behalf
of their overseas client.
The task was to provide the consultants with a GSM/3G network plan for all the primary cities and link
these to form a national plan for a sizeable country. All of this had to be achieved within 2 weeks. The
network design was for business plan analysis and spectrum application and therefore indicative sites with
indicative topology were required to scope the network. The technology was 2G although the concept
applies equally to 2.5g and 3G.
With traditional, manual methods of approach it would be impossible to meet the task objective set out
above. There are two clear constraining factors- the size of the network and the timescale available.
The approach proposed by ATDI applied technology to the problem. It used IT and software technology
to remove the need for costly man days of effort. And it used complete automation ensuring that the result
was deterministic. In essence the method used highly skilled engineers to set up the modeling tools in
automatic mode and then machine time to complete the work thereby achieving the ultimate in efficiency.
The method proposed to the consultants was ATDI’s network auto-planning methodology.
ATDI used fifteen instances of their ICS Telecom radio-modeling tool to ensure that the tight timescales
were met. Several days were reserved for preparations of the methods to be used and to document what
parameters were used and why.
One of the first steps in auto planning is to define what user population is to be converted. In this piece of
work the following information was known:
•The extent of each city delineated by a vector.
•How many people were in the city defined by a population database?
•How many people the network should support in each year of its life. Traditionally, cell planning tools
express coverage as color overlaid on terrain.
The representation is rather crude compared to what can be achieved-particularly considering that
subscribers can be represented individually or as population groups. This subscriber concept was used
within ICS Telecom to model users in this project. This concept places a subscriber at a point on the
screen that the auto-planned network must cover. Each of these virtual subscribers was used to represent a
real user on the ground.
The method proposed and subsequently used by ATDI to produce the required information was
completely successful. The measure of the success of this methodology was that:
•The 2 week deadline was met.
•2 Engineers were used and hence the cost saving was realized.
•All the required deliverables were supplied. The cost benefit to the consultants was considerable when
compared to traditional network planning approaches. The final cost of the job was a fraction of the cost
of manual methods.
Questions:
1. Explain the concept of ATDI.
2. What are the measures which are behind the success of the ATDI methodology?
Examination paper: Telecom Management
IIBM Institute of Business Management 10
3. What is GSM/3G technology?
4. Write down the steps which are to be known in auto planning.
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 from the part of your answer (Word limit 200 to 250 words).
1. WiFi/mobile roaming and VoWiFi may play an important role for fixed-mobile convergence.
Explain.
2. Does a ‘light touch’ regulation regime make sense within the NGN environment? What benefits
& risks do you see with a ‘light-touch’?
S-2-210311
END OF SECTION B
END OF SECTION C

