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Examination Paper of Computer Fundamental

IIBM Institute of Business Management

• This section consists of multiple choices and Short Notes type questions.

• Answer all the questions.

• Part one questions carry 1 mark each & Part two questions carry 5 marks each.

IIBM Institute of Business Management

Subject Code-B112

Examination Paper

Computer Fundamental

MM.100

Section A: Objective Type & Short Questions (30 marks)

Part one:

Multiple choice:

I.A Light Sensitive device that converts drawing, printed text or other image into digital from is (1)

a) Keyboard

b) Plotter

c) Scanner

d) OMR

II. The basic operations performed by a computer are (1)

e) Arithmetic operation

f) Logical operation

g) Storage and relative operation

h) All the above l

III. The two major types of computer chips are (1)

a. External memory chip

b. Primary memory chip

c. Microprocessor chip

d. Both b and c

IV. Microprocessors as switching devices are for which generation computers (1)

a. First Generation

b. Second Generation

c. Third Generation

d. Fourth Generation

Examination Paper of Computer Fundamental

IIBM Institute of Business Management

END OF SECTION A

V.What is the main difference between a mainframe and a super computer?

a. A Super computer is much larger than the mainframe computers.

b. Super computers are smaller than the mainframe computers.

c. Supercomputers are focused to execute few programs as fast as possible while mainframe computers use its power to execute as many programs concurrently.

d. Supercomputers are focused to execute as many programs as possible while mainframe

VI. ASCII and EBCDIC are the popular character coding systems. What does EBCDIC stand for?

a) Extended Binary Coded Decimal Interchange Code

b) Extended Bit Code Decimal Interchange Code

c) Extended Bit Case Decimal Interchange Code

d) Extended Binary Case Decimal Interchange Code

VII. The brain of any computer system is

a) ALU

b) Memory

c) CPU

d) Control unit

VIII. Storage capacity of magnetic disk depends on

a) tracks per inch of surface

b) bits per inch of tracks

c) disk pack in disk surface

d) All of above

IX. The two kinds of main memory are:

a) Primary and secondary

b) Random and sequential

c) ROM and RAM

d) All of above

X. A storage area used to store data to a compensate for the difference in speed at which the different units can handle data is

a) Memory

b) Buffer

c) Accumulator

d) Address

Part Two:

1. What is Windows? (5)

2. What is Windows? (5)

3. What is Computer Virus? (5)

4. What is the meaning of ‘CC’ in case of E-mail? (5)

Examination Paper of Computer Fundamental

IIBM Institute of Business Management

• This section consists of Caselets.

• Answer all the questions.

• Each Caselet carries 20 marks.

• Detailed information should form the part of your answer (Word limit 150 to 200 words).

Section B: Caselets (40 marks)

Caselet 1

Mr. and Mrs. Sharma went to Woodlands Apparel to buy a shirt. Mr. Sharma did not read the price tag on the piece selected by him. At the counter, while making the payment he asked for the price. Rs. 950 was the answer.

Meanwhile, Mrs. Sharma, who was still shopping came back and joined her husband. She was glad that he had selected a nice black shirt for himself. She pointed out that there was a 25% discount on that item. The counter person nodded in agreement.

Mr. Sharma was thrilled to hear that “It means the price of this shirt is just Rs. 712. That‟s fantastic”, said Mr. Sharma. He decided to buy one more shirt in blue color.In no time, he returned with the second shirt and asked them to be packed. When he received the cash memo for payment, he was astonished to find that he had to pay Rs.. 1,900 and Rs.1,424.

Mr. Sharma could hardly reconcile himself to the fact that the counter person had quoted the discounted price which was Rs. 950. The original price printed on the price tag was Rs.1,266.

Questions

1. What should Mr. Sharma have done to avoid them is understanding? (10)

2. Discuss the main features involved in this case. (10)

Caselet 2

I don’t want to speak to you. Connect me to your boss in the USA,” hissed the Alfred is a do-it yourself entrepreneur who built up his fortune in trading. He traded in anything and everything and kept close control of every activity. That was now he had grown rich enough to indulge in his own dream-to build a college in his home town. A college that would be at par to the ones in the better cities, the one in which he could not study himself.

Work started a year hack and the buildings were coming along well He himself did not use computers much and became hooked to the Internet and e-mail only recently. He was determined to provide a PC with Internet connectivity to every students and faculty member. He was currently engrossed in plans for the 100 seater computer lab.

What was confusing him was the choice of Internet connectivity. He had about a dozen quotations in front of him, Recommendations ranged from 64 Kbps ISDN all the way to 1 Gbps leased line to Guwahati which was almost 200 kms away. Prices ranged from slightly under a lakh all the way upto 25 lakh and beyond. He did not understand most of the equipment quoted firewall, proxy server, cache appliance, nor was he sure what the hidden cost were. Although it went against his very nature, he would have to identify a trustworthy consultant who would help him make sense of the whole thing.

Examination Paper of Computer Fundamental

IIBM Institute of Business Management

END OF SECTION B

• This section consists of Applied Theory Questions.

• Answer all the questions.

• Each question carries 15marks.

• Detailed information should form the part of your answer (Word limit 200 to 250 words).

END OF SECTION C

Questions

1. In the context of the given case, what managerial issues need to be addressed by Alfred. Why is It Important for managers to be tech savvy? (10)

2. What is the importance of a 'Systems consultant' to an organization? What skills should he/she possess? (10)

Section C: Applied Theory (30 marks)

1. What are Web sites & URL(s)? (15)

2. Explain how data is organized on a magnetic tape? (15)

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Examination Paper of Enterprise Resource Planning

IIBM Institute of Business Management

 This section consists of multiple choices and Short Notes type questions.

 Answer all the questions.

 Part one questions carry 1 mark each & Part two questions carry 5 marks each.

IIBM Institute of Business Management

SubjectCode-B102Examination Paper

Enterprise Resource Planning

MM.100

Section A: Objective Type & Short Questions (30 marks)

Part one:

Multiple choice:

1. Which of the following describes an ERP system? (1)

a. ERP systems provide a foundation for collaboration between departments

b. ERP systems enable people in different business areas to communicate

c. ERP systems have been widely adopted in large organizations to store critical knowledge used to make the decisions that drive the organization’s performance.

