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WE ARE PROVIDING CASE STUDY ANSWERS ...

WE ARE PROVIDING CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS, PROJECT REPORTS
AND THESIS

ISBM / IIBMS / IIBM / ISMS / KSBM / NIPM
SMU / SYMBIOSIS / XAVIER / NIRM / PSBM
ISM / IGNOU / IICT / ISBS / LPU / ISM&RC

MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA

www.mbacasestudyanswers.com
www.casestudies.co.in
aravind.banakar@gmail.com

ARAVIND 09901366442 - 09902787224

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Iibm case study_solutions___multiple_answers_1 Document Transcript

  • 1. WE ARE PROVIDING CASE STUDY ANSWERS ASSIGNMENT SOLUTIONS, PROJECT REPORTS AND THESIS ISBM / IIBMS / IIBM / ISMS / KSBM / NIPM SMU / SYMBIOSIS / XAVIER / NIRM / PSBM ISM / IGNOU / IICT / ISBS / LPU / ISM&RC MBA - EMBA - BMS - GDM - MIS - MIB DMS - DBM - PGDM - DBM - DBA www.mbacasestudyanswers.com www.casestudies.co.in aravind.banakar@gmail.com ARAVIND 09901366442 - 09902787224
  • 2. Six Sigma Green Belt Part One: Multiple Choices: 1. The primary purpose of a control chart is to a. Set Specifications and tolerances b. Compare operations. c. Determine the stability of a process. d. Accept or reject a lot of material 2. When a control chart is used on a new process, capability can be assessed at which of the following times? a. Before the chart is first started b. After the first ten points are plotted c. When the plotted points hug the centerline d. After the process is shown to be in control 3. Precision is best described as a. A comparison to a known standard b. The achievement of expected outgoing quality c. The repeated consistency of results d. The difference between an average measurement and the actual value 4. The overall ability of two or more operators to obtain consistent results repeatedly when measuring the same set of parts and using the same measuring equipment is the definition of a. Repeatability b. Precision c. Reproducibility d. Accuracy 5. Which of the following conditions must be met for a process to be in a state of statistical control? a. Most of the product out by the process is in specification. b. All subgroup averages and rang are within control limits. c. All variation has been completely removed d. Previously optimal process settings are used.
  • 3. 6. Which of the following measures of dispersion is equal to the sum of deviations from the mean squared divided by the sample size? a. Range b. Standard deviation c. Variance d. Mode 7. An X and R chart is used to a. Indicate process variation b. Specify design Limits c. Interpret costs d. Identify customer expectations 8. Which of the following is the most useful graphical tool for promoting and understanding the process of capability? a. A flowchart b. A histogram c. An affinity diagram d. An Ishikawa diagram 9. The type of chart that presents the value of items in descending order is a a. Histogram b. Pareto chart c. U chart d. Cusum chart 10. Measures of which of the following provide attributes data? a. Temperature in degrees b. Attendance at meetings c. Weight in pounds d. Length in metric units 11. The fraction of nonconforming products is plotted on which of the following types of control chart? a. P chart b. U chart c. Np chart d. C chart 12. A cause and effect diagram is a useful tool for doing which of the following? a. Determining the flow of a process b. Detecting shifts in a process c. Developing theories based on symptoms d. Arranging theories by defect count 13. Which of the following statistics would best describe the central tendency of a sample of data? a. Mode b. Mean Examination paper of Six Sigma Management IIBM Institute of Business Management 3
  • 4. c. Standard deviation d. Range 14. Which of the following type of tools or techniques is considered qualitative? a. Histogram b. Frequency distributions c. Pareto chart d. Process observations 15. Out of the following which technique is most useful in narrowing issues and limiting discussion? a. Brainstorming b. Quality function deployment c. Cause and effect analysis d. Mutilating 16. In statistics, an estimation error that is persistent or systematic is called a. Bias b. Sensitivity c. Random d. Shift 17. For a normal distribution, two standard deviation on each side of the mean would include what percentage of the total population a. 47% b. 68% c. 95% d. 99% 18. If a distribution is normal, u=50 s=15, what percentage of data will be less than 30? a. 59.18% b. 40.82% c. 9.18% d. 1.33% 19. A company is receiving an unusually high number of returns from various customers. The first step in investigating the problem would be to a. Check the inspection records b. Establish the correlation of the returns to shipments c. Brainstorm the potential causes d. Classify the returns by type and degree of serious 20. Which of the following is the best definition of a flow chart? a. A diagram used to structure ideas into useful categories b. An illustration used to analyze variation in a process c. A picture used to separate steps of a process in sequential order d. An analytical tool used to clarify opposing aspects of a desired change
  • 5. 21. Which of the following activities would NOT contribute to the effective functioning of a team? a. Eliminating unnecessary activities b. Development team performance measures c. Defining process in detail d. Monitoring each member’s performance 22. What is the standard deviation of the population-10, 4, 16, 12, 8 a. 4.00 b. 4.47 c. 16.00 d. 20.00 23. Which of the following tools would be most appropriate for collecting data to study the symptoms of a problem? a. Check sheet b. Flow diagram c. Force-field analysis d. Activity network diagram 24. Which of the following measures is a sufficient statistic for the parameter u? a. Median b. Mid-range c. Mean d. Mode 25. Positional, cyclical, and temporal variations are most commonly analyzed in a. SPC charts b. Multi-vari charts c. Cause and effect diagram d. Run charts 26. Which of the following describes the deming method for continuous improvement? a. Cost of quality analysis b. Process map c. Tree Diagram d. Plan-do-check-act cycle 27. In analysis of variance, which of the following distribution is the basis for determining whether the variance estimates are all from the same population? a. Chi square b. Students c. Normal d. F 28. Which of the following statement best describes the set of value of a random variable? a. It is finite. b. It is an interval c. It can be discrete or continuous. Examination paper of Six Sigma Management IIBM Institute of Business Management 5
  • 6. d. It can be tracked by using control charts or scatter plots. 29. Which of the following is the best description of randomization? a. A technique used to increase the precision of an experiment b. A means of assuring representative sampling c. The repetition of an observation or measurement d. The relationship between two or more variables 30. When the order of items is not important, which of the following method is used to determine the number of sets and subsets of items? a. Combination b. Permutation c. Factorization d. Simulation 31. Scatter diagrams are best described as a. Histograms. b. Correlation analysis. c. Pareto analysis. d. Ishikawa diagrams. 32. A __________ is created to determine customers of a specific process. a. Pareto chart b. Flow diagram c. Cause and effect diagram d. Scatter diagram 33. A production line uses signs at specific points on the line to indicate when components or raw materials need to be replenished. This practice is an example of a. Kanban b. Poka-yake c. Checkpoints d. Hoshin 34. Which of the following is a good tool for planning cycle time reduction and concurrent operations? a. A timeline b. A Pareto diagram c. An X and R chart d. A PERT chart 35. Attribute and variable data are best described as which of the following? a. Counted values measured values b. Counted values visual features c. Measured values counted values d. Visual features counted values 36. All of the following are common ways for people to react to conflict Except a. Competing Examination paper of Six Sigma Management IIBM Institute of Business Management 6
  • 7. b. Collaborating c. Avoiding d. Sabotaging 37. A quality manager has chosen to survey customer satisfaction by taking samples based on the categories of frequency of use, categories of use, and demographic. This technique is known as a. Random sampling b. Data collection c. Stratification d. Customer classification 38. Which of the following actions is Not used to reduce process cycle time? a. Analyzing current processes b. Reducing queue times c. Setting priorities d. Implementing activity-based costing 39. A company’s accounts payable department is trying to reduce the time between receipt and payment of invoices and has recently completed a flowchart. Which of the following tool is the next to be used by them? a. Fishbone diagram b. Scatter diagram c. Box and whisker plat d. Histogram 40. In a manufacturing company, the machine shop is what kind of customer in relation to the human resource department? a. Intermediate b. Hidden c. External d. Internal 1. Describe how QFD fits into the overall DFSS process. 2. What is interrelationship Digraph? Explain it with example. Examination paper of Six Sigma Management IIBM Institute of Business Management 7
  • 8. 3. Find the area under the standard normal curve between +1.50 standard deviations and +2.50 standard deviations. 4. Define terms related to One-Way ANOVA and interpret their results & data plots. 5. Define & describe the use of Rational Sub grouping ? 1. Suppose you are cooking steak for 100 people, & the current approval rating is 75% acceptable. You want to know the affect of different methods and approaches to see how the overall approval or “yield” is affected. By using the Full Factorial method explain how the overall approval or “yield” is affected. 2. Interpret Control Charts? Distinguish between common & special causes using rules for determining stastical control. Part One: Multiple Choices: 1. Calculate the estimated variance of the population from which the following values have been randomly selected: 2.8 2.7 2.6 2.9 2.8 2.8 2.8 a. 095 b. 009 c. 088 d. 008 2. The mean, median and mode of a distribution have the same value. What can be said about the distribution? a. It is exponential b. It is normal c. It is uniform d. None of the above 3. Approximately what percent of the data values are smaller than the mean? a. 25% b. 50% c. 75% d. None of above 4. A normal probability plot is used to: a. Determine whether the distribution is normal b. Plot Z value c. Determine process capability d. It percent out of specification 5. Nominal Group technique is used to: a. Help a group reach consensus b. Generate a group on new ides c. Provide a consistent stable group leadership d. Provide a name for the group Examination paper of Six Sigma Management IIBM Institute of Business Management 9
  • 9. 6. An example of a project metric would be: a. The decrease in defect occurrence b. The decrease in product cost c. The decrease in cycle time d. All the above 7. A correct statement about the relationship between the terms parameter and statistic is: a. A population statistic is more accurate than a parameter b. A sample parameter is used to estimate a statistic c. A sample statistic is used to estimate a population parameter d. Standard deviation calculation requires both statistics and parameters 8. A and B are events. P(A) = 0.80 and P(B) = 0.90: a. Events A and B are disjoint or mutually exclusive b. Events A and B are not disjoint or mutually exclusive c. P (A and B) = 0 d. P(A and B) = 1.7 9. In a certain sampling situation, a=0, b=0.08. the power of the sampling plan this case is: a. 0 b. 0.08 c. 1.00 d. 0.92 10. A newspaper article describes a high positive correlation between obesity and orange juice consumption among six-year-old children’s. Parents who restrict the use of orange juice for their children have: a. Made a type I error b. Made a type II error c. Misunderstood margin of error d. Confused correlation with causation 11. In an experimental design context, replications refer to: a. Duplicating experimental result at another location b. Repeating a test with the same factor levels c. Obtaining the same or similar result from different factors d. Repeating an experiment but using at least one different factor level 12. Find the upper control limit for a range chart if n=4 and the average range is 2.282 a. 2.282 b. 4.564 c. 5.208 d. 3.423 13. An x-bar control chart been established with control limits of 3.245 and 3.257, n=5. An engineer collects the following sample and plots the average on the control chart:3.257, 3.256, 3.258, 3.259 a. The process is out of control Examination paper of Six Sigma Management IIBM Institute of Business Management 10
  • 10. b. The process is not out of control c. The engineer misused the control chart d. The control limits are incorrect 14. TEIZ is an acronym which refers to: a. A set of problem solving tools b. An organization of quality professionals c. An experiment using transitional results d. A Russian general responsible for creative thinking 15. A robust design is one which; a. Has high reliability b. Has low maintenance frequency c. Is simple to manufacture’ d. Is resistant to varying environmental condition 16. A frequent cause of system sub optimization is: a. Optimizing individual process b. Failing to draw a system flow chart c. Using data with outliers d. Failing to consider the normal distribution 17. The x2 distribution is: a. Symmetric b. Left skewed c. Right skewed d. Normal 18. An advantage of using standard deviation rather than range for measuring dispersion of a large sample is that: a. Standard deviation has a simpler formula b. Calculators have a standard deviation key but not a range Key c. Standard deviation uses information from each measurement d. Range calculation are not normally distributed 19. The team development stage characterized by expression of individual opinions and ideas often without regard for team objectives is known as: a. Performing b. Norming c. Conflicting d. Storming 20. SMED is an acronym for activity that: a. Involve housekeeping in the work area b. Makes mistake of a certain type impossible c. Emphasizes the pull of the customer d. Reduces set up the time Examination paper of Six Sigma Management IIBM Institute of Business Management 11
  • 11. 21. A principle advantage of fractional factorial experimental designs is: a. Reduced cost b. Improved accuracy c. Increased confounding d. Higher confidence level 22. Dr. W Edwards Deming: a. Lectured in Japan after World War II b. Was an author of several books in the US c. Is considered an expert in the quality field d. All of the above PART TWO: 23. What percent of population falls below the lower specification limits? a. 9.18% b. 22.66% c. 6.68% d. 1.83% 24. Find the mean, median and mode of the following data set: 9, 11, 12, 14, 18, 18, 18, 20, 23: a. 15.5, 18, 18 b. 15, 14, 18 c. 15, 12, 18 d. 15.5, 16, 18 Use for problem s 25-27: 1 2 3 4 - - 20 + + + + 30 40 50 Total Quality Management 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
  • 12. c. 0.0002 d. None 4. This is not a rapid prototype technique a. Stereo lithography b. Solid ground curing c. Solid ground searching d. None 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 c. One down one up fashion d. Two down one up fashion 7. The quality system other than ISO 9000 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”.
  • 13. 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 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 Examination Paper of Quality Management IIBM Institute of Business Management 4
  • 14. 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. has become a benchmark for various competitors in India and abroad”, the CEO of the company adds further. 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 of Quality Management IIBM Institute of Business Management 5
  • 15. 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 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. 1. What is the Top initative 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 of Quality Management IIBM Institute of Business Management 6 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 there results. Quality Control Part One: Multiple Choices:
  • 16. 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…………………………………………………………………….. 5. A recent survey of retail customers by the …………………………………………….. 6. A cause-and-effect diagram was developed by ……………………………………… 7. Variables that exhibit gaps are called ……………………………… 8. How many techniques used to discard data. a. One b. Two c. Three d. None of the above Examination Paper of Quality Management IIBM Institute of Business Management 8
  • 17. 9. Deviation charts are also called a. Difference chart b. Nominal chart c. Target chart d. (a), (b), & (c) 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. A few days back, the workers in the night shift had beaten up a milkman for creating a lot of noise in the week hours of the morning and thus, disturbing their sleep during their working hours. Things were worse at the other plant of M&M in Nagpur. But this was all in the 1980s. M&M has come a long way since then – it has won the most coveted Deming prize for quality, and started a farming equipment assembling plant in the U.S.A. After the huge success there, the company opened a second assembly plant and a distribution centre in Georgia. Now, the company is in the process of establishing assembling units in Canada to locally produce and market a range of low horsepower cab tractors with features such as AC heater (keeping in view the cold weather conditions for the farmers there), personal stereo, and even a sun roof. It has also Examination Paper of Quality Management IIBM Institute of Business Management 9
  • 18. acquired Jiangling Tractors in China, which it would use to develop low cost products suited to plough deeper into the US farm equipment market. Now, the fourth largest tractor company in the world, M&M, has four tractor plants in India (Mumbai, Nagpur, Rudrapur in Uttranchal, and Jaipur). It has been maintaining its market leadership for the past two decades. During the late 1980s, the company tried to apply TQM concepts such as quality circles without getting any success. M&M was the market leader in the tractors segment at that time, but in view of the looming multinational threat in the near future, its internal situation was very fragile. During 1990-94, the company started the use of the statistical process control and tried to perform business process reengineering. Its journey towards the Deeming prize was initiated in 1994, with the appointment of Prof. Yasutoshi Washio, a Japanese expert, in the implementation of the Deeming guidelines. The same year, the company was rechristened M&M Farm Equipment Sector (FES). Initially, Prof. Washio was skeptical about the Indian companies and workers. He felt that the Indian companies are more like the American companies, which feel that results are important. On the other hand, for the Japanese, the process is more important. Moreover, he had serious doubts about the attitude of the Indian workers with respect to teamwork – a Deeming prerequisite – as he felt that Indian were individualistic. He has proved wrong by the M&M workers. In his own words, „The Indians can be good team workers, much better than the young in Japan today and, in that sense, perhaps, Deeming is better suited to Indian companies‟. In the initial few years of interaction with the management of FES, Washio found himself isolated due to disagreements on various fronts. Washio had major difficulties in making most of the Indian companies understand the importance of implementation over creating a perfect framework. In his own words, „Indians are very good with framework and the big picture, but are poor with implementation. The kaizen is weak.‟ Kaizen means gradual, orderly, and continuous improvement in work processes. It took a while for Washio to make the FES personnel understand that good kaizen hinges on implementation, so there is no need to spend too much time creating a perfect framework. Once you start implementing these, the rest will happen automatically. The FES created a team to implement the team to implementing the Deeming guidelines. The team identified eleven key areas to be fulfilled: 1. Top management leadership and involvement 2. Creating and maintaining TQM frameworks 3. Quality assurance 4. Management system 5. Human resource development 6. Effective utilization of resources 7. Understanding TQM concepts and value 8. Use of scientific method 9. Organizational power 10. Relationship with stakeholders 11. Enabling the unique TQM activities In addition, there is another Deming must-do: eliminate dependence on inspection to achieve quality by building quality into the product in the first place. The system at FES earlier was that at the end of the assembly process or at the customer‟s place, there used to be a final inspection. If a product showed serious flaws then, it was sent again to the shop floor. This wasted a lot of time and effort, and it did not add to the improvement in the quality of the manufactured product. In order to change this system, computers were installed on the shop floor for showing the standard operating procedure (SOP) of a particular process to make the workers understand the various steps in a process. This reduces the chances of human error and acts as a natural check. At the end of every complete process, a check is performed by a trained worker, who also follows an SOP. Employee involvement is the first step in ensuring the success of any quality initiative. At FES, the workers would dictate terms to the shift supervisor by saying that they would not do different tasks on many machines. The Examination Paper of Quality Management IIBM Institute of Business Management 10
  • 19. management took time to conceive them by giving them examples such as: if your wife can do multiple tasks of cleaning the house, feeding the children, and washing the cloths, why can‟t you do the same? The workers were explained the multinational threats looming large. They were told that, if they did not mend their ways, the company might shut down the factory, or even worse, a multinational may take it over and would invariably lay off all the problem creating workers. Examples of companies shut down in Mumbai due to the changed scenario were given. The entire programme was termed „Ashwamedh‟ and analogies were drawn from mythology and the current competitive situation. This brought a complete transformation in the workforce that was now willing to perform multiple tasks, double their productivity, and maintain shift discipline by reporting on time. The workers were informed by the management about every difficulty faced by the company in beating the competition in the market place. Some of the workers were sent with the marketing staff to meet the farmers using the company‟s product and facing problems. This was called „Operation Hamla‟. The workers came back chastised and sobered when they realized that a small mistake on the shop floor could cost a farmer his season‟s crop. The company even sent some of the union leaders for short training courses in the USA and UK. This sustained effort on part of the company has paid rich dividends. Costs are down by 15% and the market share has risen by one percent to 27.3% (10% higher than its closest competitor), despite an overall decline in the tractor demands. The break-even point for a new model of a tractor has decreased to 30,000 -32,000 from the 54,000 tractors three years ago. The worker productivity levels have increased by 100%. Tractor exports from the company have increased 100% over the past 10 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. 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 with in 1 – 2 days. This dilemma motivated him to do the necessary research for resolving the inefficient distribution system. Thus, the idea for Federal Express was born – a company that revolutionized global business practices and now defines speed and reliability. Federal Express was so named due to the patriotic meaning associated with the word „federal‟, which suggested an interest in nationwide economic activity. At that time, Smith hoped to obtain a contract with the Federal Reserve Bank and, although the proposal was denied, he believed the name was a particularly good one for attracting public attention and maintaining name recognition. Examination Paper of Quality Management
  • 20. Company Growth Though the company did not show a profit until July 1975, it soon became the premier carrier of high-priority goods in the marketplace and the standard setter for the industry it established. In the mid-1970s, Federal Express took a leading role in lobbying for air cargo deregulation that finally came in 1977. These changes allowed Federal Express to use larger aircraft (such as Boeing 727s and McDonnell-Douglas DC-10s) and spurred the company‟s rapid growth. Today FedEx express has the world‟s largest all-cargo air fleet, including McDonnell-Douglas MD-11s and Airbus A-300s and A-310s. The planes have a total daily lift capacity of more than 26.5 million pounds. In a 24-hour period, the fleet travels nearly 500,000 miles while its couriers log 2.5 million miles a day- the equivalent of 100 trips around the earth. The company entered its maturing phase in the first half of the 1980s. Federal Express was well established. Competitors were trying to catch up with a company whose growth rate was compounding at about 40% annually. In the fiscal year 1983, Federal Express reported $1 billion in revenues, making American business history as the first company to reach that financial hallmark inside 10 years of start-up without mergers or acquisitions. Overseas Expansion Following the first several international acquisitions, intercontinental operations began in 1984 with service to Europe and Asia. The following year, FedEx marked its first regularly scheduled flight to Europe. In 1988, the company initiated direct-scheduled cargo service to Japan. The acquisition of Tiger International, Inc. occurred in February 1989. With the integration of the Flying Tigers network on 7 August 1989, the company became the world‟s largest full-service, Allcargo Airline, Included in the acquisition were route to 21 countries, a fleet of Boeing 747 and 727 aircraft, facilities throughout the world, and Tigers‟ expertise in international airfreight. Federal Express obtained authority to serve China through a 1995 acquisition from evergreen International Airlines. Under this authority, Federal Express became the sole US-based, All-cargo carrier with aviation rights to the world‟s most populous nation. Since then, the company‟s global reach has continued to expand, resulting in an unsurpassed worldwide network. FedEx Express today delivers to customers in more than 210 countries. Evolving Identify The first evolution of the company‟s corporate identify came in 1994 when Federal Express officially adopted „FedEx‟ as its primary brand, talking a cue from its customers, who frequently referred to the company by the shortened name. By that time, customers used the term as a verb, meaning, „to send an overnight shipment‟. It did not take long for the meaning to catch on, and today it is common terminology to „FedEx‟ a package. The second evolution came in 2000 when the company was renamed „FedEx Express‟ to reflect its position in the overall FedEx Corporation portfolio of services. This also signified the expanding breadth of FedEx Express – specific service offerings as well as a FedEx that was no longer just overnight delivery. FedEx Firsts Throughout its existence, FedEx has amassed an impressive list of „firsts‟, most notably for leading the industry in introducing new services for customers. Federal Express originated the Overnight Letter and was  the first transportation company dedicated to overnight package delivery,  the first to offer next day delivery by 10:30 a.m.,  the first to offer Saturday delivery,
  • 21.  the first express company to offer time define service for freight, and  the first in the industry with money -back guarantees and free proof of performance – services that now extend to its worldwide network. Being a „first‟ company resulted in many firsts for awards and honors, too. In 1990, Federal Express became the first company to win the Malcolm Baldrige National Quality Award in the service category. It also received ISO 9001 registration for all of its worldwide operations in 1994, making in the first global express transportation company to receive simultaneous system-wide certification. Today, FedEx Express is the largest operating company in the FedEx family, handling about 3.2 million packages and documents every business day. People-Service-Profit Federal Express‟s „people-service-profit‟ philosophy guides management policies and actions. The company has a welldeveloped and thoroughly deployed management evaluation system called SFA (survey/feedback/action), which involves a survey of employees, analysis of each work group‟s results by the work group‟s manager, and a discussion between the manager and the work group to develop written action plans for the manager to improve and become more effective. Data from the SFA process are aggregated at all levels of the organization for use in policymaking. Training of front-line personnel is a responsibility of managers and „recurrency training‟ is a widely used instrument for improvement. Teams regularly assess training needs and a worldwide staff of training professionals devices programs to address those needs. To aid these efforts, Federal Express has developed an interactive video system for employee instruction. An internal television network, accessible throughout the company, also serves as an important avenue for employee education. Consistently included in listings of the best US companies to work for, Federal Express has a „no lay-off‟ philosophy, and its „guaranteed fair treatment procedure‟ for handling employee grievances is used as a model by firms in many industries. Employees can participate in a program to qualify front-line workers for management positions. In addition, Federal Express has a well-developed recognition program for team and individual contributions to company performance. Over the last five years, at least 91% of the employees responded that they were „proud to work for Federal Express‟. Service Quality Indicators To spur progress toward its ultimate target of 100% customer satisfaction, Federal Express recently replaced its old measure of quality performance-percent of on-time deliveries – with a 12 component index that comprehensively describes how customers view its performance. Each item in the service quality indicator (SQI) is weighted to reflect how significantly it affects the overall customer satisfaction. Performance data are gathered with the company‟s advanced computer and tracking systems, including the SuperTracker, a hand-held computer used for scanning a shipment‟s bar code every time a package changes hands between pick-up and delivery. Rapid analysis of data from the firm‟s far-flung operations yields daily SQI reports transmitted to workers at all Federal Express sites. The management meets daily to discuss the previous day‟s performance and tracks weekly, monthly, and annual trends. Analysis of data contained in the company‟s more than 30 major database assist the quality action teams (QATs) in locating the root causes of problems that surface in SQI reviews. Extensive customer and internal data are used by cross-functional teams involved in the company‟s new product introduction process. To reach its aggressive quality goals, the company has set up one crossfunctional team for each service component in the SQI. A senior executive heads each team and assures the involvement of front line employees, support personnel, and managers from all parts of the corporation when needed. Two of these corporate-wide teams have a network of over 1,000 Examination Paper of Quality Management IIBM Institute of Business Management 13
  • 22. employees working on improvements. The SQI measurements are directly linked to the corporate planning process, which begins with the CEO and the COO and an executive planning committee. Service quality indicators from the basis on which corporative executives are evaluated. Individual performance objectives are established and monitored. Executives bonuses rest upon the performance of the whole corporation in meeting performance improvement goals. In the annual employee survey, if employees do not rate management leadership at least as high as they rated them the year before, no executive receives a year-end bonus. Employees are encouraged to be innovative and to make decisions that advance quality goals. Federal Express provides employees with the information and technology they need to continuously improve their performance. An example is the digitally assisted dispatch system (DADS), which communicates to some 30,000 couriers through screens in their vans. The system enables quick response to pick-up and delivery dispatches and allows couriers to manage their time and routes with high efficiency. Since 1987, overall customer 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. 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, 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. Production and Operation Management Part One: Multiple choices: 1. If the number of restrictions on sources be ‘a’ and the number of restrictions on destinations be ‘b’ then with the use of ‘stepping stone procedure’, the number of ‘used cells’ will be a. a+b+1 b. a+b+2 c. a-b-1 d. a+b-1 2. Value of smoothing coefficient ‘α’ lies a. Between 1 and ∞ b. Between 0 and 1 c. Between -1 and 1 d. Between 1 and 2 3. Forecasting error is a. The difference between forecasted demand and actual demand b. The ratio of forecasted demand and actual demand c. The difference between the standard forecast demand and the evaluated forecast demand d. Ratio of standard forecast demand and the evaluated forecast demand 4. For forecasting the analyzers plot the demand data on a time scale, study the plot and then look for the consistent patterns. Now what does the high noise mean to these patterns a. Many of the point lie away from the pattern b. Most of the points lie close to the pattern c. All the points lie on the pattern d. None
