QM0018 - Quality Development Methods




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Summer 2013

Master of Business Administration- MBA Semester 4

QM0018 - Quality Development Methods

Q1.Define strategic quality management. Discuss the elements of strategic quality management.
 (Meaning – 4 marks, Elements – 6 marks) 10 marks

Answer :  Strategic quality management:

The BSI Standards defined it as a management philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization. In addition, the BSI used the term total quality management (TQM) instead of strategic quality management. As long as they recognize the strategic importance of quality and quality planning, both terms can be used interchangeably. In this sense, we recognize the significance of strategic value of quality as Garvin did in implementing the quality improvement strategies, and use in this paper the terms “total” and “strategic” interchangeably.

Q2. Explain the types, advantages and drawbacks of qualitative research.
(Types - 4 marks, Advantages – 3 marks, Drawbacks – 3 marks) 10 marks

Answer : Types of qualitative research :

1.Basic/pragmatic qualitative research, which involves using an eclectic approach taken up to best match the research question at hand.

2. Ethnographic Research, used for investigating cultures by collecting and describing data that is intended to help in the development of a theory.

3. Grounded Theory is an inductive type of research, based or "grounded" in the observations or data from which it was developed.

Q3. Define skill based quality management. Explain the guidelines of change management.
(Meaning – 4 marks, Guidelines – 6 marks) 10 marks

Answer : Skill based quality management:

The idea of using skills to assure quality is not new, even amongst the quality community. There is a  section in the ISO 9000 family of standards which relates to what it calls  "special processes" (see Hoyle, 1994), processes where the quality of the  output is not susceptible to assurance through normal methods of  inspection. The distinguishing factor of our approach is the embedding of  this idea into an integrated model.  The quality of the outputs of special processes is assured in our model  through the determination of the abilities and competence needed to carry  them out, a process known as "qualification.

Q4. Explain the modeling techniques of value engineering.
 (Meaning – 2 marks, Modelling Techniques – 8 marks) 10 marks

Answer : Value engineering :

Value engineering (VE) is a systematic method to improve the "value" of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost. It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements. Value engineering is also referred to as "value management" or "value methodology" (VM), and "value analysis" (VA).


Q5. Elucidate the key features of kaizen. Discuss the implementation of kaizen.
 (Meaning - 2 marks, Features – 4 marks, Implementation – 4 marks) 10 marks

Answer : Meaning of Kaizen :

Kaizen , or ‘Continuous Improvement’ is a policy of constantly introducing small incremental changes in a business in order to improve quality and/or efficiency. This approach assumes that employees are the best people to identify room for improvement, since they see the processes in action all the time. A firm that uses this approach therefore has to have a culture that encourages and rewards employees for their contribution to the process.
Kaizen can operate at the level of an individual, or through Kaizen Groups or Quality Circles which are groups specifically brought together to identify potential improvements.

Q6. Explain Just in Time and Kanban.
 (Explanation – 5 marks each) 10 marks

Answer : Just in time :

Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives, the process relies on signals or Kanban (between different points, which are involved in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency.


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QM0010 - Foundations of Quality Management




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Summer 2013

Master of Business Administration- MBA Semester 3

QM0010 - Foundations of Quality Management

Q1. List the different approaches to Quality. Discuss Juran’s views on Quality.
 (Approaches – 5 marks, Views – 5 marks) 10 marks

Answer : Different approaches to quality :

Organisations have continually looked for new ways to improve consistency and quality in their products and services. Management fads may come and go but many of the underlying ideas around quality remain the same. Here's how the works of Deming, Juran and Crosby remain at the heart of quality approaches like TQM and Six Sigma.

Q2. a. Describe the factors determining the customer satisfaction.
(Factors – 5 marks)

Answer : Factors determining the customer satisfaction :

Customer satisfaction is the overall impression of customer about the supplier and the products and services delivered by the supplier. Following are the important factors that could affect customer satisfaction:

  • Department wise capability of the supplier.
  • Technological and engineering or re-engineering aspects of products and services.


Q3. Write short notes on:
a. Quality Function Deployment (QFD)
 (Explanation – 5 marks)

Answer : Quality Function Deployment :

Quality function deployment (QFD) is a “method to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process.”, as described by Dr. Yoji Akao, who originally developed QFD in Japan in 1966, when the author combined his work in quality assurance and quality control points with function deployment used in value engineering.