2. The responsibilities of the office manager in a firm that produces electronics spares is: (1)

a. Everything in the office runs efficiently

b. Furniture and other equipment in the office is adequate

c. Processing all the incoming official mail and responding to some

d. All of the above

d. All of the above

3. Physiological Barriers of listening are:

(1)

a. Hearing impairment

b. Physical conditions

c. Prejudices

d. All of the above

4. What is the main function of Business Communication: (1)

a. Sincerity

b. Positive language

c. Persuasion

d. Ethical standard

IIBM Institute of Business Management

Examination Paper of Enterprise Resource Planning

END OF SECTION A

 This section consists of Caselets.

 Answer all the questions.

 Each Caselet carries 20marks.

 Detailed information should form the part of your answer (Word limit 150 to 200 words).

5. Which presentation tend to make you speak more quickly the unusual: (1)

a. Electronic

b. Oral

c. Both „a‟ and”b”

d. None of the above

6. Labov’s Storytelling Model based on: (1)

a. Communication through speech

b. Language learning

c. Group Discussions

d. None of the above

7. Diagonal Communication is basically the: (1)

a. Communication across boundaries

b. Communication between the CEO and the managers

c. Communication through body language

d. Communication within a department

8. Direct Eye contact of more than 10 seconds can create: (1)

a. Discomfort &Anxiety

b. Emotional relationship between listeners and speakers

c. Excitement

d. None of the above

9. How to make Oral Communication Effective? (1)

a. By Clarity

b. By Brevity

c. By Right words

d. All of the above

10. Encoding means: (1)

a. Transmission

b. Perception

c. Ideation

d. None of the above

Part Two:

1. Define ERP? (5)

2. What are ERP packages? (5)

3. What are the reasons for the explosive growth of the ERP market? (5)

4. What is Business Integration and how do the ERP systems achieve it? (5)

Section B: Caselets (40 marks)

IIBM Institute of Business Management

Examination Paper of Enterprise Resource Planning

Caselet1

With eight plants globally running from a single ERP instance on a server in Zeeland, Michigan, the IT team faced the challenges of scaling their systems to support the global growth fueling their company’s expansion. Running IQMS’ manufacturing ERP system delivered via Hosted Managed Services (HMS) provides Ventura Manufacturing the most economical system architecture for greater scalability and efficiency as well as to attain disaster recovery goals.

Ventura is an award-winning semi-automated assembly and production company that serves the automotive, office furniture, education seating, and molding and assembly of optical silicone industries globally. Headquartered in Zeeland, Michigan, the company has multiple plants in Zeeland in addition to plants in Budaörs, Hungary, Saltillo, Mexico and Shanghai, China.

As demand for Ventura’s services grew and the company began attracting customers worldwide, it was apparent the dependency on a single ERP system on-premise in Zeeland, Michigan was becoming an impediment to faster growth. “Relying on a single system to manage our global plants was proving to be a huge scale challenge,” said Joel Boyles, IT Team Lead at Ventura Manufacturing.

Ventura’s customer base is globally-based and to serve them as responsively and effectively as possible, Ventura made the decision to open new production plants in Hungary and Shanghai, China.

With eight plants globally running from a single ERP instance on a server in Zeeland, Michigan, the IT team faced the challenges of scaling their systems to support the global growth fueling their company’s expansion. The IT Teams at Ventura prides itself on offering live support to any plant, anywhere in the world that needs help, anytime. “When we just had the plants in Mexico and Hungary, our existing staff could scale to support the calls coming from plants for help with their IT systems and take care of ERP-related tasks,” Joel said. When the Shanghai, China facility went online, Ventura was reaching the limits of scale and speed with their IT teams and the system running on-premise in Zeeland.

As demands increased on the system, so did concerns over Availability and Disaster Recovery Objectives the IT Team had defined. Two metrics that are of specific interest to Ventura’s IT team are the Recovery Time Objective (RTO) and Recovery Point Objective (RPO). IT defined the RTO goal as 8 hours and the RPO as 15 minutes, achievable on a 24/7 basis. To accomplish these goals, Ventura would need to create an entirely new system platform that could scale more efficiently with their growing business. The new platform would also need to increase the speed of system updates, which had been a problematic area in the past for the single system to complete.

Joel Boyles, IT Team Lead, says the challenges of scalability and disaster recovery are what drove the urgency for Ventura to decide that Hosted Managed Services (HMS) from IQMS was the best possible solution. “Plant system updates including MRP were taking at least 2 hours

IIBM Institute of Business Management

Examination Paper of Enterprise Resource Planning

per plant, which translated into our IT teams having 24/7 shifts in our Zeeland-based IT offices,” Joel said. “Clearly we had to redefine our system architecture for greater scalability and speed.”

Ventura chose IQMS’ Enterprise IQ delivered via Hosted Managed Services (HMS) because it was the most economical and fastest option for solving the system performance challenges and attaining the disaster recovery goals the company has. Under the IQMS HMS purchase option, software licenses are owned in perpetuity by Ventura and hardware and platform software is provided by the IQMS data center. IQMS is managing the Ventura systems today in a secure data center environment. Ventura’s IT team can gain access to key system metrics and key performance indicators anytime via any browser-enabled laptop, tablet or smart phone.

Questions

1. How Ventura Defined A Global Roadmap To Greater Speed And Reliability? ( 20)

Caselet 2

Enterprise resource planning (ERP) is business management software—usually a suite of integrated applications—that a company can use to store and manage data from every stage of business, including:

•Product planning, cost and development

•Manufacturing

•Marketing and sales

•Inventory management

•Shipping and payment

Functions of ERP

• ERP provides an integrated real-time view of core business processes, using common databases maintained by a database management system. ERP systems track business resources—

 cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll.

• The applications that make up the system share data across the various departments (manufacturing, purchasing, sales, accounting, etc.) that entered the data.

• ERP facilitates information flow between all business functions,

ERP Implementation

Success

Company Background

 Cadbury is a British multinational confectionery company owned by Mondelēz International.

