IIBM Institute of Business Management
Examination Paper MM.100
Quality Control
1. A curve that shows the amount inspected by both the consumer and the producer for different
percent nonconforming values.
a. ASN curve
b. ATI curve
c. AOQ curve
d. None of the above
2. The producer’s risk is represented by the symbols:
a. Alpha
b. Beta
c. Gamma
d. None of the above
3. The International Committee of Weights and Measures revised the metric system in:
a. 1970
b. 1960
c. 1950
d. 1999
4. ASRS stands for……………………………………………………………………..
..................
10. Dodge-Romig Tables developed by:
a. H.F. Dodge
b. H.G. Romig
c. H.K. Fleming
d. Both (a) & (b)
Part Two:
1. Write short note on “Group Chart”.
2. What is “Measures of Dispersion”?
3. What is “Collection of Data”?
4. Write short note on “Binomial Probability Distribution”.
Caselet 1
It is 7:00 a.m. and the siren sounds high at Kandivli (a suburb of North Mumbai) plant of Mahindra &
Mahindra’s (M&M) Tractor division, signaling the starting time of the morning shift. Hardly any
workers have turned up. Reporting late on duty is a norm for the workers here. Seldom does the
morning shift start before 7:30 a.m. During the day shift, it was an ominous scene to find workers
stretching out under the trees and relaxing during the working hours. The union leaders hung around
the factory without doing any work at all. ................
years, with 70% to the USA alone. The quality of tractors has improved drastically with the number
of complaints per 1000 tractors dropping from 228 to 90. The rejection rate for components bought
from vendors, rejection and rework in machining, and rejection at final testing have all been brought
down to near zero levels. FES has introduced 15 new models in accordance with the requirements in
the international markets. The journey to world-class quality is not over yet. The company now aims
at matching the world benchmarks in productivity and quality to establish a cost leadership in the
Indian industry.
Questions:
1. If you were a part of the top management at M&M FES, how would you have involved the
workers in the Deming programme?
2. Do you think that M&M FES has a strategic quality management system in place?
Caselet 2
In 1965, a Yale University undergraduate student Frederick W. Smith wrote a term paper about the
passenger route systems used by most airfreight shippers, which he viewed as economically
inadequate. Smith wrote of the need for shippers to have a system designed specifically for airfreight
that could accommodate time sensitive shipments such as medicines, computer parts, and electronics.
In August 1971, following a stint in the military, Smith bought controlling interest in Arkansas. While
operating his new firm, Smith identified the tremendous difficulty in getting packages and other
airfreight delivered within 1 – 2 days. ..................
satisfaction with Federal Express’s domestic service has averaged better than 95%, and its
international service has rated a satisfaction score of about 94%. In an independently conducted
survey of air-express industry customers, 53% gave Federal Express a perfect score, as compared
with 39% for the next-best competitor. The company has received 195 of nearly 600 businesses and
organizations have visited its facilities.
Questions:
1. What lessons can Indian companies take from FedEx?
2. What are the factors that have gone against India and why did FedEx not start its operations here?
1. An electrician testing the incoming the voltage for a residential house obtains 5 readings: 115,
113, 121, 115, and 116. What is the average?
2. A single sampling plan is desired with a consumer’s risk of 0.10 of accepting 3.0%
nonconforming product and a producer’s risk of 0.05 of not accepting 0.7% nonconforming
product. Select the plan with the lowest sample size.
Examination Paper MM.100
Quality Control
1. A curve that shows the amount inspected by both the consumer and the producer for different
percent nonconforming values.
a. ASN curve
b. ATI curve
c. AOQ curve
d. None of the above
2. The producer’s risk is represented by the symbols:
a. Alpha
b. Beta
c. Gamma
d. None of the above
3. The International Committee of Weights and Measures revised the metric system in:
a. 1970
b. 1960
c. 1950
d. 1999
4. ASRS stands for……………………………………………………………………..
..................
10. Dodge-Romig Tables developed by:
a. H.F. Dodge
b. H.G. Romig
c. H.K. Fleming
d. Both (a) & (b)
Part Two:
1. Write short note on “Group Chart”.
2. What is “Measures of Dispersion”?
3. What is “Collection of Data”?
4. Write short note on “Binomial Probability Distribution”.
Caselet 1
It is 7:00 a.m. and the siren sounds high at Kandivli (a suburb of North Mumbai) plant of Mahindra &
Mahindra’s (M&M) Tractor division, signaling the starting time of the morning shift. Hardly any
workers have turned up. Reporting late on duty is a norm for the workers here. Seldom does the
morning shift start before 7:30 a.m. During the day shift, it was an ominous scene to find workers
stretching out under the trees and relaxing during the working hours. The union leaders hung around
the factory without doing any work at all. ................
years, with 70% to the USA alone. The quality of tractors has improved drastically with the number
of complaints per 1000 tractors dropping from 228 to 90. The rejection rate for components bought
from vendors, rejection and rework in machining, and rejection at final testing have all been brought
down to near zero levels. FES has introduced 15 new models in accordance with the requirements in
the international markets. The journey to world-class quality is not over yet. The company now aims
at matching the world benchmarks in productivity and quality to establish a cost leadership in the
Indian industry.
Questions:
1. If you were a part of the top management at M&M FES, how would you have involved the
workers in the Deming programme?
2. Do you think that M&M FES has a strategic quality management system in place?
Caselet 2
In 1965, a Yale University undergraduate student Frederick W. Smith wrote a term paper about the
passenger route systems used by most airfreight shippers, which he viewed as economically
inadequate. Smith wrote of the need for shippers to have a system designed specifically for airfreight
that could accommodate time sensitive shipments such as medicines, computer parts, and electronics.
In August 1971, following a stint in the military, Smith bought controlling interest in Arkansas. While
operating his new firm, Smith identified the tremendous difficulty in getting packages and other
airfreight delivered within 1 – 2 days. ..................
satisfaction with Federal Express’s domestic service has averaged better than 95%, and its
international service has rated a satisfaction score of about 94%. In an independently conducted
survey of air-express industry customers, 53% gave Federal Express a perfect score, as compared
with 39% for the next-best competitor. The company has received 195 of nearly 600 businesses and
organizations have visited its facilities.
Questions:
1. What lessons can Indian companies take from FedEx?
2. What are the factors that have gone against India and why did FedEx not start its operations here?
1. An electrician testing the incoming the voltage for a residential house obtains 5 readings: 115,
113, 121, 115, and 116. What is the average?
2. A single sampling plan is desired with a consumer’s risk of 0.10 of accepting 3.0%
nonconforming product and a producer’s risk of 0.05 of not accepting 0.7% nonconforming
product. Select the plan with the lowest sample size.
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