  • 23. 5. Payback period is a. The length of time after which the production starts b. The length of time after which the selling starts c. The length of time required to recover the investment d. The length of time for which firm bears replacement of the good. Semester II Examination Papers IIBM Institute of Business Management 6. Salvage value is the income from a. Selling an asset b. Buying an asset c. Bargaining in selling d. Price raised stock 7. On total factor basis ‘Productivity’ is given by x/y, where ‘y’ is a. Labor + Capital +Materials b. Labor + Capital + Materials + Energy c. Capital d. Capital + Materials 8. Economic efficiency is given by a. Input /output b. Input /100 c. (Output-input)/input d. Output /input 9. This implies an effective management that ensures an organization’s long-term commitment to the continuous improvement of quality. a. Quality management b. Strategic management c. Total quality management d. Operations management 10. This techniques for improving productivity involves analyzing the operations of the product or service, estimate the value of each operation, and modifying (or) improving that operation so that the cost is lowered. a. Value engineering b. Time-event network c. Work simplifications d. Quality circles Part Two: 1. What are the different types of models in production and operation management? 2. Define ‘Depreciation’. 3. What do you understand by ‘Bias’? 4. What are ‘Learning curves’? Caselet 1 COMPANY BACKGROUND The Bronson Insurance Group was originally founded in 1900 in Auxvasse, Missouri, by James Bronson. The Bronson Group owns a variety of companies that underwrite personal and commercial insurance policies. Annual sales of the Bronson Group are $100 million. In recent years, the company has suffered operating losses. In 1990, the company was heavily invested in computer hardware and software. One of the problems the Bronson Group faced (as well as many insurance companies) was a conflict between
  • 24. established manual procedures and the relatively recent (within the past 20 years) introduction of computer equipment. This conflict was illustrated by the fact that much information was captured on computer but paper files were still kept for practical and legal reasons. FILE CLERKS The file department employed 20 file clerks who pulled files from stacks, refilled used files, and delivered files to various departments including commercial lines, personal lines, and claims. Once a file clerk received the file. Clerks delivered files to underwriters on an hourly basis throughout the day. The average file clerk was paid $8,300 per year. One special file clerk was used full time to search for requested files that another file clerk had not been able to find in the expected place. It was estimated that 40 percent of the requested files were these “no hit” files requiring a search. Often these “no hit” files were eventually found stacked in the requester’s office. The primary “customers” of the file clerks were underwriters and claims attorneys. UNDERWRITING Company management and operations analysts were consistently told that the greatest problem in the company was the inability of file clerks to supply files in a speedy fashion. The entire company from top to bottom viewed the productivity and effectiveness of the department as unacceptable. An underwriter used 20-50 files per day. Because of their distrust of the files department, underwriters tended to hoard often used files. A count by operations analysts found that each underwriter kept from 100-200 files in his or her office at any one time. An underwriter would request a file by computer and work on other business until the file was received. Benson employed 25 underwriters. MANAGEMENT INFORMATION SYSTEM Upper management was deeply concerned about this problem. The MIS department had suggested using video disks as a possible solution. A video disk system was found that would be sufficient for the Semester II Examination Papers IIBM Institute of Business Management companies needs at a cost of about $12 million. It was estimated that the system would take two years to install and make compatible with existing information systems. Another, less attractive was using microfilm. A microfilm system would require underwriters to go to a single keyboard to request paper copies of files. The cost of a microfilm system was $5 million. 1. What do you recommend? Should the company implement one of the new technologies? Why or why not? 2. An operations analyst suggested that company employees shared a “dump on the clerks” mentality. Explain. Caselet 2 Harrison T. Wenk III is 43, married, and has two children, ages 10 and 14. He has a master’s degree
  • 25. in education and teachers junior high school music in a small town in Ohio. Harrison’s father passed away two months ago, leaving his only child an unusual business opportunity. According to his father’s will, Harrison has 12 months to become active in the family food-catering business, KareFull Katering, Inc., or it will be sold to two key employees for a reasonable and fair price. If Harrison becomes involved, the two employees have the option to purchase a significant, but less than majority, interest in the firm. Harrison’s only involvement with this business, which his grandfather established, was as an hourly employee during high school and college summers. He is confident that he could learn and perhaps enjoy the marketing side of the business, and that he could retain the long-time head of accounting/finance. But he would never really enjoy day-to-day operations. In fact, he doesn’t understand what operations management really involves. In 1991 Kare-Full Katering, Inc. had $3.75 million in sales in central Ohio. Net profit after taxes was $ 105,000, the eleventh consecutive year of profitable operations and the seventeenth in the last 20 years. There are 210 employees in this labor-intense business. Institutional contracts account for over 70 percent of sales and include partial food services for three colleges, six commercial establishments) primarily manufacturing plants and banks), two long -term care facilities, and five grade schools. Some customer location employs a permanent operations manager; others are served from the main kitchens of Kare-Full Katering. Harrison believes that if he becomes active in the business, one of the two key employees, the vice president of operations, will leave the firm.Harrison has decided to complete the final two months of this school year and then spend the summer around Kare-Full Katering – as well as institutions with their own food services – to assess whether he wants to become involved in the business. He is particularly interested in finding out as much as possible about operations. Harrison believes he owes it to his wife and children to fairly evaluate this opportunity. 1. Prepare a worksheet of operations activities that Harrison should inquire about this summer. 2. If you were Harrison, what would you do? Why? 1. Productivity is an important tool for mangers as it helps them to track progress toward the more efficient use of resources in producing goods and services. Elucidate. 2. In additional to operations research, what are the other tools and techniques used by organizations to improve productivity? Examination Paper: Health and Hospital Management 1 IIBM Institute of Business Management IIBM Institute of Business Management Examination Paper MM.100 Hospital Administration Section A: Objective Type (30 marks) This section consists of Multiple choices questions & Short notes type questions. Answer all the questions. Part One questions carries 1 mark each & Part Two questions carry 5 marks each. Part One: Multiple Choices: 1. A method of collaborative work in which visual display of information on flip charts or other media to which other group member can use is: a. Decision matrices
  • 26. b. Multivoting c. Boarding d. Brainstorming 2. A tool for Data collection which summarize perception of a large sample of people is: a. Surveys b. Interviews c. Check sheet d. Data sheets 3. Members of Inspection control committee are: a. Microbiologist, O.T. in charge, Medical Superintendent b. Representative from Nursing Service, CSSD in charge, Representative from major clinical department c. Both (a) & (b) d. None of the above 4. MRD stands for: a. Medical Records Department b. Medicine Records Department c. Medicine Release Department d. None of the above 5. Format for appraisal in which rank order is establish of employees based on their relative merit: a. Forced Distribution Technique b. Graphic Rating Scale c. Ranking methods d. Free Written Ratings Examination Paper: Health and Hospital Management 2 IIBM Institute of Business Management 6. Analytical technique in Materials Management in which all items in inventory on the basis of annual usage time cost is: a. FSN Analysis b. ABC Analysis c. VED Analysis d. None of the above 7. Planning tool used in Quality Management in which the items are written on individual cards and displayed on a flip chart: a. Relations Diagram b. Process Decision Program chart c. Affinity Diagram d. Activity Network Diagram 8. Method of filing of Medical records in which involves filing of records in exact chronological order according to unit / serial number: a. Middle Digit filing b. Terminal Digit filing c. Straight Numeric filing d. None of the above 9. Type of hospital in which the number of beds is over 300 beds is known as: a. Large hospital b. Medium sized hospital c. Small hospital d. None of the above 10. Meeting in hospital whose purpose is to pass on information received from agencies is: a. Informative Meeting b. Consultative Meeting c. Executive Meeting d. None of the above Part Two: 1. What are the factors affecting “Retraining” in a hospital? 2. What is the optimum composition of the Drugs and Therapeutics? 3. What do you understand by outdoor patient department?
  • 27. 4. Write down the different members of Appointment committee of the hospital. END OF SECTION A Examination Paper: Health and Hospital Management 3 IIBM Institute of Business Management Section B: Caselets (40 marks) This section consists of Caselets. Answer all the questions. Each Caselet carries 20 marks. Detailed information should form the part of your answer (Word limit 150 to 200 words). Caselet 1 Rakesh and Gagan were two brothers who had graduate in Medicine in the year 1979. Both established themselves as successful practitioners. In 1992, they decided to set up their own hospital as both were familiar with the nitty-gritty of the profession after spending a decade as successful practitioners. In the year 1994, the concept was concretized when three floors Arogya Hospital with a bed capacity of 60 came into existence at Gwalior. The facilities provided by the hospital were pathology, X-ray, blood bank and ICU. In the year 1998, the number of beds was increased to 100 with the addition of a fourth floor. In the year 2005, a fifth floor was added and the hospital started offering services like radiology, 3D spiral, C. Tscan, colourdoppler, pathology, blood bank, C.C.U., O.T., maternity unit, emergency and trauma services, in-patient accommodation, canteen, telecommunication and entertainment. The hospital had 35 nurses and 55 class four employees. The main task of the class four employees was to maintain the cleanliness of the hospital. Besides this, they were also entrusted with the task of sponging, bed setting and shifting of the patients. Salary paid to these employees was between Rs. 1200/- to Rs. 1800/- per month. The hospital staff was divided into different classes of employees. Class one comprised of MBBS, MD, MS, and Administrative Officers. Class three comprised of Technicians and Nurses. Class four comprised of Ayabais, Sweepers and Guards. Hospital had 11 full time doctors, out of whom 7 were duty doctors (MBBS), 2 full time MD for ICU and 2 full time in-house surgeons (MS). Besides this, the hospital had 50 visiting doctors who operated on a turnkey basis. These doctors had their own clinics in different parts of the city and as per requirement; they admitted their patents in the hospital. There was a mutual agreement between the doctors and the hospital that the hospital would charge the patients and out of it the doctors would receive their fees along with a percentage from the hospital share. The patients treated by the hospital were patients requiring intensive care and minor illnesses. Out of the cases reported in the hospital, 60-75% were maternity and were referred to the hospital by leading gynecologists of the city, Dr. Savita and Dr. Manorama. To help the doctors in the treatment of patients, work-instructions for Resident Doctors, Supervisors, Ward boys / Ayabais and Sweeper boys/ bais were prepared by the newly appointed Hospital-Administrator Priya. These instructions were prepared in English and were hung on the walls of the enquiry counter. After a span of one month, Priya resigned from the hospital on account of some personal reasons. By the end of the year 2004, Ritu, a fresh post-graduate in Hospital-Administration from Gwalior, was appointed as an Administrative Officer or take charge of the overall activities of the hospital. Her role was to monitor the activities of employees of class three and four and various other activities related to the functioning of the Hospital. The first task before her was to improve the cleanliness of the hospital. She found that the toilets were not cleaned properly and the room hygiene was dismal. She started making regular visits to all the wards and rooms in the hospital to observe and monitor the employees lacked a human touch. To add to this, the patients also complained that the employees demanded money for the services. After analyzing the situation, she came to the conclusion that lack of motivation among the class four employees was one of the major factors responsible for the pathetic condition prevailing in the hospital. Lack of motivation among the class four employees was also visible in the form of high employee turnover, work negligence, absenteeism and complaining behavior. High absenteeism among the class four employees resulted in work Examination Paper: Health and Hospital Management 4 IIBM Institute of Business Management overload for sincere employees, as they were forced to work in the next shift. This was a regular feature in the hospital as a result of which employees often remained stressed and therefore, less committed towards their work. Although, they were being provided with dinner and snacks at the expense of the hospital, as a gesture of goodwill for those who worked over time for the hospital. She
  • 28. also found that the workers were not reporting for their duty on time, despite their arrival in the hospital on time. The second reason, which she identified for lack of hygienic condition in the hospital, was that the visiting hours for the visitors were not specified, so there was a continuous flow of visitors round the clock, which hampered and affected the cleaning activity of the hospital. It was found that the patients‟ rooms were always full of visitors who would not mind taking their meals in the room/ward. She felt that there was no solution to visitors‟ problem, as this was an integral part of the promotional strategy of the management. She also found that the work-instructions given to the hospital-staff was in English language and it was difficult for class four employees to understand them. Ritu translated all these instructions in Hindi so that class four employees could understand and implement them. Ritu had the daunting task to reduce the absenteeism and make the employees more committed to their work and felt that a reward of Rs. 200, if given to an employee who remained present for 31 days could perhaps motivate the employee to remain regular at the work place. Further, to motivate to perform, she decided to systematize the performance appraisal system by identifying performers and non-performers. This being her first job, she was apprehensive about performance appraisal. The employees were to be classified into three groups A, B and C, „A‟ was for high performers, „B‟ was for average performers and „C‟ was for poor performers. It was decided that the employees in the grade „A‟ would receive the highest increment followed by „B‟ and „C‟. To make the performance appraisal objective, she identified various activities on which the employees could be appraised. To make the performance appraisal system more objective, a two-tier appraisal system was developed by her. In the first phase, the employees were to be rated regularly on the identified activities by patients and their attendants. In the second phase, observation of doctors and nurses was to be considered. Although Ritu had full cooperation from the hospital management, yet she was apprehensive about the employee‟ acceptance of the new system. She had to wait and watch. Questions: 1. Critically evaluate the factors identified by Ritu for enhancing organizational effectiveness. 2. Describe a performance appraisal system that you will recommend to Ritu for evaluating the employees. Caselet 2 The management of a hospital, faced with a resource crunch embarked on a cost containment programme. Instructions were issued to various clinical, supportive and utility services to identify the areas where cost containment could be effectively implemented without compromising with the patient care facilities. The hospital had both the centralized and the decentralized purchasing system. The officer-incharge of the Emergency Department of the hospital, Dr. Systematic was a qualified and trained hospital administrator. He systematically commenced analysis of the various activities and procedures in vogue in the Emergency Department. Dr. Systematic found out that the Emergency Department in addition to the glass syringes purchased 9000 disposable syringes per annum. The interval of ordering was 30 days. The cost of Examination Paper: Health and Hospital Management 5 IIBM Institute of Business Management each disposable was Rs. 20/-. The ordering cost per order was Rs. 15/- and the carrying cost were 15% of the average inventory per year. He calculated the Economic Order Quantity, lot size of inventory per month, storage cost and other inventory related costs and analyzed the optimum interval of ordering. He forwarded these results along with the other cost containment measures of the Emergency Department to the hospital management. The recommendations of Dr. Systematic were implemented and used as a model for other departments of the hospital. Dr. Systematic for effective analysis and appraisal was honoured with the Doctor of the year award by the Hospital Management. Questions: 1. What are the assumptions made by Dr. Systematic for their inventory model? 2. Do you recommend any further suggestion for inventory costs in a hospital? END OF SECTION B Section C: Applied Theory (30 marks) This section consists of Applied Theory Questions. Answer all the questions. Each question carries 15 marks. Detailed information should form the part of your answer (Word limit 200 to 250 words). 1. Write in brief about structure and function of Hospital Organization.
  • 29. 2. Write in brief about process of Material Management in a hospital. Principles of Hospital Administration and Planning Multiple Choices: 1. Public Health Services are concerned with the: a. Control of communicable diseases b. Maternal and child health c. Occupational health and reduction of health hazards d. All of the above 2. The service of an OPD is affected by the: a. System b. Arrival pattern c. Appointment System d. None of the above 3. CSSD stands for: a. Central Sterile Supply Department b. Circular Sterile Supply Department c. Central Site Survey Department d. All of the above 4. ICU Incharge responsibility should cover: a. Continuity of care b. Administrative matters c. Care and maintenance of equipments d. All of the above 5. According to which method one nurse is assigned to a group of patient to provide total nursing care: a. Functional Assignment Method b. Team Nursing Method c. Group Assignment Method d. Primary Nursing Method Examination Paper: Health and Hospital Management 7 IIBM Institute of Business Management 6. Break-even point analysis, analyses the relationship between revenue and ______. a. Variable Cost b. Expenses c. Cost d. Volume 7. MRI stands for: a. Medical Resonance Imaging b. Magnetic Resonance Imaging c. Medical Reasonable Imaging d. None of the above 8. Ultrasonography waves are mechanical pressures waves whose frequency ranging from: a. 10-100 MHz b. 2-50 MHz c. 100-150 MHz d. 2-10- MHz 9. The Hospital laboratory works generally falls under the which divisions: a. Hematology, cytology & Microbiology b. Clinical Chemistry, Histopathology & Biochemistry c. Urine and stool analysis d. All of the above 10. ____________ is a dry type filter with a rigid casing enclosing the full depth of accordion type filter pleats. a. OT Suite b. HEPA filter
  • 30. c. Cleaner‟s closet d. Electrical outlets Part Two: 1. What are the importances of Outpatient Services? 2. Define Hospital as a Social System. 3. What are the main functions of the Nursing Services? 4. Explain the classification of Ward Accommodation? Caselet 1 Mr. Naveen Desai is the current president of Medicare Memorial Hospital‟s board of trustees. Medicare Memorial is a 200-bed voluntary short-term general hospital serving an area of approximately 50,000 persons. Mr. Naveen has just begun a meeting with the administrator of the hospital, Mr. Tarun. The purpose of the meeting is to seek an acceptable solution to an apparent conflict-of-authority problem within the hospital between Mr. Tarun and the chief of surgery, Dr. Mathew. The problem was brought to Mr. Naveen‟s attention by Dr. Rajeev. The problem that concerned Dr. Mathew involved the operating room supervisor, Ms. Meetha. Ms. Meetha schedules the hospital‟s operating suite in accordance with policies that she “believes” to have been established by the hospital‟s administration. One source of irritation to the surgeons is her attitude that maximum utilization must be made of the hospital‟s operating rooms if hospitals cost are to be reduced. She therefore schedules in such a way that operating room idle time is minimized. Surgeons complain that the operating schedule often does not permit them sufficient time to complete a surgical procedure in the manner they think desirable. More often than not, insufficient time is allowed between operations for effective preparation of the operating room for the next procedure. Such scheduling, the surgical staff maintains, contributes to low-quality patient care. Furthermore, some of the surgeons have complained that Ms. Meetha shows favoritism in her scheduling, allowing some doctors ore use of the operating suite than others. The situation reached a crisis when Dr. Mathew following an explosive confrontation with s. Meetha made an appeal to the hospital administrator, who in turn informed Dr. Mathew that discharging nurses was an administrative prerogative. In effect, Dr. Mathew, was told he did not have authority over any issue affecting medical practice and good patient care in Medicare Hospital. He considered this as a medical problem and threatened to take the matter to the hospital‟s board of trustees. As the meeting between Mr. Naveen and Mr. Tarun began, Mr. Tarun explained his position on the problem. He stressed the point that a hospital administrator is legally responsible for patient care in the hospital. He also contended that quality patient care cannot be achieved unless the board of trustees authorized the administrator to make decisions, develop programs, formulate policies and implement procedures. While listening to Mr. Tarun, Mr. Naveen recalled the position belligerently taken by Dr. Mathew, who had contended that surgical and medical doctors holding staff privileges at Medicare would never allow a „layman‟ to make decisions impinging on medical practice. Dr. Mathew also had said that Mr. Tarun should be told to restrict his activities to fund raising, financing, maintenance – administrative problems rather than medical problems. Dr. Mathew had then requested that Mr. Naveen clarify in a definitive manner the lines of authority at Medicare Memorial. As Mr. Naveen ended his meeting with Mr. Traun, the severity of the problem was unmistakably clear to him, but the solution remained quite unclear, Mr. Naveen knew a decision was required – and soon. Questions: 1. According to you, what conflict had developed at Medicare Memorial Hospital? 2. What should Mr. Naveen do? Caselet 2 Outpatient service is one of the rapidly growing services of the hospital. Therefore in many instances, outpatient departments built in the recent past have been found to be too small over the years because of increasing demands, growth of new specialties and the desirability of carrying out an increasing range of diagnostic and therapeutic procedures on outpatient basis. The department must, therefore, be planned for a substantial capacity for growth. In the general hospital, the outpatient department will consist of general outpatient clinic as well as specialty clinics, in the form of a polyclinic. The structural requirement of outpatient department incorporating a polyclinic will depend upon the extent of the services provided. The primary aim should be to provide large floor areas free of structural members to give the maximum adaptability for changing requirements. In many hospitals, poorly planned physical relationship of the OPD are responsible for increasing the
  • 31. work of staff and causing embarrassment and unnecessary movements for patients. On outpatients visits, patent flow usually progresses from Enquiry and Registration to Waiting, then to examination rooms and thereafter to investigation facilities, and lastly the pharmacy. In comparison to the other departments of the hospital, viz. wards, diagnostic and service departments combined, the percentage of space occupied by the outpatient department of most existing public hospitals varies from 12 to 18 per cent. The area required for the outpatient department should be adequate to accommodate the reception and waiting hall, waiting rooms, registration and outpatient medical records, clinics, toilet facilities and the injection and dressing room, pharmacy, minor OT and circulation routes. Scales of space for outpatient department can hardly be standardized in view of the varied requirements and range of services provided. For planning premises, half square foot for each expected annual outpatient visits is considered to provide adequate space in case of most general hospitals. A hospital expecting 500 outpatients per day over 300 normal working days in a year would thus require upto 75000 square feet (6975 sqm) of space for its outpatient department. Questions: 1. What will be procedures that could be performed on outpatient basis? 2. Outpatient Services is important in Hospitals. Why? 1. What are the role and functions of an ICU? 2. What are the Ethical and Legal Aspects of Hospital Administration? Information Technology and Management Multiple Choices: 1. Computer crime is defined by: a. AITP b. SWAT c. Both (a) & (b) d. None of the above 2. Prototyping is sometimes called: a. ASD b. RSD c. RAD d. None of the above 3. Virtual reality is also called: a. Computer-simulated reality b. Neurons c. Software robots d. Telepresence 4. A trackball is a stationary device related to the: a. Keyboard b. Joystick c. Mouse d. All of the above 5. Hand-held microcomputer devices known as: a. Personal digital assistance b. Super computers c. Both (a) & (b) d. None of the above 6. KMS stands for: a. Knowledge memory systems b. Knowledge making system c. Knowledge management systems Examination Paper: Information Technology 2 IIBM Institute of Business Management d. None of the above 7. A basic system component of information systems is: a. Memory
  • 32. b. Processing c. Storage d. All of the above 8. How many characters uses the MICR system? a. 15 characters b. 18 characters c. 24 characters d. 14 characters 9. EBCDIC stands for: a. Extended Binary Coded Decimal Interchange Code b. Extended Binary Coded Decimal Instruction Code c. Extended Binary Coded Data Interchange Code d. Electronic Binary Coded Data Interchange Code 10. The smallest element of data is called: a. Byte b. Bit c. Giga byte d. None of the above Part Two: 1. Write a note on „Cache Memory‟. 2. What do know about „Assembler‟? 3. Write a note on „Optical Character Recognition‟. 4. Explain the term „Electronic commerce‟. Caselet 1 It began as a trading site for nerds, the newly jobless, home-bound housewives, and bored retirees to sell subprime goods: collectibles and attic trash. But eBay quickly grew into a teeming marketplace of 30 million, with its own laws and norms, such as a feedback system in which buyers and sellers Examination Paper: Information Technology 3 IIBM Institute of Business Management rate each other on each transaction. When that wasn‟t quite enough, eBay formed its own police force to patrol the listings for fraud and kick out offenders. The company even has something akin to a bank: Its Paypal payment-processing unit allows buyers to make electronic payments to eBay sellers who can‟t afford a merchant credit card account. “eBay is creating a second, virtual economy,” says W. Brian Arthur, an economist at think tank Santa Fe Institute. “It‟s opening up a whole new medium of exchange.” eBay‟s powerful vortex is drawing diverse products and players into its profitable economy, driving its sellers into the heart of traditional retailing, a $2 trillion market. Among eBay‟s 12 million daily listings are products from giants such as Sears Roebuck, Home Depot, Walt Disney, and even IBM. More than a quarter of the offerings are listed at fixed prices. The result, says Bernard H. Tenenbaum, president of a retail buyout firm, is “They„re coming right for the mainstream of the retail business.” So what started out as a pure consumer auction market-place is now also becoming a big time business-to-consumer and even business-to-business bazaar that is earning record profits for eBay‟s stockholders. And as the eBay economy expands, CEO Meg Whitman and her team may find that managing it could get a lot tougher, especially because eBay‟s millions of passionate and clamorous users demand a voice in all major decisions. This process is clear in one of eBay‟s most cherished institutions: the voice of the Customer program. Every couple of months, the executives of eBay bring in as many as a dozen sellers and buyers, especially its high selling “Power Sellers,” to ask them questions about how they work and what else eBay needs to do. And at least twice a week, it holds hour-long teleconferences to poll users on almost every new feature or policy, no matter how small. The result is that users feel like owners, and they take the initiative to expand the eBay economy – often beyond management‟s wildest dreams. Stung by an aerospace down-turn, for instance, machine-tool shop Reliable Tools Inc., tried listing a few items on eBay in late 1998. Some were huge, hulking chunks of metal, such as a $7,000 2,300-pound milling machine. Yet they sold like ice cream in August. Since then, says Reliable‟s auction manager, Richard Smith, the company‟s eBay business has “turned into a monster.” Now the Irwindale (California) shop‟s $1 million in monthly eBay sales constitutes 75% of its overall business. Pioneers such as Reliable promoted eBay to set up an industrial products marketplace in January that‟s on track to top $500 million in gross sales this year.Then there is eBay
  • 33. Motors. When eBay manager Simon Rothman first recognized a market for cars on cars on eBay in early 1999, he quickly realized that such high-ticket items would require a different strategy than simply opening a new category. To jump-start its supply of cars and customers, eBay immediately bought a collector-car auction company, Kruse International, for $150 million in stock, and later did a deal to include listings from online classifieds site, AutoTrader.com. Rothman also arranged insurance and warranty plans, an escrow service, and shipping and inspection services.This approach worked wonder. Sales of cars and car parts, at a $5 billion-plus annual clip, are eBay's single largest market. That has catapulted eBay in front of No. 1 U.S. auto dealer AutoNation in number of used cars sold. About half of the sellers are brick-and-mortar dealers who now have a much larger audience than their local area. “eBay is by far one of my better sources for buyers,” says Bradley Bonifacius, Internet sales director at Dean Stallings Ford in Oak Ridge, Tennessee. And for now, the big corporations, which still account for under 5 percent of eBay‟s gross sales, seem to be bringing in more customers then they steal. Motorola Inc., for example, helped kick off a new wholesale business for eBay last year, selling excess and returned cell phones in large lots. Thanks to the initiative of established companies such as Motorola, eBay‟s wholesale business jumped ninefold, to $23 million, in the first quarter.As businesses on eBay grow larger, they spur the creation of even more businesses. A new army of merchants, for example, is making a business out of selling on eBay for other people. From almost none a couple of years ago, these so called Trading Assistants now number nearly 23,000. This kind of organic growth makes it exceedingly though to predict how far the eBay economy can go. Whitman professes not to know. “We don‟t actually control this,” she admits. “We are not building this company by ourselves. We have a unique partner – million of people.” Questions: 1. Why has eBay become such a successful and diverse online marketplace? Visit the eBay website to help you answer, and check out their many trading categories, specialty sites, international sites, and other features. 2. Why do you think eBay has become the largest online/offline seller of used cars, and the largest online seller of certain other products, like computers and photographic equipment? Caselet 2 It‟s no secret that somewhere in a back room in the typical Fortune 500 company, there‟s a team of analytical wizards running sophisticated data mining queries that mine for gems such as data about about the company‟s best customers – those top 20 percent of clients that produce 80 percent of the company‟s profits. These jewels can be a business‟s most valuable intellectual property, which makes them very valuable to competitors. What‟s to prevent that data set from walking out the door or falling into the wrong hands? Sometimes, not much. Many companies lack the internal controls to prevent that information from leaking. The problem is that such data is as hard to protect as it is to find. Owens & Minor Inc., a $4 billion medical supplies distributor, counts some of the nation‟s largest health care organizations among its customers. In late 1996, it started mining data internally using business intelligence software from Business Objects SA. “From the beginning, we were aware of security issues around this strategic information about our operations,” says Don Stoller, senior director of information systems at Owens & Minor. “For example, a sales executive in Dallas should only have access to analyses from his region.” It is always possible that someone who has legitimate access will abuse that trust, but companies can minimize that potential by strictly limiting access to only those who need it. thus, Owens & Minor uses role-level security functions that clearly define who has access to which data. “This meant we had to build a separate security table in our Oracle database,” says Stoller. A few years later, when the company wanted to open its systems to suppliers and customers, security became even more important. In 1998, Owens & Minor moved quickly to take advantage of Web-intelligence software from Business Objects that‟s designed to Web-enable business intelligence systems. The result was Wisdom, an extranet Web portal that lets Owens & Minor‟s suppliers and customers access their own transactional data and generate sophisticated analyses and reports from it.“It business-to-business transactions, security is key,” says Stoller. “We had to make absolutely sure that Jhonson & Jhonson, for example, could not see any 3M‟s information. This meant we had to set up specific customer and supplier security tables, and we had to maintain new, secured database views using the Oracle DBMS and Business Objects.”Wisdom was such a success that Owens & Minor decided to go into the intelligence business with the launch of wisdom2 in the spring of 2000. “We capture data out of a hospital‟s