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Semester II Examination Papers
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-II Examination Paper MM.100
Strategic Management
Section A: Objective Type (30 marks)
This section consists of Multiple choice questions & Short Notes type questions.
Answer all the questions.
Part one questions carry 1 mark each & Part two questions carry 5 marks each.
Part one:
Multiple choices:
1. These are the plans formulated to achieve strategic goals.
a. Tactical plans
b. Strategic plans
c. Operational plans
d. Standing plans
2. This strategy facilities specialization by establishing a position of overall cost leadership,
differentiation, or both, but only within a particular segment, in an entire market.
a. Specific
b. Focus
c. Directive
d. Differentiation
3. This plan basically defines the actions of major departments and other sub-units that are required
in the execution of a strategic plan.
a. Tactical plan
b. Operational plan
c. Single-use plan
d. Long-term plan
4. This is a distinctive business or collection of related business, that can be managed relatively
independent of other businesses within the organization
a. Functional unit
b. Department unit
c. Organizational unit
d. Strategic business unit
5. These strategic plans of the organization have a time-frame exceeding five years.
a. Short-terms plans
b. Single-use plans
c. Long-term plans
d. Intermediate plans
Semester II Examination Papers
IIBM Institute of Business Management
6. Operational plans are mainly oriented towards issues that usually have a time horizon of
a. About five years
b. 3 to 5 years
c. 1 to 2 years
d. One year or less
7. These refer to the determination of the purpose and the basic long-term objectives of an
enterprise, and the adoption of courses of action and allocation of resources necessary to achieve
these aims.
a. Strategies
b. Plans
c. Policies
d. Procedures
8. These strategies provide guidelines for organizational growth
a. Organizational
b. Finance
c. Marketing
d. Growth
9. There are the three major kinds of standing plans: policies, rules, and
a. Projects
b. Programs
c. Procedures
d. Standards
10. This step in the planning process involves putting the plan into action.
a. Implementation
b. Selection
c. Evaluation
d. Review
Part Two:
1. Explain the ‘Adaptive mode’ of strategic management.
2. What is ‘Behavioral theory’?
3. Write about ‘Delphi technique’ of forecasting.
4. What are the basic steps one should follow for the ‘Value chain analysis’?
END OF SECTION A
Semester II Examination Papers
IIBM Institute of Business Management
Section B: Caselet (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 200 to 250 words).
Caselet 1
Akash Engineering Ltd. (AEL) had achieved sales of Rs. 3440 lakhs during the year 2004-05 against
sales of Rs. 1209 lakhs previous year. The sales this year were highest ever achieved in the history of
the company. Profit before interest, depreciation and taxes were Rs. 642 lakhs as against Rs. 81
lakhs during the year 2003-04, which showed a tremendous increase (8 times) in profitability of the
company. Economic indicators were still positive in the coming year for the company.
COMPANY SNAPSHOT
AEL was established in the year 1963 at Dediyasan
management planned to convert the design department as an individual responsible profit centre, to
develop the designs for own business as well as providing consultancy to other businesses. Although
the CEO had a great pleasure in announcing that the company had reached a turnover of Rs. 34.4
crores but was a little bit apprehensive about the bumpy roads towards the Rs. 150 crores target.
1. If you were appointed as a CEO of AEL, Would you like to go for a separate design division?
2. Critically evaluate the future plans of AEL.
3. Do you think the target set by AEL was realistic? Comment.
4. Comment on the management strategies adopted by AEL.
Caselet 2
Alloys and Metals Pvt. Ltd., Indore was established by Kartik Jain in the year 2000, with the vision
to cater to the needs of the booming Steel Industry. The company started with the manufacturing of
Ingots – a steel product, which served as an input for production process in Hot Rolling Mills. The
turnover had reached over Rs. 45 crores. Encouraged by such a tremendous growth, Kartik was
planning to install a new Blast furnace to double its production capacity. As an initiative for future
development and expansion, they were also looking into the avenues of diversification into
manufacturing products like Channels, Angels and Rounds with plans to enter the retailing sector.
Now, he was at crossroads thinking whether and how to go about this diversification process.
1. As Kartik, what would have been your strategies to deal with the defaulters?
2. What steps should Kartik adopt before expansion and diversification? Would it be a wise decision
to diversify at this stage?
END OF SECTION B
Section C: Applied Theory (30 marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries15 marks.
1. Strategic planning involves both, the development of organizational objectives and the
laying down of specifications about how they will be accomplished. In this context,
outline the major steps in the strategic planning process.
2. Implementing strategies effectively is of great importance. The success of a strategy
depends on how effectively it is implemented. Elucidate.
END OF SECTION C

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Examination Paper of Project Management 
IIBM Institute of Business Management 1 

IIBM Institute of Business Management
Examination Paper MM. 100
Strategic Cost Management
Section A: Objective Type (30 Marks)
• This section consists of Multiple Choice questions & short questions.
• Answer all the questions.
• Part one questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:
Multiple Choices:
1. A set of policies, procedures and approaches that helps a firm attain and retain success for long is termed as-
a) Benchmarking
b) Life cycle costing
c) Target costing
d) Strategy

