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