Q4. a. Explain Quality Assurance.
(Explanation – 5 marks)

Answer : Quality Assurance :

Quality Assurance is a system of measures and controls established within an organisation to try and manage (hence Assure) the Quality of the goods or services being provided. An effective Quality Assurance scheme should ensure a consistent and acceptable level of quality is being achieved in goods or services delivered to customers.
  • Quality Assurance is a natural evolution of the more traditional “Quality Control” which relied almost totally on end of line inspection to weed out and identify failures.

Q5. a. Describe the main features of Quality Control and Inspection.
(Features – 5 marks)

Answer : Features of Quality Control and Inspection :

1. Quality Control activities include inspection and testing of the products or services after they are produced and just before their delivery to the customers. The inspection and testing activities are carried out to check conformity of the product with specifications / requirements. If any of the products are not in conformance with the specifications, they are quarantined / segregated and the actions as specified (repair, re grade, scrap) are initiated.


Q6. Explain the importance of service quality. Discuss the measurement of service quality.
(Meaning – 1 mark, Importance – 4 marks, Measurement – 5 marks)

Answer : Service quality :

From the viewpoint of business administration, service quality is an achievement in customer service. It reflects at each service encounter. Customers form service expectations from past experiences, word of mouth and advertisement.

Importance of service quality :



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QM0011 - Principles & Philosophies of Quality Management




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Summer 2013

Master of Business Administration- MBA Semester 3

QM0011 - Principles & Philosophies of Quality Management

Q1. Discuss the various dimensions of Quality.
(Meaning – 2 marks, Dimensions – 8 marks) 10 marks

Answer : Dimensions of Quality :

Eight dimensions can be used at a strategic level to analyze quality characteristics. The concept was defined by David Garvin. Some of the dimensions are mutually reinforcing, whereas others are not—improvement in one may be at the expense of others. Understanding the trade-offs desired by customers among these dimensions can help build a competitive advantage. The most fundamental definition of a quality product is one that meets the expectations of the customer

Q2. a. Discuss Taguchi’s contributions.
 (Contributions – 5 marks)

Answer : Taguchi's contributions :

Taguchi has made a very influential contribution to industrial statistics. Key elements of his quality philosophy include the following:
  • Taguchi loss function, used to measure financial loss to society resulting from poor quality;
  • The philosophy of off-line quality control, designing products and processes so that they are insensitive ("robust") to parameters outside the design engineer's control; and

Q3. What are Quality circles? Explain the objectives and significant characteristics of Quality circles.
(Meaning – 2 marks, Objectives – 4 marks, Characteristics – 4 marks) 10 marks

Answer :  Quality Circle :

A quality circle is a volunteer group composed of workers (or even students), usually under the leadership of their supervisor (or an elected team leader), who are trained to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees. When matured, true quality circles become self-managing, having gained the confidence of management. Quality circles have the advantage of continuity; the circle remains intact from project to project.


Q4. 5S is a structured program to achieve a well-organized workplace, its cleanliness and standardization, for a safer, more efficient and more productive operation. Explain the principles and implementation stages of 5S. (Principles – 5 marks, implementation stages – 5 marks) 10 marks

Answer : Principles of 5S :

The 5S are prerequisites for any improvement program. As waste is potential gain, so eliminating waste is a gain. 5S Philosophy focuses on effective work place organization,  implifies work environment, reduces waste while improving quality and safety. There is no hope for efficiency or quality improvement with dirty work place, waste of time and scrap. Principles of 5S are described below :


Q5. Total Productive Maintenance aims for greater manufacturing competitiveness through improved effectiveness of machines and equipment. Briefly explain the Eight Pillars of Total Productive Maintenance. (Meaning – 2 marks, Explanation – 8 marks) 10 marks

Answer : Total productive Management :

Total Productive Management (TPM) is a strategy to continuously improve the production process. The aim is to improve the availability of facilities by eliminating mistakes and wastage. Moreover it is a set of techniques originally pioneered by Mr. DENSO in the Toyota Group in Japan. TPM is to "Optimize the effectiveness of manufacturing equipment and tooling".


Q6. Discuss the meaning and importance of six sigma. Explain the steps in implementing six sigma.
(Meaning – 2 marks, Importance – 3 marks, Steps – 5 marks)

Answer : Meaning of six sigma :

Six Sigma is a management philosophy developed by Motorola that emphasizes setting extremely high objectives, collecting data, and analyzing results to a fine degree as a way to reduce defects in products and services. The Greek letter sigma is sometimes used to denote variation from a standard. The philosophy behind Six Sigma is that if you measure how many defects are in a process, you can figure out how to systematically eliminate them and get as close to perfection as possible.



