IIBM – Total Quality Management Answer sheet

IIBM MBA CASE LETS ANSWER SHEETS

Q1. In Total Quality Management, what does the ‘Quality’ word mean?

1. a) Degree of excellence in a product or service

1. b) Degree of performance

1. c) Degree of work`

1. d) Strength of the company

Q2. Quality can be quantified as :

1. a) Q = P % E

1. b) Q = P / E

1. c) Q = P * E

1. d) None Where P = Performance, and E = Expectations

Q3. What could be the dimension of Quality?

1. a) Conformance

1. b) Durability

1. c) Aesthetics

1. d) All above

Q4. An effective TQM program is often referred to as :

1. a) Listening to the voice of consumers

1. b) Listening to the voice of customers

1. c) Both (a) & (b)

1. d) None

Q5. The most important consideration of an effective TQM is

1. a) Maximize profit

1. b) Provide high quality

1. c) Customer satisfaction

1. d) Minimize expenses

Q6. Who said this, “Even if you’re on the right track, you’ll get run over if you just sit there.”a) Will Rogers

1. b) Shewhart

1. c) Joseph M. Juran

1. d) Phillip B. Crosby

Q7. “……………….” is we, not me; mission, not my show; vision, not division; and community, Not domicile.”

1. a) Democracy

1. b) Membership

1. c) Management

1. d) Leadership

Q8. Knowledge is what to do; the desire is the motivation or wants to do; and the skill is the…..

1. a) When to do?

1. b) How to do?

1. c) What to do

1. d) None

Q9. A body of principles or standards of human conduct that govern the behavior of individuals & organizations.

1. a) Synergy

1. b) Ethics

1. c) Conduct

1. d) Nature

Q10. Quality is judged by

1. a) Manager

1. b) Director

1. c) Government

1. d) Customers

Q11. A desired future stage of an organization is

1. a) Policies

1. b) Mission

1. c) Value

1. d) Vision

Q12. A customer could be

1. a) Internal

1. b) External

1. c) Both (a) & (b)

1. d) None

Q13. A particular tool for obtaining opinions & perceptions about organizations products & services.

1. a) Customer questionnaire

1. b) Personal interview

1. c) Telephonic interview

1. d) All above

Q14. Clients are the people for whom the company doing the survey, and customers are the ones

1. a) Who checks the product or services

1. b) Who uses the product or services

1. c) Who takes the information about the product

1. d) None

Q15. 90% of all customer contact comes through an organization’s

1. a) Front–line employees

1. b) Back–line employees

1. c) Manager

1. d) Director

Q16. The connection between customer satisfaction and the bottom line is

1. a) Customer interest

1. b) Customer retention

1. c) Customer requirement

1. d) None

Q17. A useful tool that provides information to improve processes and establish realistic goals

1. a) SERVQUAL

1. b) Quality function deployment

1. c) Gap analysis

1. d) None

Q18. Who said, “Customer don’t buy products, they buy result.”

1. a) Joseph J. Juran

1. b) Phillip B. Crosby

1. c) Peter Drucker

1. d) Will Rogers

Q19. A document that defines the team’s mission, boundaries, the background of the problem, team’s authority, duties and resources.

1. a) Sponsor

1. b) Team charter

1. c) Team manager

1. d) Team leader

Q20. When one person proposes a decision and another agrees, we have the

1. a) Non-decision

1. b) Minority rule decision

1. c) Unilateral decision

1. d) Handclasp decision

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Q21. Item that includes a process, such as brainstorming, affinity diagram, discussion, the presenters and times guidelines is

1. a) Company’s logo

1. b) Company’s Name

1. c) An agenda

1. d) Moto

Q22. The most difficult stage as members start to realize the amount of works that lies ahead is

1. a) Forming

1. b) Worming

1. c) Performing

1. d) Storming

Q23. The S.T.A.R. = ‘Suggestions’, ‘Team’, ‘Actions’, ‘…………..’.

1. a) Response

1. b) Reliability

1. c) Results

1. d) None

Q24. An ongoing process that must occur if an organization is to continue to exist in the competitive world is

1. a) Change

1. b) Repair

1. c) Revenue

1. d) None

Q25. The planning component of process involvement begins with

1. a) Internal customers

1. b) External customers

1. c) Both (a) & (b)

1. d) None

Q26. Which problem occurs, when a structured system having standardized inputs, processes, and outputs is performing unacceptably from the user’s viewpoint?

1. a) Unstructured problems

1. b) Product design problems

1. c) Compliance problems

1. d) Process design problems

Q27. PDSA stands for

1. a) Plan – Do – Study – Act

1. b) Process Development Structured Analysis

1. c) Both (a) & (b)

1. d) None

Q28. Kaizen improvement focuses on which principle to produce only the units in the right quantities, at the right time, and with the right resources.

1. a) Do–it–fast

1. b) Just–in–time

1. c) Both (a) & (b)

1. d) None

Q29. The Greek symbol for the statistical measurement of dispersion called standard deviation

1. a) α

1. b) β

1. c) λ

1. d) σ

Q30. Competency levels of Six Sigma individuals use the Karate designations of

1. a) Green Belt

1. b) Black Belt

1. c) Master Black Belt

1. d) All above

Q31. The key element to a partnering relationship is

1. a) Long–term commitment

1. b) Trust

1. c) Shared vision

1. d) All above

Q32. Sourcing, which is the use of two or more suppliers for an item is

1. a) Sole sourcing

1. b) Multiple sourcing

1. c) Single sourcing

1. d) None

Q33. The fourth and final phase, i.e., the identity check occurs

1. a) When the customers perform identity checks

1. b) When the suppliers perform identity checks

1. c) When both the customers & suppliers perform identity checks

1. d) None

Q34. A supplier rating system is based on

1. a) Quality

1. b) Delivery

1. c) Service

1. d) All above

Q35. The score of a supplier can be calculated as

1. a) Performance matrix * price index

1. b) Target price * actual price

1. c) Performance matrix * actual price

1. d) None

Q36. OEMs must maintain supply chain development through

1. a) Zero defects

1. b) 100 % on-time delivery

1. c) A process for continuous improvement

1. d) All above

Q37. A technique of ‘Performing Measure Presentation’ benchmarks the process & shows favorable & unfavorable trends in the measure

1. a) Control chart

1. b) Time service graph

1. c) Capability index

1. d) Cost of poor quality

Q38. Costs can generally be considered the cost incurred for the inspection and/or test of purchased suppliers or services to determine acceptability for use.

1. a) Operations appraisal costs

1. b) External appraisal costs

1. c) Miscellaneous quality evaluations

1. d) Purchasing appraisal costs

Q39. Purchasing failure costs are incurred due to

1. a) Defected item rejects

1. b) Purchased item rejects

1. c) Both (a) & (b)

1. d) None

Q40. The efficiency of a business is measured in terms of

1. a) Rupees

1. b) Paisa

1. c) Dollars

1. d) Pound

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Q41. An annual award to recognize U.S. organizations for performance excellence

1. a) Golden Peacock Award

1. b) IMC Ramakrishna Bajaj National Award

1. c) Malcolm Baldrige National Award

1. d) None

Q42. In the implementation of a quality cost program, to determine if the program can be beneficial to the organization is

1. a) Last step

1. b) First step

1. c) Second step

1. d) None

Q43. An increasingly popular tool, used extensively by both manufacturing & service organizations, including Xerox, AT&T, Motorola, Ford & Toyota to reach at a target point

1. a) SERQUAL

1. b) Benchmarking

1. c) QFD

1. d) QC

Q44. When deciding what to benchmark, it is best to begin by thinking about the

1. a) Mission and vision

1. b) Vision and critical success factors

1. c) Vision

1. d) Mission and critical success factors

Q45. Benchmarking can be

1. a) Internal

1. b) Competitive

1. c) Process

1. d) All above

Q46. The technique of conducting original research is

1. a) Questionnaires

1. b) Site visits

1. c) Focus on groups

1. d) All above

Q47. Benchmarking is a waste of time, if

1. a) Change does not occur as a result

1. b) Change occurs as a result

1. c) There is no achievement

1. d) Can’t say

Q48. E – E-learning is offered in a variety of formats such as

1. a) CD – ROM based

1. b) LAN based

1. c) Web-based

1. d) All above

Q49. The International Organization for Standardizations (ISO) was founded in Geneva, Switzerland, in

1. a) 1952

1. b) 1948

1. c) 1961

1. d) 1946

Q50. The current quality system is

1. a) AS9100

1. b) ISO / TS 16949

1. c) TL 9000

1. d) All above

Q51. The supply chain is defined as

1. a) Suppliers → Organization → Customers

1. b) Organization → Suppliers → Customers

1. c) Suppliers → Customers → Organization

1. d) Organization → Customers → Suppliers

Q52. Which is not a step of ‘Implementation’ of a Quality Management System?

