ASSIGNMENT DRIVE FALL 2013

PROGRAM - BBA
SEMESTER - III
SUBJECT CODE & NAME BBA 303 QUALITY MANAGEMENT

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Q. No 1 How is the McKinsey 7S model used for carrying out strategic planning and
implementation?
ANSWER: The 7S model is a strategic model that can be used for any of the following purposes:

Organizational alignment or performance improvement

Understanding the core and most influential factors in an organizations strategy

Determining how best to realign an organization to a new strategy or other organization design

Examining the current workings and relations an organization exhibits

The model, made famous by the McKinsey consulting company, is good for a thorough discussion around an
organizations activities, infrastructure, and interactions.
-The model and its usage-

Here is the 7S model that portrays seven elements of an organization.

Strategy:

What is our strategy?

How do we intend to achieve our objectives?

How do we deal with competitive pressure?

How are changes in customer demands dealt with?

How is strategy adjusted for environmental issues?

Structure:

How is the company/team divided?

What is the hierarchy?

How do the various departments coordinate activities?

How do the team members organize and align themselves?

Is decision making and controlling centralized or decentralized? Is this as it should be, given what
we're doing?

Where are the lines of communication? Explicit and implicit?

Systems:

What are the main systems that run the organization? Consider financial and HR systems as well
as communications and document storage.

Where are the controls and how are they monitored and evaluated?

What internal rules and processes does the team use to keep on track?
Shared Values:

What are the core values?

What is the corporate/team culture?

How strong are the values?

What are the fundamental values that the company/team was built on?
Style:

How participative is the management/leadership style?

How effective is that leadership?

Do employees/team members tend to be competitive or cooperative?

Are there real teams functioning within the organization or are they just nominal groups?
Staff:

What positions or specializations are represented within the team?

What positions need to be filled?

Are there gaps in required competencies?

Skills:

What are the strongest skills represented within the company/team?

Are there any skills gaps?

What is the company/team known for doing well?

Do the current employees/team members have the ability to do the job?

How are skills monitored and assessed?

- See more at: http://www.mindtools.com/pages/article/newSTR_91.htm#sthash.MIFyU72y.dpuf

Application: The model is based on the theory that, for an organization to perform well, these seven
elements need to be aligned and mutually reinforcing. So, the model can be used to help identify what
needs to be realigned to improve performance, or to maintain alignment (and performance) during other
types of change.
Whatever the type of change restructuring, new processes, organizational merger, new systems, change
of leadership, and so on the model can be used to understand how the organizational elements are
interrelated, and so ensure that the wider impact of changes made in one area is taken into consideration.
You can use the 7S model to help analyze the current situation (Point A), a proposed future situation
(Point B) and to identify gaps and inconsistencies between them. It's then a question of adjusting and
tuning the elements of the 7S model to ensure that your organization works effectively and well once you
reach the desired endpoint.
Sounds simple? Well, of course not: Changing your organization probably will not be simple at all!
Whole books and methodologies are dedicated to analyzing organizational strategy, improving
performance and managing change. The 7S model is a good framework to help you ask the right
questions but it won't give you all the answers. For that you'll need to bring together the right
knowledge, skills and experience.
When it comes to asking the right questions, we've developed a Mind Tools checklist and a matrix to keep
track of how the seven elements align with each other. Supplement these with your own questions, based
on your organization's specific circumstances and accumulated wisdom.

2 Explain the different categories of costs of quality

ANSWER:
Four types of quality cost are briefly explained below:
Prevention Costs:
Generally the most effective way to manage quality costs is to avoid having defects in the first place. It is
much less costly to prevent a problem from ever happening than it is to find and correct the problem after
it has occurred. Prevention costs support activities whose purpose is to reduce the number of defects.
Companies employ many techniques to prevent defects for example statistical process control, quality
engineering, training, and a variety of tools from total quality management (TQM).
Prevention costs include activities relating to quality circles and statistical process control.Quality
circles consist of small groups of employees that meet on a regular basis to discuss ways to improve
quality. Both management and workers are included in these circles.
Statistical process control is a technique that is used to detect whether a process is in or out of control.
An out of control process results in defective units and may be caused by a miscalibrated machine or
some other factor. In statistical process control, workers use charts to monitor the quality of units that pass
through their workstations. With these charts, workers can quickly spot processes that are out of control
and that are creating defects. Problems can be immediately corrected and further defects prevented rather
than waiting for an inspector to catch the defect later.
Some companies provide technical support to their suppliers as a way of preventing defects. Particularly
in just in time (JIT) systems, such support to suppliers is vital. In a JIT system, parts are delivered from
suppliers just in time and in just the correct quantity to fill customer orders. There are no stockpiles of
parts. If a defective part is received from a supplier, the part cannot be used and the order for the ultimate
customer cannot be filled in time. Hence every part received from suppliers must be free from defects.
Consequently, companies that use just in time (JIT) often require that their supplier use sophisticated
quality control programs such as statistical process control and that their suppliers certify that they will
deliver parts and materials that are free of defects.
Appraisal Costs:
Any defective parts and products should be caught as early as possible in the production
process. Appraisal costs, which are sometimes called inspection costs, are incurred to identify