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QM0012- Statistical Process Control and Process Capability




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Summer 2013

Master of Business Administration- MBA Semester 3

QM0012- Statistical Process Control and Process Capability

Q1. a. What is Statistical Process Control? Distinguish between Statistical Quality Control and Statistical Process Control.
 (Meaning – 2 marks, Differences – 3 marks)

Answer :  Statistical Process Control :

Statistical process control (SPC) is a method of quality control which uses statistical methods. SPC is applied in order to monitor and control a process. Monitoring and controlling the process ensures that it operates at its full potential. At its full potential, the process can make as much conforming product as possible with a minimum (if not an elimination) of waste (rework or trash). SPC can be applied to any process where the "conforming product" (product meeting specifications) output can be measured.

Q2. a. Explain the Cause and Effect diagram.
(Explanation – 5 marks)

Answer : Cause and Effect diagram :

Cause and Effect Diagram, also called as “fish bone diagram” or “Ishikawa diagram”, shows relationships between events and is a useful analysis in generating ideas and in identifying the root cause of problem. It is used to brainstorm out possible contributing causes of a particular problem or defect. The cause & effect diagram is the brainchild of Kaoru Ishikawa, who pioneered quality management processes in the Kawasaki shipyards and in the process, became one of the founding fathers of modern management.

Q3. Explain the structure and construction of Control Charts. Explain with an example how to construct X-bar Chart and R Chart.
 (Structure – 3 marks, Construction – 3 marks, Examples – 4 marks) 10 marks

Answer : Control charts :

A control chart is a graphical representation of the collected information. The information may pertain to measured quality characteristics or judged quality characteristics of samples. It detects the variation in processing and warns if there is any departure from the specified tolerance limits.

Structure of control charts :


Q4. What is the meaning of experimental design? Explain the guidelines for designing experiments.
 (Meaning – 3 marks, Guidelines – 7 marks) 10 marks

Answer :  Experimental design :

In experimentation we attempt to monitor the effects of certain inputs or material on the subject matter, of interest. The inputs could be different hedgerow leguminous plants planted under identical conditions, while the effects to be monitored could be the changes in soil fertility status, the yield of agricultural crops planted between the rows, the productivity of the animal being fed with the foliage from the tree crops, or the tree crop performance.

Q5. Explain the concept of Process Capability. Distinguish between Process Stability and Capability. Mention the major uses of Process Capability.
 (Explanation – 4 marks, Differences – 3 marks, Uses – 3)

Answer :  Process capability :

A process is a unique combination of tools, materials, methods, and people engaged in producing a measurable output; for example a manufacturing line for machine parts. All processes have inherent statistical variability which can be evaluated by statistical methods. The Process Capability is a measurable property of a process to the specification, expressed as a process capability index (e.g., Cpk or Cpm) or as a process performance index (e.g., Ppk or Ppm

Q6. What is Acceptance sampling? Explain the guidelines for using Acceptance Sampling.
 (Meaning – 4 marks, Guidelines – 6 marks) 10 marks

Answer :  Acceptance Sampling :

Acceptance sampling is the process of evaluating a portion of the product / material in a lot for the purpose of accepting or rejecting the lot as either conforming or not conforming to quality specifications. Inspection for acceptance purpose is carried out at many stages in manufacturing. There are generally two ways in which inspection is carried out:
 (i) 100% inspection,
 (ii) Sampling inspection.


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QM0013 - Quality Management Tools




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Summer 2013

Master of Business Administration- MBA Semester 3

QM0013 - Quality Management Tools

Q1. a. Explain the principles and importance of Quality.
 (Principles – 3 marks, Importance – 2 marks)

Answer :  Principles :

1 Focus on customers:
It's critical to understand what your customers want, what they need and meet their requirements. 

2 Provide leadership:
Leaders provide clear direction to an organisation, pointing the way and being clear about its purpose .

3 Involve people at all levels :
The most effective way to achieve quality is by involving people across all levels of the organization. 

Q2. QFD is a customer driven planning process which guides through the design, manufacture and marketing of a product or service. Explain the Approaches and Phases of Quality Function Deployment (QFD).
 (Meaning – 2 marks, Approaches – 4 marks, Phases – 4 marks) 10 marks

Answer : QFD :

Quality function deployment (QFD) is a “method to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process.”, as described by Dr. Yoji Akao, who originally developed QFD in Japan in 1966, when the author combined his work in quality assurance and quality control points with function deployment used in value engineering.