2. A cost management tool that bring in its focus the activities performed to produced a product is called-
a) Target costing
b) Life cycle costing
c) ABC
d) Benchmarking

3. Cost incurred to the past that are not relevant to present decisions are-
a) Fixed cost
b) Sunk cost
c) Opportunity cost
d) Indirect costs
………………..10. Which stage of product life cycle is characterized by little competition and slowly increasing sales?
a) Introduction
b) Growth
c) Maturity
d) Decline

Part Two:
1. List the characteristics of Balance score card.
2. What are the methods of Alternative costing?
3. Differentiate between fixed cost and variable cost.
4. Discuss the dissimilarities between job order costing & process costing systems.

END OF SECTION A 


Examination Paper of Project 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 word)

Caselet 1
Vikram Ahuja was hired as assistant cost controller of chemfert Ltd., a multinational firm that processed chemical for use in fertilizers. Soon Vikram learned that the nearby residential landfill was being used to dump toxic wastes. It appeared that some members of management team were aware of this situation and may have been involved in arranging for this dumping. uncertain, how he should approach, Vikram is contemplating several alternatives courses of action , like seeking the advice of the superior, the controller or anonymously releasing the information in the national daily or discussing with an outside member of the BOD’s
Questions:
1. Discuss why Vikram has an ethical responsibility to take some action against the MNC.

2. Which of the alternative courses would be the most appropriate in the given situation?

Caselet 2
A brilliant university is located in Mumbai. The university has four deportments- Business, humanities, fine arts and engineering. The university is headed by a president who has five presidents reporting to him, each heading auxiliary services, admission and records, academics. Financial services and maintenance. In addition, there are managers who report to these vice-presidents. These include managers for central purchasing, the university press and bookstore; all of whom report to the vice president of auxiliary services, and managers for accounting and finance report to vice president for financial services. Further, a dean who is responsible to the academic vice-president heads each department.
Questions:
1. Prepare an organizational structure of brilliant University.

2. List the name of the departments having under the university.

END OF SECTION B 


Examination Paper of Project Management 
IIBM Institute of Business Management 4 

Section C: Long Questions (30 Marks)
• This section consists of Long Questions.
• Answer all the questions.
• Each question carry 15 marks each.
• Detailed information should from the part of your Answer (Word limit 200 to 250 words)