defective products before the products are shipped to customers. Unfortunately performing appraisal
activates doesn't keep defects from happening again and most managers realize now that maintaining an
army of inspectors is a costly and ineffective approach to quality control.
Employees are increasingly being asked to be responsible for their own quality control. This approach
along with designing products to be easy to manufacture properly, allows quality to be built
into products rather than relying on inspections to get the defects out.
Internal failure Costs:
Failure costs are incurred when a product fails to conform to its design specifications. Failurecosts can be
either internal or external. Internal failure costs result from identification of defects before they are
shipped to customers. These costs include scrap, rejected products, reworking of defective units, and
downtime caused by quality problem. The more effective a company's appraisal activities the greater the
chance of catching defects internally and the greater the level of internal failure costs. This is the price
that is paid to avoid incurring external failure costs, which can be devastating.
External Failure Costs:
When a defective product is delivered to customer, external failure cost is the result.External
failure costs include warranty, repairs and replacements, product recalls, liability arising from legal
actions against a company, and lost sales arising from a reputation for poor quality. Such costs can
decimate profits.
In the past, some managers have taken the attitude, "Let's go ahead and ship everything tocustomers, and
we'll take care of any problems under the warranty." This attitude generallyresults in high external
failure costs, customer ill will, and declining market share and profits.
External failure costs usually give rise to another intangible cost. These intangible costs are
hidden costs that involve the company's image. They can be three or four times greater than
tangible costs. Missing a deadline or other quality problems can be intangible costs of quality.
Internal failure costs, external failure costs and intangible costs that impair the goodwill of the company
occur due to a poor quality so these costs are also known as costs of poor quality by some persons.

3 Why productivity is important?

ANSWER:
Business Productivity is the ability of an organization to utilize its available resources in order to produce
profitable goods or services as desired by customers or clients. It is the productivity that measures the
performance of an organization, and it can also be used for companies themselves in order to assess their
own progress. The importance of productivity in business can be summarized as follows.

Productiveness increases the overall efficiency of an organization. When the efficiency of the
organization increases, the production capacity of the company is utilized to the optimum level. Thus, all
resources are used in an effective and efficient manner to get the best possible results. As is often
indicated by business, the more products you make, the lower your overhead, and the higher your profits.

Enhanced production lowers the cost per unit of a product which in turn, results in lower prices for better
quality, which enhances a business competitiveness in the market. In the current turbulent world, every
organization faces stiff competition from their counterparts. Hence, lower prices as a result of enhanced
production give an edge to businesses to sell products at more competitive prices. If the rates are
competitive, the business is in a better position to attract more customers and make more sales. This is the
primary motive of any business organization.
Increased production due to efficient utilization of organizational resources leads to a lower cost
production resulting in better sales and profits. If the profits of an organization shoot up, it increases the
confidence of investors in the organization. Moreover, the share value of the company increases. Due to
this, the reputation and goodwill of the organization increases.
Similarly, the business can share a portion of its profits as a result of enhanced production with its
employees. This boosts the morale of the employees as they get to enjoy a part of the profits and the
satisfaction of a job well done. As a result, their working efficiency tends to increase which in turn,
further increases the production of the company. As you can start to see, there is a snowball of business
success that starts with increased productivity.
Productivity is much more important than revenues and profits of the organization because profits only
reflect the end result whereas productivity reflects the increased efficiency as well as effectiveness of
business policies and processes. Moreover, it enables a business to find out its strengths and weaknesses.

It also lets the business easily identify threats as well as opportunities that prevail in the market as a result
of competition and changes in business environment.

A company can increase its own business productivity by making suitable changes in its business process
and policies in order to improve the weak areas and capitalize on strengths for betterment. Similarly, an
organization can formulate strategies to turn threats in to opportunities. This results in increased
profitability and stability which is vital for the continued success of any business organization.
The importance of productivity can never be ignored by any diligent business owner. Successful ventures
are often those that give priority to productivity compared to solely looking into revenues and profits of
the company. On the other hand, businesses that do not pay attention to productivity pay a huge price in
terms of reduced production and high cost of production, resulting in reduced sales and low profits. Thus,
a productivity level can be considered a measure of success or failure for any business.

