Dbm iibm case study solutions & multiple answers 1

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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.

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

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

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.

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

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.

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

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

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

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
- - 20
2 - + 30
3 + - 40
4 + + 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
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”.

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 self-managing mini, micro and mega-teams were formed and assigned
responsibility and accountability under dynamic leaders. By 1995 the Calcutta plant of Philips India
became a model factory for its major competitors to envy-its operations and turnaround. The R&D section
took the leading role for spearheading the company with its smart people and well equipped laboratories.
The posters claiming “quality” were exhibited in the premises and all working areas. All this made the
Calcutta plant a showpiece of Philips. It became the company’s best bet for an international
manufacturing center. The progress due to teamwork and quality orientation was so impressive that it led
the company to achieve the internationally most coveted- The European Quality Award. The company
also obtained certification of Environmental management system EMS 14001 which gave it a further
boost in improving its sagging image during the previous 4-5 years from 1990 onwards.
In a nutshell, five beliefs helped the management in its revival. These five beliefs are: (i) mission
statement, (ii) revolve around valuing, (iii) trusting and creating trustworthiness, (iv)respecting the people
and using their brainpower in teams, and (v) continuously motivating them. A few other things which
helped the company are: propagating employee ship. TQM was used to bring about the much needed
culture change, open communication, sharing information, sharing problems openly, and an appeal to
labour unions to uphold the pride of Calcutta. Moreover, the company started operating in 3 shifts instead
of only general shift over the previous time period. The continuous improvement through structured
Kaizen activities was adopted as a way of day-to-day work improvement in assignments. A suggestion
scheme was introduced which started getting a record Examination Paper of Quality Management

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

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
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:
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
2. The producer’s risk is represented by the symbols
a. Alpha
b. Beta
c. Gamma
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
Examination Paper of Quality Management

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

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

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

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, All-cargo 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
-day delivery by 10:30 a.m.,

-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 well-developed 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 cross-functional 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

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
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
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

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
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, Kare-
Full 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
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
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)
4. MRD stands for:
a. Medical Records Department
b. Medicine Records Department
c. Medicine Release Department
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
2
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
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
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
10. Meeting in hospital whose purpose is to pass on information received from agencies is:
a. Informative Meeting
b. Consultative Meeting
c. Executive Meeting
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?
4. Write down the different members of Appointment committee of the hospital.
END OF SECTION A
3
Section B: Caselets (40 marks)
This section consists of Caselets.
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
4
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
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
5
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.
Each question carries 15 marks.
1. Write in brief about structure and function of Hospital Organization.
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
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
7
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
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
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
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)
2. Prototyping is sometimes called:
a. ASD
b. RSD
c. RAD
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)
6. KMS stands for:
a. Knowledge memory systems
b. Knowledge making system
c. Knowledge management systems
Examination Paper: Information Technology
2
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
d. Electronic Binary Coded Data Interchange Code
10. The smallest element of data is called:
a. Byte
b. Bit
c. Giga byte
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

3
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
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
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’?
This section consists of Long Questions.
Each question carries 10 marks.
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
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)
2. Prototyping is sometimes called:
a. ASD
b. RSD
c. RAD
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)
6. KMS stands for:
a. Knowledge memory systems
b. Knowledge making system
c. Knowledge management systems
2
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
d. Electronic Binary Coded Data Interchange Code
10. The smallest element of data is called:
a. Byte
b. Bit
c. Giga byte
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

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