  • 34. materials management system and load it into our data warehouse,” Stoller explains. A hospital can then make full use of its business-intelligence software to mine and analyze purchasing data. Owens & Minor receives a licensing and maintenance fee for the services.Layers of security and encryption require a considerable amount of overhead data for systems administration. Both Stoller and Michael Rasmussen, an analyst at Giga Information Group, say that‟s the main reason security concerns about business intelligence are often swept under the carpet. The issues of authentication (identifying the user) and authorization (what things the user is allowed to do) must be addressed, usually across different applications, Rasmussen says, adding, “Systems administration can be a real nightmare.”“We are going through some of this,” says David Merager, director of Web services and corporate applications at Vivendi Universal Games Inc. (www.vugames.com). “Our business intelligence needs more security attention.” Business intelligence reports come from two systems: an Oracle-based for budgets on a Microsoft SQL Server database. The heart of the business intelligence system consists of Microsoft‟s OLAP application and software from Comshare Inc. that provides the Web-based front end for the analytics. “Our budget teams use these reports to do real-time analyses,” says Merager. Rodger Sayles, manager of data warehousing at Vivendi Universal, says one way to secure such a system is to assign roles to all users within the Microsoft application. Roles determine precisely what a user is allowed to see and do and are usually managed within a directory. If your computing architecture is amenable to a single, centralized directory that supports roles, this may be an attractive solution. “The problem is that once you have over 40 distinct roles, you run into performance issues, and we have identified about 70 user roles,” Sayles explains. He says there‟s way around this difficulty. “I think we are going to use a combination of Web portals and user roles. A user would sign on through a particular Web portal, which would effectively place the user in a role category. This reduces the overhead burden on the application,” says Sayles. Questions: 1. Why have developments in IT helped to increase the value of the data resources of many companies? 2. How can companies use IT to meet the challenges of data resources security? 1. What potential security problems do you see in the increasing use of intranets and extranets in business? What might be done to solve such problems? Give several examples. 2. Suppose you are a manager being asked to develop e-business and e-commerce applications to gain a competitive advantage in an important market for your company. What reservations might you have about doing so? Why? Database Management Systems Multiple choices: 1. The normal language of database is: a. PHP b. SQL c. C++ d. Java 2. DDL, a database system language: a. Creates table b. Manipulates table c. Cannot work with table d. None 3. Symbol for one to one relationship is……………………………………………………… 4. HDBMS stands for: a. Hello DBMS b. Hierarchical DBMS c. Hyper DBMS d. High DBMS 5. In Anti joining of R►S means …………………………………………………………… Part Two: 1. What are “Foreign Keys”? 2. Differentiate between „DBMS‟ and „RDBMS‟. 3. Write the syntax to insert charts into a table from another table. 4. What are „Armstrong‟s Axioms‟?
  • 35. This section consists of Long Questions. Answer all the questions. Each question carries 10 marks. Detailed information should form the part of your answer (Word limit 150 to 200 words). 1. Elaborate the testing of Serializability techniques with example. 2. Explain the working of lock manager. 3. What is deadlock? How is a deadlock detected? Enumerate the method for recovery from the deadlock. 4. Explain why a transaction execution should be atomic. Explain ACID properties, considering the following transaction. Ti: read (A); A : = A- 50; Write (A); Read (B); B : = B + 50; Write (B) 1. The HR manager has decided to raise the salary for all the employees in department number 30 by 0.25. Whenever any such raise is given to the EMPLOYEES, a record for the same is maintained in the EMP-RAISE table. It includes the employee number, the date when the raise was given and the actual raise. Write a PL/SQL block to update the salary of each employee and insert a record in the EMP-RAISE table. 2. Retrieve the salesman name in „New Delhi‟ whose efforts have resulted into atleast one sales transaction. Table Name : SALES-MAST Salesman-no Name City B0001 B0002 B0003 B0004 B0005 B0006 B0007 Puneet Kumar Pravin Kumar Radha Krishna Brijesh Kumar Tushar Kumar Nitin Kumar Mahesh Kumar Varanasi Varanasi New Delhi New Delhi Allahabad Allahabad Gr. Noida Table Name : SALES-ORDER Order-no Order-date Salesman-no S0001 S0002 S0003 S0004 S0005 S0006 10-Apr-07 28-Apr-07 05-May-07 12-June-07 15-July-07
  • 36. 18-Aug-07 B0001 B0002 B0003 B0004 B0005 B0006 Information Technology and Management Multiple Choices: 1. Computer crime is defined by: a. AITP b. SWAT c. Both (a) & (b) d. None of the above 2. Prototyping is sometimes called: a. ASD b. RSD c. RAD d. None of the above 3. Virtual reality is also called: a. Computer-simulated reality b. Neurons c. Software robots d. Telepresence 4. A trackball is a stationary device related to the: a. Keyboard b. Joystick c. Mouse d. All of the above 5. Hand-held microcomputer devices known as: a. Personal digital assistance b. Super computers c. Both (a) & (b) d. None of the above 6. KMS stands for: a. Knowledge memory systems b. Knowledge making system c. Knowledge management systems Examination Paper: Information Technology 2 IIBM Institute of Business Management d. None of the above 7. A basic system component of information systems is: a. Memory b. Processing c. Storage d. All of the above 8. How many characters uses the MICR system? a. 15 characters b. 18 characters c. 24 characters d. 14 characters 9. EBCDIC stands for: a. Extended Binary Coded Decimal Interchange Code b. Extended Binary Coded Decimal Instruction Code c. Extended Binary Coded Data Interchange Code
  • 37. d. Electronic Binary Coded Data Interchange Code 10. The smallest element of data is called: a. Byte b. Bit c. Giga byte d. None of the above Part Two: 1. Write a note on „Cache Memory‟. 2. What do know about „Assembler‟? 3. Write a note on „Optical Character Recognition‟. 4. Explain the term „Electronic commerce‟. Caselet 1 It began as a trading site for nerds, the newly jobless, home-bound housewives, and bored retirees to sell subprime goods: collectibles and attic trash. But eBay quickly grew into a teeming marketplace of 30 million, with its own laws and norms, such as a feedback system in which buyers and sellers rate each other on each transaction. When that wasn‟t quite enough, eBay formed its own police force to patrol the listings for fraud and kick out offenders. The company even has something akin to a bank: Its Paypal payment-processing unit allows buyers to make electronic payments to eBay sellers who can‟t afford a merchant credit card account. “eBay is creating a second, virtual economy,” says W. Brian Arthur, an economist at think tank Santa Fe Institute. “It‟s opening up a whole new medium of exchange.” eBay‟s powerful vortex is drawing diverse products and players into its profitable economy, driving its sellers into the heart of traditional retailing, a $2 trillion market. Among eBay‟s 12 million daily listings are products from giants such as Sears Roebuck, Home Depot, Walt Disney, and even IBM. More than a quarter of the offerings are listed at fixed prices. The result, says Bernard H. Tenenbaum, president of a retail buyout firm, is “They„re coming right for the mainstream of the retail business.” So what started out as a pure consumer auction market-place is now also becoming a big time business-to-consumer and even business-to-business bazaar that is earning record profits for eBay‟s stockholders. And as the eBay economy expands, CEO Meg Whitman and her team may find that managing it could get a lot tougher, especially because eBay‟s millions of passionate and clamorous users demand a voice in all major decisions. This process is clear in one of eBay‟s most cherished institutions: the voice of the Customer program. Every couple of months, the executives of eBay bring in as many as a dozen sellers and buyers, especially its high selling “Power Sellers,” to ask them questions about how they work and what else eBay needs to do. And at least twice a week, it holds hour-long teleconferences to poll users on almost every new feature or policy, no matter how small. The result is that users feel like owners, and they take the initiative to expand the eBay economy – often beyond management‟s wildest dreams. Stung by an aerospace down-turn, for instance, machine-tool shop Reliable Tools Inc., tried listing a few items on eBay in late 1998. Some were huge, hulking chunks of metal, such as a $7,000 2,300-pound milling machine. Yet they sold like ice cream in August. Since then, says Reliable‟s auction manager, Richard Smith, the company‟s eBay business has “turned into a monster.” Now the Irwindale (California) shop‟s $1 million in monthly eBay sales constitutes 75% of its overall business. Pioneers such as Reliable promoted eBay to set up an industrial products marketplace in January that‟s on track to top $500 million in gross sales this year.Then there is eBay Motors. When eBay manager Simon Rothman first recognized a market for cars on cars on eBay in early 1999, he quickly realized that such high-ticket items would require a different strategy than simply opening a new category. To jump-start its supply of cars and customers, eBay immediately bought a collector-car auction company, Kruse International, for $150 million in stock, and later did a deal to include listings from online classifieds site, AutoTrader.com. Rothman also arranged insurance and warranty plans, an escrow service, and shipping and inspection services.This approach worked wonder. Sales of cars and car parts, at a $5 billion-plus annual clip, are eBay's single largest market. That has catapulted eBay in front of No. 1 U.S. auto dealer AutoNation in number of used cars sold. About half of the sellers are brick-and-mortar dealers who now have a much larger audience than their local area. “eBay is by far one of my better sources for buyers,” says Bradley Bonifacius, Internet sales director at Dean Stallings Ford in Oak Ridge, Tennessee. And for now, the big corporations, which still account for under 5 percent of eBay‟s gross sales, seem to be bringing in more customers then they steal. Motorola Inc., for example, helped kick off a new wholesale business for eBay last year, selling excess and returned cell phones in large lots. Thanks to the initiative of established companies such as Motorola, eBay‟s wholesale business jumped
  • 38. ninefold, to $23 million, in the first quarter.As businesses on eBay grow larger, they spur the creation of even more businesses. A new army of merchants, for example, is making a business out of selling on eBay for other people. From almost none a couple of years ago, these so called Trading Assistants now number nearly 23,000. This kind of organic growth makes it exceedingly though to predict how far the eBay economy can go. Whitman professes not to know. “We don‟t actually control this,” she admits. “We are not building this company by ourselves. We have a unique partner – million of people.” Questions: 1. Why has eBay become such a successful and diverse online marketplace? Visit the eBay website to help you answer, and check out their many trading categories, specialty sites, international sites, and other features. 2. Why do you think eBay has become the largest online/offline seller of used cars, and the largest online seller of certain other products, like computers and photographic equipment? Caselet 2 It‟s no secret that somewhere in a back room in the typical Fortune 500 company, there‟s a team of analytical wizards running sophisticated data mining queries that mine for gems such as data about about the company‟s best customers – those top 20 percent of clients that produce 80 percent of the company‟s profits. These jewels can be a business‟s most valuable intellectual property, which makes them very valuable to competitors. What‟s to prevent that data set from walking out the door or falling into the wrong hands? Sometimes, not much. Many companies lack the internal controls to prevent that information from leaking. The problem is that such data is as hard to protect as it is to find. Owens & Minor Inc., a $4 billion medical supplies distributor, counts some of the nation‟s largest health care organizations among its customers. In late 1996, it started mining data internally using business intelligence software from Business Objects SA. “From the beginning, we were aware of security issues around this strategic information about our operations,” says Don Stoller, senior director of information systems at Owens & Minor. “For example, a sales executive in Dallas should only have access to analyses from his region.” It is always possible that someone who has legitimate access will abuse that trust, but companies can minimize that potential by strictly limiting access to only those who need it. thus, Owens & Minor uses role-level security functions that clearly define who has access to which data. “This meant we had to build a separate security table in our Oracle database,” says Stoller. A few years later, when the company wanted to open its systems to suppliers and customers, security became even more important. In 1998, Owens & Minor moved quickly to take advantage of Web-intelligence software from Business Objects that‟s designed to Web-enable business intelligence systems. The result was Wisdom, an extranet Web portal that lets Owens & Minor‟s suppliers and customers access their own transactional data and generate sophisticated analyses and reports from it.“It business-to-business transactions, security is key,” says Stoller. “We had to make absolutely sure that Jhonson & Jhonson, for example, could not see any 3M‟s information. This meant we had to set up specific customer and supplier security tables, and we had to maintain new, secured database views using the Oracle DBMS and Business Objects.”Wisdom was such a success that Owens & Minor decided to go into the intelligence business with the launch of wisdom2 in the spring of 2000. “We capture data out of a hospital‟s materials management system and load it into our data warehouse,” Stoller explains. A hospital can then make full use of its business-intelligence software to mine and analyze purchasing data. Owens & Minor receives a licensing and maintenance fee for the services.Layers of security and encryption require a considerable amount of overhead data for systems administration. Both Stoller and Michael Rasmussen, an analyst at Giga Information Group, say that‟s the main reason security concerns about business intelligence are often swept under the carpet. The issues of authentication (identifying the user) and authorization (what things the user is allowed to do) must be addressed, usually across different applications, Rasmussen says, adding, “Systems administration can be a real nightmare.”“We are going through some of this,” says David Merager, director of Web services and corporate applications at Vivendi Universal Games Inc. (www.vugames.com). “Our business intelligence needs more security attention.” Business intelligence reports come from two systems: an Oracle-based for budgets on a Microsoft SQL Server database. The heart of the business intelligence system consists of Microsoft‟s OLAP application and software from Comshare Inc. that provides the Web-based front end for the analytics. “Our budget teams use these reports to do real-time analyses,” says Merager. Rodger Sayles, manager of data warehousing at Vivendi Universal, says one way to secure such a system is to assign roles to all users within the Microsoft application. Roles
  • 39. determine precisely what a user is allowed to see and do and are usually managed within a directory. If your computing architecture is amenable to a single, centralized directory that supports roles, this may be an attractive solution. “The problem is that once you have over 40 distinct roles, you run into performance issues, and we have identified about 70 user roles,” Sayles explains. He says there‟s way around this difficulty. “I think we are going to use a combination of Web portals and user roles. A user would sign on through a particular Web portal, which would effectively place the user in a role category. This reduces the overhead burden on the application,” says Sayles. Questions: 1. Why have developments in IT helped to increase the value of the data resources of many companies? 2. How can companies use IT to meet the challenges of data resources security? 1. What potential security problems do you see in the increasing use of intranets and extranets in business? What might be done to solve such problems? Give several examples. 2. Suppose you are a manager being asked to develop e-business and e-commerce applications to gain a competitive advantage in an important market for your company. What reservations might you have about doing so? Why? Management Information Systems This section consists of Multiple choice questions and Short Note type questions. Answer all the questions. Part one questions carry 1 mark each & Part two questions carry 5 marks each. Part one: Multiple choices: 1. Management Information System is mainly dependent upon: a. Accounting b. Information c. Both ‘a’ and ‘b’ d. None of the above 2. The most important attribute of information quality that a manager requires is: a. Presentation b. Relevance c. Timeliness d. None of the above 3. Human Resource Information Systems are designed to: a. Produce pay checks and payrolls reports b. Maintain personnel records c. Analyze the use of personnel in business operations d. Development of employees to their full potential 4. Operational Accounting System include: a. Inventory control b. Cost accounting reports c. Development of financial budgets and projected financial statements d. None of the above 5. EIS stands for: a. Executive Information System b. Excellent Info System c. Excessive Information System d. None of the above Examination Paper : Semester II IIBM Institute of Business Management 2 6. Intranet provide a rich set of tools for those people:
  • 40. a. Who are members of the different company or organization b. Who are members of the same company or organization c. Both ‘a’ and ‘b’ d. None of the above 7. Which one is not the future of wireless technology? a. E-mail b. VOIP c. RFID d. Telegram 8. OLTP stands for: a. Online Transactional Processing b. Online Transmission Processing c. Online Transactional Process d. None of the above 9. Which one of the following is not considered as future of m-commerce: a. Ubiquity b. Localization c. Simple authentication d. Common operation 10. Which of the following is not the level of decision making: a. Management control b. Activity control c. Operational control d. Strategic decision making Part Two: 1. What are the ‘Strategic Information Systems’? 2. Write down the various business model of internet. 3. What is ‘Network Bandwidth’? 4. Differentiate between OLTP and OLPP. END OF SECTION A Examination Paper : Semester II IIBM Institute of Business Management 3 Section B: Case lets (40 marks) This section consists of Case lets. Answer all the questions. Each Case let carries 20 marks Detailed information should form the part of your answer (Word limit 150 to 200 words). Case let 1 Overview of our Client’s Strategy Our client had an online store. They were spending $15,000 each month on pay per click advertising. This resulted in about $225,000 per month in sales. They didn’t know which clicks were leading to sales because they didn’t track the clicks. There rankings in the natural listings was minimal because they hadn’t done keywords research on what visitors were using to try to find a site like there’s. They weren’t able to quantity results because their we statistics program only showed very general traffic information. They were also doing an irregular email newsletter even though they had more than 32,000 e-mails in their database. Analysis of the situation In the natural listings we suspected they were being penalized by the search enines for duplicate
  • 41. content. The search engines frown on this because they feel this is trying to fool them. Google will often give a site like this something called “Supplement Results”, which means that the search engines know the page exists but doesn’t have any content in their database. We also suspected their email newsletter was being blocked by many spam blockers because the names of the products they sold were often on used in spam e-mails. Implementation of a Solution For the pay per click advertising we started tracking the clicks down to the individual terms and the actual results that came from them. We were able to delete terms that were not getting enough sales and increase the bids on ones that brought sales. For the natural listings we did keywords research and focused on the main keywords on the content for the home page and in the META tags. We also found that visitors search on product names rather than manufactures, so in the title tag for the page we switched and put the product name before the manufacturer. With the newsletter, we used a good mix of graphics and content to appease the spam blockers, as well as put the product names in graphics so they wouldn’t be blocked. In order to analyze of the site’s traffic, we implemented a powerful web statistics program. Results of our work Through our tactics, our clients were able to move up to #4 on Google for their main search term, which got a lot of traffic. With pay per click, they went from $.43. They decrease their budget to $10,000 per month, yet were able to increase their traffic by 33 percent. Through our optimization of their pay per click, their cost per conversion to sale decreased by at least 45 percent. The deliverability of their newsletter increased as well. Within a year, their sales increased to over $600,000 per month. Questions: 1. Discuss the client strategy for the success of store. 2. Suppose if you are the client maker what would you suggest for the client. Examination Paper : Semester II IIBM Institute of Business Management 4 Case let 2 Data Warehouse is a massive independent business database system that is populated with data that has been extracted from a range of sources. The data is held separately from its origin and is used to help to improve the decision-making process. Many traditional Databases are involved in recording day to day operational activities of the business, called Online Transaction Processing (OLTP), COMMONLY IMPLEMENTED IN Airline Bookings and Banking Systems, for faster’s response and better control over data. After establishment of OLTP Systems, reports and summaries can be drawn for giving inputs to decision-making process and this process is called Online Analytical Processing (OLAP). For better customer relationships management strategy, the call centre’s and data Warehouse works as a strategic tool for decision-support which requires lot of time for establishment, and needs to be updated with operational information on daily weekly or monthly basis. Data Warehouse is used for proactive strategies formulation strategies formulation in critical and complex situations. A number of CRM vendors are advocating for single integrated customer
  • 42. database which includes call centre, web sites, branches and direct mail, but it lacks in analytical functioning of data warehouse. This Database can’t be expanded also, and carry decision support operations on call centre Database becomes slow & the query processing and inquiries andling operations also become slow & inefficient for agents dealing with customers. Data Warehouse is must for identifying most profitable & loyal customers and those customers can be offered better customized services which increase the chances of additional profits. Although call centre system & data warehouse are altogether different systems yet dependent on each other to fully exploit their potential respectively. Questions: 1. Explain the role of data warehousing in the functioning of a call centre. 2. How the response time in performing OLAP queries can be improved? END OF SECTION B Section C: Applied Theory (30 marks) This section consists of Applied Theory Questions. Answer all the questions. Each question carries 15 marks. Detailed information should form the part of your answer. (Word limit 200 to 250 words). 1. Explain the term e-commerce. Also explain the history and limitations of e-commerce. 2. What do you understand by the term “Database”? Explain the various database models in detail. Pharmaceuticals Industrial Management Part One: Multiple Choices: 1. Which of the following not the principle of co-„ordination? a. Principle of early beginning b. Principle of continuity c. Principle of time d. Principle of reciprocity 2. Oral communication includes-. a. Lecture b. Poster c. Union publication d. Complaint procedure 3. Enthusiasm, co-operation, tact and skillful handling come under-. a. Intellectual quality b. Character quality c. Psychological quality d. Physical quality 4. Which of the following is the demerit of formal communication?. a) Decay in accuracy b) Time consuming c) It is temporary d) Fairly unsuitable 5. Arrange the following into decision making process i. Conception
  • 43. ii. Investigation iii. Perception iv. Selection a) iv,i,iii, ii b) ii,iv iii,i c) iv,i,iii,ii d) iii,i,ii, iv Examination Paper of Pharmaceuticals Management IIBM Institute of Business Management 2
  • 44. 6. FIFO stands for ______________________. 7. Record of all item of material and good in the store is recorded in which document? a) Store ledger b) Bin card c) Both a & b d) None of these 8. VED stands for ______________________. 9. In the EOQ formula „C‟ is stand fora) Annual consumption b) Cost of per unit of material c) Cost per order d) Storage 10. WTO stands for ______________________. Part Two: 1. What is questionnaire? Explain rules or guidelines for designing a good questionnaire? 2. Define drug store management? „Discuss the arrangements of drugs in drug store? 3. Name the various steps in the selection of a pharmacist? 4. What are the purposes of training given to a pharmacist? Caselet 1 For the Indian Pharmaceutical Industry which has been presenting a robust performance during the last few years, the internet is a powerful tool. Web-enabling leverages the pharmaceutical firm‟s existing investment in IT. Customer Relationship Management (CRM) and Sales Force Automation (SFA) systems can be web-enabled to cost of operations, and on being effectively used, they establish immense customer goodwill. Examination Paper of Pharmaceuticals Management IIBM Institute of Business Management 3
  • 45. The speed, efficiency and accuracy of a pharmaceutical company‟s response to customer queries determine the extent of customer satisfaction. About 200,000 doctors will be contacted by a typical mid-sized pharmaceutical company, on a regular basis. It is crucial that these doctors are kept abreast of product profiles, new introductions etc. also, during the sales calls made by the field force queries are raised by the doctors, which need to be addressed quickly. By possessing a comprehensive medical information system, pharmaceutical companies are able to fulfill their obligations, and, at the same time, lend support to their sales and business partnerships. A good CRM system incorporates features that enable information sharing and identification of trends in the market; at the same time, to accommodate growth, it runs on a scalable platform. A good CRM system is characterized by two key functions:  Tracking, organizing, prioritizing and responding to callers; and  Automating quick responsesthrough letter, fax or e-mail, using a comprehensive data base. The CRM system can help make urgent responses. It will also have a system of archiving call sheets. The benefits of a good CRM system include a facility to handle a large number of medical queries efficiently; tracking customer correspondence/exchanges; retrieval and dissemination of the latest medical information; providing statistical reports for the re-assessment of product profiles. A good CRM system arms the company with tools to implement measures for continuous improvement of its business practices; it can be an invaluable aid to the sales force in understanding the interests and concerns of medical practitioners. Sales Force Automation (SFA) is a system related to the CRM system. This tool enables a company to manage a vast field force. The system provides up-tp-date information to the field force while they are on the field; it provides the managers with a facility to keep a tab on field force‟s activities and ensure they are going according to plan. A good SFA system incorporates features as under:  Customer Profiles: by maintain up-to-date, detailed profiles of customers, the system facilitates tailoring of the profile base for different needs; a comprehensive view on important business opportunities and important customer is generated.  Hospital Profiles: detailed hospital profiles maintained helps in implementing focused strategies.  Activity Planning: planning of activities by each member of the team is made possible by the SFA system.  Promotion/Call Reporting: detailed information about a particular promotion, and each sales call are made available; this enables planning of future activities that focus on specific needs.  Online Submission: daily call reports can be submitted online; call coverage reports and record of monthly target achievement can be maintained.  Analysis and Reports: to facilitate better planning and strategy formulation, the SFA system provides detailed statistics. If the traditional applications and expertise of pharmaceuticals companies can be leveraged by web-enabling them, then major benefits are in store for them. The companies can cut down costs, manage their markets with more effectiveness and also enter into new markets. The following are some of the CRM/SFA systems available in the market for the pharmaceutical industry. Examination Paper of Pharmaceuticals Management IIBM Institute of Business Management 4
  • 46.  FFReporting of Sarjen Systems Pvt. Limited.  CrissSmart SFA/CRM of Oasis Infotech.  Online MR Reporting Software of Marg Compusoft Pvt. Limited.  Siebel based Pharma CRM Implementation Kit of Infosys Technologies Limited.  Pharma Pulse of TVS -electronics.  Talisma of Talisma Corporation. Questions: 1. Briefly explain the concept of CRM & SFA systems. 2. State the features of a Good SFA system. 3. Write down some CRM/SFA systems which are available in the market for Pharmaceutical Industry. 4. What are the benefits of CRM system? Caselet 2 Glenmark Pharmaceuticals uses a web-based tool for sales force automation. The tool helps the sales force in adding new contacts/accounts, deciding upon the appointments, planning their tour, planning joint working, submitting their daily call reports, submitting request for samples, promotional articles etc. based on the actual travel, the tool also calculates te necessary expenses to be paid to the field sales officer. The sample management and promo management modules in the software keep a complete track of samples and promo items. Te entire leave management system for the field sales staff runs on this software. A part from this , the software has multiple reports such as missed call report; call average report etc, which helps the entire sales force hierarchy to be aware of the developments and act accordingly. Majority of the above features and functionalities are available on the mobile interface of the application as well. The software also allows the field force to capture certain important remarks made by the customers. The CRM team/medical support team can make the best utilization of this data gathered. These systems are upgraded on need basis. A part from the pure technical upgrades, the enrichment of features and functionalities happen through the new version release of the software. The sales force automation tool is in the form of portal. The portal has two components in terms of contentstatic Content and Dynamic content. The transactions happen on the dynamic content side, where as any circulars, information to the field force, product related FAQs, Manuals etc. are posted on the static content side. This section really helps to keep in touch with the field force. Any product information which would help the field force to upgrade the product knowledge can be posted here. Going forward, Glenmark also plans to have CBT (computer based training) programs to be made online on this portal. These types of interactive programs will really boost the process of learning for the field sales force. Questions: 1. Explain the working of a Glenmark Pharmaceuticals. 2. State the features of a Glenmark Pharmaceuticals.