1. a) Top Management Commitment

1. b) Appoint an implementation team

1. c) Writing the documents

1. d) Appoint the management representatives

Q53. Technical Committee 207 (TC 207) is formed by

1. a) RAB

1. b) SAGE

1. c) ASQ

1. d) None

Q54. What is the global benefit of an environmental management system?

1. a) Facilitate & remove trade barriers

1. b) Improve the environmental performance of planet earth

1. c) Build consensus

1. d) All above

Q55. ‘Closely knit’ describes

1. a) TNC’s eternal relationship

1. b) TNC’s internal relationship

1. c) Both (a) & (b)

1. d) None

Q56. ………………, a golf equipment manufacturer recently certified to both ISO 9000 & ISO 14000.

1. a) Escorts

1. b) Hyundai

1. c) Ping

1. d) Tata

Q57. Ensure that EMS conforms to plans & is being properly implemented & maintained is the purpose of

1. a) Records

1. b) EMS Audit

1. c) Monitoring & Measuring

1. d) Nonconformance & Corrective

Q58. The Quality Function Deployment is used, to express information

1. a) Algebraic values

1. b) Numeric values

1. c) Alphanumeric values

1. d) None

Q59. Quality Function deployment is a planning tool used to

1. a) Maximizing the profit

1. b) Minimizing the expenses

1. c) Fulfill customer expectations

1. d) Making goodwill

Q60. Which source of customers describes their expectations?

1. a) Voice of customers

1. b) Actions of customers

1. c) Nature of customers

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Q61. Which method is well-suited for gathering a large amount of data?

1. a) Interrelationship diagram

1. b) Tree diagrams

1. c) Cause – and – Effect diagrams

1. d) All above

Q62. The primary planning tool used in QFD is

1. a) QC

1. b) Gap Analysis

1. c) Benchmarking

1. d) HOQ

Q63. The absolute weight is calculated by

1. a) AW = (Importance to customer)*(scale up factor)*(sales points)

1. b) AW = (Importance to customer)*(scale up factor)

1. c) AW = (scale up factor)*(sales points)

1. d) None

Q64. Why the term ‘Sequential Engineering’ is used?

1. a) To describe the profit

1. b) To describe the process

1. c) To describe the performance

1. d) To describe the quality

Q65. The benefit of Quality by Design techniques is

1. a) Faster production development

1. b) Better quality

1. c) Less work in progress

1. d) All above

Q66. Tools that are mostly used in quality design technique

1. a) CAD

1. b) CAM

1. c) Both (a) & (b)

1. d) None

Q67. Software that provides a means for individuals to communicate their opinions within a group in a structured & creative manner is

1. a) Enterprise resource planning software

1. b) Product data management software

1. c) Electronic meeting software

1. d) None

Q68. The finite element analysis software packages are widely regarded as the most powerful tool available for

1. a) A design engineer

1. b) Documentation

1. c) Production

1. d) All above

Q69. FMEA. Is an analytical technique to identify foreseeable failure modes of a product or process & plan for their elimination stands for

1. a) Failure Modification & Effect Analysis

1. b) Foreign Money Exchange and Analysis

1. c) Failure Mode & Effect Analysis

1. d) None

Q70. The type of FMEA is

1. a) Design FMEA

1. b) Process FMEA

1. c) Equipment FMEA

1. d) All above

Q70. The type of FMEA is

1. a) Design FMEA

1. b) Process FMEA

1. c) Equipment FMEA

1. d) All above

Q71. How many stages of FMEA?

1. a) 8

1. b) 6

1. c) 4

1. d) 3

Q72. The effectiveness of failure as perceived by the customer is called

1. a) Minor effect(s) of failure

1. b) Potential effect(s) of failure

1. c) High effe4ct(s) of failure

1. d) All above

Q73. Which section of the document is a relative of the assessment of the ability of the design control to detect either a potential cause or the subsequent failure mode before the component, sub-system, or system is completed for production?

1. a) Occurrence(O)

1. b) Classification (CLASS)

1. c) Detection (D)

1. d) Security (S)

Q74. The concept of caveat Emptor’, which resulted from Adam Smith’s “invisible Hand” theory of commercial regulation, means

1. a) Let the buyers beware

1. b) Let the seller beware

1. c) Let the consumer beware

1. d) Let the government beware

Q75. The first requirement of an expert technical witness is to be ……………………… in the area of testimony.

1. a) Non–technical

1. b) Perfect

1. c) Technically competent

1. d) Knowledgeable

Q76. Technique, which is a product safety design technique is

1. a) Fault-free analysis

1. b) Fail–safe concepts

1. c) Coded identifications for traceability

1. d) All above

Q77. If the product is referred to as “safe” & a person is injured that action establishes that the product is

1. a) Good

1. b) Best

1. c) Defective

1. d) Not safe

Q78. A communication between the marketplace and the organization concerning the performance of the product is

1. a) A complaint

1. b) A claim

1. c) Both (a) & (b)

1. d) None

Q79. An adequate prevention program can substantially reduce the risk of damaging litigation. This statement is as same as the proverb

1. a) An ounce of prevention is worth a pound of cure

1. b) Barking dogs seldom bite

1. c) Old is gold

1. d) Two birds with a single stone

Q80. The goal of TPM is

1. a) Maintaining & improving equipment capacity

1. b) Maintaining equipment for life

1. c) Encouraging input from all employees

1. d) All above

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Q81. Operating time can be calculated as

1. a) T = P + D

1. b) T = D – P

1. c) T = P – D

1. d) T = P * D Where P = Planned operating time, D = Downtime

Q82. A tool, that could be a key to finding the root cause of a problem by focusing on the process rather than on people is

1. a) Brainstorming

1. b) Why Why tool

1. c) CAM

1. d) Tree Diagram

Q83. A tool, which is used to reduce any broad objective into increasing levels of detail in order to achieve the objective is

1. a) Matrix Diagram

1. b) Tree Diagram

1. c) Brainstorming

1. d) Why Why tool

Q84. Prioritization matrices based on weighted criteria using a combination of

1. a) Tree & Matrix Diagram

1. b) Tree & Affinity Diagram

1. c) Affinity & Matrix Diagram

1. d) Brainstorming & Why Why Tool

Q85. The tool which can be used in a wide variety of situations and is simple to use by individuals and/or teams is

1. a) Why Why tool

1. b) Forced Field Analysis

1. c) Nominal Group Technique

1. d) All above

Q86. The activity network diagram is also known as

1. a) PERT

1. b) CPM

1. c) Arrow diagram

1. d) All above

Q87. PDPC stands for

1. a) Process Decision Program Chart

1. b) Practice Decision Program Chart

1. c) Process Development

1. d) Path Decision Process Chart

Q88. A Pareto diagram is a

1. a) Ending Process

1. b) Critical Process

1. c) Never Ending Process

1. d) Easy Process

Q89. Diagrams are used to investigate either a “bad” effect and to take action to correct the cause that effect & to learn those causes that are responsible

1. a) Pareto diagrams

1. b) Tree diagrams

1. c) PERT diagrams

1. d) Cause and effect diagrams

Q90. Which is the first “statistical” SPC technique?

1. a) Histogram

1. b) Ungrouped Data

1. c) Check Sheets

1. d) None

Q91. An arrangement of raw numerical data in ascending or descending order of magnitude is

1. a) Structure

1. b) Link List

1. c) Queue

1. d) Array

Q92. Statistics is defined as the science that deals with

1. a) Collection

1. b) Tabulation

1. c) Presentation

1. d) All above

Q93. Which tool of statistics describes how the data are spread out or scattered on each side of the central value?

