Statistical Quality Control

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Examination Paper: Supply Chain Management
5
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Statistical Quality Control
Section A: Objective Type (30 marks)
· This section consists of Multiple choice questions & Short Answer type questions. · Answer all the questions.
· Part One questions carry 1 mark each & Part Two questions carry 4 marks each. Part One:
Multiple choices:
1. If in a hall there are 18 persons then how many handshakes are possible? a. 18*18
b. 18*17/2
c. 18*17
d. None of the above
2. If the number of trials be ‘n’ and the probability of occurrence be ‘p’ then the standard deviation with respect to np, is given by:
a. (np)1/2
b. (np(1-p))1/2
c. (np)1/4
d. (np(1-p))1/4
3. For a biased coin the probability of occurrence of head is 0.4 ,if the coin is tossed twice then the probability of occurrence of at least one head will be:
a. 0.76
b. 0.48
c. 0.64
d. 0.16
4. Factorial of 5 equals:
a. 60
b. 120
c. 24
d. 5
5. Combinatory of (4,2) equals:
a. 12
b. 8
c. 6
d. None of the above
Examination Paper: Supply Chain Management
6
IIBM Institute of Business Management
6. ‘Economic Control of Quality of Manufactured Product’, a book by Walter A Shewhart in: a. 1931
b. 1941
c. 1930
d. 1956
7. Quality is judged by…………
a. Retailer
b. Government
c. Customer
d. Hole seller
8. A run chart is a special chart of…………
a. Pie chart
b. Line chart
c. R chart
d. C chart
9. Universes may differ :
a. In average
b. In above average
c. At higher level
d. All of the above
10. ASQC and ANSI began in the year:
a. 1956
b. 1976
c. 1978
d. 1960
Part Two:
1. Differentiate between ‘Defect’ and ‘Defective’.
2. Explain the need of ‘short method’.
3. What does ‘Tchebycheff’s inequality theorem’ say?
4. Explain the usability of ‘stochastic limit’.
5. Write a note on ‘Cause and Effect’ diagram.
END OF SECTION A
Examination Paper: Supply Chain Management
7
IIBM Institute of Business Management
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 words). Caselet 1
ADAPTABILITY IN ACTION: A CASE OF RSL
Rajasthan Synthetics Ltd. (RSL) was established in the year 1994 at Bhilwara, Rajasthan to manufacture synthetic yarn with a licensed capacity of 29,000 spindles. Manish Kumar, a Harvard Business School graduate, established RSL with 8% equity participation from Itochu Corporation Japan to manufacture synthetic yarn for shirting, a promising business at that time. The demise of the NTC textile mills was fresh in the minds of the promoters and therefore, state of the art technology imported from U.K., Germany, Japan and France was used in the manufacturing facility. By the time the company started manufacturing yarn the competition in shirting yarn had become fierce and the returns had diminished. The company incurred losses in the first four years of its operations and the management was looking for opportunities to turn things around. The manufacturing plant started functioning with an installed capacity of 26,000 spindles, a small unit considering yarnmanufacturing industry, in the year 1996 to manufacture synthetic yarn for shirting only. Initially, the major fabric manufactures of India such as Raymonds, Donear, Grasim, Amartex, Siyaram, Pantaloon and Arviva were the main customers of the company and the total produce of the company was sold within the domestic market. These fabric manufactures used to import the premium quality yarn before RSL started supplying the yarn to them. The company in the first year of its operations realized that shirting yarn was one of the fiercely competitive products and the company with its high interest liability was unlikely to earn the desired profits. Also, the company had a narrow product mix limited to only two more blow room lines...
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