  • 47. Section C: Applied Theory (30 Marks)  This section consists of Applied Theory Questions.  Answer all the questions.  Each question carries 15 marks.  Detailed information should from the part of your answer (Word limit 200 to 250 words). 1. Define „Pharmaceutical marketing? Explain objectives and importance of pharmaceutical marketing. 2. Define „Advertising‟? What are the advantages and disadvantages of advertising in pharmaceutical marketing? Pharmaceutical Marketing Part One: Multiple Choices: 1. What is the full form of „IPR‟? a. Intellectual property rights b. Intellectual patent rights c. Intellectual process rights d. International patent rights 2. The environment that poses tremendous opportunities for new products and services to alert marketer is an _________ environment. a. Ecological b. Social c. Technological d. Competitive 3. Arrange these market opportunities analysis step by step: i. Evaluate new opportunities in new segments ii. Build on your strengths iii. Explore new market opportunities iv. Analyze your existing markets a. i, ii,iii,iv b. ii,iv,i,iii c. iv,ii,iii,i d. i,iii,iv,ii 4. Marketing virtually the same product with two or more brand names is a strategy of: a. Family brand strategy b. Multiple brand strategy c. Individual brand d. Private brand 5. The pricing that deals with the judgmental or subjective elements of pricing is a: a. Cost-based pricing b. Petition based pricing c. Market based pricing d. Demand based pricing Examination Paper of Pharmaceuticals Management IIBM Institute of Business Management 7
  • 48. 6. Which of the following is not a member of distribution channel? a. The Physician b. Manufacturer c. The consumer d. The transporter 7. Arrange the communication process in order: i. Medium ii. Feedback iii. Sender iv. Receiver v. Message a) ii,iv,v,i,iii b) iii,v,i,iv,ii c) iv,i,iii,v,ii d) iii,ii,iv,i,v 8. The strategy used to create a demand for a product within a channel of distribution by appealing directly to the consumer is a: a. Pull strategy b. Push strategy c. Combination strategy d. Competitive strategy 9. Toward off a competitive threat or to create an entry barrier, some companies from different power blocks may temporarily form a cartel it is termed as: a. Franchise power b. Integration power c. Niche power d. Coalition power 10. Which of the following „R‟ is not a part of good management principle? a. Resources b. Recognition c. Responsibility d. Reward Part Two: 1. Define the term “Marketing Communication”. 2. Differentiate between „Product Item‟ and „Product Mix‟. 3. Differentiate between „Cost Based Pricing‟ and „Demand Based Pricing‟. 4. Describe “Boston Matrix”. Caselet 1 Apex Pharma was one of the Leading pharmaceutical companies with manufacturing plants spread all over India. Initially, the company produced bulk drugs as the activities expanded, the company started manufacturing formulation. The first formulation plant was commissioned at Mandideep, Bhopal in 1983. This plant was exclusively catering to the overseas demand in various countries including the US, South Africa, Australia and the UK. The demand in pharmaceutical industry is not evenly spread throughout the year. There were months when the company operated at 50%-60% of its capacity, and there were months, when the company operated at more than the installed
  • 49. capacity, by working in three shifts. As a general policy, the company used to operate in two shifts. Third shift operations were only resorted to during the peak season. Apex, during the period of increased demand, outsourced medicines from other companies. However, the medicines which were outsourced were sold only in the domestic market. The company applied high quality standards so as to fulfill the requirements of the export market. Apex‟s Bhopal plant was run as a cost center and hence, it was not supposed to report any profits or losses. The plant had three different blocks manufacturing different sets of medicines (capsules, tablets, dry syrups and injectibles).  Semi Synthetic Penicillin Block (SSP): This block prod uced antibiotics and drugs based on amoxicillin and ampicillin.  General Block: This block produced non -antibiotic drugs.  C Block: this block produced third generation drugs based on cephalosporins. Apex had a policy to invest in a new plant and machinery only when the company foresaw a sustainable long-term demand for a particular product. For its cephalosporin‟s range of drugs, the company was experiencing an increased demand from the US markets for the past 2-3 years. The total investment in C-block was Rs. 130 million with the existing capacity of 396 million capsules per year. The demand had increased to 590 million capsules per year. To meet the increased demand, the management decided to purchase a new machine. The finance manager, Ramesh Swami, had two options (Refer Table 1) Table 1 Particulars Machinery I Machinery II Brand Zenhasi (USA) Zentacs (Second hand machinery from Russia) Capacity 300 million capsules per 200 million capsules per annum annum Cost of Machine Rs. 11.70 million Rs. 9.50 million Life of Machine 5 years 3 years Residual Value Nil Nil WE ARE PROVIDING CASE STUDY ANSWERS ASSIGNMENT SOLUTIONS, PROJECT REPORTS AND THESIS ISBM / IIBMS / IIBM / ISMS / KSBM / NIPM SMU / SYMBIOSIS / XAVIER / NIRM / PSBM ISM / IGNOU / IICT / ISBS / LPU / ISM&RC MBA - EMBA - BMS - GDM - MIS - MIB DMS - DBM - PGDM - DBM - DBA www.mbacasestudyanswers.com www.casestudies.co.in aravind.banakar@gmail.com
  • 50. ARAVIND 09901366442 - 09902787224 Retail Management Part One: Multiple Choices: 1. The minimum value of Conversion ratio is: a. 0 b. 0.5 c. 2 d. 1 2. The law of retail gravitation is also called: a. Huff‟s law. b. Belly‟s law. c. Philip Kotler‟s law. d. Relly‟s law. 3. In Huff‟s probability model of retail store location, the exponential „alpha‟ denotes: a. The attractiveness of the store. b. Power of the store in terms of potential customer located farthest. c. It is simply a power over the attractiveness of the store. d. None of the above 4. If the market has low level of retail saturation then the chances of success in the market is: a. Higher. b. Lower. c. Unpredictable. d. Extremely lower 5. If the original price be „a‟ and the reduce price be „b‟ then the mark down % in Pricing techniques is given by: a. (a - b)/a. b. (a – b)/b. c. (b – a)/a. d. (b – a)/b. Examination Paper: Retail Management 2 IIBM Institute of Business Management Part Two: 1. What do mean by „Super market‟? 2. What do you understand by Upper and Lower threshold in pricing methodologies?
  • 51. 3. What does the term „silent market‟ say? 4. Explain „Gap theory‟ related with service quality. 5. Explain barometric technique used for sales forecasting. Caselet 1 The Branded Jewellery Market in India: An Overview Brands are built over decades, more so in high-value markets like gold jewellery .The total jewellery market in India is around Rs.60, 000 crore, out of which the estimated size of the diamond jewellery market is Rs.8,000 crore, and that of branded diamond jewellery is about Rs.600 crore. For a brand to become firmly established it must deal with several tangible and intangible factors. It requires focused advertising, customer confidence, name-recognition, display and astute salesmanship to compete with traditional jewellers. Success hinges upon how a particular brand can differentiate itself from the clutter. Most important, affordability and quality are the elements in sustaining a brand. The growth of a jewellery brand depends on the confidence it can instill in buyers about the purity of the gold, be it 14, 18, or 22-carat. It also depends on the mark-up in price. The cost includes making (labour) charges on top of value of the material, gold content and stones including diamonds and precious stones, if used. Besides, a system of hallmarking for the purity of metal and identification of the manufacturer and jewellery items is a need if not an imperative. At present the branded jewellery business is in its infancy in India, constituting hardly 10% of the market. With the market growing annually at the rate of 20-25%, its share will expand. While domestic jewellery makers have the advantage of skills which still form a sizeable component of value, the confidence factor (in traditional craftsmen) is, however, on the decline. This gives branded jewellery an edge over the traditional variety. One handicap branded jewelers face is the differing tastes of consumers. Thus, inventories will be high as also the carrying cost. On the other hand, the convenience of readymade jewellery is an ace in the brand marketer‟s hand. The consumer has no time to waste on the whims of craftsmen. Earlier, there was not much of a choice available. Consumer Perception of Gold Jewellery India is the world‟s largest consumer of gold. The precious metal is traditionally purchased either as an investment or to make intricate ornamental heirloom jewellery. The liberal economic dispensation ushered in at beginning of the 1990s and the emergence of an affluent professional class led to the Examination Paper: Retail Management 3 IIBM Institute of Business Management creation of a burgeoning designer wear/cosmetics/fashion accessory market in India. This encouraged some domestic jewellery manufacturers to carve out a niche in this market. The abolition of the Gold Control Order and the subsequent easing of restrictions on the import of the precious metal, including a substantial reduction in import duties, have encouraged the development of this new market.In the mid1990s the Indian consumer‟s attitude towards gold jewellery changed. Gold jewellery, from being just an investment avenue, was now seen as a way to make a lifestyle and personality statement. Globally, 90% of the jewellery is sold as dress-wear – a part of the wardrobe and not the vault. Branded jewellery as a fashion accessory constitutes around one per cent of the Rs. 60,000 crore per annum jewellery market in India. However, it is growing fast and has become a part of every girl‟s treasure trove. One can easily spot branded jewellery counters at Shoppers‟ Stop and Lifestyle. With exclusive designs, standardized pricing and superior finish, branded jewellery is aptly termed as fashion accessories, suitable for both western as well as traditional wear. It must be mentioned that purchasing gold is not necessarily an urban phenomenon and market share gains are likely to be more rapid in smaller towns. Though designer jewellery arrived in India in the late nineties, it was only in this millennium that the scenario changed. With aggressive advertising campaigns, the big brands – Tanishq, Carbon, Gili, Sarkles and Oyzterbay, to name a few – arrived, teaching the customers at the paying end to shop like his or her counterpart in the West. The message read loud and clear: “Your wardrobe includes jewels too!” Stiff competition from traditional jewellers forced the newcomers to introduce a series of exchange offers and guarantee certificates to woo the adventurous consumer. Nevertheless, this gold-loving nation has been very cautions in its appreciation of branded jewellery. Much of the gold jewellery in India is 22-carat unlike in western countries where it is basically 14 carats. Fine jewellery by international standards goes up to 18 carats. For stone setting alloys up to 18 carats are preferred. Educated middle-income women, particularly working women, tend to wear less gold jewellery these days. However, growing incomes – especially among NRIs - have increased demand. Most jewellery consumers are women between 25-45 years and men in the 40-55 year bracket. Men largely buy lower-value items, such as rings, chains or tie-pins, frequently as gifts. While women are seen more often in jewellery showrooms, it is the men who are still the effective decision-markets as far as buying goes in a majority of cases. The phenomenon, however, is
  • 52. changing. People are now looking beyond traditional 22-carat jewellery. Changing lifestyle has made buyers more product and quality-conscious. And branded jewellery as an off-the-counter product is gaining greater acceptance. In the past five years or so since branded jewellery entered the market, it has threatened the very survival of traditional jewellers and craftmen in the same way as traditional tailors, who are being replaced by makers of branded readymades. Inroads are being made by branded jewellery both in the domestic and international markets. This indicates that Indian women are definitely showing signs of accepting branded jewellery. Country-wise Gold usage in Carat Jewellery (1990 to 1999) Country 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Italy 381 415 461 441 435 446 439 500 535 511 India 238.6 227 293.8 259 346 400.6 427.8 594 682.6 644 USA 126.6 121.2 132.1 140 146.7 148.3 152.4 159 170.2 178.2 Japan 109.5 106.7 104 88 85 78 74 55 39 37 Turkey 130.9 102.6 116.3 126.6 80.7 110.4 140.7 168.1 159 115 Germany 49.8 51 45.4 44.5 41.8 38.9 37.2 35.9 34.3 32.6 Other Countries 1070.8 1163.7 1377.1 1250.1 1253.8 1345.6 1366 1580.4 1331.4 1416.2 China 0 134.7 203 179 208 204 189 224 173 166 Soviet Union/CIS 0 36.9 29.2 26 20.2 20.2 25.3 29 27 28 Examination Paper: Retail Management 4 IIBM Institute of Business Management The Forward Path The future of the branded category of jewellery seems to be bright in India with the consumer becoming more conscious of fashion trends and also ready to bring gold „from the vault to the wardrobe!‟ Fashion jewellery has come to stay. With people willing to spend lavishly on their clothes, it won‟t be long before they start looking for matching ornaments. Source: The Gems Jewellers Export Promotion Council. Major Jewellery Brands: Carbon Carbon, a pioneer in the branded jewellery segment, has a range of 18 carat fashion accessories that includes rings, necklaces, pendants, ear tops and bracelets. Established in October 1996, carbon is a distinctive lifestyle jewellery brand for the sophisticated and contemporary woman. The Carbon range is currently available in 40 outlets (in a shop-in-shop format only) across 16 cities, and will be in 23 cities by 2005.The Company is also planning to have its own outlets, the first of which is likely to open before the end of 2003. it also plans to expand its market by going in for products for specific occasions such as festivals, birthdays and anniversaries. In addition, it‟s looking at cross-promoting Carbon jewellery with other branded lifestyle products such as perfumes, clothing and cosmetics. The price range of Carbon products is modest (Rs.3,750 to Rs.20,000 per piece), and unlike traditional jewellery whose prices can be brought down through bargaining, its items have a nationally uniform MRP. Through its marketing and advertising campaigns, Carbon aims at creating a contemporary feel with more value for the wearer. Six years since its inception, Carbon‟s annual sales have reached a considerable Rs.16 crore (approx) in the domestic market, with an average piece value of Rs. 5,000.Carbon recently launched the Persona collection for women to mark its fifth anniversary. This collection of five pendants depicts five different facets of a woman. Besides woman‟s earrings and pendants, Carbon has something for men too: cufflinks, tie-pins and bracelets. Carbon‟s product strength is in its collections like Venus and Sun sign. The company brings out a new range almost every month based on consumer response. Carbon is one of the organized and more successful ventures in branded jewellery retailing from the house of Peakok Jewellery Private Limited. It was incorporated in Bangalore in early 1991 and spearheaded by Mahesh Rao, a young entrepreneur with extensive experience in the fashion accessories market. Mr. Rao felt in the mid-1990s that the Indian consumer‟s attitude towards gold jewellery would change from being an investment avenue to one that made a lifestyle and personality statement. Seizing the opportunity, he initiated within the Peacock fold, besides their exports, a new brand of 18-carat gold jewellery called Carbon for the domestic market. Peacock has a state-of-the-art manufacturing facility in Koramangala, Bangalore. Tanishq Titan Industries Limited is a joint venture of the Tata Group and The Tamil Nadu Industrial Development Corporation (TIDCO). Its product range includes watches, clocks and jewellery. In a short span of time,
  • 53. the company has built an enviable reputation for its corporate practices, products and services. After entering the watch segment in 1987, Titan ventured into the precious jewellery segment in 1995 under the brand name Tanishq. It is India‟s only fine jewellery brand with a national presence and is an acknowledgement business leader in the country‟s jewellery market. In early 2000, Titan organized itself into two business units: watches and clocks, and jewellery. According to Jacob Kurien, chief operating officer of Tanishq, this helped the company redefine its business purpose and focus. Tanishq has invested Rs.60 crore in its manufacturing unit in Hosur, Tamil Nadu. Tanishq worked tirelessly on a two-pronged brand-building strategy: (i) Cultivate trust by educating customers on the unethical practices in the business, and (ii) use innovative methods to change the perception of jewellery as a high-priced purchase. Tanishq has leveraged the design skills that are part of the Titan heritage to refine its products, and has invested a lot in R&D and consumer research on what the Indian woman is looking for and how she is evolving. Tanishq jewellery is sold exclusively through a company-controlled retail chain which now has 55 outlets – five owned by the company and the rest run by franchisees – spread over 40 cities Total 2107.2 2358.8 2761.9 2554.2 2618.9 2792 2815.4 3345.4 3151.5 3128 Examination Paper: Retail Management 5 IIBM Institute of Business Management and is still expanding. The locations are chosen on the basis of geographical spread and the shopping dynamics of a particular metro. The primary promotional medium for Tanishq is its boutiques, which explains the emphasis on store design and layout. Its stores demonstrate design leadership and differentiation and provide excitement around the collections in the outlets. Tanishq made its foray into 18-carat jewellery in the early 1990s; switched to 22-carat and again turned to 18-carat jewellery. To meet the increasing demand, it plans to nearly double the number of its outlets and offer a range of „wearable‟ products. The brand caters to customers looking for items in between costume jewellery and real gold ornaments. Major collections of Tanishq include: Aria: Tanishq Aria is a spectacular collection of diamond jewellery. With over 80 exquisite designs of earrings, finger-rings, bangles and neckwear, the prices in this collection began at as Rs.3, 200. The collection targets the contemporary woman, with designs representing a seamless blend of the traditional and the modern. Aria has been crafted by experts with a thorough understanding of the Indian woman‟s jewellery needs. The Aria collection is available at all Tanishq showrooms. Collection G: the World Gold Council recently launched a range of 22-carat lightweight gold jewellery called Collection G. This range is promoted by Tanishq and is an exclusive concept/brand of WGC. It includes pendants, earrings, finger-rings and bracelets, and targets urban woman in the age group of 18-30 years. In 22-carat gold, the designs are stylish and modern and go with all forms attire – casual and formal. Indian and Western. It has multiple finishes on a single piece to convey a modern look. The jewellery is priced from Rs.4, 995. Gili Gili, a distinctive brand established by the Gitanjali Group, is one of India‟s largest exporters of fine diamonds and a De Beers sight holder. It came into existence soon after the abolition of the Gold Control Order by the Indian government. Gili offers a wide range of 18-carat plain gold and diamond-studded jewellery, designed to appeal to the contemporary Indian woman. Indian and western styles and motifs combine to produce truly unique ornaments that are finely crafted and extremely attractive. Gili‟s products are available through a mail-order catalogue and show-in-shop counters in fine stores all over the country. In addition, it has special promotional offers during special events like Valentine‟s Day, Raksha Bandhan and Diwali, and beauty contents and shows. Gili jewellery comes with a guarantee on the quality and weight of the diamond and gold. Gili‟s Millennium Series diamonds are triple certified and come in a special box. Ideal to give as a gift or keep as a souvenir of a one-in-a-lifetime occasion. In 1997, Gili launched a collection of 18-carat gold ethnic Indian ornaments with traditional forms and motifs, created with the most modern technology available today. These pieces are well finished, beautifully polished and available at extremely affordable prices. The Gili Gold range caters to the modern individual, with locally manufactured designs in 24-carat gold that are elegant, simple. Timeless rings, pendants, earrings, necklaces and bangles. Gili have captured the 18-carat diamond-studded jewellery segment in the price range of Rs. 2,500 to 15,000. Intergold Intergold is the biggest exporter of diamond-studded jewellery in India. It started off more than a decade ago as a diamond exporting company in Mumbai and has achieved unprecedented success in the diamond industry in a short span. The export division has a 6,000 sft factory, which churns out 3,000 high-quality pieces for export daily. The integrated store has a strong identify of its own: the place looks inviting and
  • 54. is aesthetically appealing. The décor and design of the stores have been conceptualized to harmonies with the actual product design. Thematic window displays attract customers and see-through glass windows virtually compel them to walk in without being overawed, as they usually are at diamond jewellery showrooms. The products in the store are divided into categories like pendants, necklaces and earrings for the convenience of buyers. They are further divided according to price so a customer doesn‟t need to worry about affordability for each product. Showrooms personnel are knowledgeable about the products and sales techniques, apart from being trained to use audio-visual aids for the benefit of consumers. Intergold specializes in diamond, platinum and Italian jewellery and white gold. There‟s something here for buyers from all age groups with varying tastes. In the women‟s range, Intergold offers pendants, rings, Examination Paper: Retail Management 6 IIBM Institute of Business Management earrings, small sets and necklaces, whereas men can go in for classy tie tacks, tie pins, button covers, sherwani buttons, belt buckles, cuff links, pendants and rings. Intergold sells only through exclusive retail outlets and has branches in Mumbai, Goa, Surat and Bangalore. It plans to open stores in Delhi, Hyderabad, and Calcutta soon. All Integrated stores are equipped with ultrasonic cleaners for cleaning jewellery and diamond testers to check whether the gems are genuine. Oyzterbay In July 2000, six professional from Tanishq left the organization to float a new start-up – Oyzterbay.com – for branded jewellery. Oyzerbay wants to be in e-tailing as well as brick-and-mortar retailing. The initial plan is to have 50 exclusive outlets (both its own and franchisees) across the country. Oyzerbay signature stores showcase and display precious metals, gemstones and crafted jewellery designs. Oyzterbay is a young company at the forefront of change in the jewellery industry. In February 2001, it launched its first internationally styled store at Bangalore, with a stunning range of precious jewellery in carat gold and silver at affordable prices. The Oyzterbay network now covers all major Indian cities and an overwhelming response has induced the company to expand to 50 outlets soon. Oyzterbay positions itself as well-styled, high-quality jewellery for young women. Delicate and bold, traditional and modern, the designs reflect the change in the attitude towards jewellery: from heavy overdressing to elegant daily wear, and from ostentations display to understated panache. Prices start at a mere Rs.500 for sterling silver jewellery, and all products – including solid gold jewellery – are priced below Rs. 10,000, a move that also positions Oyzterbay as the only chain catering to the burgeoning gift market. The range is continually refreshed based on market feedback and emerging design trends. Oyzterbay stores lead the market in attitude, ambience and service. They sport a contemporary and inviting glass-front store design in soft colors of wood with accents of steel, in stark contrast to the forbidding opulence of traditional jewellery stores. Complemented by modern in-store graphics and merchandising, the house colors – tangerine pink and metallic mauve – pervade all elements of the corporate identity. The Oyzterbay web store replicates the store experience with state-of-the-art features that make buying and gifting Oyzterbay jewellery quick, easy and secure. A multi-media advertising campaign rolling out from April 2001 has created waves with its fresh approach to the jewellery market. Jewellery for the Living has rapidly become a byline for jewellery for the young woman of today - that is, jewellery for the joy of wearing, not destined for the safe-deposit locker. Oyzterbay products are also available in large department store chains in a shop-in-shop format. Sparkles Sparkles are carrying on a family tradition in producing 9-carat, 14-carat and 18-carat jewellery. The objective is not only to provide off-the-shelf diamond jewellery in a wide array of designs, but also to offer customers an affordable range of choices. A trend-setting initiative in the Indian market, Sparkles became a revolutionary success and grew to become one of the market leaders in the branded jewellery segment. Sparkles sells through 28 outlets in seven major Indian cities. With a wide range of designs and more coming out every month, it is only a matter of time before it covers more cities and outlets. Besides these regular outlets, its web-site sparklesindia.com has been a pioneering effort that has taken branded jewellery to the newest communication medium – the Internet. During the past few years Sparkles has been tracking what its customers want, and is striving with every new design and product to meet their expectations. Total satisfaction and loyalty vindicates their commitment to constantly strive for quality. Sparkles – from Poddar Jewels, Mumbai – is the only company to have added an ethnic touch to the usual collection with nose studs. Questions: 1. Do you think that an exclusive brand retail store would work in India? Or a mix of formats for a brand? Discuss. 2. Will the franchisee route to a faster roll-out of retail outlets work for these jewellery brands?