1. What is “Cost management”? Explain the primary objectives of cost management?

2. Define “Target costing”; discuss the principles of target costing.

END OF SECTION C 

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IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Statistical Quality Control
Section A: Objective Type (30 marks)
•This section consists of Multiple choice questions & Short Answer type questions.
•Answer all the questions.
•Part One questions carry 1 mark each & Part Two questions carry 4 marks each.
Part One:
Multiple choices:
1. If in a hall there are 18 persons then how many handshakes are possible?
a. 18*18
b. 18*17/2
c. 18*17
d. None of the above
2. If the number of trials be ‘n’ and the probability of occurrence be ‘p’ then the standard deviation
with respect to np, is given by:
a. (np)1/2
b. (np(1-p))1/2
c. (np)1/4
d. (np(1-p))1/4
3. For a biased coin the probability of occurrence of head is 0.4 ,if the coin is tossed twice then the
probability of occurrence of at least one head will be:
a. 0.76
b. 0.48
c. 0.64
d. 0.16
4. Factorial of 5 equals:
a. 60
b. 120
c. 24
d. 5
5. Combinatory of (4,2) equals:
a. 12
b. 8
c. 6
d. None of the above
Examination Paper: Supply Chain Management
6
IIBM Institute of Business Management
6. ‘Economic Control of Quality of Manufactured Product’, a book by Walter A Shewhart in:
a. 1931
b. 1941
c. 1930
d. 1956
7. Quality is judged by…………
a. Retailer
b. Government
c. Customer
d. Hole seller
8. A run chart is a special chart of…………
a. Pie chart
b. Line chart
c. R chart
d. C chart
9. Universes may differ :
a. In average
b. In above average
c. At higher level
d. All of the above
10. ASQC and ANSI began in the year:
a. 1956
b. 1976
c. 1978
d. 1960
Part Two:
1. Differentiate between ‘Defect’ and ‘Defective’.
2. Explain the need of ‘short method’.
3. What does ‘Tchebycheff’s inequality theorem’ say?
4. Explain the usability of ‘stochastic limit’.
5. Write a note on ‘Cause and Effect’ diagram.
END OF SECTION A
Examination Paper: Supply Chain Management
7
IIBM Institute of Business Management
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
ADAPTABILITY IN ACTION: A CASE OF RSL
Rajasthan Synthetics Ltd. (RSL) was established in the year 1994 at Bhilwara, Rajasthan to
manufacture synthetic yarn with a licensed capacity of 29,000 spindles. Manish Kumar, a Harvard
Business School graduate, established RSL with 8% equity participation from Itochu Corporation
Japan to manufacture synthetic yarn for shirting, a promising business at that time. The demise of the
NTC textile mills was fresh in the minds of the promoters and therefore, state of the art technology
imported from U.K., Germany, Japan and France was used in the manufacturing facility. By the time
the company started manufacturing yarn the competition in shirting yarn had become fierce and the
returns had diminished. The company incurred losses in the first four years of its operations and the
management was looking for opportunities to turn things around. The manufacturing plant started
functioning with an installed capacity of 26,000 spindles, a small unit considering yarnmanufacturing
industry, in the year 1996 to manufacture synthetic yarn for shirting only. Initially, the
major fabric manufactures of India such as Raymonds, Donear, Grasim, Amartex, Siyaram, Pantaloon
and Arviva were the main customers of the company and the total produce of the company was sold
within the domestic market. These fabric manufactures used to import the premium quality yarn
before RSL started supplying the yarn to them. The company in the first year of its operations
realized that shirting yarn was one of the fiercely competitive products and the company with its high
interest liability was unlikely to earn the desired profits. Also, the company had a narrow product mix
limited to only two more blow room lines were installed in the first quarter of 1997. The addition of
two blow room lines helped RSL to manufacture four different types of yarns at the same time.
Utilizing this added flexibility, RSL began manufacturing yarn for suitings.Since the suiting yarn was
providing better returns, the company was keen to increase manufacturing of suiting yarn but was
hampered by the two for one doubling (TFO) facility, which was limited to only 40% of the total
produce. To remove this bottleneck, 12 more TFO machines were added to the existing 8 TFO
machines. The addition of these machines increased the doubling capacity to 70% of the production
providing additional product mix flexibility to the company. This enabled the company to
manufacture yarn to cater to the requirements of suiting, industrial fabric and carpet manufacturers. In
the initial years of its operations, RSL realized that the promises made by the Government of
Rajasthan to provide uninterrupted power supply of the required quality (stable voltage and