 It is the second largest confectionery brand in the world after Wrigley's.

 Founder: John Cadbury

 Founded in: 1824, B Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate

IIBM Institute of Business Management

Examination Paper of Enterprise Resource Planning

Confectionery business, Cadbury has maintained its undisputed leadership over the years.

ERP Implementation

Cadbury turns out, in recent years, Kraft implemented SAP ERP 6.0 (System Analysis and Program Development) in what SAP called one of its largest global ERP implementations. Kraft credited ERP with reducing operational costs. 11,000 employees were sending data to the company's SAP solution and it was linked to 1,750 applications by 2008. That same year, Kraft aslo added SAP's master data management solution, Net Weaver, with an eye toward integrating legacy systems.

• Cadbury was left with a glut of chocolate products at the start of the year, after the installation of a new SAP-based enterprise resource planning (ERP) system led to an excess of chocolate bars building up at the end of 2005.

• The new U.K. computer system is part of a five-year IT transformation project, called "Probe", aimed at integrating the Cadbury Schweppes' supply chain, purchasing, manufacturing, distribution, sales and marketing systems on a global, SAP-based

ERP platform

• Cadbury Schweppes is aiming for an ultimate savings from the Probe project, but its implementation has been far from smooth. The project was beset by problems and delays when it was first introduced in Australia in 2002.

Benefits of ERP

• Cadbury was on a fast paced growth and could not continue with the existing systems and the pace was too slow due to added inefficiencies. ERP added efficiency and guided the led all the issues fast paced growth.

• The implementation of ERP brought in a new way of warehouse management system and brought in structure to branch offices and the depots.

• While implementing the ERP systems, the company has built it upon the past strengths of the company thereby not losing out on its competitive

• The initial implementation took time and then the successive implementations took lesser time and cost and there is a huge advantage in saving cost while in the implementation phase itself.

• The reaction from competition does not matter in this because this is not a change that was advertised to the market. This is an internal process restructuring and was a welcome change within the company which badly needed the change.

• The company also has built in a robust regular feedback system to monitor the changes and check if they go according to the initial plan. The entire implementation is cross functional and hence it is important that there is a high increase in the efficiency. The ERP vendor was also selected from among the best in class vendors which helped the process occur in a streamlined fashion and avoided any possible chances of hiccups during the initial

implementation phase.

The system has also been deployed up to the vendors. They have a portal called vendor connect

IIBM Institute of Business Management

Examination Paper of Enterprise Resource Planning

 This section consists of Applied Theory Questions.

 Answer all the questions.

 Each question carries 15marks.

 Detailed information should form the part of your answer (Word limit 200 to 250 words).

END OF SECTION C

END OF SECTION B

where they can see their inventory movement and make plans accordingly. Hence the restructuring happens not only internally but also across to the supplier which will add on to the benefits that are accrued.

It was considered at low cost and high result implementation which by itself highlights the success and the benefits.

Questions

1. Why did the Big Bang approach fail for The Hershey Company ? (20)

Section C: Applied Theory (30 marks)

1. What is the difference between ERP and CRM software? (15)

2. What are some of the risks associated with ERP software? (15)

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Examination Paper of Financial Management

IIBM Institute of Business Management

IIBM Institute of Business Management

Subject Code-B-103

Examination Paper Financial Management

MM.100

Section A: Objective Type & Short Questions (30 marks)

Part one:

Multiple choice:

I.Investment is the… (1)

a) Net additions made to the nation’s capital stocks

b) Person’s commitment to buy a flat or house

c) Employment of funds on assets to earn returns

d) Employment of funds on goods and services that are used in production process

II. Financial Management is mainly concerned with... (1)

a) All aspects of acquiring and utilizing financial resources for firms activities

b) Arrangement of funds

c) Efficient Management of every business

d) Profit maximization

III. The Primary goal of the financial management is….. (1)

a. To maximize the return

b. To minimize the risk

c. To maximize the wealth of owners

d. To maximize profit

IV. In his traditional role the finance Manager is responsible for (1)

a. Proper utilization of funds

b. Arrangement of financial resources

c. Acquiring capital assets of the organization

d. Efficient management of capital

 This section consists of multiple choices and Short Notes type questions.

 Answer all the questions.

 Part one questions carry 1 mark each & Part two questions carry 5 marks each.

Examination Paper of Financial Management

IIBM Institute of Business Management

V.Market Value of the shares are decided by

(1)

a. The respective companies

b. The investment market

c. The government

d. Shareholders

VI. The only feasible purpose of financial management is (1) a. Wealth maximization b. Sales maximization c. Profit maximization d. Assets maximization

VII. Financial management process deals with (1)

a. Investments

b. Financing decisions

c. Both a and b

d. None of the above

VIII. Agency cost consists of

(1)

a. Binding

b. Monitoring

c. Opportunity and structure cost

d. All of the above

IX. Finance Function comprises

(1)

a. Safe custody of funds only

b. Expenditure of funds only

c. Procurement of finance only

d. Procurement & effective use of funds

X.Financial management mainly focuses on (1)

a. Efficient management of every business

b. Brand dimension

c. Arrangement of funds

d. All elements of acquiring and using means of financial resources for financial activities

Part Two:

1. What Is The Financial Management Reform? (5)

2. Why Was The FMR Introduced? (5)

3. What Changes Will The FMR Introduce? (5)

4. What Is Financial Management Information System (FMIS)? (5)

END OF SECTION A

Examination Paper of Financial Management

IIBM Institute of Business Management

Section B: Caselets (40 marks)

Caselet 1

Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Company, an employment agency that supplies word processor operators and computer programmers to businesses with temporary heavy workloads. Your employer is also considering the purchase of a bigger staff & McDonald (B&M), a privately held company owned by two friends, each with 5 million shares of stock. B&M currently has free cash flow of $24 million, which is expected to grow at a constant rate of 5%. B&M’s financial statements report marketable securities of $100 million, debt of $200 million, and preferred stock of $50 million. B&M’s weighted average cost of capital (WACC) is 11%. Answer the following questions

Questions

1. Describe briefly the legal rights and privileges of common stockholders. (20)

Caselet 2

Casino is a large electrical construction company having a turnover of Rs.100 crores per annum. Since a few years the company has not been doing well in terms of profits. In order to find out the reason, a group of independent auditors were deployed to examine the operations of the company. The item they felt that needed closer attention was the budget control of new construction work. The audit showed that most electrical designs for new construction were carried out at the headquarters of the company by a project manager. In preparing a budget for a new project, he checked the expenses for similar jobs in the past, then simply multiplied them by various factors. The auditors found that during the past two years, most budgets were greatly overestimated. Incidentally, it was about two years ago that the project manager was given the primary responsibility for budgeting. In this role, he would submit his budget to the Expenditure Control Committee, consisting of higher-level managers who had only a limited interest in budgeting. It was to this committee that the project manager submitted requests for additional money whenever needed. Most of the requests were approved.

