Examination Paper of Quality Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Total Quality Management
Section A: Objective Type & Short Questions (30 Marks)
•?This section consists of Multiple Choice & Short Notes type questions.
•?Answer all the questions.
•?Part One carries 1 mark each & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. Which of the following techniques is used by quality Control Circles?
a. Brainstorming
b. Pareto Analysis
c. Check Sheets
d. All of the above
2. It is a means of getting a large number of ideas from a group of people in a very short time.
a. Brainstorming
b. Pareto Analysis
c. Check Sheets
d. None
3. Cause and effect diagram is an investigation tool. This is also called_____________
a. Ishikawa
b. Histogram
c. Both (a) & (b)
d. None
4. SPC stands for______________
a. Statistical Progress Control
b. Statistical Process Control
c. Statistical Planning Control
d. None
5. DMAIC stands for____________
6. It is a structured process to design products and services based on the customers? needs.
a. Quality Function Development
b. Quality Function deployment
c. Information
Examination Paper of Quality Management
2
IIBM Institute of Business Management
d. None
7. Six Sigma is a business management strategy originally developed by___________
a. Motorola
b. Toyota
c. Wipro
d. None
8. The basic plan-do-study-act (PDSA) cycle was first developed by
a. Deming
b. Shewhart
c. Juran
d. Fleming.
9. The quality system other than ISO 9000
a. PS 9000
b. CS 9000
c. AS 9000
d. LS 9000
10. 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
Part Two:
1. Discuss the concept of Business Process Reengineering.
2. What do you mean by process capability?
3. Describe the advantages of „Statistical Quality Control?.
4. Write a short note on „Quality Circles?.
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 200 to 250 words).
Caselet 1
END OF SECTION A
Examination Paper of Quality Management
3
IIBM Institute of Business Management
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 self-directed and selfmanaging
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. 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.
Examination Paper of Quality Management
4
IIBM Institute of Business Management
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 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
Examination Paper of Quality Management
5
IIBM Institute of Business Management
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 reengineering
program, which has then called core-an acronym for corporate re-engineering. 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 with in
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.
Section C: Applied Theory (30 marks)
•?This section consists of Long Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
END OF SECTION B
Examination Paper of Quality Management
6
IIBM Institute of Business Management
1. Describe the TQM framework for quality improvement; also explain the various benefits of
TQM.
2. Explain the followings.
a. Brainstorming
b. Pareto Analysis
c. Control Charts
END OF SECTION C
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Total Quality Management
Section A: Objective Type & Short Questions (30 Marks)
•?This section consists of Multiple Choice & Short Notes type questions.
•?Answer all the questions.
•?Part One carries 1 mark each & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. Which of the following techniques is used by quality Control Circles?
a. Brainstorming
b. Pareto Analysis
c. Check Sheets
d. All of the above
2. It is a means of getting a large number of ideas from a group of people in a very short time.
a. Brainstorming
b. Pareto Analysis
c. Check Sheets
d. None
3. Cause and effect diagram is an investigation tool. This is also called_____________
a. Ishikawa
b. Histogram
c. Both (a) & (b)
d. None
4. SPC stands for______________
a. Statistical Progress Control
b. Statistical Process Control
c. Statistical Planning Control
d. None
5. DMAIC stands for____________
6. It is a structured process to design products and services based on the customers? needs.
a. Quality Function Development
b. Quality Function deployment
c. Information
Examination Paper of Quality Management
2
IIBM Institute of Business Management
d. None
7. Six Sigma is a business management strategy originally developed by___________
a. Motorola
b. Toyota
c. Wipro
d. None
8. The basic plan-do-study-act (PDSA) cycle was first developed by
a. Deming
b. Shewhart
c. Juran
d. Fleming.
9. The quality system other than ISO 9000
a. PS 9000
b. CS 9000
c. AS 9000
d. LS 9000
10. 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
Part Two:
1. Discuss the concept of Business Process Reengineering.
2. What do you mean by process capability?
3. Describe the advantages of „Statistical Quality Control?.
4. Write a short note on „Quality Circles?.
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 200 to 250 words).
Caselet 1
END OF SECTION A
Examination Paper of Quality Management
3
IIBM Institute of Business Management
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 self-directed and selfmanaging
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. 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.
Examination Paper of Quality Management
4
IIBM Institute of Business Management
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 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
Examination Paper of Quality Management
5
IIBM Institute of Business Management
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 reengineering
program, which has then called core-an acronym for corporate re-engineering. 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 with in
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.
Section C: Applied Theory (30 marks)
•?This section consists of Long Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
END OF SECTION B
Examination Paper of Quality Management
6
IIBM Institute of Business Management
1. Describe the TQM framework for quality improvement; also explain the various benefits of
TQM.
2. Explain the followings.
a. Brainstorming
b. Pareto Analysis
c. Control Charts
END OF SECTION C
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