frequency) and ample quantity of water were unlikely to be met through the public distribution
system. The voltage and frequency of electric power provided through the public distribution system
were erratic and frequent announced and unannounced power cuts stopped production on a regular
basis. In these circumstances, meeting quality requirements of the customers and adhering to delivery
schedules was a herculean task. To ensure smooth and uninterrupted operations RSL installed inhouse
power generation facility of 4 megawatts capacity and dug 10 tube-wells.RSL faced stiff
competition in the domestic market from Gujarat Spinning and Weaving Mills, Surat, Rajasthan
Textile Mills, Bhawani Mandi, Charan Spinning Mills, Salem and Indorama Synthetics Ltd.,
Pithampur in all their product categories and the returns were low. In order to combat stiff
competition in the domestic market and improve returns the company started developing export
Examination Paper: Supply Chain Management
8
IIBM Institute of Business Management
markets for their products in the year 1998. Initially, RSL started exporting carpet yarn to Belgium
and till 2001; carpet yarn formed the major component of their exports. A trade agreement was signed
with Fibratex Corporation, Switzerland to share profits equally for expanding their overseas
operations. During the same period, RSL continued to scout for new export markets and was
successful in entering top-of-the-line fancy for premium fashion fabric manufactures of international
repute like Mango and Zara. Rajasthan Synthetics Ltd. also exported fancy yarn to a number of fabric
manufacturers located in Italy, France, England, Spain and Portugal. Yarn manufacturers from
Indonesia, Korea and Taiwan gave stiff competition to RSL when it entered the international market.
The companies from South Asian countries had a major cost advantage over RSL because of cheap,
uninterrupted availability of power and high labour productivity. Currencies had been sharply
devalued during the South Asian financial crisis, which rendered the products manufactured by these
companies still cheaper in international markets. Despite all these disadvantages, RSL was able to
gain a foothold through constant adaption of their products according to the customer requirements in
the highly quality conscious international yarn market and was exporting 95% of its total produce by
the beginning of the year 2002.
Rajasthan Synthetics Ltd. had fine-tuned its distribution channels according to the type of markets
and size of orders from the customers. In line with this policy the export to Middle East, Far East and
Turkey was carried out through agents. Similarly, low volume export of fancy yarn requirements was
also catered through agents. While dealing with importers directly, RSL strictly followed the policy
of exports against confirmed Letter of Credits only. The company directly exported to important
clients in Belgium, England and France. The domestic market was also served through an agency
system. Rajasthan Synthetics Ltd. considered inventories as an unnecessary waste and kept minimum
possible inventories while ensuring required level of service. To ensure that the inventories were held
to a minimum, the manufacturing plan consisted of 60 to 70% against customer orders, 30 to 40%
against anticipated sales and 2% capacity was reserved for new product development. A Strategic
Management Committee (SMC) consisting of MD, CEO, GM (marketing) and GM (technical)
reviewed the production plan of the manufacturing plant on quarterly basis. The SMC also developed
the plans for profitability, product mix and cost minimization. Delivering high-quality products and
meeting delivery commitments for every shipment were essential pre-requisites to be successful in the
global market place. The company had understood this very early and to ensure that the products
manufactured by RSL met the stringent quality requirements of its international customers, the
company had developed a full-fledged testing laboratory equipped with ultra modern testing
machines like User Tester-3 and Class fault. The company had stringent quality testing checks at
every stage of tarn production right from mixing of fiber to packing of finished cones. Its in-house
Research and Development and Statistical Quality Control (SQC) divisions ensured consistent
technical specifications with the help of sophisticated state-of-the-art machines. A team of
professionally qualified and experienced personnel to ensure that the yarn manufactured by the
company was in line with international standards backed the company. The company continuously
upgraded its product mix and at the same time, new products developed by in-house research and
development department were added to the product mix form time to time. RSL’s management was
quick to analyze the potential of these in-house developments and followed a flexible approach in