  • 55. What are the pros and cons? Examination Paper: Retail Management 7 IIBM Institute of Business Management Caselet 2 Bobcat India Limited revolutionized footwear selling in India. The company hit upon the idea of reaching customers through exclusive retail stores way back in 1932 and set up its own outlets, which numbered around 1,200. It was no mean task setting up such a large network of retail outlets, especially when 90% of them were owned and operated by the company, the rest being dealer-owned and operated. This chain store format identify has been a strong differentiating factor in the Indian retail sector, being the first of its kind. Combined with the high quality of the footwear, the brand soon had top-of-the-mind recall and stayed there for many years. Unit a few years ago, the name „Bobcat‟ was synonymous with organized retailing in India, the only one of its kind. The Chain Store Format The Bobcat chain store format had its own credo – a signature store design with exclusive signage and windows in order to facilitate easy association in the minds of the Indian consumers. At present there are only two major categories of stores in the Bobcat Chain Store format: (a) Bobcat Family Stores (b) Bobcat Bazaar (a) Bobcat Family Stores These are sub-dividend into two formats again, based on the size of the stores. They are: (1)Super Stores, generally more than 5,000 sq.ft. Catering to customers in the footwear category.Highstreet stores that are anywhere between 500 and 1,500 sq.ft. Found in busy shopping areas. (b)Bobcat Bazaar Bobcat Bazaar stores sell the company‟s planned economy product lines and marked-down merchandise round the year. Known as R-pair stores, their performance depends heavily upon the availability of marked-down merchandise. Such markdowns are done on products that have suffered quality accidents, are shop-soiled, lines that are closed-out etc. Recent Format Developments New retail formats have begun to supersede conventional ones. Independent big-box multi-brand department stores have started selling footwear as a category, especially in metros and cities. Malls are another new shopping format that is growing rapidly in the metros. Many upcoming footwear retailers are obtaining space inside the malls as mall partners to take advantage of the ready footfalls available. For the existing independent Bobcat stores it is expensive now to run campaigns and promotions to attain the required footfalls and expected conversions. Merchandising in Bobcat Family Stores The exclusively of the „Bobcat‟ brand to the Bobcat retail stores was the differentiating factor for customers until recently. However, a few years ago the company decided to sell Bobcat branded goods through its channel sales wing called Bobcat Wholesale. Hitherto, the wholesale channel had a different brand for itself called BSC. This wholesale channel supplies merchandise to footwear retailers across India through its authorized distributors. The brand Bobcat has now been extended to this wholesale channel too, which means that Bobcat branded goods is available in every other local footwear store. The exclusivity of the brand to its own outlets has come to an end. And, even as the sales of the wholesale division remain stagnant, what compelling reasons can a customer have to visit a Bobcat Store now? A peculiar feature of the Bobcat store was its odd price points: Rs 149.95, 199.95, etc. Merchandise presentation and Visual Merchandising Bobcat pioneered the concept of show window displays in India with a style that was unique to the company. It was professionally managed, with an exclusive team handling the motif and the design. Examination Paper: Retail Management 8 IIBM Institute of Business Management Every month the direction to decorate the show windows were given by a mailer prepared by special decorators. Sales personnel in each store were trained to be window decorators too. Recently, these windows had to be done away with because the company thought that they should follow the contemporary practice of free-access retailing, where all merchandise pairs are displayed in open shelves to enable customers to help themselves. Remember, in India footwear is always tried on a footstool and bought after considerable service extended by the salesperson personally. Free-access retailing may work when there is adequate space inside a store to move around. The effect of such „pigeon-hole‟ free access
  • 56. is that they give an impression that they are Bobcat‟s R-Pair outlets. What can now entice the customer into entering a Bobcat store? Customer Service Though Bobcat faces tough manpower challenges (the store sales personnel and managers have separate labor unions), the sales personnel who are on its permanent rolls are trained in selling footwear. However, there are a large proportion of untrained and temporary hands. Further, salespersons do not wear any uniform and hence customers can hardly identify them. There is as yet no loyalty program to create customer stickiness to any store or the brand, and most of the stores are not connected by a central information system or ERP (enterprise-wide resource planning) as the organization has its limitations when it comes to investing in such initiatives. Organized retail companies need to have non-negotiable standards of customer service or they will lose customers to its competitors. The company is now losing its market share despite its strong position in categories like men‟s footwear, children‟s uniform shoes, etc. However, the number of stores it has around the country is around the same, at 1,200. The company now needs to put together a plan for both its survival and growth on a war footing. The top management is revisiting its strategies in every functional area to turn the company around. Questions: 1. What store format mix would you recommend for the company? 2. Did the company do the right thing by extending the in-store brand to the wholesale channel? What should it do now? . 1. “The Indian Retail sectors are witnessing a transition phase where organized retailing is taking a lead over unorganized retailing”. In the light of above statement, explain the current states of Indian Retailing. 2. “The customer is fully satisfied when the perceived services meets or exceeds their expectations”. Explain. Consumer Behavior Part One: Multiple Choices: 1. The Yellow color is related with personality links like: a. Caution, warmth b. Power, informality c. Passion, excitement d. Purity, innocence 2. Consumers having high ethnocentric value in CETSCALE for foreign made products are likely to feel that: a. It is worthy to purchase the foreign products. b. It is wrong to purchase foreign made products. c. Only foreign made products should be purchased. d. They should remain neutral. 3. If the OSL(optimum stimulation level) score of a person is greater than the lifestyle he/she is living then he/she likely to: a. Take rest b. Appear quite satisfied c. Seem bored d. Cannot be predicted. 4. The psychologists who disagree with the Freud‟s theory of personality are usually referred as: a. Non Freudians b. Freudians c. Neo Freudians d. C-Freudians 5. According to Sigmund Freud, the human personality consists of 3 interacting systems viz the id, the superego and the ego. What actually „id‟ refers to a. Its role is to see the individual‟s needs in a socially acceptable fashion. b. Its role is to drive impulsions for the needs to be satisfied immediately. c. Its function is to control and balance the impulsive demands. d. None of the above
  • 57. Part Two: 1. What is a „common man approach‟? 2. Differentiate between „Enculturation‟ and „Acculturation‟. 3. Write a short note on „Rokeach Value Survey‟, a widely used value instrument, in consumer behavior studies. 4. Explain the „Sociometric method‟ of measurement in „Opinion Leadership‟. 5. What do you understand by the term „Viral marketing‟? Caselet 1 The Indian refrigeration industry had apparently reached maturity in the eighties. The introduction stage could be seen in 1962-66; growth, 1967-80; and maturity 1981-88.Between 1989-90 and 1990-91, the market grew by 12 to 12.35 lakhs units; in 1992-93 it is estimated to have come down from 12 to 10.39 lakhs pieces. Thus, the decline seems to have begun. Presently, there are six main competitors in the refrigerator market in India. The industry seems to have structure prevailing in monopolistic competition. The products at present available in the market are under the brand names of Godrej, Kelvinator, Voltas, Videocon, BPL and Allwyn. The new entrants to the market like BPL and Videocon with latest ultra modern refrigeration technology have thrown down the gauntlet to the existing leaders like Godrej and Kelvinator. A study has been conducted to find out what change have occurred in consumers behavior due to the emergence of these new challenges, because, for all one knows; a very tough competition has recently emerged among the industrial giants due to which consumer behavior has undergone drastic change. The main purpose of study is to see how defectors are affecting consumer behavior. The specific objectives of this study are positioning of products and brands, rating of different parameters and their ranking, consumers‟ degree of satisfaction, estimating ideal capacity and ideal prices. Consumer‟s perception of price and brand, awareness of different brands and various sources of information to the consumer. This survey leads to the conclusion, that most of the people are aware of 165-liter capacity with awareness of nearly 95%, others are less known to consumers. The most important parameters for customers while buying a refrigerator are technology, cooling efficiency, durability, price, capacity and after-sales service in that order. According to the dealers, the customers consider brand name, technology, cooling efficiency, durability and after-sales service as very important. Other parameters like special gift/price, guarantee/warranty are just important parameters. According to the customers, BPL, Voltas and Videocon are high – priced refrigerator; Godrej and Kelvinator, comparatively low-priced; and Allwyn, Examination Paper: Retail Management 11 IIBM Institute of Business Management medium-priced. From the dealers‟ survey it has been found out that the ideal capacity is 165 liter; and the ideal price Rs. 7,000-8,000. Questions: 1. Due to the emergence of new industrial giants like BPL and Videocon, consumer behavior has undergone a sea-change. In what ways? 2. Discuss which will be the most effective strategy according to you that will make Consumer brand loyal in the refrigerator industry. Caselet 2 Walking down the streets of Delhi‟s Connaught place, capital‟s business heart, Mike Steve, 50 years old CEO of Macnine shoes (India), was looking at the feet of the busy office goers. The CEO purposely walked to his office near Super Bazaar from the Palika car parking to have a firsthand feeling of the market response to the Macnine shoes, and in general the foot-wear habit of urban Indians. Macnine shoes brought an image of simple no fuss yet elegant office-going shoes. The shoes, known for its comfort and reasonable prices shared a good market share in face of competition from Windsor, Red Tape, Lee Cooper, Woodland, etc. but as the days passed Mike‟s trained eyes could see the changing scenario. Office goers no longer seemed to prefer “no fuss” shoes, there was a distinct preference for heavy looking chunky shoes. People‟s perception about office-going shoes was changing from regular 6-hole laced shoes to these heavy looking shoes. As a result, Macnine shoes‟ market share decreased by 10 per cent between 1998 and 1999. Disturbed by the fact, Mr. Steve called a meeting of the departmental heads and after five-hour long meeting it was accepted, Indian consumers had undergone a sea change in their attitudes and perceptions about the products. Office was no long seen as a boring work-place where a “no nonsense” rather “stiff upper lip” attitude has to be maintained. Office was seen as more a part of regular life and a relaxed “as you want to be” (of course within limits) attitude. Keeping pace with the time, Macnine shoes also should shed its “traditional” image. More importantly, consumers are going more and
  • 58. more for branded shoes, rather than mass production shoes that will be available at the retail shops. The departmental heads agreed that there is a definite price-quality perception in the mind of the consumers. Consumers perceive high price as a certificate of high quality that will be associated with the branded products. Based on the price-quality perception, Macnine shoes were decided to be positioned in the market. Dramatically changing from the basic principle of quality and affordability targeting the growing middle class, the company saw a better prospect in developing a high priced brand image as shoe was no longer, especially in big cities seen as necessity but it was a part of life style marketing where shoes were seen as fashion accessories. Macnine shoes which for over two decades was known for making popular affordable shoes, took a one eighty degree turn and developed dedicated showroom with premium shoes and other accessories like Tshirts, bags, socks etc. but, the result were quite contrary to what was expected, the decrease in market share continued despite these efforts. The reason seems quite simple, or decade‟s consumer has known the shoe to be in the affordable range. With this sudden change the loyal buyers felt betrayed and turned away towards other local brands. The main selling point of the company was missing the consumers no longer felt the urge to come to buy macnine shoes. The fact was the brands who started as selling premium shoes were perceived to be in a category of catering the upper category of consumers with extremely focused range of shoes which borne a premium price. Talk of red Tape, talk of Lee Copper, the image that comes to the consumer‟s mind is of premium shoes with all its associated characteristics. While past experience brings in the minds of the consumer an “affordability” image of Macnine shoes. When the company drastically wanted to change the image, they could not fit into consumer perception of Examination Paper: Retail Management 12 IIBM Institute of Business Management a premium shoe, while high price deterred people who wanted affordability foremost. Macnine lost on both the grounds. Questions: 1. Explain the “role and status” for Macnine shoes. 2. Suggest some ways of changing consumer perception of Macnine shoes. 1. A college student has just purchased a new personal computer. What factors might cause the student to experience post purchase dissonance? How might the student try to overcome it? How can the retailer who sold the computer help reduce the student‟s dissonance? How can the computer‟s manufacturer help? 2. An Advertising on a known deodorant shows a young beautiful girl is upset to meet her boyfriend, as friends point out at her “Bad body odour”. The advertisement is trying to arouse which motive in the consumer? Discuss by giving one similar examples? Six Sigma Green Belt This section consists of Multiple Choice questions. Answer all the questions. Each question carries 1 mark. Part One: Multiple Choices: 1. The primary purpose of a control chart is to: a. Set Specifications and tolerances b. Compare operations. c. Determine the stability of a process. d. Accept or reject a lot of material 2. When a control chart is used on a new process, capability can be assessed at which of the following times? a. Before the chart is first started b. After the first ten points are plotted c. When the plotted points hug the centerline d. After the process is shown to be in control 3. Precision is best described as: a. A comparison to a known standard b. The achievement of expected outgoing quality c. The repeated consistency of results
  • 59. d. The difference between an average measurement and the actual value 4. The overall ability of two or more operators to obtain consistent results repeatedly when measuring the same set of parts and using the same measuring equipment is the definition of: a. Repeatability b. Precision c. Reproducibility d. Accuracy 5. Which of the following conditions must be met for a process to be in a state of statistical control? a. Most of the product out by the process is in specification. b. All subgroup averages and rang are within control limits. c. All variation has been completely removed d. Previously optimal process settings are used. Examination paper: Six Sigma Management IIBM Institute of Business Management 2 6. Which of the following measures of dispersion is equal to the sum of deviations from the mean squared divided by the sample size? a. Range b. Standard deviation c. Variance d. Mode 7. An X and R chart is used to: a. Indicate process variation b. Specify design Limits c. Interpret costs d. Identify customer expectations 8. Which of the following is the most useful graphical tool for promoting and understanding the process of capability? a. A flowchart b. A histogram c. An affinity diagram d. An Ishikawa diagram 9. The type of chart that presents the value of items in descending order is a: a. Histogram b. Pareto chart c. U chart d. Cusum chart 10. Measures of which of the following provide attributes data? a. Temperature in degrees b. Attendance at meetings c. Weight in pounds d. Length in metric units 11. The fraction of nonconforming products is plotted on which of the following types of control chart? a. P chart b. U chart c. Np chart d. C chart 12. A cause and effect diagram is a useful tool for doing which of the following? a. Determining the flow of a process b. Detecting shifts in a process c. Developing theories based on symptoms d. Arranging theories by defect count 13. Which of the following statistics would best describe the central tendency of a sample of data? a. Mode b. Mean c. Standard deviation d. Range Examination paper: Six Sigma Management IIBM Institute of Business Management 3 14. Which of the following type of tools or techniques is considered qualitative?