Q3. Explain the methods of measuring Reliability. Discuss software reliability. (Meaning – 2 marks, Methods – 4 marks, Explanation of Software reliability – 4 marks) 10 marks

Answer : Reliability :

It is the probability that a plant or component will not fail to perform within specified limits in a given time while working in a stated environment. For the case of mechanical systems the following definition can be used to define reliability. The definition of  reliability includes a number of variables that are external to the artifact being analyzed. Identical equipments may have very different duty requirements such as frequent stop-starts or continuous running. Environmental conditions such as fine dust can also effect a machine.

Q4. Describe Robust Design Optimization Strategy. Explain the steps followed in Robust Parameter Design. (Description- 5 marks, Steps – 5 marks) 10 marks

Answer : Robust Design Optimization Strategy:

Robust Design method, also called the Taguchi Method, pioneered by Dr. Genichi Taguchi, greatly improves engineering productivity. By consciously considering the noise factors (environmental variation during the product’s usage, manufacturing variation, and component deterioration) and the cost of failure in the field the Robust Design method helps ensure customer satisfaction. Robust Design focuses on improving the fundamental function of the product or process, thus facilitating flexible designs and concurrent engineering


Q5. Quality Control Charts focuses on the stability of a process and demonstrates the performance of a project over time. Explain the basic components of quality control charts. Describe the purpose and importance of quality control charts.
(Components – 5 marks, Purpose – 3 marks, Importance – 2 marks)

Answer : Components of Quality control charts :

A control chart consists of:

1. Points representing a statistic (e.g., a mean, range, proportion) of measurements of a quality characteristic in samples taken from the process at different times (performance data plotted over time)

2. The mean of this statistic using all the samples is calculated (e.g., the mean of the means, mean of the ranges, mean of the proportions)

Q6. What is business excellence? What are the steps involved in achieving organisational excellence?
 (Meaning- 3 marks, Steps – 7 marks)

Answer :  Business Excellence :

Business excellence is the systematic use of quality management principles and tools in business management, with the goal of improving performance based on the principles of customer focus, stakeholder value, and process management. Key practices in business excellence applied across functional areas in an enterprise include continuous and breakthrough improvement, preventative management and management by facts


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OM0010-Operations Management




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Summer 2013

Master of Business Administration- MBA Semester 3

OM 0010-Operations Management

Q.1  It is the job of operations managers to convince the stakeholders that the investment in plant and equipment is going to enhance the value of the investments already held by them in the organisation. Explain some of the concepts that can be considered in analyzing the investment.
 (ROI;EBIT; ROA; cash flow; EVA- 5 X2 marks =10 marks) 10 marks

Answer : Concepts in analyzing the investment :

1. ROI :
Return on investment (ROI) is the concept of an investment of some resource yielding a benefit to the investor. A high ROI means the investment gains compare favorably to investment cost. As a performance measure, it is used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. In purely economic terms, it is one way of considering profits in relation to capital invested. In business, the purpose of the "return on investment" metric is to measure, per period, rates of return on money invested in an economic entity in order to decide whether or not to undertake an investment.

Q.2  Explain the regional factors that affect location decision.
(Location of raw materials; Location of markets; Labour factors; Climate and taxes - 4 X 2.5 marks= 10 marks) 10
 marks

Answer :  Regional factors that affect location decision :
Every firm must use location planning techniques. There are many options for location planning. Corporations choose from expanding an existing location, shutting down one location and moving to another, adding new locations while retaining existing facilities, or doing nothing. There are a variety of methods used to decide the best location or alternatives for the corporation. Methods such as identifying the country, general region, small number of community alternatives, and site alternatives.

Q.3  Explain the nine fundamental propositions about organisational effectiveness.
(Explanation of 9 fundamental propositions – 9 marks; conclusion – 1 mark) 10 marks

Answer :  Fundamental propositions about organisational effectiveness :

1. Organizational effectiveness is always a matter of comparison.

When determining the effectiveness of an organization, to what are you comparing the organization to conclude whether it is effective or not? For example, are you comparing to a certain set of best practices or to another highly respected organization?