determining the level of value addition. The company had developed a new yarn recently and was
selling it under the Rajtang brand name. This new yarn was stretchable in three dimensions, absorbed
moisture quickly, was soft and silky and fitted the body. This yarn was extracted from natural
products and being body-friendly, was in great demand in international markets. Looking at the
higher value addition possibilities RSL decided to forward integrate and started manufacturing fabric,
using Rajtang and provided ready-made garments like swimming suit, tracksuit, undergarments, tops,
slacks and kids dresses. The ready-made dresses from the fabric were being manufactured on the
specifications and designs of RSL. The management decided to market these products under the
brand name “Wear-it” through Wearwell Garments Pvt. Ltd., an associate company of RSL, to ensure
that RSL did not lose its focus. The Managing Director of RSL felt that continuous adaptability to
Examination Paper: Supply Chain Management
9
IIBM Institute of Business Management
market requirements through a flexible approach, cost cutting in every sphere of operations and team
approach to management had taken them ahead. However, RSL had become highly dependent on the
volatile export market and if it was not able to retain the international market it would have to reestablish
itself in the domestic market, which was not an easy task.
Questions:
1. What marketing strategy should RSL adopt to remain competitive in the international market?
2. Has the company taken the right decision to forward integrate and enter into the highly volatile
garment market?
Caselet 2
Popular mythology in the United States likes to refer to pre-World War II Japan as a somewhat
backward industrial power that produced and exported mostly trinkets and small items of dubious
quality bought by Americans impoverished by the Great Depression. Few bring up the fact that, prior
to the Pearl Harbor attack, Japan had conquered what are now Korea, Manchuria, Taiwan, and a large
portion of China, Vietnam, and Thailand; and by the end of 1942 Japan had extended its empire to
include Burma, the Philippines, Indonesia, Malaysia, Thailand, Cambodia, New Guinea, plus many
strings of islands in the eastern Pacific Ocean. Its navy had moved a large armada of worships 4,000
miles across the Pacific Ocean, in secret and in silence, to attack Pearl Harbor and then returned
safely home. Manufacturers capable of producing only low-grade goods don’t accomplish such feats.
High-quality standards for military hardware, however, did not extend to civilian and export goods,
which received very low priority during the war years. Thus the perception in the United States for a
long time before and then immediately after the war had nothing to do with some inherent character
flaw in Japanese culture or industrial capability. It had everything to do with Japan’s national
priorities and the availability of funds and material. Following Japan’s surrender in 1945, General
MacArthur was given the task of rebuilding the Japanese economy on a peaceful footing. As part of
that effort an assessment of damage was to be conducted and a national census was planned for 1950.
Deming was asked in 1947 to go to Japan and assist in that effort. As a result of his association with
Shewhart and quality training, he was contacted by representatives from the Union of Japanese
Scientists and Engineers (JUSE), and in 1950, Deming delivered his now famous series of lectures on
quality control. His message to top industry leaders, whom he demanded to attend, and to JUSE was
that Japan had to change its image in the United States and throughout the world. He declared that it
could not succeed as an exporter of poor quality and argued that the tools of statistical quality control
could help solve many quality problems. Having seen their country devastated by the war, industry
and government leaders were eager to learn the new methods and to speed economic recovery.
Experience was to prove to Deming and others that, without the understanding, respect, and support
of management, no group of tools alone could sustain a long-term quality improvement effort.
Questions:
1. How could have the SQC approach, been useful in solving the immediate problems of Japan?
2. If you were among one of the management members, what would have been your first insight.
END OF SECTION B
Examination Paper: Supply Chain Management
10
IIBM Institute of Business Management
Section C: Practical Problems (30 marks)
•This section consists of Practical Problems.
•Answer all the questions.
•Each question carries 15 marks.
1. A sample of 30 is to be selected from a lot of 200 articles. How many different samples are
possible?
2. In Dodge’s CSP-1, it is desired to apply sampling inspection to 1 piece out of every 15 and to
maintain an AOQL of 2%. What should be the value of i?
END OF SECTION C
S-2-210311

