MGT613 Solved Subjective by Honey G

Honey G

Fall 2008

Q43. Explain the importance of employee empowerment in TQM. (3 marks)

In most organizations, the employees are the most under utilized resources but with the advent of TQM the organizational structure has changed dramatically. Most organizations no longer have the one way or pyramidal hierarchical structure but have a more flattened structure which allows for multi skilled workforce. In today’s corporate environment, managers take the role of coaching and leadership by providing the employees with the necessary resources and conditions they need in order to accomplish their goals. TQM may empower employees by delegating responsibility for functions that were formerly within management’s domain, which may thus serve to institutionalize empowerment on a more or less prominent base. Managers have the sole responsibility to identify and remove the conditions that foster a sense of powerlessness and which lowers self-efficacy belief of employees.

Q44. What would be the annual ordering cost, if annual demand is 300 units where the order size is 250 units and ordering cost is Rs. 10 per order? (3 marks)

Note: Provide answer with complete working. Failure to show working will result deduction of marks. Annual Ordering Cost = (Annual Demand / Order Size) x Cost per Order Annual Ordering Cost = (D/Q) x C Annual Ordering Cost = (300/250) x 10 Annual Ordering Cost = 1.20 x 10 = 12

Q45. Gantt charts are of various types. Give a brief description about al least two types of Gantt charts. (3 marks)

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Henry Laurence Gantt, A.B., M.E. (1861 – 23 November 1919) was an American mechanical and management consultant who is most famous for developing the Gantt chart in the 1910s The Gantt chart: Still accepted as an important management tool today, it provides a graphic schedule for the planning and controlling of work, and recording progress towards stages of a project. The chart has a modern variation, Program Evaluation and Review Technique (PERT)

Types of Gantt charts:

Load Chart depicts the loading and idle times of a group of machines or a list of departments Schedule Chart: A type of Gantt chart that shows the orders or jobs in progress and whether they are on schedule or not.

Q46. "Six sigma” is related to quality improvement" Elaborate this statement. (5 marks)

Statistically speaking a process is said to be in Six Sigma stage if it does not have more than 3 or 4 defects per million. Most of the organizations, measure their quality program in terms of Six Sigma. Conceptually the Six Sigma Program is designed to reduce defects and requires the use of certain tools and techniques. Six Sigma Programs are always directed towards quality improvement, cost cutting and time saving. Six Sigma Programs are employed in: Design Production Service Operation management Inventory management

Q47. MRP (Materials Requirement Planning) processing is made up of various components. Explain some of them. (5 marks)

Material requirements planning (MRP): Computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials.

Components of Processing MRP: · Inputs of MRP: · MRP has three Inputs:

• Master Schedule Plan: One of three primary inputs in MRP; states which end items are to be produced, when these are needed, and in what quantities
• Bill of Materials: One of the three primary inputs of MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product.

Honey G

• Inventor Records: Includes information on the status of each item by time period, Gross requirements, Scheduled receipts, Amount on hand, Lead times, Lot sizes, And Assembly Time Chart

MRP Outputs:

Planned orders - schedule indicating the amount and timing of future orders. Order releases - Authorization for the execution of planned orders. Changes - revisions of due dates or order quantities, or cancellations of orders.

Q48. Implementation of six sigma aims at reducing defects. What could be the various obstacles in implementing Six Sigma? (10 marks)

Obstacles to Implementing Six Sigma (TQM) include the lack of:

1. Company-wide definition of quality.
2. Strategic plan for change.
3. Customer focus.
4. Real employee empowerment.
5. Strong motivation.
6. Time to devote to quality initiatives.
7. Leadership.
8. Poor inter-organizational communication.
9. View of quality as a “quick fix”.
10. Emphasis on short-term financial results.
11. Internal political and “turf” wars.

Q49. Double Sampling Plan Characteristics: (10 marks)

accepted.