The chief auditor felt that the project team tended to "expand" the time needed to complete the task whenever the members thought the budget made it possible. In other words, they "adjusted" their productivity to match the money allocated to the project.

The auditors noted that other contractors could do similar jobs for 20% less money. They concluded that a new control procedure was needed.

 This section consists of Caselets.

 Answer all the questions.

 Each Caselet carries 20marks.

 Detailed information should form the part of your answer (Word limit 150 to 200 words).

Examination Paper of Financial Management

IIBM Institute of Business Management

Questions

1. What do you think of the budgeting process? (10)

2. What kind of control procedure should the auditors recommend? (10)

Section C: Applied Theory (30 marks)

1. Differentiate Between the Financial Management and Financial Accounting? (15)

2. Explain Briefly The Limitations of Financial Ratios? (15)

S-2-010619

 This section consists of Applied Theory Questions.

 Answer all the questions.

 Each question carries 15marks.

 Detailed information should form the part of your answer (Word limit 200 to 250 words).

END OF SECTION C

END OF SECTION B

Examination Paper of Managerial Economics

IIBM Institute of Business Management

IIBM Institute of Business Management

Subject Code-B106

Examination Paper

Managerial Economics

MM.100

Section A: Objective Type & Short Questions (30 marks)

Part one:

Multiple choice:

I.Demand is determined by

(1)

a) Price of the product

b) Relative prices of other goods

c) Tastes and habits

d) All of the above

II. When a firm’s average revenue is equal to its average cost, it gets (1)

a) Super profit

b) Normal profit

c) Sub normal profit

d) None of the above

III. Managerial economics generally refers to the integration of economic theory with business

(1)

a) Ethics

b) Management

c) Practice

d) All of the above

IV. Which of the following was not immediate cause of 1991 economic crisis (1)

a) Rapid growth of population

b) Severe inflation

c) Expanding Fiscal deficit

d) Rising current account deficit

V.Money functions refers to : (1)

a) Store of value

b) Medium of Exchange

c) Standard of deferred payments

d) All of the above VI. Given the price, if the cost of production increases because of higher price of raw materials, the supply (1) a) Decreases b) Increases c) Remains same d) Any of the above

 This section consists of multiple choices and Short Notes type questions.

 Answer all the questions.

 Part one questions carry 1 mark each & Part two questions carry 5 marks each.

Examination Paper of Managerial Economics

IIBM Institute of Business Management

VII. Total Utility is maximum when (1)

a. Marginal Utility is maximum

b. Marginal Utility is Zero

c. Both of the above

d. None Of The Above

VIII. Cardinal approach is related to (1)

a. Equimarginal Curve

b. Law of diminishing returns

c. Indifference Curve

d. All of the above

IX. Marginal Utility curve of a consumer is also his (1)

a) Supply Curve

b) Demand Curve

c) Both of above

d) None of above

X. Government of India has replaced FERA by (1)

a) The competition Act

b) FRBMA

c) MRTP Act

d) FEMA

Part Two:

1. What is Managerial Economics? What is its relevance to Engineers/Managers? (5)

2. “Managerial Economics is economics that is applied in decision making” Explain? (5)

3. Differentiate b/w, Micro economics vs. macroeconomics? (5)

4. Factors Affecting Price Elasticity of Demand? (5)

Section B: Caselets (40 marks)

END OF SECTION A

 This section consists of Caselets.

 Answer all the questions.

 Each Caselet carries 20marks.

 Detailed information should form the part of your answer (Word limit 150 to 200 words).

IIBM Institute of Business Management

Examination Paper of Managerial Economics

Caselet1

Dabur is among the top five FMCG companies in India and is positioned successfully on the specialist herbal platform. Dabur has proven its expertise in the fields of health care, personal care, home care and foods. The company was founded by Dr. S. K. Burman in 1884 as small pharmacy in Calcutta (now Kolkata), India. And is now led by his great grandson Vivek C. Burman, who is the Chairman of Dabur India Limited and the senior most representative of the Burman family in the company. The company headquarter is in Ghaziabad, India, near the Indian capital New Delhi, where it is registered. The company has over 12 manufacturing units in India and abroad. The international facilities are located in Nepal, Dubai, Bangladesh, Egypt and Nigeria. S.K. Burman, the founder of Dabur, was trained as a physician. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. Soon, he started preparing natural remedies based on Ayurveda for diseases such as Cholera, Plague and Malaria. Due to his cheap and effective remedies, he became to be known as ‘Daktar’ (Indian izedversion of ‘doctor’). And that is how his venture Dabur got its name—derived from Daktar Burman. The company faces stiff competition from many multinational and domestic companies. In the Branded and Packaged Food and Beverages segment major companies that are active include Hindustan Lever, Nestle, Cadbury and Dabur. In case of Ayurvedic medicines and products, the major competitors are Baidyanath, Vicco, Jhandu, Himani and other pharmaceutical companies.

Vision statement of Dabur says that the company is “dedicated to the health and wellbeing of every household”. The objective is to “significantly accelerate profitable growth by providing comfort to others”. For achieving this objective Dabur aims to:

 Focus on growing core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology.