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Examination paper: Six Sigma Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Six Sigma Green Belt
Section A: Objective Type (40 Marks)
•This section consists of Multiple Choice questions.
•Answer all the questions.
•Each question carries 1 mark.
Part One:
Multiple Choices:
1. The primary purpose of a control chart is to:
a. Set Specifications and tolerances
b. Compare operations.
c. Determine the stability of a process.
d. Accept or reject a lot of material
2. When a control chart is used on a new process, capability can be assessed at which of the following
times?
a. Before the chart is first started
b. After the first ten points are plotted
c. When the plotted points hug the centerline
d. After the process is shown to be in control
3. Precision is best described as:
a. A comparison to a known standard
b. The achievement of expected outgoing quality
c. The repeated consistency of results
d. The difference between an average measurement and the actual value
4. The overall ability of two or more operators to obtain consistent results repeatedly when measuring
the same set of parts and using the same measuring equipment is the definition of:
a. Repeatability
b. Precision
c. Reproducibility
d. Accuracy
5. Which of the following conditions must be met for a process to be in a state of statistical control?
a. Most of the product out by the process is in specification.
b. All subgroup averages and rang are within control limits.
c. All variation has been completely removed
d. Previously optimal process settings are used.
Examination paper: Six Sigma Management
IIBM Institute of Business Management 2
6. Which of the following measures of dispersion is equal to the sum of deviations from the mean
squared divided by the sample size?
a. Range
b. Standard deviation
c. Variance
d. Mode
7. An X and R chart is used to:
a. Indicate process variation
b. Specify design Limits
c. Interpret costs
d. Identify customer expectations
8. Which of the following is the most useful graphical tool for promoting and understanding the process
of capability?
a. A flowchart
b. A histogram
c. An affinity diagram
d. An Ishikawa diagram
9. The type of chart that presents the value of items in descending order is a:
a. Histogram
b. Pareto chart
c. U chart
d. Cusum chart
10. Measures of which of the following provide attributes data?
a. Temperature in degrees
b. Attendance at meetings
c. Weight in pounds
d. Length in metric units
11. The fraction of nonconforming products is plotted on which of the following types of control chart?
a. P chart
b. U chart
c. Np chart
d. C chart
12. A cause and effect diagram is a useful tool for doing which of the following?
a. Determining the flow of a process
b. Detecting shifts in a process
c. Developing theories based on symptoms
d. Arranging theories by defect count
13. Which of the following statistics would best describe the central tendency of a sample of data?
a. Mode
b. Mean
c. Standard deviation
d. Range
Examination paper: Six Sigma Management
IIBM Institute of Business Management 3
14. Which of the following type of tools or techniques is considered qualitative?
a. Histogram
b. Frequency distributions
c. Pareto chart
d. Process observations
15. Out of the following which technique is most useful in narrowing issues and limiting discussion?
a. Brainstorming
b. Quality function deployment
c. Cause and effect analysis
d. Mutilating
16. In statistics, an estimation error that is persistent or systematic is called:
a. Bias
b. Sensitivity
c. Random
d. Shift
17. For a normal distribution, two standard deviation on each side of the mean would include what
percentage of the total population:
a. 47%
b. 68%
c. 95%
d. 99%
18. If a distribution is normal, u=50 s=15, what percentage of data will be less than 30?
a. 59.18%
b. 40.82%
c. 9.18%
d. 1.33%
19. A company is receiving an unusually high number of returns from various customers. The first step in
investigating the problem would be to
a. Check the inspection records
b. Establish the correlation of the returns to shipments
c. Brainstorm the potential causes
d. Classify the returns by type and degree of serious
20. Which of the following is the best definition of a flow chart?
a. A diagram used to structure ideas into useful categories
b. An illustration used to analyze variation in a process
c. A picture used to separate steps of a process in sequential order
d. An analytical tool used to clarify opposing aspects of a desired change
21. Which of the following activities would NOT contribute to the effective functioning of a team?
a. Eliminating unnecessary activities
b. Development team performance measures
c. Defining process in detail
d. Monitoring each member’s performance
Examination paper: Six Sigma Management
IIBM Institute of Business Management 4
22. What is the standard deviation of the population-10, 4, 16, 12, and 8?