1. a) Measures of dispersion

1. b) Forced field analysis

1. c) Nominal group technique

1. d) Tree diagram

Q94. Experimental design can be used to

1. a) Improve a process by increasing its performance and Eliminating troubles

1. b) Identify the variables to control the process

1. c) Improve an existing product or develop a new product

1. d) All above

Q95. A statistical decision-making process in which inferences are made about the population from a sample is

1. a) Hypothesis Testing

1. b) Orthogonal Design

1. c) t- reference Distribution

1. d) None

Q96. What does the word ‘Orthogonal’ mean?

1. a) The final product is experimented

1. b) The design of the actual product is based

1. c) The experimental design is balanced

1. d) None

Q97. In any statistical study, analysis & calculations yield a single point or value, which is called a

1. a) Point estimate

1. b) Analytical point

1. c) Full factor

1. d) None

Q98. Which is a stage of product development?

1. a) Process design

1. b) Product design

1. c) Production

1. d) All above

Q99. Which is the fundamental part of the Taguchi approach?

1. a) Iron casting

1. b) Grill

1. c) Parameter design

1. d) Confirmation run

Q100. An ongoing process that must occur if an organization is to continue to exist in the competitive world is called

1. a) Change

1. b) Renewal

1. c) Enhancement

1. d) None

 

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IIBM – Telecommunications Essentials Answer sheet

Q1. This band transmits uplink around the 6GHz range & downlink around the 4GHz range.

1. C-Band
2. Ku-Band
3. Ka-Band
4. L-Band

Q2. On these trunks, traffic flows in both the incoming & outgoing directions.

1. DOD trunks
2. DID trunks
3. Two-way local exchange trunks
4. None

Q3. As networks become more digitized, fewer conversions take place, and voice can be carried at a higher quality over fewer flower bits per second.

1. PCM
2. ADPCM
3. DCSs
4. DLCs

Q4. _____________ is a standard for storage & retrieval of moving pictures & audio on storage media.

1. MPEG-1
2. MPEG-2
3. MPEG-4
4. MPEG-7

Q5. It is an open standard for digital video transmission over cable that was defined by ETSI & ratified in 1994.

1. DVB-H
2. DVB-T
3. DVB-C
4. DVB-S & DVB-S2

Q6. It is the oldest of DSL technologies & a symmetrical service, measuring that it provides equal bandwidth in both directions.

1. HDSL
2. SDSL
3. G. SHDSL
4. ADSL

Q7. It is the newest spread spectrum technique, and its main purpose is to resolve the problems

1. CDMA
2. TDMA
3. OFDM
4. ADPCM

Q8. It is a new concept in multimedia mobile broadcasting service, converging broadcasting and telecommunications.

1. DMB
2. OFDM
3. VF
4. None

Q9. It is a Niche broadband wireless technology that at first appears to compete for market share with mobile WiMax and mobile-fi.

1. HiperAccess
2. HiperMan
3. iBursrt
4. ETSI BRAN

Q10. In-FUSIO‟s (www. Infusion.com) __________ is best known for its business model, which supports a variety of revenue models, including pay-per-level and SMS high scores.

1. JavaME
2. BREW
3. EXEn
4. Mophun

Part Two:

Q1. State the protocols & implementations that are associated with Mesh Network.

Q2. Write a short note on HFC Architecture and draw the topology of an HFC network.

Q3. What is the IP multimedia system?

Q4. What are Symmetric encryption?

Q5. Briefly explain the major layers of IPT network taxonomy.

 

Case let 1

Q1. How does this case demonstrate the importance of data transmission rates in business? Does it imply that people in Japan are willing to accept lower data rates than people in the U.S.?

Q2. Some people say that the Internet fosters globalization by providing worldwide access to the Web. Discuss arguments for and against this statement.

Case let 2

Q1. Why might portable computing and desktop computing call for different types of microprocessors?

Q2. Review the performance variables. In which areas did the Transmeta chip try to excel?

Section C: Applied Theory (30 Marks)

Q1. DNS is a distributed database system that operates based on a hierarchy of names. Explain the statement & also explain how DNS servers work.

Q2. Explain the workings of GSM, UWC, CdmaOne & PDC technologies of digital cellular.

IIBM – Telecommunications Essential Answer sheet

Multiple Choices:

1. This band transmits uplink around the 6GHz range & downlink around the 4GHz range.
2. C-Band
3. Ku-Band
4. Ka-Band
5. L-Band

1. On these trunks, traffic flows in both the incoming & outgoing directions.
2. DOD trunks
3. DID trunks
4. Two-way local exchange trunks
5. None

1. As networks become more digitized, fewer conversions take place, and voice can be carried at a higher quality over fewer flower bits per second.
2. PCM
3. ADPCM
4. DCSs
5. DLCs

1. _____________ is a standard for storage & retrieval of moving pictures & audio on storage media.
2. MPEG-1
3. MPEG-2
4. MPEG-4
5. MPEG-7

1. It is an open standard for digital video transmission over cable that was defined by ETSI & ratified in 1994.
2. DVB-H
3. DVB-T
4. DVB-C
5. DVB-S & DVB-S2

1. It is the oldest of DSL technologies & a symmetrical service, measuring that it provides equal bandwidth in the both directions.
2. HDSL
3. SDSL
4. G. SHDSL
5. ADSL

1. It is the newest spread spectrum technique, and its main purpose is to resolve the problems
2. CDMA
3. TDMA
4. OFDM
5. ADPCM

1. It is a new concept in multimedia mobile broadcasting service, converging broadcasting and telecommunications.
2. DMB
3. OFDM
4. VF
5. None

1. It is a Niche broadband wireless technology that at first appears to complete for market share with mobile WiMax & Mobile-Fi.
2. HiperAccess
3. HiperMan
4. iBursrt
5. ETSI BRAN

1. In-FUSIO‟s (www. Infusion.com) __________ is best known for its business model, which supports a variety of revenue models, including pay-per-level and SMS high scores.
2. JavaME
3. BREW
4. EXEn
5. Mophun

Part Two:

1. State the protocols & implementations that are associated with Mesh Network.
2. Write a short note on HFC Architecture and draw the topology of an HFC network.
3. What is the IP multimedia system?
4. What is Symmetric Encryptions?
5. Briefly explain the major layers of IPT network taxonomy.

Case let 1

Questions:

1. How does this case demonstrate the importance of data transmission rates in business? Does it imply that people in Japan are willing to accept lower data rates than people in the U.S.?
2. Some people say that the Internet fosters globalization by providing worldwide access to the Web. Discuss arguments for and against this statement.

 

Case let 2

Questions:

1. Why might portable computing and desktop computing call for different types of microprocessors?
2. Review the performance variables. In which areas did the Transmeta chip try to excel?

Section C: Applied Theory (30 Marks)

1. DNS is a distributed database system that operates based on a hierarchy of names. Explain the statement & also explain how DNS servers work.

1. Explain the workings of GSM, UWC, CdmaOne & PDC technologies of digital cellular.

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IIBM – Supply Chain Management Answer sheet

Q1. When demand is steady, the cycle inventory for a given lot size (Q) is given by:

1. Q/4
2. Q/8
3. Q/6
4. Q/2

Q2. There are two firms ‘x’ and ‘y’ located on a line of distance demand(0-1) at ‘a’ and ‘b’ respectively, the customers are uniformly located on the line, on keeping the fact of splitting of the market, the demand of firm ‘x’ will be given by:

1. (a+b)/2
2. a+(1-b-a)/2
3. (1+b-a)/2
4. a+(a-b)/2

Q3. Push process in supply chain analysis is also called:

1. Speculative process
2. Manufacturing process
3. Supplying process
4. Demand process

Q4. If the Throughput is ‘d’ and the flow time is ‘t’ then the Inventory ‘I’ is given by:

1. I *d=t
2. I=t+d
3. d=I*t
4. I =d*t

Q5. The forecasting method is:

1. Time series
2. causal
3. Qualitative
4. All the above

Q6. Component of order cost include:

1. Handling cost
2. Occupancy cost
3. Receiving costs
4. Miscellaneous costs

Q7. How many distinct types of MRO inventory are there?