 Be the preferred company to meet the health and personal grooming needs of target consumers with safe, efficacious, natural solutions by synthesizing deep knowledge of Ayurveda and herbs with modern science.

 Be a professionally managed employer of choice, attracting, developing and retaining quality personnel.

 Be responsible citizen with a commitment to environmental protection.

 Provide superior returns, relative to our peer group, to our shareholders.

Chairman of the company

Vivek C. Burman joined Dabur in 1954 after completing his graduation in Business Administration from the USA. In 1986 he was appointed as the Managing Director of Dabur and in 1998 he took over as Chairman of the Company.

IIBM Institute of Business Management

Examination Paper of Managerial Economics

Under Vivek Burman’s leadership, Dabur has grown and evolved as a multi-crore business house with a diverse product portfolio and a marketing network that traverses the whole of India and more than 50 countries across the world. As a strong and positive leader, Vivek C. Burman had motivated employees of Dabur to “do better than their best”—a credo that gives Dabur its status as India’s most trusted nature-based products company.

Leading brands

More than 300 diverse products in the FMCG, Healthcare and Ayurveda segments are in the product line of Dabur. List of products of the company include very successful brands like Vatika, Anmol, Hajmola, Dabur Amla Chyawanprash, Dabur Honey and Lal Dant Manjan with turnover of Rs.100 crores each.

Strategic positioning of Dabur Honey as food product, lead to market leadership with over 40% market share in branded honey market; Dabur Chyawanprash is the largest selling Ayurvedic medicine with over 65% market share. Dabur is a leader in herbal digestives with 90% market share. Hajmola tablets are in command with 75% market share of digestive tablets category. Dabur Lal Tail tops baby massage oil market with 35% of total share.

CHD (Consumer Health Division), dealing with classical Ayurvedic medicines, has more than 250 products sold through prescription as well as over the counter. Proprietary Ayurvedic medicines developed by Dabur include Nature Care Isabgol, Madhuvaani and Trifgol.

However, some of the subsidiary units of Dabur have proved to be low margin business; like Dabur Finance Limited. The international units are also operating on low profit margin. The company also produces several “me – too” products. At the same time the company is very popular in the rural segment.

Questions

1. What is the objective of Dabur? Is it profit maximisation of growth maximisation? (10)

2. Do you think the growth of Dabur from a small pharmacy to a large multinational company is an indicator of the advantages of joint stock company against the proprietorship form? Elaborate. (10)

Caselet2

The Regina Company„ one of the largest inakets of vacuum cleaners recent') had scv cfc ptollkins with the quality of its products. The market responsc to this 1ak of quality caused financial problems for Ow company. in late 1995. Regina began having return rates as high as 30 to 50 percent on some of its Housekeeper and Housekeeper Plus models. These models were sold primarily through discount stores. Further, Regina's Spectrum vacuum cleaner, an upgraded version sold in specialty stores, was introduced in 1995 with many quality problems. ef The specific problems identified for the Housekeeper and Housekeeper Plus models were associated with faulty belts and weak suction. In the Spectrum model, the agitator was melting; and making a loud noise, the foot pedals were breaking, and the steel-encased motor (which had been advertised as the

IIBM Institute of Business Management

Examination Paper of Managerial Economics

power source for the vacuum cleaner) had been replaced with a less desirable. less reliable motor.

As a result of these problems, Target stores discontinued Regina's Housekeeper Plus model after reporting that "at least half of those sold were returned." At Starmart, which accounts for about a quarter of the Housekeeper sales, I. out of every 5 machines sold was returned. To help service customer complaints, Regina set up an 800 telephone number for customers to contact the firm. directly. The sales returns caused Regina's shareholders to question the 1995 fiscal earnings report. Furthermore, both inventories and accounts receivable doubled during the 1995 fiscal year. At the end of that period, Regina's chairman and 40 percent stockholders

Resigned. The chairman’s resignation was closely followed by a company announcement stating that the financial results reported for the 1995 fiscal year were materially incorrect and had been withdrawn. This announcement brought a suit from shareholders who had bought Reoina stock on the basis of the 1995 camings report. It also prompted an audit of the 1995 results and a request to another accounting organization to work on Regina's business and accounting controls. A few months later, Regina 'agreed to be acquired by a unit of Magnum, a vacuum cleaner and Water-purification Company. Under Magnum, Regina shut down production while engineers worked to solve the problems inherent in the Housekeeper and Housekeeper Plus vacuums, particularly the suction difficulties. In September 1998, Magnum and Regina decided to separate the two companies again. Since then, Regina has been regaining market share with its Housekeeper models. The 'vacuums are popular because they carry on-board tools.

Questions:

1. What type of controls would you have established to preclude the major returns experienced by Regina? (10)

2. How would you have controlled the finished-goods -inventory to avoid its growing to twice the size that it was in the previous year. (10)

Section C: Applied Theory (30 marks)

1. What is the importance of demand analysis in business decision? (15)

2. Explain individual demand function and market demand function. (15)

S-2-010619

 This section consists of Applied Theory Questions.

 Answer all the questions.

 Each question carries 15marks.

 Detailed information should form the part of your answer (Word limit 200 to 250 words).

END OF SECTION C

END OF SECTION B

Examination Paper of Project Management

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IIBM Institute of Business Management

IIBM Institute of Business Management

Examination Paper MM. 100

Strategic Cost Management

Section A: Objective Type & Short Questions (30 Marks)

 This section consists of Multiple Choi ce & Short Notes questions.

 Answer all the questions.

 Part one carries 1 mark each & Part Two carries 5 marks each.

Part One:

Multiple Choices:

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

long is termed as a)

Benchmarking

b) Life cycle costing

c) Target costing

d) Strategy

2. A cost management tool that bring in its focus the activities performed to produced a product

is called a)

Target costing

b) Life cycle costing

c) ABC

d) Benchmarking

3. Cost incurred to the past that are not relevant to present decisions are a)

Fixed cost

b) Sunk cost

c) Opportunity cost

d) Indirect costs

4. In a process costing system, when items are sold, the cost of the item are 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

5. Differential costs are sometimes referred to as a)

Incremental costs

b) Relevant costs

c) Avoidable costs

d) Both a& b

6. Customer service feature does not include a)

Warranty and repair service

b) Adherence to specifications

Examination Paper of Project Management

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IIBM Institute of Business Management

c) On-time delivery

d) Follow-up with customer after the sale.