a. 4.00
b. 4.47
c. 16.00
d. 20.00
23. Which of the following tools would be most appropriate for collecting data to study the symptoms of
a problem?
a. Check sheet
b. Flow diagram
c. Force-field analysis
d. Activity network diagram
24. Which of the following measures is a sufficient statistic for the parameter u?
a. Median
b. Mid-range
c. Mean
d. Mode
25. Positional, cyclical, and temporal variations are most commonly analyzed in:
a. SPC charts
b. Multi-vari charts
c. Cause and effect diagram
d. Run charts
26. Which of the following describes the deming method for continuous improvement?
a. Cost of quality analysis
b. Process map
c. Tree Diagram
d. Plan-do-check-act cycle
27. In analysis of variance, which of the following distribution is the basis for determining whether the
variance estimates are all from the same population?
a. Chi square
b. Students
c. Normal
d. F
28. Which of the following statement best describes the set of value of a random variable?
a. It is finite.
b. It is an interval
c. It can be discrete or continuous.
d. It can be tracked by using control charts or scatter plots.
29. Which of the following is the best description of randomization?
a. A technique used to increase the precision of an experiment
b. A means of assuring representative sampling
c. The repetition of an observation or measurement
d. The relationship between two or more variables
Examination paper: Six Sigma Management
IIBM Institute of Business Management 5
30. When the order of items is not important, which of the following method is used to determine the
number of sets and subsets of items?
a. Combination
b. Permutation
c. Factorization
d. Simulation
31. Scatter diagrams are best described as:
a. Histograms.
b. Correlation analysis.
c. Pareto analysis.
d. Ishikawa diagrams.
32. A __________ is created to determine customers of a specific process.
a. Pareto chart
b. Flow diagram
c. Cause and effect diagram
d. Scatter diagram
33. A production line uses signs at specific points on the line to indicate when components or raw
materials need to be replenished. This practice is an example of:
a. Kanban
b. Poka-yake
c. Checkpoints
d. Hoshin
34. Which of the following is a good tool for planning cycle time reduction and concurrent operations?
a. A timeline
b. A Pareto diagram
c. An X and R chart
d. A PERT chart
35. Attribute and variable data are best described as which of the following?
a. Counted values measured values
b. Counted values visual features
c. Measured values counted values
d. Visual features counted values
36. All of the following are common ways for people to react to conflict except:
a. Competing
b. Collaborating
c. Avoiding
d. Sabotaging
37. A quality manager has chosen to survey customer satisfaction by taking samples based on the
categories of frequency of use, categories of use, and demographic. This technique is known as
a. Random sampling
b. Data collection
c. Stratification
d. Customer classification
Examination paper: Six Sigma Management
IIBM Institute of Business Management 6
38. Which of the following actions is Not used to reduce process cycle time?
a. Analyzing current processes
b. Reducing queue times
c. Setting priorities
d. Implementing activity-based costing
39. A company’s accounts payable department is trying to reduce the time between receipt and
payment of invoices and has recently completed a flowchart. Which of the following tool is the next
to be used by them?
a. Fishbone diagram
b. Scatter diagram
c. Box and whisker plat
d. Histogram
40. In a manufacturing company, the machine shop is what kind of customer in relation to the Human
Resource department?
a. Intermediate
b. Hidden
c. External
d. Internal
Section B: Short Notes (30 Marks)
•This section consists of Short Notes Questions.
•Answer all the questions.
•Each Question carries 6 marks.
1. Describe how QFD fits into the overall DFSS process.
2. What is interrelationship Digraph? Explain it with example.
3. Find the area under the standard normal curve between +1.50 standard deviations and +2.50
standard deviations.
4. Define terms related to One-Way ANOVA and interpret their results & data plots.
5. Define & describe the use of Rational Sub grouping.
END OF SECTION A
END OF SECTION B
Examination paper: Six Sigma Management
IIBM Institute of Business Management 7
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 from the part of your answer (Word limit 200 to 250 words).
1. Suppose you are cooking steak for 100 people, & the current approval rating is 75% acceptable.
You want to know the affect of different methods and approaches to see how the overall approval
or “yield” is affected. By using the Full Factorial method explain how the overall approval or
“yield” is affected.
2. Interpret Control Charts? Distinguish between common & special causes using rules for
determining stastical control.
END OF SECTION C