  • 60. a. Histogram b. Frequency distributions c. Pareto chart d. Process observations 15. Out of the following which technique is most useful in narrowing issues and limiting discussion? a. Brainstorming b. Quality function deployment c. Cause and effect analysis d. Mutilating 16. In statistics, an estimation error that is persistent or systematic is called: a. Bias b. Sensitivity c. Random d. Shift 17. For a normal distribution, two standard deviation on each side of the mean would include what percentage of the total population: a. 47% b. 68% c. 95% d. 99% 18. If a distribution is normal, u=50 s=15, what percentage of data will be less than 30? a. 59.18% b. 40.82% c. 9.18% d. 1.33% 19. A company is receiving an unusually high number of returns from various customers. The first step in investigating the problem would be to a. Check the inspection records b. Establish the correlation of the returns to shipments c. Brainstorm the potential causes d. Classify the returns by type and degree of serious 20. Which of the following is the best definition of a flow chart? a. A diagram used to structure ideas into useful categories b. An illustration used to analyze variation in a process c. A picture used to separate steps of a process in sequential order d. An analytical tool used to clarify opposing aspects of a desired change 21. Which of the following activities would NOT contribute to the effective functioning of a team? a. Eliminating unnecessary activities b. Development team performance measures c. Defining process in detail d. Monitoring each member‟s performance Examination paper: Six Sigma Management IIBM Institute of Business Management 4 22. What is the standard deviation of the population-10, 4, 16, 12, and 8? a. 4.00 b. 4.47 c. 16.00 d. 20.00 23. Which of the following tools would be most appropriate for collecting data to study the symptoms of a problem? a. Check sheet b. Flow diagram c. Force-field analysis d. Activity network diagram 24. Which of the following measures is a sufficient statistic for the parameter u? a. Median b. Mid-range c. Mean d. Mode
  • 61. 25. Positional, cyclical, and temporal variations are most commonly analyzed in: a. SPC charts b. Multi-vari charts c. Cause and effect diagram d. Run charts 26. Which of the following describes the deming method for continuous improvement? a. Cost of quality analysis b. Process map c. Tree Diagram d. Plan-do-check-act cycle 27. In analysis of variance, which of the following distribution is the basis for determining whether the variance estimates are all from the same population? a. Chi square b. Students c. Normal d. F 28. Which of the following statement best describes the set of value of a random variable? a. It is finite. b. It is an interval c. It can be discrete or continuous. d. It can be tracked by using control charts or scatter plots. 29. Which of the following is the best description of randomization? a. A technique used to increase the precision of an experiment b. A means of assuring representative sampling c. The repetition of an observation or measurement d. The relationship between two or more variables Examination paper: Six Sigma Management IIBM Institute of Business Management 5 30. When the order of items is not important, which of the following method is used to determine the number of sets and subsets of items? a. Combination b. Permutation c. Factorization d. Simulation 31. Scatter diagrams are best described as: a. Histograms. b. Correlation analysis. c. Pareto analysis. d. Ishikawa diagrams. 32. A __________ is created to determine customers of a specific process. a. Pareto chart b. Flow diagram c. Cause and effect diagram d. Scatter diagram 33. A production line uses signs at specific points on the line to indicate when components or raw materials need to be replenished. This practice is an example of: a. Kanban b. Poka-yake c. Checkpoints d. Hoshin 34. Which of the following is a good tool for planning cycle time reduction and concurrent operations? a. A timeline b. A Pareto diagram c. An X and R chart d. A PERT chart 35. Attribute and variable data are best described as which of the following? a. Counted values measured values b. Counted values visual features c. Measured values counted values
  • 62. d. Visual features counted values 36. All of the following are common ways for people to react to conflict except: a. Competing b. Collaborating c. Avoiding d. Sabotaging 37. A quality manager has chosen to survey customer satisfaction by taking samples based on the categories of frequency of use, categories of use, and demographic. This technique is known as a. Random sampling b. Data collection c. Stratification d. Customer classification Examination paper: Six Sigma Management IIBM Institute of Business Management 6 38. Which of the following actions is Not used to reduce process cycle time? a. Analyzing current processes b. Reducing queue times c. Setting priorities d. Implementing activity-based costing 39. A company‟s accounts payable department is trying to reduce the time between receipt and payment of invoices and has recently completed a flowchart. Which of the following tool is the next to be used by them? a. Fishbone diagram b. Scatter diagram c. Box and whisker plat d. Histogram 40. In a manufacturing company, the machine shop is what kind of customer in relation to the Human Resource department? a. Intermediate b. Hidden c. External d. Internal Section B: Short Notes (30 Marks) This section consists of Short Notes Questions. Answer all the questions. Each Question carries 6 marks. 1. Describe how QFD fits into the overall DFSS process. 2. What is interrelationship Digraph? Explain it with example. 3. Find the area under the standard normal curve between +1.50 standard deviations and +2.50 standard deviations. 4. Define terms related to One-Way ANOVA and interpret their results & data plots. 5. Define & describe the use of Rational Sub grouping. . 1. Suppose you are cooking steak for 100 people, & the current approval rating is 75% acceptable. You want to know the affect of different methods and approaches to see how the overall approval or “yield” is affected. By using the Full Factorial method explain how the overall approval or “yield” is affected. 2. Interpret Control Charts? Distinguish between common & special causes using rules for determining stastical control.‟ Six Sigma Black Belt This section consists of Multiple Choice questions. Answer all the questions. Part one questions carry 1 mark each & Part Two questions carry 2 marks each. Part One: Multiple Choices:
  • 63. 1. Calculate the estimated variance of the population from which the following values have been randomly selected: 2.8 2.7 2.6 2.9 2.8 2.8 2.8. a. 095 b. 009 c. 088 d. 008 2. The mean, median and mode of a distribution have the same value. What can be said about the distribution? a. It is exponential b. It is normal c. It is uniform d. None of the above 3. Approximately what percent of the data values are smaller than the mean? a. 25% b. 50% c. 75% d. None of above 4. A normal probability plot is used to: a. Determine whether the distribution is normal b. Plot Z value c. Determine process capability d. It percent out of specification 5. Nominal Group technique is used to: a. Help a group reach consensus b. Generate a group on new ides c. Provide a consistent stable group leadership d. Provide a name for the group Examination paper: Six Sigma Management IIBM Institute of Business Management 9 6. An example of a project metric would be: a. The decrease in defect occurrence b. The decrease in product cost c. The decrease in cycle time d. All the above 7. A correct statement about the relationship between the terms parameter and statistic is: a. A population statistic is more accurate than a parameter b. A sample parameter is used to estimate a statistic c. A sample statistic is used to estimate a population parameter d. Standard deviation calculation requires both statistics and parameters 8. A and B are events. P(A) = 0.80 and P(B) = 0.90: a. Events A and B are disjoint or mutually exclusive b. Events A and B are not disjoint or mutually exclusive c. P (A and B) = 0 d. P(A and B) = 1.7 9. In a certain sampling situation, a=0, b=0.08. the power of the sampling plan this case is: a. 0 b. 0.08 c. 1.00 d. 0.92 10. A newspaper article describes a high positive correlation between obesity and orange juice consumption among six-year-old children‟s. Parents who restrict the use of orange juice for their children have: a. Made a type I error b. Made a type II error c. Misunderstood margin of error d. Confused correlation with causation 11. In an experimental design context, replications refer to: a. Duplicating experimental result at another location b. Repeating a test with the same factor levels
  • 64. c. Obtaining the same or similar result from different factors d. Repeating an experiment but using at least one different factor level 12. Find the upper control limit for a range chart if n=4 and the average range is 2.282. a. 2.282 b. 4.564 c. 5.208 d. 3.423 13. An x-bar control chart been established with control limits of 3.245 and 3.257, n=5. An engineer collects the following sample and plots the average on the control chart: 3.257, 3.256, 3.258, 3.259 a. The process is out of control b. The process is not out of control c. The engineer misused the control chart d. The control limits are incorrect Examination paper: Six Sigma Management IIBM Institute of Business Management 10 14. TEIZ is an acronym which refers to: a. A set of problem solving tools b. An organization of quality professionals c. An experiment using transitional results d. A Russian general responsible for creative thinking 15. A robust design is one which; a. Has high reliability b. Has low maintenance frequency c. Is simple to manufacture‟ d. Is resistant to varying environmental condition 16. A frequent cause of system sub optimization is: a. Optimizing individual process b. Failing to draw a system flow chart c. Using data with outliers d. Failing to consider the normal distribution 17. The x2 distribution is: a. Symmetric b. Left skewed c. Right skewed d. Normal 18. An advantage of using standard deviation rather than range for measuring dispersion of a large sample is that: a. Standard deviation has a simpler formula b. Calculators have a standard deviation key but not a range Key c. Standard deviation uses information from each measurement d. Range calculation are not normally distributed 19. The team development stage characterized by expression of individual opinions and ideas often without regard for team objectives is known as: a. Performing b. Norming c. Conflicting d. Storming 20. SMED is an acronym for activity that: a. Involve housekeeping in the work area b. Makes mistake of a certain type impossible c. Emphasizes the pull of the customer d. Reduces set up the time 21. A principle advantage of fractional factorial experimental designs is: a. Reduced cost b. Improved accuracy c. Increased confounding d. Higher confidence level Examination paper: Six Sigma Management IIBM Institute of Business Management 11
  • 65. 22. Dr. W Edwards Deming: a. Lectured in Japan after World War II b. Was an author of several books in the US c. Is considered an expert in the quality field d. All of the above Part Two: 23. What percent of population falls below the lower specification limits? a. 9.18% b. 22.66% c. 6.68% d. 1.83% 24. Find the mean, median and mode of the following data set: 9, 11, 12, 14, 18, 18, 18, 20, and 23: a. 15.5, 18, 18 b. 15, 14, 18 c. 15, 12, 18 d. 15.5, 16, 18 Use for problems 25-27: A B Res. 25. Calculate the main effect of factor A: a. 20 b. 25 c. 30 d. None of the above 26. Calculate the interaction effect: a. 20 b. 25 c. 40 d. None of the above 27. If it is desirable to maximize the response R, the following levels should be used: a. A+ and B+ b. A+ and Bc. A- and B+ d. None of the above 1 - - 20 2 - + 30 3 + - 40 4 + + 50 Examination paper: Six Sigma Management IIBM Institute of Business Management 12 Use for questions28-30: Here is an experimental design with result: A B C Responses 1 - - + 10 11 10 2 - + - 22 20 23 3 + + + 34 36 37 4 + - - 26 25 25 28. This experimental design is: a. Full factorial b. Half factorial c. Quarter factorial d. None of the above 29. The number of factors, levels and replications: a. 3, 3, 3 b. 3, 2, 2 c. 3, 2, 3 d. None of the above 30. An indication of the experimental error is available because the design has: a. Multiple replications
  • 66. b. Multiple levels c. Multiple factors d. None of the above 31. The average number of defects is 21.6. Find the upper control limit for the C-chart. a. 26.4 b. 24.6 c. 26.2 d. None of the above 1. Briefly define Affinity Diagram with an example. 2. By using imaginary figures draw a Run Chart. END OF SECTION A Examination paper: Six Sigma Management IIBM Institute of Business Management 13 3. Consider the following data & develop a normal probability graph paper & normal probability plot: 7.9, 9.7, 10.6, 12.7, 12.8, 18.1, 21.2, 33.0, 43.5, 51.1, 81.4, 93.1 4. A painting process produces coatings with a thickness of 0.0005 & a standard deviation of 0.00002. What should the tolerance limits be for this process? Briefly explain Tolerance design? 5. What is Pugh matrix? State the steps which are used in Pugh matrix. Section C: Applied Theory (30 Marks) This section consists of Applied Theory Questions. Answer all the questions. Each question carries 15 marks. Detailed information should from the part of your answer (Word limit 200 to 250 words). 1. Define & describe the purpose of root cause analysis? Recognize the issues involved in identifying a root cause analysis and list various tools for resolving chronic problem? 2. Describe the purpose & elements of FMEA including risk priority number (RPN), and evaluate FMEA results for processes, products, & services. Distinguish between design FMEA (DFMEA) & process FMEA (PFMEA) and interpret results from each. This section consists of Multiple Choice Questions and True & False. Answer all the Questions. Each Question carries 1 Mark. Part One: Multiple choices: 1. TCP stands for: a. Translate Control Protocol b. Translate Cable Protocol c. Transmission Control Program d. Transmission Cable Program 2. Why we do not tap into a 10Base2 or 10BaseT cable in the same way as we tap with 10Base5 cable? a. Because the cable is so thin. b. Because the cable is so strong. c. Because the cable is so thick. d. Because the cable is so fat. 3. The Ethernet has its roots in an early packet radio network called: a. SMA b. PARC c. RWS d. ALOHA 4. ___________is the second major class of Intra Domain Routing protocol. a. Reliable Flooding b. Link State c. Route Calculation d. Implementation 5. A Network that provides a constant band width for the complete duration of message transfer is a a. Cell switched Network b. Packet switched Network
  • 67. c. Circuit switched Network d. None of the above 6. A router : a. Forwards a packet to all outgoing links up to which the packet originated. b. Determines on which outgoing link a packet is to be forwarded c. Forwards a packet to the next free outgoing link d. Forwards a packet to all outgoing links Examination Paper: Information System Management 2 IIBM Institute of Business Management 7. What is the maximum speed of 10Base5 Ethernet Cable? a. 100 Mbps b. 500 Mbps c. 50 Mbps d. 10 Mbps 8. What is the maximum number of addressable stations on a 10BaseT Ethernet network? a. 1024 b. 2500 c. 200 d. 512 9. A device that encodes analog voice into a digital ISDN Link is called: a. DSL b. GSM c. CODEC d. AMPS 10. One of the small difference between the IBM Token Ring specifications and 802.5 is that: a. The former actually requires the use of MSAUs. b. The former actually requires the use of MAC. c. The former actually requires the use of TTRT. d. None of the above True & False: 1. The sliding window protocol is the best known algorithm in computer networking. 2. One of the issues that faces a network designer is how to make this decision in a fair manner. 3. Multicast addresses area used to send messages to subset of the hosts on an Ethernet. 4. 802.11 can support collision detection. 5. A Network Interface card operates at the Network Layer of the OSI model. 6. TCP port 5432 is the well known server part. 7. CPU is directly responsible for moving data between two networks. 8. Classless inter domain routing is a technique that addresses four scaling concerns in the Internet. 9. LAN is a connection oriented packet-switching technology. 10. Ethernet addresses are configured into the network adaptor by the manufacturer. Answer all the questions. Each Question carries 5 marks. 1. What are the benefits of Packet Switching? 2. What is an Internetwork? 3. What protocols are there in the TCP/IP internet Layer? 4. What is difference between Virtual circuit Switching and Cell Switching? Section C: Long Questions (30 marks) This section consists of Long Questions.(word limit 100 words) Each Question carries 10 marks. Attempt any 3 Questions. 1. Write a short note on Classless Inter Domain Routing (CIDR)? 2. What distinguish a computer network from other type of networks? 3. What are the Salient features of Global Internet? 4. Distinguish between Reverse-Path Multicast (RPM) and Protocol Independent Multicast?
  • 68. Detailed information should form the part of your answer (Word limit 200 to 250 words). 1. The Sliding window protocol is perhaps the best known algorithm in computer Network. Describe however is that it can be used to serve different roles. 2. Explain how the Sliding Window Algorithm works in Direct Link Network. END OF SECTION D Operating Systems Multiple Choices: 1. The PCD data is allocated using a data Structure is called______________. a. Heap b. Object Module c. Tag d. Head 2. Process is: a. Language of programme b. Name of a computer software c. An execution of programme d. None of the above 3. Streaming tape can store record: a. Without a break irrespective of its size b. With a break in size of record c. Of size 10 kb d. Both (a) & (c) 4. _______________is a policy decision based on the page reference information available in the page table. a. Memory Allocation b. Shared Pages c. Page Replacement d. Memory Mapping 5. Remote procedure call (RPC) is used by an application execute: a. To execute a procedure in the system b. To execute a procedure in another compute in the distributed system c. Name of a software d. None of the above 6. Multiprocessor computer system provides: a. Slow performance by serving several processes simultaneously b. High performance by serving several processes simultaneously c. High performance by serving one process d. None of the above Examination Paper: Information System Management 6 IIBM Institute of Business Management 7. Remote procedure call (RPC) is used by an application execute: a. To execute a procedure in the system b. To execute a procedure in another compute in the distributed system c. Name of a software d. None of the above 8. A distributed transaction is also called: a. Single-site transaction b. Two –site transaction c. Multi-site transaction d. Both (a) & (b) 9. File control block (FCB) contains all information concerning: a. A file processing activity b. Execution activity c. Both (a) & (b)
  • 69. d. None of the above 10. Non-uniform memory architecture system consists of number of nodes and each node consists: a. Monitor b. Register c. Both (a) & (b) d. 1 or more C.P.Us True & False: 1. CPU helps in effective memory management by an OS. 2. High reliability in distributed file systems can be ensured through sharing semantics. 3. The compatible time sharing system for the IBM 7094 was one of the first time sharing systems. 4. The Processors of multiprocessors are divide into processor sets. 5. A resource rank is associated with each resource class. 6. A cached directory is a copy of directory that exists at a primary site. 7. A cluster of nodes is a section of the distributed system that contains sufficient hardware and software resources. 8. A cycle is a sufficient condition for a deadlock in MISR system 9. File system integrity implies correctness and consistency of control data and operations of the file system. 10. A mathematical model consists of three components model of the server Section B: Short Questions (20 marks) This section consists of Short Questions (Answer should be in 5 Line). Answer all the questions. Each Question is of 5 marks. 1. What do you mean by “Authentication”? 2. Distinguish between File System and IOCS. 3. Define “Segmentation with Paging”. 4. Describe the Deadlock characteristics for different resource system. 1. Write a Short Note on “Structure of an Operating System”. 2. Define Request-Reply-Acknowledgement Protocol and Explain a Blocking version of RRA Protocol. 3. Explain how starvation is avoided the UNIX and Window system? 4. Discuss influence of disk scheduling algorithms on effectiveness of I/O buffering? Section D: 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. Describe why authentication is important for file protection? 2. Show actions of the basic and control parts of a process to important Ricart-Agrawala Algorithm? Examination Paper: Project Management 1 IIBM Institute of Business Management IIBM Institute of Business Management Examination Paper MM.100 Project Management Section A: Objective Type (30 marks) This section consists of multiple choices questions and short answer type questions. Answer all the questions. Part One questions carry 1 mark each and Part Two questions carry 5 marks each. Part One: Multiple choices: 1. During _________formal tools and techniques were developed to help and manage large
  • 70. complex projects. a. 1950s b. 1980s c. 1920s d. 1990s 2. PERT stands for: a. Program Evaluation and Reverse Technique b. Progress Evaluation and Review Technique c. Program Evaluation and Review Technique d. None of the above 3. The most basic model of any Operating System is: a. Project Model b. Input-output model c. Output-input model d. None of the above 4. Overall complexity = a. Organizational complexity*resource complexity*technical complexity b. Organizational complexity+technical complexity-resource complexity c. Technical complexity+resource complexity/organizational complexity d. Organizational complexity*resource complexity/technical complexity 5. Relevant areas of the APM body of knowledge are: a. Quality Management b. Budgeting and cost Management c. Project Cost Management d. Both „a‟ and „b‟ Examination Paper: Project Management 2 IIBM Institute of Business Management 6. Costs associated with the planning process include: a. Planer‟s tools b. Opportunity cost c. Planned labour and associated expenses d. All of the above 7. CPA stands for: a. Critical Path Analysis b. Common Path Analysis c. Critical Path Algorithm d. Common Problem Analysis 8. The project duration with the normal activity time is ____days. a. 11 b. 16 c. 17 d. 21 9. The nature of the work organization is important as it: a. Defines responsibility and authority b. Outlines reporting arrangements c. Determines the management overhead d. All of the above 10. Matrix Management was invented by a. Mullins b. Belbin c. Drucker d. Frederick Taylor Part Two: 1. Define „Cost Estimating Techniques‟. 2. Write a note on „Critical Path Analysis‟. 3. Differentiate between General Management and Project Management. 4. What is „Team Life Cycle‟? END OF SECTION A
  • 71. Examination Paper: Project Management 3 IIBM Institute of Business Management Section B: Caselets (40 marks) This section consists of Caselets. Answer all the questions. Each Caselet carries 20 marks. Detailed information should form the part of your answer (Word limit 150 to 200 words). Caselet 1 It’s a Risky Business Four friends wanted to start a business. After much discussion, they had hit upon the idea of launch a mail-order toys and games business. They were in the development stage of their business plan and wanted to be sure that they had been through with their planning. To reinforce this, they had just received a letter from a group of venture capitalists, agreeing to fund the start up. It concluded its review of their plan by stating: The business plan presents a credible opportunity for all involved and we are prepared to approve the funding request, subject to a risk analysis being carried out on the project to start the business. The group was stunned-the funding that they had been hoping for was suddenly a reality. Just one thing stood in their way- that damned risk analysis process. They started with identifying the key risk elements that could face the business during in start up phase. They considered the process between the time that they received the funding and day one of trading. What could possibly go wrong? Lots of things. They brainstormed the possibilities and recorded them. They then considered the effect that these would have on the project as a whole. The list they generated prothings going wrong and not enough making sure that the positive steps towards the business opening were happening. They needed to priorities‟ the events. As importantly, what would happen, when they eventually occurred? Who would be responsible for each of them? On what basis could they rank each risk, in order to identify the most important risks for which they would develop mitigation and ownership? They decided to use a table to show the risk event, the likelihood, the severity and by multiplying the two providing a risk priority number (RPN). This would the allow ranking of the risk elements. For the three highest ranked elements, the group then generates a mitigation process with someone in the group taking ownership of that process. As can be seen, the top three risks were identified and mitigation tasks put in place to either prevent the risk event happening or to reduce its effect. The initials of the „owners‟ of that risk in the last column show who has agreed to monitor that set of events and ensure that the mitigation is put into place before the project suffers from that event occurring. Questions: 1. What further methods could have been used to generate ideas for the identification part of the risk process? 2. What should happen as the project progresses to manage risk? Examination Paper: Project Management 4 IIBM Institute of Business Management Caselet 2 Fast-track Product Redevelopment at Instron Background Instron designs and manufactures machines for testing the properties of all types of material. One particular plastic testing instrument has been selling around 250 units per year worldwide. In 1992 at the height of the recession, with margins being squeezed and sales volume dropping, Instron decided to redesign the instrument to reduce its cost and make it easier to manufacture. The Project Instron began to undertake change in the late 1980s, which included a programme to institute concurrent new product development. This was accompanied by pressure for cost reduction, the introduction of manufacturing changes, and the breaking of the firm into business teams. The team was highly transient and changing environment, there were few restrictions on the way the redesign project had to be handled. It was one of the first projects in Instron to be run from the beginning as a concurrent engineering project. A small multi-functional team was formed, consisting of a manufacturing engineer, a design engineer, a marketing engineer and a draughtsman. The design rief was to improve the ease of manufacture of the product such tat a cost reduction of 20 percent could be
  • 72. achieved. The team was co-located in an area adjacent to the manufacturing facility. Although there was some initial resistance, the comment was made that „they don‟t know how they ever worked without it‟. The ease of communication and sharing of ideas became a more natural part of working life. Adverse Effects The principles of concurrency were, in general, favorably accepted by departments downstream of the design process and with some notable exceptions, unfavorably viewed by the design department. Individuals had concurrency imposed on them in the initial projects selected; be tried out. Senior management staff was selected as champions of the cause, with the objective of overcoming the resistance to change that existed. This came in a number of forms: 1. Passive resistance- summarized as „don‟t show reluctance to apply the new ideas, attend all the group meetings, nod in agreement, then carry on as before. 2. Active resistance- „do what you like, but don‟t ask me to do it‟ 3. Undermining the initiative- through overstating the apparent problems. They began by carrying out brainstorming sessions with manufacturing engineers, buyers, members of the shop floor, suppliers and additional design engineers, to find new and innovative ways to improve the product. The outcome of these investigations was to draw up a list of areas where improvements were thought possible. The Benefits Achieved The results of this team‟s action were: Cost reduced by 49 percent Product range rationalized from 12 to 2 versions Unique part count reduced from 141 to 98 and total number of parts reduced from 300 to 189 Assembly/machining time reduced by 55 percent Project completed on time, with last version being released in April 1994. Once operational, few problems were encountered and those that did occur were minor in nature. The success was attributed by the firm to two decisions: The selection of the right project- one that made it easy to demonstrate concurrency The selection of the right people- those who were prepared to be open-minded and have some enthusiasm for the changes. The company now views this as a simple project that restored the profitability of an established product through the use of innovation, ingenuity and new design techniques by the whole concurrent team. What Examination Paper: Project Management 5 IIBM Institute of Business Management is also clear is that the product was subject to technical change in only one area- the materials used. The other benefits have all been due to the approach tat the firm‟s management has taken to its new product development (NPD) Process. The firm felt that the project has been a success and that this method of working would become an institutionalized methodology. Questions: 1. Identify the steps the firm took in this project. How did this contribute to the success? 2. How might the main adverse effects be identified? END OF SECTION B Section C: Applied Theory (30 marks) This section consists of Applied Theory Questions. Answer all the questions. Each question carries 15 marks. Detailed information should form the part of your answer (Word limit 200 to 250 words). 1. What is the role of strategy in Project Management? 2. Identify the different roles that cost, price and profit can play in determining project costs. Project Management in IT This section consists of multiple choice questions and short notes type questions. Answer all the questions. Part One questions carry 1 mark each and Part two questions carry 5 marks each. Part One:
  • 73. Multiple choices: 1. The knowledge areas of Project Management Process Group are: a. Planning and Initiating b. Executing and Closing c. Monitoring and Controlling d. All of the above 2. To create a successful project, a project manager must consider: a. Scope b. Time c. Cost d. All of the above 3. Which one of the following is not involved in the top ten skills or competencies of an effective project manager: a. People skills b. Leadership c. Integrity d. Technical skills 4. Another name of a phase exit is a _______ point. a. Review b. Stage c. Meeting d. Kill 5. Which process group includes activities from each of the nine knowledge areas? a. Initiating b. Planning c. Executing d. Closing Examination Paper: Project Management 7 IIBM Institute of Business Management 6. The project team works together to create the ______. a. Scope statement b. WBS c. WBS dictionary d. Work package 7. __________ is a network diagramming technique used to predict total project duration. a. PERT b. A Gantt chart c. Critical Path Method d. Crashing 8. Which of the following is not a key output of project cost management: a. A cost estimate b. A cost management plan c. A cost baseline d. None of the above 9. CMMI Stands for: a. Capability Maturity Model Integration b. Complex Maturity Model Integration c. Common Maturity Model Information d. Capability Maturity Model Information 10. A proposal evaluation sheet is an example of: a. RFP b. NPV analysis c. Earned value analysis d. Weighted scoring model Part Two: 1. Define Product Life Cycle. 2. What is Project Integration Model? 3. Write a note on Gantt charts.