7. Product cost are function ofa)

Product design

b) Specific customers

c) Customer characteristics

d) Market segments

8. 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

9. Customer life cycle cost includes a)

Purchases price

b) Start-up costs

c) Post-purchase cost

d) All of the above

10. Which stage of 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 Balance score card.

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.

END OF SECTION A

Section B: Caselets (40 Marks)

 This section consists of Caselets.

 Answer all the questions.

 Each caselet carries 20 marks.

 Detailed information should form the part of your answer (Word limit 150 to 200 word)

Caselet 1

Examination Paper of Project Management

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IIBM Institute of Business Management

Vikram Ahuja was hired as assistant cost controller of chemfert Ltd., a multinational firm that

processed chemical for use in fertilizers. Soon Vikram learned that the nearby residential landfill

was being used to dump toxic wastes. It appeared that some members of management team were

aware of this situation and may have been involved in arranging for this dumping. uncertain, how

he should approach, Vikram is contemplating several alternatives courses of action , like seeking

the advice of the superior, the controller or anonymously releasing the information in the national

daily or discussing with an outside member of the BOD‟s

Questions:

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?

Caselet 2

A brilliant university is located in Mumbai. The university has four deportments- Business,

humanities, fine arts and engineering. The university is headed by a president who has five

presidents reporting to him, each heading auxiliary services, admission and records, academics.

Financial services and maintenance. In addition, there are managers who report to these vicepresidents.

These include managers for central purchasing, the university press and bookstore; all

of whom report to the vice president of auxiliary services, and managers for accounting and

finance report to vice president for financial services. Further, a dean who is responsible to the

academic vice-president heads each department.

Questions:

1. Prepare an organizational structure of brilliant University.

2. List the name of the departments having under the university.

Section C: Long Questions (30 Marks)

 This section consists of Long Questions.

 Answer all the questions.

 Each question carry 15 marks each.

 Detailed information should from the part of your Answer (Word limit 200 to 250 words)

1. What is “Cost management”? Explain the primary objectives of cost management?

2. Define “Target costing”; discuss the principles of target costing.

END OF SECTION C

END OF SECTION B

Examination Paper of Quality Management

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IIBM Institute of Business Management

IIBM Institute of Business Management

Examination Paper MM.100

Total Quality Management

Section A: Objective Type & Short Questions (30 Marks)

 This section consists of Multiple Choice & Short Notes type questions.

 Answer all the questions.

 Part One carries 1 mark each & Part Two carries 4 marks each.

Part One:

Multiple Choices:

1. Which of the following techniques is used by quality Control Circles?

a. Brainstorming

b. Pareto Analysis

c. Check Sheets

d. All of the above

2. It is a means of getting a large number of ideas from a group of people in a very short time.

a. Brainstorming

b. Pareto Analysis

c. Check Sheets

d. None

3. Cause and effect diagram is an investigation tool. This is also called_____________

a. Ishikawa

b. Histogram

c. Both (a) & (b)

d. None

4. SPC stands for______________

a. Statistical Progress Control

b. Statistical Process Control

c. Statistical Planning Control

d. None

5. DMAIC stands for____________

6. It is a structured process to design products and services based on the customers‟ needs.

a. Quality Function Development

b. Quality Function deployment

c. Information

Examination Paper of Quality Management

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IIBM Institute of Business Management

d. None

7. Six Sigma is a business management strategy originally developed by___________

a. Motorola

b. Toyota

c. Wipro

d. None

8. The basic plan-do-study-act (PDSA) cycle was first developed by

a. Deming

b. Shewhart

c. Juran

d. Fleming.

9. The quality system other than ISO 9000

a. PS 9000

b. CS 9000

c. AS 9000

d. LS 9000

10. 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

Part Two:

1. Discuss the concept of Business Process Reengineering.

2. What do you mean by process capability?

3. Describe the advantages of „Statistical Quality Control‟.

4. Write a short note on „Quality Circles‟.

Section B: Caselets (40 marks)

 This section consists of Caselets.

 Answer all the questions.

 Each caselet carries 20 marks.

 Detailed information should form the part of your answer (Word limit 200 to 250 words).

Caselet 1

END OF SECTION A

Examination Paper of Quality Management

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IIBM Institute of Business Management

Philips India Ltd. previously called Pieco Electronics Ltd., a MNC has Dutch parents and its major

plant in Calcutta. The company is having a very sound corporate image in India for its electronic

products, namely TVs, Radios, transistors, battery cells, electric bulbs, electric tubes, two-in-ones, etc.

Indians love to have Phillips products, which are more costly than various Indian electronics products

brands, as they maintain a better quality. Philips operates through forward integration with its own

authorized dealer‟s network in India. The company has maintained its corporate image and reputation

in Indian market over the years. The labour trouble started in 1990. The company had its ancient

production system in its main plant at Calcutta. Labour unions started agitations for salary hike and

asked for a number of incentives and facilities to establish parity with other competing electronic

giants. “There was a political clout of the labour unions which lead to increased militancy” says the

Chief Executive Officer of the Phillips India Ltd. The situation of labour trouble took such an ugly

turn that the Dutch parents of the Philips India decided to get out of India by closing the plant. In 1995,

however, managers refused to give up and implemented TQM. The first step was total employees

involvement. The management adopted the strategy of managing people through involving,

empowering and motivating. The management re-established its future vision to be an international

design and production center and decided to benchmark with international quality system standards

ISO 9000. The main weakness of the company during 1990 started converting into strength when

labour unions started participating intensively. A number of self-directed and self-directed and selfmanaging

mini, micro and mega-teams were formed and assigned responsibility and accountability

under dynamic leaders. By 1995 the Calcutta plant of Philips India became a model factory for its

major competitors to envy-its operations and turnaround. The R&D section took the leading role for

spearheading the company with its smart people and well equipped laboratories. The posters claiming

“quality” were exhibited in the premises and all working areas. All this made the Calcutta plant a

showpiece of Philips. It became the company‟s best bet for an international manufacturing center. The

progress due to teamwork and quality orientation was so impressive that it led the company to achieve

the internationally most coveted- The European Quality Award. The company also obtained

certification of Environmental management system EMS 14001 which gave it a further boost in

improving its sagging image during the previous 4-5 years from 1990 onwards.