1. One
2. Four
3. Three
4. Two

Q8. The supply chain driver is:

1. Inventory
2. Return ability
3. Fulfillment
4. All of above

Q9. SRM stands for:

1. Strategic Relationship Management
2. Supply Return Ability Management
3. Supplier Relationship Management
4. None of the above

Q10. Discount factor equals to, where k is the rate of return.

1. 1/1+k
2. 2/1+k
3. 1/1-k
4. 1/2+k

Part Two:

Q1. Explain the “zone of strategic fit”.

Q2. Explain the “scope of strategic fit”.

Q3. What do you understand by “Stimulation Forecasting Method”?

Q4. Write a note on “Obsolescence (or spoilage) cost”.

Q5. Define “Square Law” in the safety inventory of supply chain management.

Q6. What does the word “postponement” signify in the supply chain?

Q7. What do you understand by the term “tailored sourcing”?

Q8. Explain the term “Outsourcing”.

Q9. Write a note on “threshold contracts” for increasing agent efforts.

Q10. How much safety inventory of each variant must Orion keep without component commonality? What are the annual holding costs?

Q11. How much safety inventory must be kept in component form if Orion uses common components for all variants? What is the annual holding cost? What is the increase in component cost using commonality? Is commonality justified across all variants?

Q12. At what cost of commonality will complete commonality be justified?

Q13. At what cost of commonality will commonality across the low-volume variants be justified?

Q14. How many units of each type of player should the electronics manufacturer order if there are no capacity constraints

Q15. How many times of each type of player should the electronics manufacturer order if the available is 140,000? What is the expected profit?

Q16. Consider two products with the same margin carried by a retail store. Any leftover units of one product are worthless. Leftover units of the other product can be sold to outlet stores. Which product should have a higher level of availability? Why?

Q17. McMaster-Carr sells maintenance, repair, and operations equipment from five warehouses in the United States. W.W. Grainger sells products from more than 350 retail locations, supported by several warehouses. In both cases, customers place orders using the Web or on the phone. Discuss the pros and cons of the two strategies.

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IIBM – Strategic Management_1 Answer sheet

Q1. These are the plans formulated to achieve strategic goals.

1. Tactical plans
2. Strategic plans
3. Operational plans
4. Standing plans

Q2. This strategy facilitates specialization by establishing a position of overall cost leadership, differentiation, or both, but only within a particular segment, in an entire market.

1. Specific
2. Focus
3. Directive
4. Differentiation

Q3. This plan defines the actions of major departments and other sub-units that are required in the execution of a strategic plan.

1. Tactical plan
2. Operational plan
3. Single-use plan
4. Long-term plan

Q4. This is a distinctive business or collection of related businesses, that can be managed relatively independently of other businesses within the organization

1. Functional unit
2. Department unit
3. Organizational unit
4. Strategic business unit

Q5. These strategic plans of the organization have a time frame exceeding five years.

1. Short-term plans
2. Single-use plans
3. Long-term plans
4. Intermediate plans

Q6. Operational plans are mainly oriented towards issues that usually have a time horizon of

1. About five years
2. 3 to 5 years
3. 1 to 2 years
4. One year or less

Q7. These refer to the determination of the purpose and the basic long-term objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary to achieve these aims.

1. Strategies
2. Plans
3. Policies
4. Procedures

Q8. These strategies provide guidelines for organizational growth

1. Organizational
2. Finance
3. Marketing
4. Growth

Q9. There are three major kinds of standing plans: policies, rules, and

1. Projects
2. Programs
3. Procedures
4. Standards

Q10. This step in the planning process involves putting the plan into action.

1. Implementation
2. Selection
3. Evaluation
4. Review

Part Two:

Q1. Explain the ‘Adaptive mode’ of strategic management.

Q2. What is ‘Behavioral theory’?

Q3. Write about the ‘Delphi technique’ of forecasting.

Q4. What are the basic steps one should follow for the ‘Value chain analysis’?

Q5. If you were appointed as the CEO of AEL, Would you like to go for a separate design division?

Q6. Critically evaluate the plans of AEL.

Q7. Do you think the target set by AEL was realistic? Comment.

Q8. Comment on the management strategies adopted by AEL.

Q9. As Kartik, what would have been your strategies to deal with the defaulters?

Q10. What steps should Kartik adopt before expansion and diversification? Would it be a wise decision to diversify at this stage?

Q11. Strategic planning involves both, the development of organizational objectives and the laying down of specifications about how they will be accomplished. In this context, outline the major steps in the strategic planning process.

Q12. Implementing strategies effectively is of great importance. The success of a strategy depends on how effectively it is implemented. Elucidate.

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Meeting Deadlines: Timely submission is a significant goal for academic writing professionals. They work within specified deadlines to provide students with completed assignments, enabling them to submit their work punctually.

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Supporting Learning and Comprehension: Beyond completing assignments, academic writing professionals aim to support students\’ learning by providing explanations, analysis, and additional resources that help students grasp the subject matter more comprehensively.

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IIBM – Strategic Management Answer sheet

MM.100
Section A: Objective Type & Short Questions (30 marks)
Part one:
Multiple choice:

1. Horizontal integration is concerned with
   (1)
   a) Production
   b) Quality
   c) Product planning
   d) All of the above
2. It refers to formal and informal rules, regulations, and procedures that complement the company structure (1)
   a) Strategy
   b) Systems
   c) Environment
   d) All of the above

III. Strategic management is mainly the responsibility of (1)
a. Lower management
b. Middle management
c. Top management
d. All of the above

1. Formal systems are adopted to bring ________ & amalgamation of decentralized units into product groups.
   (1)
   a. Manpower
   b. Co-ordination
   c. Production
   d. All of the above

IV.Like roots of a tree, ________of organization is hidden from direct view. (1)
a. Performance
b. Strategy
c. Core competence
d. All of the above

1. The actual performance deviates positively over the budgeted performance. This is an indication of ……….. Performance. (1)
2. Superior
3. Inferior
4. Constant
5. Any of the above

1. Criteria for making an evaluation is (are)
   (1)
   a. Consistency with goals
   b. Consistency with the environment
   c. Money
   d. All of the above

VII. Changes in company ………. also necessitates changes in the systems in various degrees (1)
a. structure
b. system
c. strategy
d. Turnover

VIII. Micro environment is the ………. environment of a company. (1)
a. Working
b. Human
c. External
d. Internal

Ans: d. Internal

X Techniques used in environmental appraisal are (1)
a.Single-variable extrapolation/multivariable interaction analysis
b.Structured/ unstructured expert/inexpert opinion
c.Dynamic modes and mapping
d.All of the above

Part Two:

1. Distinguish between a strategy and tactics. (5)
2. Give an outline of the relation between ‘Strategy and Customer’ in brief. (5)
3. Explain in brief the concept of strategic thinking. (5)
4. What are the basic elements of planning? (5)

Section B: Caselets (40 marks)

Caselet 1

Apple’s profitable but risky strategy
When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy.