  • 74. 4. What is Project Quality Management? Detailed information should form the part of your answer (Word limit 150 to 200 words). Caselet 1 A preliminary estimate of costs for the entire project is $140,000. This estimate is based on the project manager working about 20 hours per week for six months and other internal staff working a total of about 60 hours per week for six months. The customer representatives would not be paid for their assistance. A staff project manager would earn $50 per hour. The hourly rate for the other project team member would be $70 per hour, since some hours normally billed to clients may be needed for this project. The initial cost estimate also includes $10,000 for purchasing software & services from suppliers. After the project is completed, maintenance costs of $40,000 are included for each year, primarily to update the information and coordinate the “Ask the Expert” feature and online articles. Projected benefits are based on a reduction in hours consultants spend researching project management information, appropriate tools and templates, and so on. Projected benefits are also based on a small increase in profits due to new business generated by this project. If each of more than 400 consultants saved just 40 hours each year (less than one hour per week) and could bill that time to other projects that generate a conservative estimate of $10 per hour in profits, then the projected benefit would be $160,000 per year. If the new intranet increased business by just 1 percent, using past profit information, increased profits due to new business would be at least $40,000 each year. Total projected benefits, therefore, are about $200,000 per year. Exhibit A summarizes the projected costs and benefits and shows the estimated net percent value (NPV), return on investment (ROI), and year in which payback occurs. It also lists assumptions made in performing this preliminary financial analysis. All of the financial estimates are very encouraging. The estimate payback is within one year, as requested by the sponsor. The NPV is $272,800, and the discounted ROI based on a three-year system life is excellent at 112 percent. Discount rate 8% Assume the project is done in about is months Year 0 1 2 3 Total Costs 140,000 40,000 40,000 40,000 Discount factor 1 0.93 0.86 0.79 Discounted costs 140,000 37,037 34,294 31,753 243,084 Benefits 0 200,000 200,000 200,000 Discount factor 1 0.93 0.86 0.79 Discounted benefits 0 186,185 171,468 158,766 515,419 Discounted (140,000) 148,148 137,174 127,013 Examination Paper: Project Management 9 IIBM Institute of Business Management benefits – costs Cumulative benefits-costs (140,000) 8,148 145,322 272,336 NVP Payback in year 1 Discounted life cycle
  • 75. ROI---- 112% Assumptions Costs #hours PM (500hours, $50/hour) 25,000 Staff (1500 hours, $70/hour) 105,000 Outsourced software & services 10,000 Total project costs (all applied in year 0) 140,000 Benefits # consultants 400 Hours saved 40 $/hour profit 10 Benefits from saving time 160,000 Benefits from 1% increase in profits 40,000 Total annual projected benefits 200,000 Questions: 1. What according to you are the factors that can hamper the profit growth related with the project? 2. Mention some strategies to further improve the project‟s turnover. Examination Paper: Project Management 10 IIBM Institute of Business Management Caselet 2 Many organizations spend a great deal of time and money on training efforts for general project management skills, but after the training, project managers may still not know how to tailor their project management skills to the organization‟s particular needs. Because of this problem, some organizations develop their own internal information technology project management methodologies. The PMBOKR Guide is a standard that describes best practices for what should be done to manage a project. A methodology describes how things should be done, and different organizations often have different ways of doing things. For example, after implementing a systems development life cycle (SDLC) at Blue Cross Shield of Michigan, the Methods department became aware that developers and project managers were often working on different information technology project in different ways. Deliverables were often missing or looked different from project to project. They may have all had a project charter, status report, technical documents (i.e., database design documents, user interface requirements, and so on), but how they were producing and delivering these deliverables was different. There was a general lack of consistency and a need for standards to guide both new and experienced project managers. Top management decides to authorize funds to develop a methodology for project managers that could also become the basis for information technology project management training within the organization. It was also part of an overall effort to help raise
  • 76. the company‟s Software Capability Maturity Model level. BlueCross BlueShield of Michigan launched a three-month project to develop its own project management methodology. Some of the project team members had already received PMP certification, so they decided to base their methodology on the PMBOKR Guide 2000, making adjustment as needed to best describe how their organization managed information technology projects. See a complete article on this project on the companion Web site for this text. Also see the Suggested Reading to review the State of Michigan Project Management Methodology, which provides another good example of an information technology project management methodology. Many organizations include project management in their methodologies for managing Six Sigma projects. Other organizations include project management in their software development methodologies, such as the Rational Unified Process (RUP) framework. RUP is an interactive software development process that focuses on team productivity and delivers software best practices to all team members. According to RUP expert Bill Cottrell, “RUP embodies industry-standard management and technical methods and techniques to provide a software engineering process particularly suited to creating and maintaining componentbased software system solutions,” Cottrell explains that you can tailor RUP to include the PMBOK process groups. Specifically, IBM Rational, the creators of RUP, found that it could adjust RUP input artifacts with PMBOK process inputs, RUP steps with PMBOK process tools and techniques, and RUP resulting artifacts with PMBOK process outputs. Questions: 1. According to you what are the skills that needed for the project management of an organization? 2. How the six sigma project became a helpful tool in very sophisticated kind of project management? Detailed information should form the part of your answer (Word limit 200 to 250 words). 1. What is cost? What is the importance of Project cost Management and explain basic principles of Cost Management. 2. Define the following: a. Resource Histograms b. Project Communication Management Examination Paper International Business Management Section A: Objective Type (30 marks)  This section consists of multiple choice questions and short answer type questions  Answer all the questions.  Part One carries 1 mark each and Part Two questions carries 5 marks each. Part One: Multiple choices: 1. What is the series consideration for strategy implementation? a. Strategic orientation b. Location c. Dimensions d. Both (a) & (b) 2. The major activity in global marketing is a. Pricing policies b. Product lines c. Market assessment d. All of the above 3. The third „P‟ in the international marketing mix is a. Product b. Price c. Promotion d. Place 4. The European Economic Community was established a. 1958 b. 1975 c. 1967
  • 77. d. 1957 5. Environment Protection Act a. 1986 b. 1967 c. 1990 d. None of the above Examination Paper IIBM Institute of Business Management 6. People‟s attitude toward time depend on a. Language b. Relationship c. Culture d. All of the above 7. Culture necessitates adaption of a. Product b. Price c. Promotion d. Place 8. The legal term for brand is a. Symbol b. Name c. Trade mark d. All of the above 9. FDI flows are often a reflection of rivalry among firms in a. Global market b. Indian market c. International market d. None of the above 10. ISO certification is a. Expensive process b. Elaborate process c. Evaluative Process d. Both (a) & (b) Part Two: 1. What do understand by „Inward-oriented Policies‟? 2. What is „Factor Endowments Theory‟? 3. Explain the term „Totalitarianism‟. 4. Write about „Persistent Dumping‟. END OF SECTION A Examination Paper IIBM Institute of Business Management Section B: Caselets (40 marks)  This section consists of Caselets.  Answer all the questions.  Each caselet carries 20 marks.  Detailed information should form the part of your answer (Word limit 200 to 250 words). Caselet 1 THE EU’S LAGGING COMPETITIVENESS In a report produced for the European Commission, published in November 1998, it was argued that the EU lags behind the USA and Japan on most measures of international competitiveness. Gross domestic product per capita, sometimes used as an indicator of international competitiveness at the country level, was 33 per cent lower in the EU as a whole than in the USA and 13 per cent lower than in Japan. The EU‟s poor record in creating employment was singled out for particular criticism. As this appeared to apply across the board in most industrial sectors, it suggested that the EU‟s poor
  • 78. performance related to the business environment in general and, in particular, to the inflexibility of Europe‟s labour markets for goods and services. A shortage of risk capital for advanced technological development and high cost and inefficiency of Europe‟s financial services were also highlighted by the report. For one reason or another, European industries generally lag behind in technology industries. If measured by the number of inventions patented in at least two countries, the USA is well ahead of most European countries, as well as Japan. Despite these shortcomings, the report‟s authors focus attention on flexible markets, market liberalisation, and the creation of a competitive business environment rather than on targeted intervention by the EU or national authorities. 1. Is gross domestic product per capita a useful indicator of International competitiveness in the EU? 2. Is it fair to point the blame for the EU‟s poor international competitiveness at inflexible labour markets, regulated goods and services markets, and a general lack of competition? What alternative explanations might be suggested? Examination Paper IIBM Institute of Business Management Caselet 2 PERU Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina), and covers almost 500,000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow-capped Andes mountains, sparkling grass-covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru‟s Indians were the famous Incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing, mining, and services. GDP is approximately $115 billion and per capita income in recent years has been around $4,300. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country. One of these potential investors is a large New York based that is considering a $25 million loan to the owner of a Peruvian fishing fleet. The owner wants to refurbish the fleet and add one more ship. During the 1970s, the Peruvian government nationalised a number of industries and factories and began running them for the profit of the state. In most cases, these state-run ventures became disasters. In the late 1970s, the fishing fleet owner was given back his ships and are getting old and he needs an influx of capital to make repairs and add new technology. As he explained it to the NEW YORK banker: “fishing is no longer just un art. There is a great deal of technology involved. And to keep costs low and be competitive on the world market , you have to have the latest equipment for both locating as well as catching and then loading and unloading the fish.”Having reviewed the fleet owner‟ operation, the large multinational bank believes that the loan is justified. The financial institution is concerned , however , that the Peruvian government might step in during the next couple of years and again take over the business . If this were to happen, it might take an additional decade, for the loan to be repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the last decade, the loan could be rapid within seven years. Right now, the bank is deciding on the specific terms of the agreement. Once these have been worked out , either a loan officer will fly down to lima and close the deal or the owner will be asked to come to NEW YORK for the signing. Whichever approach is used, the bank realize that final adjustments in the agreement will have to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have to the authority to commit the bank to specific terms. These final matters should be worked out within the next ten days. 1. What are some current issues Facing Peru? What is the climate for doing business in Peru today? 2. Would the bank be better off negotiating the loan in New York or in Lima? Why? END OF SECTION B Examination Paper IIBM Institute of Business Management Section C: Applied Theory (30 marks)  This section consists of Long Questions.
  • 79.  Answer all the questions.  Each question carries 15 marks.  Detailed information should form the part of your answer (Word limit 150 to 200 words). 1. Imagine that you are the director of a major international lending institution supported by funds from member countries. What one area in newly industrialized and developing economics would be your priority for receiving development aid? Do you suspect that any member country will be politically opposed to aid in this area? Why or Why not? 2. The principle problem in analysing different forms of export financing is the distribution of risks between the exporter and the importer. Analyse the following export financing instruments in this respect: (a) Letter of Credit (b) Cash in advance (c) Draft (d) Consignment (e) Open Account Management Information Systems  This section consists of Multiple choice questions and Short Note type questions.  Answer all the questions.  Part one questions carry 1 mark each & P two questions carry 5 marks each. art Part one: Multiple choices: 1. Management Information System is mainly dependent upon: a. Accounting b. Information c. Both „a‟ and „b‟ d. None of the above 2. The most important attribute of information quality that a manager requires is: a. Presentation b. Relevance c. Timeliness d. None of the above 3. Human Resource Information Systems are designed to: a. Produce pay checks and payrolls reports b. Maintain personnel records c. Analyze the use of personnel in business operations d. Development of employees to their full potential 4. Operational Accounting System include: a. Inventory control b. Cost accounting reports c. Development of financial budgets and projected financial statements d. None of the above 5. EIS stands for: a. Executive Information System b. Excellent Info System c. Excessive Information System
  • 80. d. None of the above 6. Intranet provide a rich set of tools for those people: a. Who are members of the different company or organization b. Who are members of the same company or organization c. Both „a‟ and „b‟ Examination Paper of Management Information Systems IIBM Institute of Business Management 2
  • 81. d. None of the above 7. Which one is not the future of wireless technology? a. E-mail b. VOIP c. RFID d. Telegram 8. OLTP stands for: a. Online Transactional Processing b. Online Transmission Processing c. Online Transactional Process d. None of the above 9. Which one of the following is not considered as future of m-commerce: a. Ubiquity b. Localization c. Simple authentication d. Common operation 10. Which of the following is not the level of decision making: a. Management control b. Activity control c. Operational control d. Strategic decision making Part Two: 1. What are the „Strategic Information Systems‟? 2. Write down the various business model of internet. 3. What is „Network Bandwidth‟? 4. Differentiate between OLTP and OLPP. END OF SECTION Section B: Caselets (40 marks)  Thi section consists of Caselets. s  Answer all the questions.  Each Caselet carries 20 marks  Detailed information should form the part of your answer (Word limit 150 to 200 words). Examination Paper of Management Information Systems IIBM Institute of Business Management 3
  • 82. Caselet 1 Overview of our Client’s Strategy Our client had an online store. They were spending $15,000 each month on pay per click advertising. This resulted in about $225,000 per month in sales. They didn‟t know which clicks were leading to sales because they didn‟t track the clicks. There rankings in the natural listings was minimal because they hadn‟t done keywords research on what visitors were using to try to find a site like there‟s. They weren‟t able to quantity results because their we statistics program only showed very general traffic information. They were also doing an irregular email newsletter even though they had more than 32,000 e-mails in their database. Analysis of the situation In the natural listings we suspected they were being penalized by the search enines for duplicate content. The search engines frown on this because they feel this is trying to fool them. Google will often give a site like this something called “Supplement Results”, which means that the search engines know the page exists but doesn‟t have any content in their database. We also suspected their email newsletter was being blocked by many spam blockers because the names of the products they sold were often on used in spam e-mails. Implementation of a Solution For the pay per click advertising we started tracking the clicks down to the individual terms and the actual results that came from them. We were able to delete terms that were not getting enough sales and increase the bids on ones that brought sales. For the natural listings we did keywords research and focused on the main keywords on the content for the home page and in the META tags. We also found that visitors search on product names rather than manufactures, so in the title tag for the page we switched and put the product name before the manufacturer. With the newsletter, we used a good mix of graphics and content to appease the spam blockers, as well as put the product names in graphics so they wouldn‟t be blocked. In order to analyze of the site‟s traffic, we implemented a powerful web statistics program. Results of our work Through our tactics, our clients were able to move up to #4 on Google for their main search term, which got a lot of traffic. With pay per click, they went from $.43. They decrease their budget to $10,000 per month, yet were able to increase their traffic by 33 percent. Through our optimization of their pay per click, their cost per conversion to sale decreased by at least 45 percent. The deliverability of their newsletter increased as well. Within a year, their sales increased to over $600,000 per month. Questions: 1. Discuss the client strategy for the success of store. 2. Suppose if you are the client maker what would you suggest for the client. Caselet 2 Data Warehouse is a massive independent business database system that is populated with data that has been extracted from a range of sources. The data is held separately from its origin and is used to help to improve the decision-making process. Many traditional Databases are involved in recording day to day operational activities of the business, called Online Transaction Processing (OLTP), COMMONLY IMPLEMENTED IN Airline Bookings and Banking Systems, for faster‟s response and better control over data. Examination Paper of Management Information Systems IIBM Institute of Business Management 4
  • 83. After establishment of OLTP Systems, reports and summaries can be drawn for giving inputs to decision-making process and this process is called Online Analytical Processing (OLAP). For better customer relationships management strategy, the call centre‟s and data Warehouse works as a strategic tool for decision-support which requires lot of time for establishment, and needs to be updated with operational information on daily weekly or monthly basis. Data Warehouse is used for proactive strategies formulation strategies formulation in critical and complex situations. A number of CRM vendors are advocating for single integrated customer database which includes call centre, web sites, branches and direct mail, but it lacks in analytical functioning of data warehouse. This Database can‟t be expanded also, and carry decision support operations on call centre Database becomes slow & the query processing and inquiries andling operations also become slow & inefficient for agents dealing with customers. Data Warehouse is must for identifying most profitable & loyal customers and those customers can be offered better customized services which increase the chances of additional profits. Although call centre system & data warehouse are altogether different systems yet dependent on each other to fully exploit their potential respectively. Questions: 1. Explain the role of data warehousing in the functioning of a call centre. 2. How the response time in performing OLAP queries can be improved? END OF SECTION B Section C: Applied Theory (30 marks)  This section consists of Applied Theory Questions.  Answer all the questions.  Each question carries 15 marks.  Detailed information should form the part of your answer. (Word limit 200 to 250 words). 1. Explain the term e-commerce. Also explain the history and limitations of e-commerce. 2. What do you understand by the term “Database”? Explain the various database models in detail. Examination Paper of Managerial Economics IIBM Institute of Business Management 1 Managerial Economics Section A: Objective Type (30 marks)  This section consists of multiple choices & Short notes type questions.  Answer all the questions.  Part one carries 1 mark each & Part two carries 5 marks each. Part one: Multiple choices: 1. It is a study of economy as a whole. a. Macroeconomics b. Microeconomics c. Recession d. Inflation 2. A comprehensive formulation which specifies the factors that influence the demand for the product. a. Market demand b. Demand schedule c. Demand function
  • 84. d. Income effect 3. It is computed when the data is discrete and therefore incremental changes is measurable. a. Substitution effect b. Arc elasticity c. Point elasticity d. Derived demand 4. Goods & services used for final consumption is called: a. Demand b. Consumer goods c. Producer goods d. Perishable goods 5. The curve at which satisfaction is equal at each point. a. Marginal utility b. Cardinal measure of utility c. The Indifference Curve d. Budget line Examination Paper of Managerial Economics IIBM Institute of Business Management 2
  • 85. 6. Costs that are reasonably expected to be incurred in some future period or periods are: a. Future costs b. Past costs c. Incremental costs d. Sunk costs 7. Condition when the firm has no tendency either to increase or to contract its output: a. Monopoly b. Profit c. Equilibrium d. Market 8. Total market value of all finished goods & services produced in a year by a country‟s residents is known as: a. National income b. Gross national product c. Gross domestic product d. Real GDP 9. The sum of net value of goods & services produced at market prices: a. Government expenditure b. Product approach c. Income approach d. Expenditure approach 10. The market value of all the final goods & services made within the borders of a nation in an year. a. Globalization b. Subsidies c. GDP d. GNP Part Two: 1. Define „Arc Elasticity‟. 2. Explain the law of „Diminishing marginal returns‟. 3. What is „Prisoner‟s Dilemma‟, of non cooperative game? 4. What is „Third degree Discrimination‟? END OF SECTION A Examination Paper of Managerial Economics IIBM Institute of Business Management 3
  • 86. Section B: Case lets (40 marks)  This section consists of Case lets.  Answer all the questions.  Each Case let carries 20 marks.  Detailed information should form the part of your answer (Word limit 150 to 200 words). Case let 1 The war on drugs is an expensive battle, as a great deal of resources go into catching those who buy or sell illegal drugs on the black market, prosecuting them in court, and housing them in jail. These costs seem particularly exorbitant when dealing with the drug marijuana, as it is widely used, and is likely no more harmful than currently legal drugs such as tobacco and alcohol. There's another cost to the war on drugs, however, which is the revenue lost by governments who cannot collect taxes on illegal drugs. In a recent study for the Fraser Institute, Canada, Economist Stephen T. Easton attempted to calculate how much tax revenue the government of the country could gain by legalizing marijuana. The study estimates that the average price of 0.5 grams (a unit) of marijuana sold for $8.60 on the street, while its cost of production was only $1.70. In a free market, a $6.90 profit for a unit of marijuana would not last for long. Entrepreneurs noticing the great profits to be made in the marijuana market would start their own grow operations, increasing the supply of marijuana on the street, which would cause the street price of the drug to fall to a level much closer to the cost of production. Of course, this doesn't happen because the product is illegal; the prospect of jail time deters many entrepreneurs and the occasional drug bust ensures that the supply stays relatively low. We can consider much of this $6.90 per unit of marijuana profit a risk-premium for participating in the underground economy. Unfortunately, this risk premium is making a lot of criminals, many of whom have ties to organized crime, very wealthy. Stephen T. Easton argues that if marijuana was legalized, we could transfer these excess profits caused by the risk premium from these grow operations to the government: If we substitute a tax on marijuana cigarettes equal to the difference between the local production cost and the street price people currently pay – that is, transfer the revenue from the current producers and marketers (many of whom work with organized crime) to the government, leaving all other marketing and transportation issues aside we would have revenue of (say) $7 per [unit]. If you could collect on every cigarette and ignore the transportation, marketing, and advertising costs, this comes to over $2 billion on Canadian sales and substantially more from an export tax, and you forego the costs of enforcement and deploy your policing assets elsewhere. One interesting thing to note from such a scheme is that the street price of marijuana stays exactly the same, so the quantity demanded should remain the same as the price is unchanged. However, it's quite likely that the demand for marijuana would change from legalization. We saw that there was a risk in selling marijuana, but since drug laws often target both the buyer and the seller, there is also a risk (albeit smaller) to the consumer interested in buying marijuana. Legalization would eliminate this risk, causing the demand to rise. This is a mixed bag from a public policy standpoint: Increased marijuana use can have ill effects on the health of the population but the increased sales bring in more revenue for the government. However, if legalized, governments can control how much marijuana is consumed by increasing or decreasing the taxes on the product. There is a limit to this, however, as setting taxes too high will cause marijuana growers to sell on the black market to avoid excessive taxation. When considering legalizing marijuana, there are many economic, health, and social issues we must analyze. One economic study will not be the basis of Canada's public policy decisions, but Easton's research does conclusively show that there are economic benefits in the legalization of marijuana. With governments scrambling to find new sources of revenue to pay for important social objectives such as health care and education expect to see the idea raised in Parliament sooner rather than later. Examination Paper of Managerial Economics IIBM Institute of Business Management 4
  • 87. Questions: 1. Plot the demand schedule and draw the demand curve for the data given for Marijuana in the case above. 2. On the basis of the analysis of the case above, what is your opinion about legalizing marijuana in Canada? Case let 2 Companies that attend to productivity and growth simultaneously manage cost reductions very differently from companies that focus on cost cutting alone and they drive growth very differently from companies that are obsessed with growth alone. It is the ability to cook sweet and sour that under grids the remarkable performance of companies likes Intel, GE, ABB and Canon. In the slow growth electro-technical business, ABB has doubled its revenues from $17 billion to $35 billion, largely by exploiting new opportunities in emerging markets. For example, it has built up a 46,000 employee organization in the Asia Pacific region, almost from scratch. But it has also reduced employment in North America and Western Europe by 54,000 people. It is the hard squeeze in the north and the west that generated the resources to support ABB's massive investments in the east and the south. Everyone knows about the staggering ambition of the Ambanis, which has fuelled Reliance's evolution into the largest private company in India. Reliance has built its spectacular rise on a similar ability to cook sweet and sour. What people may not be equally familiar with is the relentless focus on cost reduction and productivity growth that pervades the company. Reliance's employee cost is 4 per cent of revenues, against 15-20 per cent of its competitors. Its sales and distribution cost, at 3 per cent of revenues, is about a third of global standards. It has continuously pushed down its cost for energy and utilities to 3 per cent of revenues, largely through 100 per cent captive power generation that costs the company 4.5 cents per kilowatt-hour; well below Indian utility costs, and about 30 per cent lower than the global average. Similarly, its capital cost is 25-30 per cent lower than its international peers due to its legendary speed in plant commissioning and its relentless focus on reducing the weighted average cost of capital (WACC) that, at 13 per cent, is the lowest of any major Indian firm. A Bias for Growth Comparing major Indian companies in key industries with their global competitors shows that Indian companies are running a major risk. They suffer from a profound bias for growth. There is nothing wrong with this bias, as Reliance has shown. The problem is most look more like Essar than Reliance. While they love the sweet of growth, they are unwilling to face the sour of productivity improvement. Nowhere is this more amply borne out than in the consumer goods industry where the Indian giant Hindustan Lever has consolidated to grow at over 50 per cent while its labour productivity declined by around 6 per cent per annum in the same period. Its strongest competitor, Nirma, also grew at over 25 per cent per annum in revenues but maintained its labour productivity relatively stable. Unfortunately, however, its return on capital employed (ROCE) suffered by over 17 per cent. In contrast, Coca Cola, worldwide, grew at around 7 per cent, improved its labour productivity by 20 per cent and its return on capital employed by 6.7 per cent. The story is very similar in the information technology sector where Infosys, NIIT and HCL achieve rates of growth of over 50 per cent which compares favorably with the world's best companies that grew at around 30 per cent between 1994-95. NIIT, for example, strongly believes that growth is an impetus in itself. Its focus on growth has helped it double revenues every two years. Sustaining profitability in the face of such expansion is an extremely challenging task. For now, this is a challenge Indian InfoTech companies seem to be losing. The ROCE for three Indian majors fell by 7 per cent annually over 1994-96. At the same time IBM Microsoft and SAP managed to improve this ratio by 17 per cent. There are some exceptions, however. The cement industry, which has focused on productivity rather than on growth, has done very well in this dimension when compared to their global Examination Paper of Managerial Economics IIBM Institute of Business Management 5