Q.4  Describe the seven forms of waste. Explain how 5S’s are used to eliminate them.
(Seven forms of waste – 7.5 marks; 5 S – 2.5 marks) 10 marks

Answer : Seven forms of waste :

1) Transportation :

The term "transportation" is used here to mean handling and moving materials or people during the production process. Moving materials around does not add value for the customer and it increases the risk of damage, incorrectly routed items, lost items, and delays affecting other parts of the production process.


Q.5  Discuss the Independent demand item techniques.
(Reorder point (or Perpetual) Model – 5 marks; Periodic review models – 5 marks) 10 marks

Answer :  Independent demand item techniques :

The two classic systems for managing independent demand inventory are periodic review and perpetual review systems.

1. Reorder point model :

A perpetual inventory tracking system is a method of immediately accounting for inventory sales in the inventory account, if there is no theft or spoilage. It is an inventory management system where store balances of inventory are recorded after every transaction. It eliminates the need for the store to close down constantly for inventory stock-taking as perpetual inventory systems allow for continuous stock-taking. Perpetual inventory systems keep a running account of the company's inventory.

Q.6  Explain the types of failures that occur in operations.
 (Design failures; Facilities failures; Staff failures; Supplier failures - 4 X 2.5 marks = 10 marks)

Answer :  Types of failures that occur in operations :

1. Design failures:

The overall design of the operation can prove to be the cause of failure. In its design stage , an operation might look fine on paper, only when it has to cope with real circumstances . Some design failure occur because a characteristics of demand was overlooked or miscalculated .A production line might have been installed in a factory which in practice cannot cope with the demands placed on it. Other design related failure occur because the circumstances under which operation has to work  are not as expected.


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OM0011 - Enterprise Resource Planning




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Summer 2013

Master of Business Administration- MBA Semester 3

OM 0011 - Enterprise Resource Planning

Q1. Differentiate between Commercial and Open Source ERPs software packages.
(Differences – 5 marks; Type of organisation/company where is these ERP’s are used – 2 marks; description of one ERP software for each type of ERP – 2marks; conclusion – 1 mark) 10 marks

Answer : Difference between commercial and open source ERP software :

1. Pricing :

Most open source software is freely distributed with no up-front licensing fees. Further savings come from ease of deployment, training and integration. Commercial ERP is an expensive package and suitable only for bigger corporations.

2. Flexibility :

When you compare commercial and open source ERP, commercial systems are not flexible in nature. They let business with no other choice but to change their way of business. However when it comes to open source ERP everything was decided by the code .

Q2. For a successful MRP system three types of information are very essential. Describe the types of information. (Master Production Schedule – 3 marks ;Bill of Material – 4 marks ;Inventory Records – 3 marks) 10 marks

Answer :  Three types of information systems :

1. Master production schedule :

A master production schedule (MPS) is a plan for individual commodities to produce in each time period such as production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods.

Q3. Explain the features, benefits and Limitations of ERP Inventory Management.
 (Explanation ERP inventory management – 1 mark; features – 3 marks ;benefits – 3 marks; limitations – 3 marks) 10 marks

Answer : ERP Inventory Management :

Whether a manufacturer, wholesaler or retailer, management of inventory is critical to controlling costs and ensuring the smooth operation of business.  ERP Software gives  real time information on current stock levels and values including stock on order, raw materials, work in progress and finished goods.

Features :


Q4. What are the activities of Human Resources management systems?
(explanation of activities – 10 marks) 10 marks

Answer :  Activities of human resource management systems :

A Human Resources Management System (HRMS) is a software application that combines many human resources functions, including benefits administration, payroll, recruiting and training, and performance analysis and review into one package.

1. The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes

Q5. Explain any two benefits of an ERP implementation?
(5 marks for each benefit) 10 marks  

Answer : Benefits of an ERP Implementation :

An Enterprise Resource Planning (ERP) system implementation project will likely be among the most complex and demanding endeavors a higher education institution will attempt. A project of this size requires significant commitments of money, time, and human resources from departments across the institution.

1. Integrated Information:

The key benefit of implementing ERP is integration. ERP helps in reducing operational costs by coordinating various


Q6. Who is an ERP vendor and what are his roles?
 (Explanation of ERP vendor – 4 marks; role – 6 marks) 10 marks

Answer : ERP Vendor :

Vendors  are the people who have developed the ERP packages. They are the people who have invested huge amounts of time and effort in research and development, to create the packaged solutions. If one studies the history of ERP packages and finds out how each package evolved, then it soon becomes evident that every ERP package grew out of the experience or opportunity of a group of people working in a specific business who created systems that could deal with certain business segments.


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