Early beginnings

To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were particularly easy for customers to use and as a result, were priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniak – to the Palo Alto research laboratories of the Xerox Company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time.
Jobs and Wozniak took the concept back to Apple and developed their own computer – the Apple Macintosh (Mac) – that used this consumer-friendly interface. The Macintosh was launched in 1984. However, Apple did not sell to, or share the software with, rival companies. Over the next few years, this non-co-operation strategy turned out to be a major weakness for Apple.
Battle with Microsoft
Although the Mac had some initial success, its software was threatened by the introduction of Windows 1.0 from the rival company Microsoft, whose chief executive was the well-known Bill Gates. Microsoft’s strategy was to make this software widely available to other computer manufacturers for a license fee – quite unlike Apple. A legal dispute arose between Apple and Microsoft because Windows had many on-screen similarities to the Apple product. Eventually, Microsoft signed an agreement with Apple saying that it would not use Mac technology in Windows 1.0. Microsoft retained the right to develop its own interface software similar to the original Xerox concept.
Coupled with Microsoft’s willingness to distribute Windows freely to computer manufacturers, the legal agreement allowed Microsoft to develop alternative technology that had the same on-screen result. The result is history. By 1990, Microsoft had developed and distributed a version of Windows that would run on virtually all IBM-compatible personal computers – see Case 1.2. Apple’s strategy of keeping its software exclusive was a major strategic mistake. The company was determined to avoid the same error when it
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came to the launch of the iPod and, in a more subtle way, with the later introduction of the iPhone.
Apple’s innovative products
Unlike Microsoft with its focus on a software-only strategy, Apple remained a full-line computer manufacturer from that time, supplying both the hardware and the software. Apple continued to develop various innovative computers and related products. Early successes included the Mac2 and PowerBooks along with the world’s first desktop publishing program – PageMaker. This latter remains today the leading program of its kind. It is widely used around the world in publishing and fashion houses. It remains exclusive to Apple and means that the company has a specialist market where it has real competitive advantage and can charge higher prices.
Not all Apple’s new products were successful – the Newton personal digital assistant did not sell well. Apple’s high price policy for its products and difficulties in manufacturing also meant that innovative products like the iBook had trouble competing in the personal computer marketplace.
Apple’s move into consumer electronics
Around the year 2000, Apple identified a new strategic management opportunity to exploit the growing worldwide market in personal electronic devices – CD players, MP3 music players, digital cameras, etc. It would launch its own Apple versions of these products to add high-value, user-friendly software. Resulting products included iMovie for digital cameras and I DVD for DVD players. But the product that took off was the iPod – the personal music player that stored hundreds of CDs. And unlike the launch of its first personal computer, Apple sought industry cooperation rather than keeping the product to itself.
Launched in late 2001, the iPod was followed by the iTunes Music Store in 2003 in the USA and 2004 in Europe – the Music Store being a most important and innovative development. iTunes was essentially an agreement with the world’s five leading record companies to allow legal downloading of music tracks using the internet for 99 cents each. This was a major coup for Apple – it had persuaded the record companies to adopt a different approach to the problem of music piracy. At the time, this revolutionary agreement was unique to Apple and was due to the negotiating skills of Steve Jobs, the Apple Chief Executive, and his network of contacts in the industry. Apple’s new strategy was beginning to pay off. The iPod was the biggest single sales contributor in the Apple portfolio of products.
In 2007, Apple followed up the launch of the iPod with the iPhone, a mobile telephone that had the same user-friendly design characteristics as its music machine. To make the iPhone widely available and, at the same time, to keep control, Apple entered into an exclusive contract with only one national mobile telephone carrier in each major country – for example, AT&T in the USA and O2 in the UK. Its mobile phone was premium-priced – for
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Examination Paper of Strategic Management
example, US$599 in North America. However, to hit its volume targets, Apple later reduced its phone prices, though they remained at the high end of the market. This was consistent with Apple’s long-term, high-price, high-quality strategy. But the company was moving into the massive and still-expanding global mobile telephone market where competition had been fierce for many years.
And the leader in mobile telephones – Finland’s Nokia – was about to hit back at Apple, though with mixed results. But other companies, notably the Korean company Samsung and the Taiwanese company, HTC, were to have more success later.
So, why was the Apple strategy risky?
By 2007, Apple’s music player – the iPod – was the premium-priced, stylish market leader with around 60 percent of world sales and the largest single contributor to Apple’s turnover. Its iTunes download software had been re-developed to allow it to work with all Windows-compatible computers (about 90 percent of all PCs) and it had around 75 percent of the world music download market, the market being worth around US$1000 million per annum. Although this was only some 6 percent of the total recorded music market, it was growing fast. The rest of the market consisted of sales of CDs and DVDs directly from the leading recording companies.
In 2007, Apple’s mobile telephone – the iPhone – had only just been launched. The sales objective was to sell 10 million phones in the first year: this needed to be compared with the annual mobile sales of the global market leader, Nokia, of around 350 million handsets. However, Apple had achieved what some commentators regarded as a significant technical breakthrough: the touch screen. This made the iPhone different in that its screen was no longer limited by the fixed buttons and small screens that applied to competitive handsets. As readers will be aware, the iPhone went on to beat these earlier sales estimates and was followed by a new design, the iPhone 4 in 2010.
The world market leader responded by launching its phones with touch screens. In addition, Nokia also launched a complete download music service. Referring to the new download service, Rob Wells, senior Vice President for digital music at Universal commented: ‘This is a giant leap toward where we believe the industry will end up in three or four years, where the consumer will have access to the celestial jukebox through any number of devices.’ Equally, an industry commentator explained: ‘[For Nokia] it could be short-term pain for long-term gain. It will steal some of the thunder from the iPhone and tie users into the Nokia service.’ Readers will read this comment with some amazement given the subsequent history of Nokia’s smartphones that is described in Case 9.2.
‘Nokia is going to be an internet company. It is a mobile company and it is making good progress to becoming an internet company as well,’ explained Olli PekkaKollasvuo, Chief Executive of Nokia. There also were hints from commentators that Nokia was likely to make a loss on its new download music service. However, the company was determined to ensure that Apple was given real competition in this new and unpredictable market.

Here lay the strategic risk for Apple. Apart from the classy, iconic styles of the iPod and the iPhone, there is nothing that rivals cannot match over time. By 2007, all the major consumer electronics companies – like Sony, Philips, and Panasonic – and the mobile phone manufacturers – like Nokia, Samsung, and Motorola – were catching up fast with new launches that were just as stylish, cheaper, and with more capacity. In addition, Apple’s competitors were reaching agreements with the record companies to provide legal downloads of music from websites.
Apple’s competitive reaction
As a short-term measure, Apple hit back by negotiating supply contracts for flash memory for its iPod that were cheaper than its rivals. Moreover, it launched a new model, the iPhone 4 that made further technological advances. Apple was still the market leader and was able to demonstrate major increases in sales and profits from the development of the iPod and iTunes. To follow up this development, Apple launched the Apple Tablet in 2010 – again an element of risk because no one knew how well such a product would be received or what its function was. The second generation Apple tablet was then launched in 2011 after the success of the initial model. But there was no denying that the first Apple tablet carried some initial risks for the company.
All during this period, Apple’s strategic difficulty was that other powerful companies had also recognized the importance of innovation and flexibility in the response to the new markets that Apple itself had developed. For example, Nokia itself was arguing that the markets for mobile telephones and recorded music would converge over the next five years. Nokia’s Chief Executive explained that much greater strategic flexibility was needed as a result: ‘Five or ten years ago, you would set your strategy and then start following it. That does not work anymore. Now you have to be alert every day, week, and month to renew your strategy.’
If the Nokia view was correct, then the problem for Apple was that it could find its market-leading position in recorded music being overtaken by a more flexible rival – perhaps leading to a repeat of the Apple\’s failure 20 years earlier to win against Microsoft. But at the time of updating this case, that looked unlikely. Apple had at last found the best, if risky, strategy.

Questions

1. Using the concepts in this chapter undertake a competitive analysis of both Apple and Nokia – who is stronger? (10)
2. What are the problems with predicting how the market and the competition will change over the next few years? What are the implications for strategy development? (10)

Caselet 2

Mr. Ashwin is the marketing manager of the cosmetics. division of the Medwin Drug Company. The company was well known as a leader in new proprietary drug and toiletry products and had a good record of profitability. The cosmetics division had been especially successful in women\’s toiletries and .1/4.-o..,unctitk.:s and in the introduction of new products, It always based its new-product development on market research concerning what Would appeal to women and, after almost invariably test marketing a new product in a few almost invariably test marketing a new product in selected cities, launched it with a heavy advertising and sales promotion program. It had hoped in this way not only to get a large initial share of the markets but also to become so well entrenched that competitors. who soon copied a successful product would not dislodge it from its market share.
After being cautioned by the president of Medwin Drug about the necessity for watching costs more carefully, the division manager became increasingly concerned with two opposing factors in his marketing strategy: ( 1) test marketing of new products (offering them for sale first in a few test cities with area advertising and sales programs) tended increasingly to give competitors advance information on new products, and certain competitors had been able to copy a product almost as soon as Medwin could offer it nationally and profited thereby from Medwin\’s advertising; and (2) national advertising and sales promotion expenses were rising so fast that a single major product failure would have an important impact on division profits, on which his annual bonus was primarily determined. On the one hand, he recognized the wisdom of test marketing, but he disliked the costs and dangers involved. On the other hand, he hardly wished to take the unknown risk of embarking on a national program until a test showed that the product did have a good market demand. Yet, he wondered whether all products should be test-marketed.
Mr. Ashwin was asked to put this problem to his marketing department subordinates and ask them what should be done. To give the strategy some meaning, he used as a case point the company\’s new hair conditioner which had been developed based on promising, although preliminary, market research. He asked his sales manager whether he thought the product would succeed and what he thought his \”best estimate\” of sales would be. He also asked his advertising manager to give some cost estimates for launching the product.
Mr. Kiran, division sales manager, thought a while, then said he was convinced that the product was a winner and that his best estimate would be sales of Rs. 5 crores per year for at least five years. Mr. Desai, the advertising manager, said that the company could launch the product for a cost of Rs. 1 crore the first year and some Rs. 25 lakhs per year thereafter. He also pointed out that the test-marketing program would cost Rs. 15 lakhs, of which half would be saved if these test cities were merely a part of a national program, and that the testing program would delay the national program for six months. But he warned Mr. Ashwin that test marketing would save the gamble of so much money on the national promotion program. At this point, Mr. Sachdev, the new marketing research manager, suggested that the group might come to a better decision if they used a proper decision-making technique.