In a nutshell, five beliefs helped the management in its revival. These five beliefs are: (i) mission

statement, (ii) revolve around valuing, (iii) trusting and creating trustworthiness, (iv)respecting the

people and using their brainpower in teams, and (v) continuously motivating them. A few other things

which helped the company are: propagating employee ship. TQM was used to bring about the much

needed culture change, open communication, sharing information, sharing problems openly, and an

appeal to labour unions to uphold the pride of Calcutta. Moreover, the company started operating in 3

shifts instead of only general shift over the previous time period. The continuous improvement through

structured Kaizen activities was adopted as a way of day-to-day work improvement in assignments. A

suggestion scheme was introduced which started getting a record 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.

Examination Paper of Quality Management

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IIBM Institute of Business Management

has become a benchmark for various competitors in India and abroad”, the CEO of the company adds

further.

Questions:

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 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

Examination Paper of Quality Management

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IIBM Institute of Business Management

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 reengineering

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.

Questions:

1. What is the Top initiative 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.

Section C: Applied Theory (30 marks)

 This section consists of Long Questions.

 Answer all the questions.

 Each question carries 15 marks.

 Detailed information should form the part of your answer (Word limit 150 to 200 words).

END OF SECTION B

Examination Paper of Quality Management

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IIBM Institute of Business Management

1. Describe the TQM framework for quality improvement; also explain the various benefits of

TQM.

2. Explain the followings.

a. Brainstorming

b. Pareto Analysis

c. Control Charts

END OF SECTION C

Examination Paper of Project Management

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IIBM Institute of Business Management

IIBM Institute of Business Management

Examination Paper MM.100

Project Management in Information Technology

Section A: Objective Type & Short Questions (30 marks)

 This section consists of Multiple Choice & Short Note type questions.

 Answer all the questions.

 Part One carries 1 mark each and Part two carries 5 marks each.

Part One:

Multiple forms:

1. „Enterprise project management software (EPMS)‟ integrates information from a single project to

show the status.(T/F)

2. Gantt chart is used for the___________

3. In Adaptive approach for software development the focus is on___________

a. Time based cycles to meet the target dates

b. No time based cycles

c. Although time based but no target date

d. None

4. IEEE standard_____________ describes the contents of software project management plan.

a. 1058 – 1997

b. 1058 – 1998

c. 1058 – 1999

d. 1058 – 1996

5. Scope creep means________

a. The tendency for project scope to shrink

b. The tendency for project scope to grow bigger and bigger

c. The tendency for project scope to collapse completely

d. None

6. Slack or float is the amount of time an activity may be delayed without delaying succeeding

activity.(T/F)

7. „PERT‟ stands for_________

8. „Murphy‟ law states_________

a. If something can go wrong, it can be corrected.

b. If something can go wrong , it will

Examination Paper of Project Management

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IIBM Institute of Business Management

c. If something can no go wrong , it will

d. None

9. Project that use Six Sigma principles for quality control normally follows a 5 phase improvement

process called DMAIC, here A stands for_______

a. Art

b. Analyze

c. Allies

d. None

10. Fishbone diagram is also called_______

a. Gantt diagram

b. Murphy diagram

c. Parkinson diagram

d. Ishikawa diagram

Part Two:

1. Write a note on „Work Breakdown Structure (WBS)‟.

2. Define the Earned value?

3. Explain the Kichoff meeting?

4. How would you explain the Cross-Referencing requirement Matrix?

END OF SECTION A

Section B: Caselets (40 marks)

 This section consists of Caselets.

 Answer all the questions.

 Each caselet carries 20 marks.

 Detailed information should form the part of your answer (Word limit 200 to 250 words).

Caselet 1

A preliminary estimate of costs for the entire project is $140,000. This estimate is based on the

project manager working about 20 hours per week for six months and other internal staff working a

total of about 60 hours per week for six months. The customer representatives would not be paid for

their assistance. A staff project manager would earn $50 per hour. The hourly rate for the other

project team member would be $70 per hour, since some hours normally billed to clients may be

needed for this project. The initial cost estimate also includes $10,000 for purchasing software &

services from suppliers. After the project is completed, maintenance costs of $40,000 are included

for each year, primarily to update the information and coordinate the “Ask the Expert” feature and

online articles. Projected benefits are based on a reduction in hours consultants spend researching

Examination Paper of Project Management

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IIBM Institute of Business Management

project management information, appropriate tools and templates, and so on. Projected benefits are

also based on a small increase in profits due to new business generated by this project. If each of

more than 400 consultants saved just 40 hours each year (less than one hour per week) and could bill

that time to other projects that generate a conservative estimate of $10 per hour in profits, then the

projected benefit would be $160,000 per year. If the new intranet increased business by just 1

percent, using past profit information, increased profits due to new business would be at least

$40,000 each year. Total projected benefits, therefore, are about $200,000 per year.

Exhibit A summarizes the projected costs and benefits and shows the estimated net percent value

(NPV), return on investment (ROI), and year in which payback occurs. It also lists assumptions

made in performing this preliminary financial analysis. All of the financial estimates are very

encouraging. The estimate payback is within one year, as requested by the sponsor. The NPV is

$272,800, and the discounted ROI based on a three-year system life is excellent at 112 percent.