  • 88. counterparts. While Mexico's Cemex has grown about three times fast as India's ACC, Indian cement companies have consistently delivered better results, not only on absolute profitability ratios, but also on absolute profitability growth. They show a growth of 24 per cent in return on capital employed while international players show only 8.4 per cent. Labour productivity, which actually fell for most industries over 1994-96, has improved at 2.5 per cent per annum for cement. The engineering industry also matches up to the performance standards of the best in the world. Companies like Cummins India have always pushed for growth as is evidenced by its 27 per cent rate of growth, but not at the cost of present and future profitability. The company shows a healthy excess of almost 30 per cent over WACC, displaying great future promise. BHEL, the public sector giant, has seen similar success and the share price rose by 25 per cent despite an indecisive sensex. The only note of caution: Indian engineering companies have not been able to improve labour productivity over time, while international engineering companies like ABB, Siemens and Cummins Engines have achieved about 13.5 per cent growth in labour productivity, on an average, in the same period. The pharmaceuticals industry is where the problems seem to be the worst, with growth emphasized at the cost of all other performance. They have been growing at over 22 per cent, while their ROCE fell at 15.9 per cent per annum and labour productivity at 7 per cent. Compare this with some of the best pharmaceutical companies of the world – Glaxo Wellcome, SmithKline Beecham and Pfizer –who have consistently achieved growth of 15-20 per cent, while improving returns on capital employed at about 25 per cent and labour productivity at 8 per cent. Ranbaxy is not an exception; the bias for growth at the cost of labour and capital productivity is also manifest in the performance of other Indian Pharma companies. What makes this even worse is the Indian companies barely manage to cover their cost of capital, while their competitors worldwide such as Glaxo and Pfizer earn an average ROCE of 65 per cent. In the Indian textile industry, Arvind Mills was once the shining star. Like Reliance, it had learnt to cook sweet and sour. Between 1994 and 1996, it grew at an average of 30 per cent per annum to become the world's largest denim producer. At the same time, it also operated a tight ship, improving labour productivity by 20 per cent. Despite the excellent performance in the past, there are warning signals for Arvind's future. The excess over the WACC is only 1.5 per cent, implying it barely manages to satisfy its investor‟s expectations of return and does not really have a surplus to re-invest in the business. Apparently, investors also think so, for Arvind's stock price has been falling since Q4 1994 despite such excellent results and, at the end of the first quarter of 1998, is less than Rs 70 compared to Rs 170 at the end of 1994. Unfortunately, Arvind's deteriorating financial returns over the last few years is also typical of the Indian textile industry. The top three Indian companies actually showed a decline in their return ratios in contrast to the international majors. Nike, VF Corp and Coats Viyella showed a growth in their returns on capital employed of 6.2 per cent, while the ROCE of Grasim and Coats Viyella (India) fell by almost 2 per cent per annum. Even in absolute returns on assets or on capital employed, Indian companies fare a lot worse. While Indian textile companies just about cover their WACC, their international rivals earn about 8 per cent in excess of their cost of capital. Questions: 1. Is Indian companies running a risk by not giving attention to cost cutting? 2. Discuss whether Indian Consumer goods industry is growing at the cost of future profitability. 3. Discuss capital and labour productivity in engineering context and pharmaceutical industries in India. 4. Is textile industry in India performing better than its global competitors? END OF SECTION B Examination Paper of Managerial Economics IIBM Institute of Business Management 6
  • 89. 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. Free trade promotes a mutually profitable regional division of labour, greatly enhances the potential real national product of all nations and makes possible higher standards of living all over the globe.” Critically explain and examine the statement. 2. What role does a decision tree play in business decision-making? Illustrate the choice between two investment projects with the help of a decision tree assuming hypothetical conditions about the states of nature, probability distribution, and corresponding pay-offs. END OF SECTION C S-2-301012 Strategic Management  This section consists of Multiple choice questions & Short notes type questions.  Answer all the questions.  Part one questions carry 1 mark each & Part two questions carry 5 marks each. Part One: Multiple choices: 1. A plan of action designed to achieve a particular goal is: a. Tactic b. Strategy c. Financial benefits d. None of the above 2. It is important to develop mission statement for: a. Allocating organizational resources b. Provide useful criteria c. Company creed d. Customer orientation 3. The five forces model was developed by : a. Airbus b. Karin Larsson c. Michael E.Porter d. Boeing 4. How many elements are involve in developing in an organizational strategy: a. Six b. Two c. Four d. Nine 5. The three important steps in SWOT analysis are: a. Identification, Conclusion, Translation b. Opportunities, Threats, Strengths c. People, Corporate cultures, Labour
  • 90. d. Power, Role, Task Examination Paper of Strategic Management IIBM Institute of Business Management 2
  • 91. 6. GE matrix consists of how many cells? a. Nine cells b. Six cells c. Eight cells d. Three cells 7. Which of these is the type of Games: a. Simultaneous Games b. Sequential Games c. Repeated Games d. All of the above 8. SBU stands fora. Simple Basic Unit b. Strategic Basic Unit c. Strategic Business Unit d. Speed Business Unit 9. The BCG matrix is known as: a. Growth share matrix b. Directional policy matrix c. GE nine-cell matrix d. Space matrix 10. ______________ specifies sales revenues and selling distribution and marketing costs. a. Financial budget b. Sales budget c. Operating budget d. Expenses budget Part Two: Q. 1 What are the dimensions of Strategic management? Q. 2 Critically analyze the concept of BCG Matrix. Q. 3 What is SWOT analysis? Q. 4 What are the characteristics of Short-term Objectives? END OF SECTION A Examination Paper of Strategic Management IIBM Institute of Business Management 3
  • 92. Section B: Caselets (40 marks)  This se ction 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 National Competitive Advantage of IKEA Group, a Swedish company founded in 1943 with its headquarters in Denmark, is a multinational operator of a chain of stores for home furnishing and furniture. It is the world‟s largest retailer, which specializes, in stylish but inexpensive Scandinavian designed furniture. At the end of 2005 the IKEA Group of Companies had a total of 175 stores in 31 countries. In addition there are 19 IKEA stores owned and run by franchisees, outside the IKEA store around the world. In Sweden, nature and a home both play a big part in people‟s life. In fact one of the best ways to describe the Swedish home furnishing style is to describe nature-full of light and fresh air, yet restrained and unpretentious. To match up the artist Carl and Karin Larsson combined classical influences with warmer Swedish folk styles .They created a model of Swedish home furnishing design that today enjoys world-wide renown. In the 1950s the styles of modernism and functionalism developed at the same time as Sweden established a society founded on social equality .The IKEA product range –The IKEA product range- modern but not trendy, functional yet attractive, human-centered and child friendly – carries on these various Swedish home furnishing traditions. The IKEA Concept, like lots founder, was born in Samaland. This is a part of Southern Sweden where the soil is thin and poor. The people are famous for working hard, living on small means and using their heads to make the best possible use of the limited resources they have. This way of doing things is at the heart of the IKEA approach to keeping prices low. IKEA was founded when Sweden was fast becoming an example of the caring society, where rich and poor alike were well looked after. This is also a theme that fits well with the IKEA vision. In order to give the many people a better everyday life, IKEA asks the customer to work as a partner. The product range is child-friendly and covers the need of the whole family, young and old. So together we can a better everyday life for everyone. In addition to working about around 1,800 different suppliers across the world, IKEA produces many of its own products through sawmills and factories in the IKEA industrial group, Swedwood. Swedwood also has a duty to transfer knowledge to other suppliers, for example by educating them in issues such as efficiency, quality and environmental work. Swedwood has 35 industrial units in 11 countries. Examination Paper of Strategic Management IIBM Institute of Business Management 4
  • 93. Purchasing: IKEA has 42 Trading Service Offices (TSO‟s) in 33 countries. Proximity to their suppliers is the key to rational, long term cooperation. That‟s why TSO co-workers visit suppliers regularly to monitor production, test new ideas, negotiate prices and carry out quality audits and inspection. Distribution: The route from supplier to customer must be as direct, cost- effective and environmentally friendly as possible. Flat packs are important aspects of this work: eliminating wasted space means we can transport and store goods more efficiently. Since efficient distribution plays a key role in the work of creating the low price, goods routing and logistics are a focus for constant development. The business Idea: The IKEA business idea is to offer a wide range of home furnishings with good design and function at prices so low that as many people as possible will be able to afford them. And still have many left! The company targets the customer who is looking for value and is willing to do a little bit of work serving themselves, transporting the items home and assembling the furniture for a better price. The typical IKEA customer is young low to middle income family. The Competition Advantage: The competition advantage strategy of IKEA‟s product is reflected through IKEA‟s success in the real industry. It can be attributed to its vast experience in the retail market, product differentiation, and cost leadership. IKEA Product Differentiation: A wide product range The IKEA product range is wide and versatile in several ways. First, it‟s versatile in function. Because IKEA think customer, shouldn‟t have to run from one small specialty shop to another to furnish their home, IKEA gather plants, living room furnishings, toys , frying pans, whole kitchens i.e.; everything which in a functional way helps to build a home – in one place , at IKEA stores. Second, it‟s wide in style. The romantic at heart will find choices just as many as the minimalist at IKEA. But There is only one thing IKEA don‟t have, and that is, the far- out or the over-decorated. They only have what helps build a home that has room for good living. Third, by being coordinated, the range is wide in function and style at the same time. No matter which style you prefer, there‟s an armchair that goes with the bookcase that goes with the new extending table that goes with the armchair. So their range is wide in a variety of ways. Cost Leadership: A wide range with good form and function is only half the story. Affordability has a part to play – the largest part. A wide range with good form and function is only half the story. Affordability has a part to play- the largest part. And the joy of being able to own it without having to forsake everything else. And the customers help, too, by choosing the furniture, getting it at the warehouse, transporting it home and assembling it themselves , to keep the price low. Questions 1. Do you think that IKEA has been successful to utilize Porter‟s Five force analysis? Give reasons. 2. Where do you think can IKEA improve? Examination Paper of Strategic Management IIBM Institute of Business Management 5
  • 94. Caselet 2 For ITC Ltd., 2007-2008 continued to be year of quiet growth. Just more launches in its relatively new segment of noncigarettes fast moving consumer goods, and solid growth. As in the past few years, ITC‟s non-cigarettes businesses continued to grow at a scorching pace, accounting for a bigger share of overall revenues. “The non-cigarette portfolio grew by 37.6% during 2006-2007 and accounted during that year for 52.3% of the company‟s net turnover.” An ITC spokesman said. In fact, over the first three quarters of 2007-08, ITC‟s non-cigarette FMCG businesses have grown by 48% on the same period last year, “Indicating that its plans for increasing market share and standing are succeeding.” The branded packaged foods business continued to expand rapidly, with the focus on snacks range Bingo. The biscuit category continued its growth momentum with the „Sun feast‟ range of biscuits launching „Coconut‟ and „Nice‟ variants and the addition of „ Sunfeast BenneVita Flaxseed‟ biscuits. Aashirwad atta and kitchen ingredients retained their top slots at the national level, with the spices category adding an organic range. In the confectionery category which grew by 38% in the third quarter, ITC cited AC Nielsen data it claims market leader status in throat lozenges. Instant mixes and pasta powdered the sales of its ready to eat foods under the kitchens of India and Aashirwad brands. In Lifestyle apparel, ITC launched Miss Players fashion wear for young women to compliment its range for men. Overall, the biscuit category grew by 58% during the last quarter, ready to eat foods under the kitchens of India and Aashirwad brands by 63% and the lifestyle business by 26%. For the Industry, the most significant initiative to watch the ITC foray into premium personal care products with its Fiama Di Wills range of shampoos , conditioners, shower gels, and soaps. In the popular segment, ITC has launched a range of soaps and shampoos under the brand name Superia. Ravi Naware, Chief executive of ITC‟s food business was quoted recently as saying that the business will make a positive contribution to ITC‟s bottom line in the next two to three years. In hotels, ITC‟s Fortune Park brand was making the news during the year, with a rapid rollout of first class business hotels. In the agri-business segment, the e-choupal network is trying out a pilot in retailing fresh fruits and vegetables. The echoupals have already specialized in feeding ITC high quality wheat and potato, among other commodities grown by farmers with help from e-choupal. Questions: Q1. Do you think the progress of ITC Ltd. is realistic? Q2. After analyzing the above case, do you think every company should aim at cost leadership with high quality product? END OF SECTION B Examination Paper of Strategic Management IIBM Institute of Business Management 6
  • 95. 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). Q.1. What are the basic principles of Organizational structure? What are the types of Organizational structures? Q.2. Though BCG matrix can be very helpful in forcing decisions in managing a portfolio of products, it can be employed as a solemen of determining strategies for a portfolio of the product. Do you agree with this statement or not? Why or why not? END OF SECTION C S-2-301012 Examination Paper of Supply Chain Management 1 IIBM Institute of Business Management Supply Chain Management Section A: Objective Type (30 marks)  This section consists of Multiple Choice questions& Short Answer type questions.  Answer all the questions.  Part One questions carry 1 mark each & Part Two questions carry 2 marks each. Part One: Multiple Choices: 1. When demand is steady, the cycle inventory for a given lot size (Q) is given by a. Q/4 b. Q/8 c. Q/6 d. Q/2 2. There are two firms „x‟ and „y‟ located on a line of distance demand(0-1) at „a‟ and „b‟ respectively, the customers are uniformly located on the line, on keeping the fact of splitting of market, the demand of firm „x‟ will be given by, a. (a+b)/2 b. a+(1-b-a)/2 c. (1+b-a)/2 d. a+(a-b)/2 3. Push process in supply chain analysis is also called a. Speculative process b. Manufacturing process c. Supplying process d. Demand process 4. If the Throughput be „d‟ and the flow time be „t‟ then the Inventory „I‟ is given by a. I *d=t b. I=t+d c. d=I*t d. I =d*t 5. Forecasting method is
  • 96. a. Time series b. causal c. Qualitative d. All the above 6. Component of order cost include Examination Paper of Supply Chain Management 2 IIBM Institute of Business Management
  • 97. a. Handling cost b. Occupancy cost c. Receiving costs d. Miscellaneous costs 7. How many distinct types of MRO inventory are there a. One b. Four c. Three d. Two 8. Supply chain driver is a. Inventory b. Return ability c. Fulfillment d. All of above 9. SRM stands for a. Strategic Relationship Management b. Supply Return ability Management c. Supplier Relationship Management d. None of the above 10. Discount factor equals to, where k is the rate of return. a. 1/1+k b. 2/1+k c. 1/1-k d. 1/2+k Part Two: 1. Explain “zone of strategic fit”. 2. Explain “scope of strategic fit”. 3. What do you understand by “stimulation forecasting method”? 4. Write a note on “obsolescence (or spoilage) cost”. 5. Define “square law” in safety inventory of supply chain management. 6. What does the word “postponement” signifies in supply chain? 7. What do you understand by the term “tailored sourcing”? 8. Explain the term “outsourcing”. 9. Write a note on “threshold contracts” for increasing agent efforts. 10. What is “dynamic pricing”? Examination Paper of Supply Chain Management 3 IIBM Institute of Business Management
  • 98. END OF SECTION A Section B: Caselets (40 marks)  This section consists of Caselets.  Answer all the questions.  Each caselet carries 20 marks.  Detailed information should form the part of your answer (Word limit 200 to 250 words). Caselet 1 Orion is a global co. That sells copiers. Orion currently sells 10 variants of a copier, with all inventory kept in finishedgoods form. The primary component that differentiates the copiers is the printing subassembly. An idea being discussed is to introduce commonality in the printing subassembly so that final assembly can be postponed and inventories kept in component form. Currently, each copier costs $1,000 in terms of components. Introducing commonality in the print subassembly will increase component cost to$1.025.One of the 10 variants represents 80 percent of the total demand. Weekly demand for this variant is normally distributed ,with a mean of 1,000 and a standard deviation of 200.Each of the remaining nine variants has a weekly demand of 28 with a standard deviation of 20.Orion aims to provide a 95per level of services .Replacement lead time for components is four weeks. Copier assembly can be implemented in a matter of hours. Orion manages all inventories using a continuous review policy and uses a holding cost of 20 percent. 1. How much safety inventory of each variant must Orion keep without component commonality? What are the annual holding costs? 2. How much safety inventory must be kept in component form if Orion uses common components for all variants? What is the annual holding cost? What is the increase in component cost using commonality? Is commonality justified across all variants? 3. At what cost of commonality will complete commonality be justified? 4. At what cost of commonality will commonality across the low-volume variants be justified? Caselet 2 An electronic manufacturer has outsourced production of its latest MP3 player to a contract manufacturer in Asia. Demand for the players has exceeded all expectations whereas the contract manufacturers sell three types of players- a 40GB player, a 20-GB player, 6-GB player. For the upcoming holiday season, the demand forecast for the 40-GB player is normally distributed, with a mean of 20,000and a standard deviation Dard deviation of 11,000, and the demand forecast for the 6-GB player has a mean of 80,000 and a standard deviation of 16,000. The 40-GB player has a sale price of $200, a production cost of $100, and a salvage value of $80 .The 20-GB player has a price of $150, a production cost of $70, and a salvage value of $50. Examination Paper of Supply Chain Management 4 IIBM Institute of Business Management
  • 99. 1. How many units of each type of player should the electronics manufacturer order if there are no capacity constraints? 2. How many times of each type of player should the electronics manufacturer order if the available is 140,000? What is the expected profit? END OF SECTION B Section C: Applied Theory (30 marks)  This section consists of 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). 1. Consider two products with the same margin carried by a retail store. Any leftover units of one product are worthless. Leftover units of the other product can be sold to outlet stores. Which product should have a higher level of availability? Why? 2. McMaster-Carr sells maintenance, repair, and operations equipment from five warehouses in the United States. W.W. Grainger sells products from more than 350 retail locations, supported by several warehouses. In both cases, customers place orders using the Web or on the phone. Discuss the pros and cons of the two strategies. END OF SECTION C Examination Paper of Supply Chain Management 5 IIBM Institute of Business Management Statistical Quality Control  This section consists of Multiple choice questions & Short Answer type questions.  Answer all the questions.  Part One questions carry 1 mark each & Part Two questions carry 4 marks each. Part One: Multiple choices: 1. If in a hall there are 18 persons then how many handshakes are possible a. 18*18 b. 18*17/2 c. 18*17 d. None 2. If the number of trials be „n‟ and the probability of occurrence be „p‟ then the standard deviation with respect to np, is given by a. (np)1/2 b. (np(1-p))1/2 c. (np)1/4 d. (np(1-p))1/4 3. For a biased coin the probability of occurrence of head is 0.4 ,if the coin is tossed twice then the probability of occurrence of at least one head will be a. 0.76 b. 0.48 c. 0.64 d. 0.16 4. Factorial of 5 equals a. 60 b. 120 c. 24
  • 100. d. 5 5. Combinatory of (4,2) equals a. 12 b. 8 c. 6 d. None 6. „Economic Control of Quality of Manufactured Product‟, a book by Walter A Shewhart in Examination Paper of Supply Chain Management 6 IIBM Institute of Business Management
  • 101. a. 1931 b. 1941 c. 1930 d. 1956 7. Quality is judged by………… a. Retailer b. Government c. Customer d. Hole seller 8. A run chart is a special chart of………… a. Pie chart b. Line chart c. R chart d. C chart 9. Universes may differ a. In average b. In above average c. At higher level d. All of the above 10. ASQC and ANSI began in a. 1956 b. 1976 c. 1978 d. 1960 Part Two: 1. Differentiate between „defect‟ and „defective‟. 2. Explain the need of „short method‟. 3. What does „Tchebycheff‟s inequality theorem‟ say? 4. Explain the usability of „stochastic limit‟. 5. Write a note on „Cause and Effect‟ diagram. END OF SECTION A Examination Paper of Supply Chain Management 7 IIBM Institute of Business Management
  • 102. 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 ADAPTABILITY IN ACTION: A CASE OF RSL Rajasthan Synthetics Ltd. (RSL) was established in the year 1994 at Bhilwara, Rajasthan to manufacture synthetic yarn with a licensed capacity of 29,000 spindles. Manish Kumar, a Harvard Business School graduate, established RSL with 8% equity participation from Itochu Corporation Japan to manufacture synthetic yarn for shirting, a promising business at that time. The demise of the NTC textile mills was fresh in the minds of the promoters and therefore, state of the art technology imported from U.K., Germany, Japan and France was used in the manufacturing facility. By the time the company started manufacturing yarn the competition in shirting yarn had become fierce and the returns had diminished. The company incurred losses in the first four years of its operations and the management was looking for opportunities to turn things around. The manufacturing plant started functioning with an installed capacity of 26,000 spindles, a small unit considering yarn-manufacturing industry, in the year 1996 to manufacture synthetic yarn for shirting only. Initially, the major fabric manufactures of India such as Raymonds, Donear, Grasim, Amartex, Siyaram, Pantaloon and Arviva were the main customers of the company and the total produce of the company was sold within the domestic market. These fabric manufactures used to import the premium quality yarn before RSL started supplying the yarn to them. The company in the first year of its operations realized that shirting yarn was one of the fiercely competitive products and the company with its high interest liability was unlikely to earn the desired profits. Also, the company had a narrow product mix limited to only two more blow room lines were installed in the first quarter of 1997. The addition of two blow room lines helped RSL to manufacture four different types of yarns at the same time. Utilizing this added flexibility, RSL began manufacturing yarn for suitings.Since the suiting yarn was providing better returns, the company was keen to increase manufacturing of suiting yarn but was hampered by the two for one doubling (TFO) facility, which was limited to only 40% of the total produce. To remove this bottleneck, 12 more TFO machines were added to the existing 8 TFO machines. The addition of these machines increased the doubling capacity to 70% of the production providing additional product mix flexibility to the company. This enabled the company to manufacture yarn to cater to the requirements of suiting, industrial fabric and carpet manufacturers. In the initial years of its operations, RSL realized that the promises made by the Government of Rajasthan to provide uninterrupted power supply of the required quality (stable voltage and frequency) and ample quantity of water were unlikely to be met through the public distribution system. The voltage and frequency of electric power provided through the public distribution system were erratic and frequent announced and unannounced power cuts stopped production on a regular basis. In these circumstances, meeting quality requirements of the customers and adhering to delivery schedules was a herculean task. To ensure smooth and uninterrupted operations RSL installed inhouse power generation facility of 4 megawatts capacity and dug 10 tube-wells.RSL faced stiff competition in the domestic market from Gujarat Spinning and Weaving Mills, Surat, Rajasthan Textile Mills, Bhawani Mandi, Charan Spinning Mills, Salem and Indorama Synthetics Ltd., Pithampur in all their product categories and the returns were low. In order to combat stiff Examination Paper of Supply Chain Management 8 IIBM Institute of Business Management
  • 103. competition in the domestic market and improve returns the company started developing export markets for their products in the year 1998. Initially, RSL started exporting carpet yarn to Belgium and till 2001; carpet yarn formed the major component of their exports. A trade agreement was signed with Fibratex Corporation, Switzerland to share profits equally for expanding their overseas operations. During the same period, RSL continued to scout for new export markets and was successful in entering top-of-the-line fancy for premium fashion fabric manufactures of international repute like Mango and Zara. Rajasthan Synthetics Ltd. also exported fancy yarn to a number of fabric manufacturers located in Italy, France, England, Spain and Portugal. Yarn manufacturers from Indonesia, Korea and Taiwan gave stiff competition to RSL when it entered the international market. The companies from South Asian countries had a major cost advantage over RSL because of cheap, uninterrupted availability of power and high labour productivity. Currencies had been sharply devalued during the South Asian financial crisis, which rendered the products manufactured by these companies still cheaper in international markets. Despite all these disadvantages, RSL was able to gain a foothold through constant adaption of their products according to the customer requirements in the highly quality conscious international yarn market and was exporting 95% of its total produce by the beginning of the year 2002. Rajasthan Synthetics Ltd. had fine-tuned its distribution channels according to the type of markets and size of orders from the customers. In line with this policy the export to Middle East, Far East and Turkey was carried out through agents. Similarly, low volume export of fancy yarn requirements was also catered through agents. While dealing with importers directly, RSL strictly followed the policy of exports against confirmed Letter of Credits only. The company directly exported to important clients in Belgium, England and France. The domestic market was also served through an agency system. Rajasthan Synthetics Ltd. considered inventories as an unnecessary waste and kept minimum possible inventories while ensuring required level of service. To ensure that the inventories were held to a minimum, the manufacturing plan consisted of 60 to 70% against customer orders, 30 to 40% against anticipated sales and 2% capacity was reserved for new product development. A Strategic Management Committee (SMC) consisting of MD, CEO, GM (marketing) and GM (technical) reviewed the production plan of the manufacturing plant on quarterly basis. The SMC also developed the plans for profitability, product mix and cost minimization. Delivering high-quality products and meeting delivery commitments for every shipment were essential pre-requisites to be successful in the global market place. The company had understood this very early and to ensure that the products manufactured by RSL met the stringent quality requirements of its international customers, the company had developed a full-fledged testing laboratory equipped with ultra modern testing machines like User Tester-3 and Classifault. The company had stringent quality testing checks at every stage of tarn production right from mixing of fiber to packing of finished cones. Its in-house Research and Development and Statistical Quality Control (SQC) divisions ensured consistent technical specifications with the help of sophisticated state-of-the-art machines. A team of professionally qualified and experienced personnel to ensure that the yarn manufactured by the company was in line with international standards backed the company. The company continuously upgraded its product mix and at the same time, new products developed by in-house research and development department were added to the product mix form time to time. RSL‟s management was quick to analyze the potential of these in-house developments and followed a flexible approach in determining the level of value addition. The company had developed a new yarn recently and was selling it under the Rajtang brand name. This new yarn was stretchable in three dimensions, absorbed moisture quickly, was soft and silky and fitted the body. This yarn was extracted from natural products and being body-friendly, was in great demand in international markets. Looking at the higher value addition possibilities RSL decided to forward integrate and started manufacturing fabric, using Rajtang and provided ready-made garments like swimming suit, tracksuit, undergarments, tops, slacks and kids dresses. The ready-made dresses from the fabric were being manufactured on the specifications and designs of RSL. The management decided to market these products under the brand name “Wear-it” through Wearwell Garments Pvt. Ltd., an associate company of RSL, to ensure Examination Paper of Supply Chain Management 9 IIBM Institute of Business Management
  • 104. that RSL did not lose its focus. The Managing Director of RSL felt that continuous adaptability to market requirements through a flexible approach, cost cutting in every sphere of operations and team approach to management had taken them ahead. However, RSL had become highly dependent on the volatile export market and if it was not able to retain the international market it would have to re-establish itself in the domestic market, which was not an easy task. 1. What marketing strategy should RSL adopt to remain competitive in the international market? 2. Has the company taken the right decision to forward integrate and enter into the highly volatile garment market? Caselet 2 Popular mythology in the United States likes to refer to pre-World War II Japan as a somewhat backward industrial power that produced and exported mostly trinkets and small items of dubious quality bought by Americans impoverished by the Great Depression. Few bring up the fact that, prior to the Pearl Harbor attack, Japan had conquered what are now Korea, Manchuria, Taiwan, and a large portion of China, Vietnam, and Thailand; and by the end of 1942 Japan had extended its empire to include Burma, the Philippines, Indonesia, Malaysia, Thailand, Cambodia, New Guinea, plus many strings of islands in the eastern Pacific Ocean. Its navy had moved a large armada of worships 4,000 miles across the Pacific Ocean, in secret and in silence, to attack Pearl Harbor and then returned safely home. Manufacturers capable of producing only low-grade goods don‟t accomplish such feats. High-quality standards for military hardware, however, did not extend to civilian and export goods, which received very low priority during the war years. Thus the perception in the United States for a long time before and then immediately after the war had nothing to do with some inherent character flaw in Japanese culture or industrial capability. It had everything to do with Japan‟s national priorities and the availability of funds and material. Following Japan‟s surrender in 1945, General MacArthur was given the task of rebuilding the Japanese economy on a peaceful footing. As part of that effort an assessment of damage was to be conducted and a national census was planned for 1950. Deming was asked in 1947 to go to Japan and assist in that effort. As a result of his association with Shewhart and quality training, he was contacted by representatives from the Union of Japanese Scientists and Engineers (JUSE), and in 1950, Deming delivered his now famous series of lectures on quality control. His message to top industry leaders, whom he demanded to attend, and to JUSE was that Japan had to change its image in the United States and throughout the world. He declared that it could not succeed as an exporter of poor quality and argued that the tools of statistical quality control could help solve many quality problems. Having seen their country devastated by the war, industry and government leaders were eager to learn the new methods and to speed economic recovery. Experience was to prove to Deming and others that, without the understanding, respect, and support of management, no group of tools alone could sustain a long-term quality improvement effort. 1. How could have the SQC approach, been useful in solving the immediate problems of Japan? 2. If you were among one of the management members, what would have been your first insight? END OF SECTION B Examination Paper of Supply Chain Management 10 IIBM Institute of Business Management
  • 105. Section C: Practical Problems (30 marks)  This section consists of Long Questions.  Answer all the questions.  Each question carries 15 marks. 1. A sample of 30 is to be selected from a lot of 200 articles. How many different samples are possible? 2. In Dodge‟s CSP-1, it is desired to apply sampling inspection to 1 piece out of every 15 and to maintain an AOQL of 2%. What should be the value of i? END OF SECTION C S-2-301012