Question:

1. Which decision-making technique can be used in this situation? Why? (20)

Section C: Applied Theory (30 marks)

1. 
   What are the main characteristics of strategic decisions? (15)
   2. What specific entrepreneurial aspects include the strategy formation process? (15)

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IIBM – Strategic Cost Management Answer sheet

Multiple Choices:

1. A set of policies, procedures, and approaches that helps a firm attain and retain success for a long is termed as

a)Benchmarking
b) Life cycle costing
c) Target costing
d) Strategy

1. A cost management tool that brings in its focuses on the activities performed to produce a product is called

 a)Target costing
b) Life cycle costing
c) ABC
d) Benchmarking

1. Costs incurred in the past that are not relevant to present decisions are a)
   Fixed cost
   b) Sunk cost
   c) Opportunity cost
   d) Indirect costs
2. In a process costing system, when items are sold, the cost of the item is moved from a)Work-in-progress to finished goods
   b) Work-in-progress to Cost of goods sold
   c) Cost of goods sold to finished good
   d) Finished goods to cost of goods sold
3. Differential costs are sometimes referred to as a)
   Incremental costs
   b) Relevant costs
   c) Avoidable costs
   d) Both a& b
4. The customer service feature does not include a)
   Warranty and repair service
   b) Adherence to specifications
   c) On-time delivery
   d) Follow up with the customer after the sale.
5. Product costs are a function of

a)Product design
b) Specific customers
c) Customer Characteristics
d) Market segments

1. The company’s overall sales performance is influenced by factors such as a)
   Sales volume
   b) Sales Mix
   c) Market size and share
   d) All of the above
2. Customer life cycle costs include

a) Purchase price
b) Start-up costs
c) Post-purchase cost
d) All of the above

1. Which stage of the product life cycle is characterized by little competition and slowly increasing sales?
   a) Introduction
   b) Growth
   c) Maturity
   d) Decline

Part Two:

1. List the characteristics of the balanced scorecard.
   2. What are the methods of Alternative costing?
   3. Differentiate between fixed cost and variable cost.
   4. Discuss the dissimilarities between job order costing & process costing systems.

Case let 1

1. Discuss why Vikram has an ethical responsibility to take some action against the MNC.
2. Which of the alternative courses would be the most appropriate in the given situation?

Case let 2

Questions:
1. Prepare an organizational structure for Brilliant University.
2. List the names of the departments under the university.

Section C: Long Questions (30 Marks)

1. What is “Cost management”? Explain the primary objectives of cost management.
2. Define “Target costing”; discuss the principles of target costing.

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IIBM – Statistical Quality Control Answer sheet

Multiple choices:

1. If in a hall there are 18 persons then how many handshakes are possible?
2. 18*18
3. 18*17/2
4. 18*17
5. None of the above

1. If the number of trials is ‘n’ and the probability of occurrence is ‘p’ then the standard deviation concerning np, is given by:
2. (np)1/2
3. (np(1-p))1/2
4. (np)1/4
5. (np(1-p))1/4

1. For a biased coin the probability of occurrence of a head is 0.4,if the coin is tossed twice then the probability of occurrence of at least one head will be:
2. 0.76
3. 0.48
4. 0.64
5. 0.16

1. A factorial of 5 equals:
2. 60
3. 120
4. 24
5. 5

1. Combinatory of (4,2) equals:
2. 12
3. 8
4. 6
5. None of the above

1. ‘Economic Control of Quality of Manufactured Product’, a book by Walter A Shewhart in:
2. 1931
3. 1941
4. 1930
5. 1956

1. Quality is judged by…………
2. Retailer
3. Government
4. Customer
5. Hole seller

1. A run chart is a special chart of…………
2. Pie chart
3. Line chart
4. R chart
5. C chart

1. Universes may differ :
2. In average
3. In above average
4. At higher level
5. All of the above

1. ASQC and ANSI began in the year:
2. 1956
3. 1976
4. 1978
5. 1960

Part Two:

1. Differentiate between ‘Defect’ and ‘Defective’.
2. Explain the need for a ‘short method’.
3. What does ‘Tchebycheff’s inequality theorem’ say?
4. Explain the usability of ‘stochastic limit’.
5. Write a note on the Cause and Effect diagram.

1. What marketing strategy should RSL adopt to remain competitive in the international market?
2. Has the company taken the right decision to forward integrate and enter into the highly volatile garment market?
3. How could have the SQC approach, been useful in solving the immediate problems of Japan?
4. If you were among one of the management members, what would have been your first insight?
5. A sample of 30 is to be selected from a lot of 200 articles. How many different samples are possible?
6. In Dodge’s CSP-1, it is desired to apply sampling inspection to 1 piece out of every 15 and to maintain an AOQL of 2%. What should be the value of i?

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Originality and Plagiarism-Free Content: Professionals in this field emphasize originality by creating authentic content free from plagiarism. To maintain academic integrity, they ensure that all information is appropriately cited and referenced.

Meeting Deadlines: Timely submission is a significant goal for academic writing professionals. They work within specified deadlines to provide students with completed assignments, enabling them to submit their work punctually.

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Supporting Learning and Comprehension: Beyond completing assignments, academic writing professionals aim to support students\’ learning by providing explanations, analysis, and additional resources that help students grasp the subject matter more comprehensively.

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IIBM – Six Sigma Green Belt Answer sheet 

Multiple Choices

Q1. The following is a sample data set. 10 8 8 6 5 What is the variance of this data set?

1. 3.0

1. 3.8

1. 7.3

1. 7.4

Q2. An auditor should use a histogram in a quality audit to do which of the following?

1. Provide objective evidence that the audit uses statistical process control (SPC)

1. Expose patterns that are normally difficult to detect

1. Interpret data for a trend chart

1. create a stratified tally diagram

Q3. Comparing how a process is performed against the documented work instruction for that process is an example of which of the following techniques?

1. Quantitative

1. Qualitative

1. Statistical

1. Random sampling

Q4. Attribute sampling should be used when

1. The data are measurements in metric units.

1. Ayes-or-no decision is to be made.

1. The population has variability.

1. A multi-stage sampling plan is needed.

Q5. Scatter diagrams are best described as

1. Histograms.

1. Correlation analysis.

1. Pareto analysis.

1. Ishikawa diagrams.

Q6. If data are plotted over time, the resulting chart will be a

1. Run chart

1. Histogram

1. Pareto chart

1. Poisson distribution

Q7. To determine who are or might be customers for a specific process, it would be most useful to create a

1. Pareto chart

1. Flow diagram

1. Cause and effect diagram

1. Scatter diagram

Q8. A production line uses signs at specific points on the line to indicate when components or raw materials need to be replenished. The practice is an example of

1. Kanban

1. Poka-yake

1. Checkpoints

1. Hoshin

Q9. Which of the following is a good tool for planning cycle time reduction and concurrent operations?

1. A timeline

1. A Pareto diagram

1. An X and R chart

1. A PERT chart

Q10. Attribute and variable data are best described as which of the following? Attribute variable

1. Counted values measured values

1. Counted values visual features

1. Measured values counted values

1. Visual features counted values

Q11. All of the following are common ways for people to react to conflict EXCEPT

1. Competing

1. Collaborating

1. Avoiding

1. Sabotaging

Q12. A quality manager has chosen to survey customer satisfaction by taking samples based on the categories of frequency of use, categories of use, and demographics. This technique is known as

1. Random sampling

1. Data collection

1. Stratification

1. Customer classification

Q13. Which of the following actions is Not used to reduce process cycle time?