4 Write a note on control chart

ANSWER: Control charts, also known as Shewhart charts (after Walter A. Shewhart) or process-behavior
charts, in statistical process control are tools used to determine if a manufacturing or business process is
in a state of statistical control. If analysis of the control chart indicates that the process is currently under
control (i.e., is stable, with variation only coming from sources common to the process), then no
corrections or changes to process control parameters are needed or desired. In addition, data from the
process can be used to predict the future performance of the process. If the chart indicates that the
monitored process is not in control, analysis of the chart can help determine the sources of variation, as
this will result in degraded process performance. A process that is stable but operating outside of desired
(specification) limits (e.g., scrap rates may be in statistical control but above desired limits) needs to be
improved through a deliberate effort to understand the causes of current performance and fundamentally
improve the process.
A control chart consists of:

Points representing a statistic (e.g., a mean, range, proportion) of measurements of a quality

characteristic in samples taken from the process at different times [the data]

The mean of this statistic using all the samples is calculated (e.g., the mean of the means, mean of
the ranges, mean of the proportions)

A centre line is drawn at the value of the mean of the statistic

The standard error (e.g., standard deviation/sqrt(n) for the mean) of the statistic is also calculated
using all the samples

Upper and lower control limits (sometimes called "natural process limits") that indicate the
threshold at which the process output is considered statistically 'unlikely' and are drawn typically at 3
standard errors from the centre line

The chart may have other optional features, including:

Upper and lower warning or control limits, drawn as separate lines, typically two standard errors
above and below the centre line

Division into zones, with the addition of rules governing frequencies of observations in each zone

Annotation with events of interest, as determined by the Quality Engineer in charge of the
process's quality

Types of Control Charts

Variables data are quantitative data that can be measured. Some examples are the diameter of a bearing or
the thickness of a newly minted coin. Variables data are usually represented as X-bar and R-charts and Xbar and s-charts.
Attributes data are qualitative data that can be counted. Some examples are a count of scratches per item
or a count of acceptability for a go/no-go gauge. Attributes data are usually represented as nonconforming
units and are analyzed by using p, np, c, or u control charts.

Guidelines: - The initial predictions for the process must be made while the process is assumed to be
stable. Because future process quality will be compared to these predictions, they must be based off of a
data set that is taken while the operation is running properly.
-

Multiple subsets of data must be collected, where a subset is simply a set of n measurements

taken over a specific time range. The number of subsets is represented as k. A subset average, subset
standard deviation, and subset range will be computed for each subset.
-

From these subsets, a grand average, an average standard deviation, and an average range are

calculated. The grand average is the average of all subset averages. The average standard deviation is
simply the average of subset standard deviations. The average range is simply the average of subset
ranges.

5 Discuss the Quality Management Principles

ANSWER: he International Standard for Quality management (ISO 9001:2008) adopts a number of
management principles[3] that can be used by top management to guide their organizations towards
improved performance. The principles include:
Customer focus
Since the organizations depend on their customers, they should understand current and future customer
needs, should meet customer requirements and should try to exceed the expectations of customers. [4] An
organization attains customer focus when all people in the organization know both the internal and
external customers and also what customer requirements must be met to ensure that both the internal and
external customers are satisfied.
Leadership
Leaders of an organization establish unity of purpose and direction of it. They should go for creation and
maintenance of such an internal environment, in which people can become fully involved in achieving the
organization's quality objective.[4]

Involvement of people
People at all levels of an organization are the essence of it. Their complete involvement enables their
abilities to be used for the benefit of the organization.
Process approach
The desired result can be achieved when activities and related resources are managed in an organization
as process.this may also affect it
System approach to management
An organization's effectiveness and efficiency in achieving its quality objectives are contributed by
identifying, understanding and managing all interrelated processes as a system. Quality Control involves
checking transformed and transforming resources in all stages of production process
Continual improvement
One of the permanent quality objectives of an organization should be the continual improvement of its
overall performance.
Factual approach to decision making
Effective decisions are always based on the data analysis and information.
Mutually beneficial supplier relationships
Since an organization and its suppliers are interdependent, therefore a mutually beneficial relationship
between them increases the ability of both to add value.
These eight principles form the basis for the quality management system standard ISO 9001:2008.

6 Write a note on theories of motivation

ANSWER:

Maslows need hierarch theory: Maslow's hierarchy of need categories is the most famous example:

self-actualization
esteem
belongingness
safety
physiological

Specific examples of these types are given below, in both the work and home context. (Some of the
instances, like "education" are actually satisfiers of the need.)