Discount rate 8%

Assume the

project is done

in about is

months

Year

0 1 2 3 Total

Costs 140,000 40,000 40,000 40,000

Discount

factor

1 0.93 0.86 0.79

Discounted

costs

140,000 37,037 34,294 31,753 243,084

Benefits 0 200,000 200,000 200,000

Discount

factor

1 0.93 0.86 0.79

Discounted

benefits

0 186,185 171,468 158,766 515,419

Discounted

benefits –

costs

(140,000) 148,148 137,174 127,013

Cumulative

benefits-costs

(140,000) 8,148 145,322 272,336 NVP

Payback in

year 1

Discounted

life cycle

ROI----

112%

Assumptions

Costs #hours

PM (500hours,

$50/hour)

25,000

Staff (1500

hours,

$70/hour)

105,000

Outsourced

software &

10,000

Examination Paper of Project Management

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services

Total project

costs (all

applied in year

0)

140,000

Benefits

# consultants 400

Hours saved 40

$/hour profit 10

Benefits from

saving time

160,000

Benefits from

1% increase in

profits

40,000

Total annual

projected

benefits

200,000

1. What according to you are the factors that can hamper the profit growth related with the project?

2. Mention some strategies to further improve the project‟s turnover.

Caselet 2

Many organizations spend a great deal of time and money on training efforts for general project

management skills, but after the training, project managers may still not know how to tailor their

project management skills to the organization‟s particular needs. Because of this problem, some

organizations develop their own internal information technology project management methodologies.

The PMBOKR Guide is a standard that describes best practices for what should be done to manage a

project. A methodology describes how things should be done, and different organizations often have

different ways of doing things. For example, after implementing a systems development life

cycle (SDLC) at Blue Cross Shield of Michigan, the Methods department became aware that

developers and project managers were often working on different information technology project in

different ways. Deliverables were often missing or looked different from project to project. They may

have all had a project charter, status report, technical documents (i.e., database design documents,

user interface requirements, and so on), but how they were producing and delivering these

deliverables was different. There was a general lack of consistency and a need for standards to guide

both new and experienced project managers. Top management decides to authorize funds to develop a

methodology for project managers that could also become the basis for information technology

project management training within the organization. It was also part of an overall effort to help raise

the company‟s Software Capability Maturity Model level.BlueCross BlueShield of Michigan

launched a three-month project to develop its own project management methodology. Some of the

project team members had already received PMP certification, so they decided to base their

methodology on the PMBOKR Guide 2000, making adjustment as needed to best describe how their

organization managed information technology projects. See a complete article on this project on the

companion Web site for this text. Also see the Suggested Reading to review the State of Michigan

Project Management Methodology, which provides another good example of an information

technology project management methodology. Many organizations include project management in

their methodologies for managing Six Sigma projects. Other organizations include project

management in their software development methodologies, such as the Rational Unified Process

(RUP) framework. RUP is an interactive software development process that focuses on team

Examination Paper of Project Management

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IIBM Institute of Business Management

productivity and delivers software best practices to all team members. According to RUP expert Bill

Cottrell, “RUP embodies industry-standard management and technical methods and techniques to

provide a software engineering process particularly suited to creating and maintaining componentbased

software system solutions,” Cottrell explains that you can tailor RUP to include the PMBOK

process groups. Specifically, IBM Rational, the creators of RUP, found that it could adjust RUP input

artifacts with PMBOK process inputs, RUP steps with PMBOK process tools and techniques, and

RUP resulting artifacts with PMBOK process outputs.

1. According to you what the skills needed for the project management of organization?

2. How could have been the six sigma project became a helpful tool in very sophisticated kind of

project management?

END OF SECTION B

Section C: Applied Theory (30 marks)

 This section consists of Long Questions.

 Answer all the questions.

 Each question carries 15 marks.

 Detailed information should form the part of your answer (Word limit 150 to 200 words).

1. How would you explain the project manager? Explain the characteristics of the successful project

manager?

2. Define the IT project plan? Discuss the IT project plan format in detail?

END OF SECTION C

S-2-300813

Examination Paper of Quality Management

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IIBM Institute of Business Management

IIBM Institute of Business Management

Examination Paper MM.100

Quality Control

Section A: Objective Type & Short Questions (30 marks)

 This section consists of Multiple Choice Type & Short Notes type questions.

 Answer all the questions.

 Part One carries 1 mark each & Part Two carries 5 marks each.

Part One:

Multiple Choices:

1. A curve that shows the amount inspected by both the consumer and the producer for different

percent nonconforming values.

a. ASN curve

b. ATI curve

c. AOQ curve

d. None of the above

2. The producer‟s risk is represented by the symbols

a. Alpha

b. Beta

c. Gamma

d. None of the above

3. The International Committee of Weights and Measures revised the metric system in

a. 1970

b. 1960

c. 1950

d. 1999

4. ASRS stands for___________

5. A recent survey of retail customers by the___________

6. A cause-and-effect diagram was developed by____________

7. Variables that exhibit gaps are called_______________

8. How many techniques used to discard data.

a. One

b. Two

c. Three

d. None of the above

9. Deviation charts are also called_________

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IIBM Institute of Business Management

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”.

END OF SECTION A

Section B: Caselets (40 marks)

 This section consists of Caselets.

 Answer all the questions.

 Each caselet carries 20 marks.

 Detailed information should form the part of your answer (Word limit 200 to 250 words).

Caselet 1

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 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

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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 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

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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.

Company Growth

Though the company did not show a profit until July 1975, it soon became the premier carrier of highpriority

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

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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

 the first transportation company dedicated to overnight package delivery,

 the first to offer next-day delivery by 10:30 a.m.,

 the first to offer Saturday delivery,

 the first express company to offer time define service for freight, and

 the first in the industry with money-back guarantees and free proof of performance – services that

now extend to its worldwide network.

Being a „first‟ company resulted in many firsts for awards and honors, too. In 1990, Federal Express

became the first company to win the Malcolm Baldrige National Quality Award in the service

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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 crossfunctional

team for each service component in the SQI. A senior executive heads each team and assures

the involvement of front line employees, support personnel, and managers from all parts of the

corporation when needed. Two of these corporate-wide teams have a network of over 1,000 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

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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?

END OF SECTION B

Section C: (30 marks)

 This section consists Long Questions.

 Answer all the questions.

 Each question carries 15 marks.

1. What do you mean by Quality? Discuss the importance of Quality with 14 point of Deming.

2. Describe the Benchmarking? How would you explain the process, types and benefits of Benchmarking?

END OF SECTION C

S-2-300813

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