1. Analyzing current processes

1. Reducing queue times

1. Setting priorities

1. Implementing activity-based costing

Q14. 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 tools would be the best for them to use next?

1. Fishbone diagram

1. Scatter diagram

1. Box and whisker plot

1. Histogram

Q15. In a manufacturing company, the machine shop is what kind of customer in relation to the human resource department?

1. Intermediate

1. Hidden

1. External

1. Internal

Q16. The primary purpose of a project charter is to

1. Subdivide the project into smaller, more manageable components

1. Provide management with a tool for selecting a project that addresses business needs

1. Provide management with a tool to ensure that project deadlines are met

1. Provide the project manager with the authority to apply organizational resources to project activities

Q17. Sample selection of parts for inspection must be selected at random to ensure

1. A minimum sample size.

1. The probability of not rejecting the lot

1. The probability of accepting the lot

1. Finding typical characteristics of the lot.

Q18. Which of the following are bases for establishing calibration intervals?

1. Stability

II.Purpose

III.Degree of usage

1. I and II only

1. I and III only

1. II and III only

1. I, II, and III

Q19. Specification limits are derived from which of the following?

1. Process capability studies

1. Process control charts

1. Customer requirements

1. Historical data

Q20. The primary purpose of a control chart is to

1. Set Specifications and tolerances

1. compare operations.

1. Determine the stability of a process.

1. Accept or reject a lot of material

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Q21. When a control chart is used on a new process, capability can be assessed at which of the following times?

1. Before the chart is first started

1. After the first ten points are plotted

1. When the plotted points hug the centerline

1. After the process is shown to be in control

Q22. Precision is best described as

1. A comparison to a known standard

1. The achievement of expected outgoing quality

1. The repeated consistency of results

1. The difference between an average measurement and the actual value

Q23. 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

1. Repeatability

1. Precision

1. Reproducibility

1. Accuracy

Q24. Which of the following conditions must be met for a process to be in a state of statistical control?

1. Most of the product out by the process is in specification.

1. All subgroup averages and rang are within control limits.

1. All variation has been completely removed

1. Previously optimal process settings are used.

Q25. Which of the following measures of dispersion is equal to the sum of deviations from the mean squared divided by the sample size?

1. Range

1. Standard deviation

1. Variance

1. Mode

Q26. An X and R chart is used to

1. Indicate process variation

1. Specify design Limits

1. Interpret costs

1. Identify customer expectations

Q27. Which of the following is the most useful graphical tool for promoting an understanding of process capability?

1. A flowchart

1. A histogram

1. An affinity diagram

1. An Ishikawa diagram

Q28. The type of chart that presents the value of items in descending order is a

1. Histogram

1. Pareto chart

1. U chart

1. Cusum chart

Q29. Measures of which of the following provide attribute data?

1. Temperature in degrees

1. Attendance at meetings

1. Weight in pounds

1. Length in metric units

Q30. The fraction of nonconforming products is plotted on which of the following types of control chart?

1. P chart

1. U chart

1. Np chart

1. C chart

Q31. A cause and effect diagram is a useful tool for doing which of the following?

1. Determining the flow of a process

1. Detecting shifts in a process

1. Developing theories based on symptoms

1. Arranging theories by defect count

Q32. Which of the following statistics would best describe the central tendency of a sample of data?

1. Mode

1. Mean

1. Standard deviation

1. Range

Q33. Which of the following types of tools or techniques is considered qualitative?

1. Histogram

1. Frequency distributions

1. Pareto chart

1. Process observations

Q34. Which of the following techniques is most useful in narrowing issues and limiting discussion?

1. Brainstorming

1. Quality function deployment

1. Cause and effect analysis

1. Mutilating

Q35. In statistics, an estimation error that is persistent or systematic is called

1. Bias

1. Sensitivity

1. Random

1. Shift

Q36. A customer satisfaction survey used the following rating scale:

1= very satisfied

2= Satisfied

3= Neutral

4= dissatisfied

5= very dissatisfied

This is an example of which of the following measurement scales?

1. Nominal

1. Ordinal

1. Ratio

1. Interval

Q37. Which of the following techniques is used in identifying underlying problems?

1. Cause and effect analysis

1. Prioritization matrix

1. Force field analysis

1. Pareto analysis

Q38. For a normal distribution, two standard deviation on each side of the mean would include what percentage of the total population

1. 47%

1. 68%

1. 95%

1. 99%

Q39. In measurement system analysis, which of the following pairs of data measures is used to determine total variance?

1. Process variance and reproducibility

1. Noise system and repeatability

1. Measurement variance and process variance

1. System variance and bias

Q40. Process data being used in the initial set-up of a process are assumed have a normal distribution. If the nominal (target) is at the center of the distribution, and the specification limits are set at = 3 from the center the Cpk is equal to

a .-0.25

1. 1.00

1. 1.33

1. 1.67

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Q41. A green belt is going to monitor the number of defects on different-size samples. Which of the following control charts would be most appropriate?

1. u

1. np

1. c

1. p

Q42. Correction, over-production, inventory, and motion are all examples of

a .waste

1. 5S target areas

1. Noise

1. Value-added activities

Q43. The primary factor in the successful implementation of Six Sigma is to have

1. The necessary resources

1. The support/leadership of top management

1. Explicit customer requirements

1. A comprehensive training program

Q44. Which of the following types of variation is LEAST likely to occur in sequential repetitions of a process over a short period?

1. Cyclical

b.Positional

1. Temporal

1. Seasonal

Q45. The primary reason that most companies implement Six Sigma is to

1. Reduce defects

1. Improve Processes

1. Improve profit

1. Increase customer satisfaction

Q46. The term used to describe the risk of a type I error in a test of hypotheses is

1. Power

1. Confidence level

1. Level of significance

1. Beta risk

Q47. One characteristic of attribute data is that it is always

a .continuous

1. Discrete

1. Expensive to collect

1. Read from a scale of measurement

Q48. Which of the following tests may be used to determine whether a sample comes from a population with an exponential distribution?

1. T

1. F

1. Chi-square

1. ANOVA

Q49. Which of the following tools are appropriate for a quality engineer to use in qualifying a process that has variable data?

1. An and R control chat

1. A his to gram

III. A cc hart

IV.A p chart

1. I and II only

1. II and III only

1. III and IV only

1. I, II, and IV only

Q50. The correlation coefficient for the length and weight of units made by a process is determined to be 0.27. if the process were adjusted to reduce the weight of each unit by 0.5 ounce, the correlation coefficient of the length and weight of the units made by the new process would be equal to

1. 0.50

1. 0.27

1. 0.23

1. -0.23

Q51. A form, in either diagram or table format, that is prepared in advance for recording data is known as a

1. Cause-and-effect diagram

1. Pareto chart

1. Flowchart

1. Check sheet

Q52. A major drawback of using histogram in process control is that they

1. do not readily account for the factor of time

1. Are relatively difficult to construct and interpret

1. Require too many data points

1. Require too many intervals

Q53. Which of the following tools would be of the greatest use for finding the most efficient path and realistic schedule for the completion of a project?

1. Interrelationship diagram

1. Activity network diagram

1. Tree diagram

1. Affinity diagram

Q54. A control plan is designed to do which of the following?

1. Supplement information contained in operator instructions

1. Support the production scheduling system

1. Provide a documented system for controlling processes

1. Provide a method for tracking the design review process

Q55. To determine the average number of nonconforming parts over time, which of the following attribute control chart would be most appropriate?

1. A chat

1. Np chart

1. P chart

1. U chat

Q56. Which of the following techniques is most appropriate for generating continuous improvement ideas?

1. Tree diagram

1. Brainstorming

1. Prioritization matrix

1. Interrelationship diagraph

Q57. Which of the following tools is used extensively quality function deployment (QFD)?

1. Affinity diagram

1. Matrix diagram

1. Cause and effect diagram

1. Activity network diagram

Q58. Which of the following tools is most likely to be organizing a list of ideas generated during a brainstorming session?