Self-actualization: education, religion, hobbies, personal growth training, advancement, growth,

creativity
Esteem: approval of family, friends, community recognition, high status, responsibilities
Belongingness: family, friends, clubs

teams, depts, coworkers, clients, supervisors, subordinates

Safety: freedom from war, poison, violence

Physiological: food water sex

work safety, job security, health insurance

Heat, air, base salary

According to Maslow, lower needs take priority. They must be fulfilled before the others are activated.
There is some basic common sense here -- it's pointless to worry about whether a given color looks good
on you when you are dying of starvation, or being threatened with your life. There are some basic things
that take precedence over all else.
Or at least logically should, if people were rational. But is that a safe assumption? According to the
theory, if you are hungry and have inadequate shelter, you won't go to church. Can't do the higher things
until you have the lower things. But the poor tend to be more religious than the rich. Both within a given
culture, and across nations. So the theory makes the wrong prediction here.
Or take education: how often do you hear "I can't go to class today, I haven't had sex in three days!"? Do
all physiological needs including sex have to be satisfied before "higher" needs? (Besides, wouldn't the
authors of the Kama Sutra argue that sex was a kind of self-expression more like art than a physiological
need? that would put it in the self-actualization box). Again, the theory doesn't seem to predict correctly.
Cultural critique: Does Maslow's classification really reflect the order in which needs are satisfied, or is it
more about classifying needs from a kind of "tastefulness" perspective, with lofty goals like personal

growth and creativity at the top, and "base" instincts like sex and hunger at the bottom? And is selfactualization actually a fundamental need? Or just something that can be done if you have the leisure
time?

Herzbergs two-factor theory: The two-factor theory (also known as Herzberg's motivation-hygiene
theory and dual-factor theory) states that there are certain factors in the workplace that cause job
satisfaction, while a separate set of factors cause dissatisfaction. It was developed by Frederick Herzberg,
a psychologist, who theorized that job satisfaction and job dissatisfaction act independently of each other.
Two-factor theory fundamentals: Attitudes and their connection with industrial mental health are related
to Maslow's theory of motivation. His findings have had a considerable theoretical, as well as a practical,
influence on attitudes toward administration. [1][2] According to Herzberg, individuals are not content with
the satisfaction of lower-order needs at work, for example, those associated with minimum salary levels
or safe and pleasant working conditions. Rather, individuals look for the gratification of higher-level
psychological needs having to do with achievement, recognition, responsibility, advancement, and the
nature of the work itself. So far, this appears to parallel Maslow's theory of a need hierarchy. However,
Herzberg added a new dimension to this theory by proposing a two-factor model of motivation, based on
the notion that the presence of one set of job characteristics or incentives leads to worker satisfaction at
work, while another and separate set of job characteristics leads to dissatisfaction at work. Thus,
satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are
independent phenomena. This theory suggests that to improve job attitudes and productivity,
administrators must recognize and attend to both sets of characteristics and not assume that an increase in
satisfaction leads to decrease in unpleasurable dissatisfaction.
The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg from interviews
with a large number of engineers and accountants in the Pittsburgh area. From analyzing these interviews,
he found that job characteristics related to what an individual does that is, to the nature of the work one
performs apparently have the capacity to gratify such needs as achievement, competency, status,
personal worth, and self-realization, thus making him happy and satisfied. However, the absence of such
gratifying job characteristics does not appear to lead to unhappiness and dissatisfaction. Instead,
dissatisfaction results from unfavorable assessments of such job-related factors as company policies,
supervision, technical problems, salary, interpersonal relations on the job, and working conditions. Thus,
if management wishes to increase satisfaction on the job, it should be concerned with the nature of the

work itself the opportunities it presents for gaining status, assuming responsibility, and for achieving
self-realization. If, on the other hand, management wishes to reduce dissatisfaction, then it must focus on
the job environment policies, procedures, supervision, and working conditions. If management is
equally concerned with both, (as is usually the case), then managers must give attention to both sets of job
factors.
The theory was based around interviews with 203 American accountants and engineers in Pittsburgh,
chosen because of their professions' growing importance in the business world. The subjects were asked
to relate times when they felt exceptionally good or bad about their present job or any previous job, and to
provide reasons, and a description of the sequence of events giving rise to that positive or negative
feeling.
Here is the description of this interview analysis:
Briefly, we asked our respondents to describe periods in their lives when they were exceedingly happy
and unhappy with their jobs. Each respondent gave as many "sequences of events" as he could that met
certain criteriaincluding a marked change in feeling, a beginning and an end, and contained some
substantive description other than feelings and interpretations...
The proposed hypothesis appears verified. The factors on the right that led to satisfaction (achievement,
intrinsic interest in the work, responsibility, and advancement) are mostly unipolar; that is, they contribute
very little to job dissatisfaction. Conversely, the dis-satisfiers (company policy and administrative
practices, supervision, interpersonal relationships, working conditions, and salary) contribute very little to
job satisfaction.

CONTACT ME TO GET FULLY SOLVED SMU

ASSIGNMENTS/PROJECT/SYNOPSIS/EXAM GUIDE PAPER
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