INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Paper 18.E
Total Quality Management
Date: 18.06.2016 Max. Marks 100
Time: 2.00 to 5.00 p.m Duration 3 hours
Instructions
1. The question paper is in three parts B C.
2. Part A is compulsory. Each question carries one mark. Total 32 Marks
3. In Part answer 3 questions out of 5. Each question carries 16 marks.Total 48 Marks
4. Part C is a case study with sub questions and it is compulsory. It carries 20 marks.
5. Use of calculator is allowed wherever necessary.
6. Graph sheets can be used wherever necessary.
PART A 32 marks
compulsory. Each question carry 1 mark)
Q.1. Fill in the blanks. (Do not reproduce the statement) 8 marks
Scientific management emphasized product quality through
organization continually expand its capacity to create its future.
Theory Z emphasizes management.
Supplier by a buyer is a detailed examination of the policies and
capabilities of a supplier.
is a technique used to present data into different groups/categories.
Striving to be best of the best is called
Absence of factors makes employees dissatisfied.
reduces the time required for new product development.
Q.2. State True or False. (Do not reproduce the statement) 8 marks
Customer in the TQM culture means only the recipient of the end product/service.
Quality and productivity are not mutually exclusive.
Team is a group of people working together to achieve common objectives.
ISO 9000 is a quality control model.
Deming developed project by project improvement approach.
Small emphasizes product, process and customer focus.
Durability is defined as the probability of performing without failure.
Employee empowerment is archived through job enrichment.
June 2016
Q.3. Match A and B 8 marks
A B
Motivators Shingo
Zero Defects Quality level 4
Spiral of progress Control chart
Imagineering 80/20 rule
Zero quality control Intrinsic
Fitness to hidden need Crosby
Assignable causes Juran
Pareto law Conway
Q.4. Expand the following 8 marks
SQC
DFM
FMEA
PDSA
CWQC
QLF
MBWA
MTTR
PART B 48 marks
Attempt any three. Each Question carry 16 marks each)
Q.5. Define TQM. Explain various elements of TQM in your own words.
Briefly explain Juran's quality trilogy.
Q.6. Distinguish between quality and total quality based on small q and Big Q factors.
Explain the problem solving process.
Q.7. Explain various stages of quality audit as per ISO 9000.
Explain in brief your understanding about ISO 14000.
Q.8. Explain briefly the contributions of Deming in the development of TQM
Explain the steps involved in QFD.
Q.9. Write short notes on any four
Operating characteristic curve
Crosby's four absolutes of quality
Concurrent engineering
Dimensions of service quality
Pareto diagram
Part C
Q. 10 Answer case study 20 marks
Modern Steel Technologies Inc. is a supplier of custom-designed, hardened steel
components and replacement parts to heavy industries worldwide. Steel mills and mining
companies account for 75 percent of sales. Aluminum, paper, chemical and cement industries
account for the remaining 25 percent. The main product groups are gears, couplings, wheels,
and rolls. MST operates three plants two in Pennsylvania and one in Canada- and employ
374 people.
The MST mission is to "serve our customers by producing and delivering products of superior
quality and value, maintain a commitment to continuous improvement, and provide long-term
value to shareholders." Each year president and his staff meet off-site to develop and refine
plan for the next year. Here they discuss goals, strategies, and objectives, and make
capacity, personnel, and quality decisions. This plan is passed down to middle management
for review and suggestions. Middle management takes the yearly plan and determines
monthly goals for sales, production, inventory, backlog expenses and revenues. All
employees have access to these plans. Every three months, managers review their
department's progress against the plan and present the result to the president. If the plan is
not being met, suggestions for improvement are discussed.
MST is conscious of its community responsibilities at its Pennsylvania headquarters. The
CEO is a board member of the United Way, the Fine Arts Council, and other local community
efforts. Annually, MST employees are encouraged to contribute to these causes. MST
complies with all EPA and OSHA regulations and offers flu shots and health-related seminars
to its employees.
MST understands its customer requirements. In a highly competitive industry, failure to meet
a customer need usually results in a lost customer. For example, European Union customers
required ISO 9000 certification, which MST was able to obtain in June 1995. Customer
satisfaction is determined by on time delivery and quality results. Each year, the roll product
manager visits all customers and conducts a survey on product performance. Often, a latent
customer need is determined, and MST seeks ways to fulfill this need.
MST uses a mainframe computer-based information system to track quotes, orders,
inventory, schedules, and purchasing activities. Networked PCs within the company allow
different department to access the same information. Departments have access only to those
databases they use. For example, the Quality department monitors on-time delivery, cycle
time, and cost. Several improvements have been made. For example, roll heat treat recipes
were kept in duplicate books by both the Metallurgy and Heat Treat departments, resulting in
errors if one book was updated. These are now maintained in common database, accessible
to both departments.
MST compares its performance to that of competitors by examining product performance of
rolls at steel mills. In addition, the company uses annual surveys of the gear industry
published by a manufacturing association to compare its gears against others, based on
performance and production cost. The company also uses cost-of-quality indicators to
measure performance. An external measure is defined as the cost to repair or replace a
product after it fails, and an internal measure is the cost of rework of scrap. Each internal
incident is traced back and charged to the budget of the responsible department. These are
analyzed in total to determine possible corrective actions.
Employee excellence is recognized through the use of annual employee appraisals. The
employee and his or her immediate supervisor sit down and discuss the appraisal and the
employee's score. Merit raises are based on the appraisal. The discussion also identifies any
weakness the employee may have, and additional training may be suggested to strengthen
weak areas. Vacancies are usually filled by promotion from within MST. Consequently,
turnover of salaried employees is relatively high. MST has an employee stock ownership
plan. In 1997, the last of the company stock was distributed. New employees contribute to
base retirement plan and are unable to participate in company ownership.
Customer requirements are transmitted through blueprints. Blueprints are generated by the
Engineering Department and contain product dimensions, specified hardness requirements,
and other information necessary to manufacture the product.
Quality control measurement techniques are defined and vary by product. Key product
characteristics, such as gear tooth thickness, are measured against tolerances. Inspection
personnel are trained and certified in applicable testing techniques. If a dimension is out of
tolerance, the inspector must call a technician who will decide if immediate corrective action
should be taken. A department manager makes the decision to take preventive action to stop
an undesirable condition from recurring.
MST maintains an informal partnership with a supplier of forging. MST meets periodically to
convey its requirements.
Currently, on-time delivery is above 90 percent for all product groups except gears, which is
at a 60 percent level. Delivery dates for gears are difficult to determine because the product
mix is constantly changing, cycle times vary, and machines used for production are common
to several products, creating a challenge for capacity planners.
Questions:
Does the company have TQM process in place? Enumerate points that support
your answer.
What are the benefits of TQM based on the case study?
How the company measure quality costs?