1. Activity network diagram

1. Affinity diagram

1. Histogram

1. Process control chart

Q59. Which of the following tools would be most appropriate for collecting data to study the symptoms of a problem?

1. A check sheet

b.A flow diagram

1. A force field analysis

1. An activity network diagram

Q60. Kaizen is defined as

1. Re-engineering

1. Lean manufacturing

1. Continuous improvement

1. Error –proofing

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Q61. The LEAST informative of the four measurement scales is the

1. Ratio

1. Nominal

1. Ordinal

1. Interval

Q62. Which of the following can used to determine the goodness of fit of a distribution to a data set?

1. T test

1. ANOVA

1. F test

1. Chi square test

Q63. A fair coin is tossed 10 times. What are the expected mean and variance of the number of heads?Mean variance

1. 0.5 0.025

1. 5.0 2.500

1. 5.0 5.000

1. 10.0 5.000

Q64. A process capability analysis is NOT used to

1. Determine the ability of a process to meet specifications

1. Maintain a process in a state of statistical control

1. Establish new specifications

1. Prioritize competing processes

Q65. A type of line graph used to assess the stability of a process is called a

1. Control chart

1. Pareto chart

1. Check sheet

1. cause and effect diagram

Q66. A process produces nonconformities according to a distribution. If the mean of the nonconformities is 25, what is the standard deviation?

1. 2.5

1. 5.0

1. 12.5

1. 25.0

Q67. Five six-sided dice are rolled together 100 times. Two histograms are constructed: one for the 500 individual results and one for the 100 averages of five results. In this situation, the individual results follow a uniform distribution, while the averages follow which of the following distributions?

1. Normal

1. Student’s t

c.Binomial

1. Uniform

Q68. A calibrated micrometer was used to take 10 replicated measures of a reference standard. If X m=0.073, and the true value of the reference standard is 0.075, what is the bias of the micrometer?

1. 0.001

1. 0.002

1. 0.073

1. 0.075

Q69. The power of a test for the difference between means is measured by

1. A

1. 1-a

1. B

1. 1-b

Q70. A process is stable and its output is normally distributed. The process has a specification of 16.73=0.01. What is the maximum process standard deviation if the Cp must be=1.5?

1. 0.0011

1. 0.0022

1. 0.0041

1. 0.0133

Q71. Which of the following is the most effective technique for prioritizing critical factors foe problemsolving?

1. Venn diagram

1. Scatter diagram

1. Pareto diagram

1. Cause and effect diagram

Q72. The main advantage of a matrix diagram is that it

1. Displays all the possible causes related to a problem

1. Displays the strength of relationship between each paired combination of variables

1. Identifies, analyzes, and classifies the cause-and-effect relationship among all critical issues

1. Identifies a sequence of actions and materials entering a process

Q73. Poka-yake is best defined as

1. Improving machine efficiency

1. Reducing field failures to virtually zero

1. Capturing the voice of the customer

1. Preventing controllable defects

Q74. Which of the following describes the 95% confidence interval of a 20% absentee rate in a department with 30 people?

1. 6% to 34%

1. 8% to 32%

c .13% to 27%

1. 17% to 23%

Q75. Which of the following are needed to calculate the process capability index, Cp?

1. The specification limits and the mean

1. The specification limits and s^ (Sigma Cap)

1. The process mean and s^(Sigma Cap)

1. The upper and lower specification limits

Q76. Repeatability and reproducibility are terms that operationally define

1. Bias

1. Accuracy

1. Discrimination

1. Precision’

Q77. A method that classifies data without significantly reducing accuracy or precision is known as

1. Bias adjustment

1. Statistical efficiency

1. Blocking

1. Coding

Q78. If a process has a variance of 4 units and a specification of 96+4, what is the process performance index (Pp)?

a .0.33

1. 0.66

1. 1.00

1. 1.50

Q79. If a histogram has a bimodal distribution this indicates that the

1. The process is in control

1. Distribution is abnormal

1. The data collected is accurate

1. Data has two points

Q80. Which of the following best describes how an affinity diagram is used?

1. Grasping organizational performance relative to contrasting data

1. Prioritizing data from most signification to least significant

1. Grouping ideas that are created during brainstorming

1. Identifying when a process is in control

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Q81. Warranty claims are classified in which of the following cost of quality groups?

1. Internal failure

1. External failure

1. Appraisal

1. Prevention

Q82. At what stage of the problem-solving process would a team most likely use a cause-effect diagram?

1. Description of the process associated with the problem

1. Definition of the problem and its scope

1. Organization of possible problem causes

1. Collection of data to identify actual causes

Q83. Steel bars are cut to cylindrical shafts using a lathe. The diameter and allowable tolerance of the shaft is 2.00=.001 inch. A control chart is used to monitor the quality level of the process. Which of the following plots on the control chart might indicate a problem of wear on the lathe?

1. The diameter of a single shaft above 2.001 inch

1. The diameter of a single shaft below 1.999 inch

1. An Apparent increasing trend in the shaft diameters

1. Erratic in-tolerance or out-of-tolerance diameter measurements

Q84. A sample consists of one or more units of product drawn from a lot or batch based on

1. Defect of the product

1. Random selection

1. Size of the product

1. When the inspection process was completed

Q85. What is the percent yield for a normally distributed process in which the item length specification is 5.750=0.004, X is 5.752, and the standard deviation is 0.002?

1. 15.73%

1. 19.15%

1. 47.72%

1. 83.99%

Q86. In preparation for the construction of a cause-and-effect diagram, it is important to

1. Plot separate charts for each source

1. Focus only on what makes things go wrong

1. Record everything people suggest

1. Validate possible root cause

Q87. Which of the following tools should be used when a team is generating and prioritizing a list of options that include highly controversial issues?

1. Brainstorming

1. Affinity diagram

1. Nominal group technique

1. 5 whys

Q88. If a distribution is normal, u=50 s=15, what percentage of data will be less than 30?

1. 59.18%

1. 40.82%

1. 9.18%

1. 1.33%

Q89. A company is receiving an unusually high number of returns from various customers. The first step in investigating the problem would be to

1. Check the inspection records

1. Establish the correlation of the returns to shipments

1. Brainstorm the potential causes

1. Classify the returns by type and degree of serious

Q90. Which of the following is the best definition of a flow chart?

1. A diagram is used to structure ideas into useful categories

1. An illustration used to analyze variation in a process

1. A picture used to separate steps of a process in sequential order

1. An analytical tool used to clarify opposing aspects of a desired change

Q91. Which of the following activities would NOT contribute to the effective functioning of a team?

1. Eliminating unnecessary activities

1. Development team performance measures

1. Defining the process in detail

1. Monitoring each member’s performance

Q92. What is the standard deviation of the population below? 10, 4, 16, 12, 8

1. 4.00

1. 4.47

c .16.00

1. 20.00

Q93. Which of the following tools would be most appropriate for collecting data to study the symptoms of a problem?

a . Check sheet

1. Flow diagram

1. Force-field analysis

1. Activity network diagram

Q94. Which of the following measures is a sufficient statistic for the parameter u?

1. Median

1. Mid-range

1. Mean

1. Mode

Q95. Positional, cyclical, and temporal variations are most commonly analyzed in

1. SPC charts

1. Multi-vari charts

1. Cause and effect diagram

1. Run charts

Q96. Which of the following describes the Deming method for continuous improvement?

1. Cost of quality analysis

1. Process map

1. Tree Diagram

1. Plan-do-check-act cycle

Q97. In the analysis of variance, Which of the following distributions is the basis for determining whether the variance estimates are all from the same population?

1. Chi-square

1. Student’s

1. Normal

1. F

Q98. Which of the following statements best describes the set all value of a random variable?

1. It is finite.

1. It is an interval

1. It can be discrete or continuous.

1. It can be tracked by using control charts or scatter plots.

Q99. Which of the following is the best description of randomization?

1. A technique used to increase the precision of an experiment

1. A means of assuring representative sampling

1. The repetition of an observation or measurement

1. The relationship between two or more variables

Q100. When the order of items is not important, which of the following is the method to use to determine the number of sets and subsets of items?

1. Combination

1. Permutation

1. Factorization

1. Simulation

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