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DRIVE-FALL 2014
PROGRAM-MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2
SEMESTER-II
SUBJECT CODE & NAME-MB 0044 - PRODUCTION AND OPERATION MANAGEMENT
BK ID-B1627
CREDIT & MARKS-4 CREDITS, 60 MARKS
Q1. People's productivity key to Indian manufacturing competitiveness: Boston Consulting Group
Namrata Singh, TNN | Mar 14, 2013, 09.34PM IST
MUMBAI: People productivity is the key to Indian manufacturing competitiveness, says a report
by the Boston Consulting Group (BCG). In most global people productivity surveys, not only does
people productivity of Indian manufacturing sector lags developed nations such as US and Japan,
but also lags in most manufacturing sectors to China. While earlier, many explained this to
differences in technology, level of automation, etc., the report suggests such differences are not only
rapidly shrinking, but they do not fully explain the significant gaps in productivity that exists.

Skill gap and engagement gap are the two critical factors that explain lower people productivity.
Under gap in skill, Indian manufacturing sector faces significant challenges in attracting quality
manpower that is 'right' skilled prior to entering the workforce. In addition, continuous skill
development efforts are required for the work force, throughout their careers, as processes and
technologies evolve.
On the other hand, many manufacturing studies have indicated a direct correlation between
workforce engagement and productivity. For most Indian manufacturing companies, the level of
engagement and alignment with corporate vision, amongst their union work force and contract
labour is extremely low, when compared to their global peers.
"An improvement in people productivity can be beneficial across all levels of an organization. At
the employee level, it results in higher wages and enhanced job satisfaction. At company level, the
direct correlation between profits and resource productivity has been established through research
multiple times. And at industry level, increased people productivity leads to improved skills and
better working environmentthus paving the way for higher investments and faster economic
growth. Therefore, it is critical for the Indian manufacturing sector to work toward enhancing
people productivity to achieve the goals it has set for itself," the report says.
The subject gains importance in the backdrop of a slowdown in western economic countries and
China, as well as cost increases in China. Indian manufacturing sector stands at the cusp of a
tremendous opportunity.
After reading the case study answer the following questions:
a. What do you think are the reasons for low people productivity in India?
b. Compare and analyze Indias productivity with respect to other countries?
c. What suggestions do you offer to improve the situation?
Answer.
Reasons for low productivity in India
Skill gap and engagement gap are the two critical factors that explain lower people productivity. Under
gap in skill, Indian manufacturing sector faces significant challenges in attracting quality manpower that
is 'right' skilled prior to entering the workforce. There are many factors responsible for the low
productivity in India. Companies with low levels

Q2. List the elements of operations strategy. Explain any TWO elements of operations strategy.
(Listing the elements of operations strategy) (0.5 marks for each element))
Answer.
Elements of operations strategy
The six elements of operations strategy are:
1) Designing of the production system

Q3. What are the basic capacity (production) options a company can choose?
(Explanation of various capacity options) 10 (2 marks for each option)
Answer.
Basic capacity (production) options
A company can choose from the following basic capacity (production) options:

a) Changing inventory levels: Under this option the inventory is increased during periods of low
demand to meet high

Q4. Write short notes on:

a. Qualitative methods of forecasting
b. Taguchis quality loss function
(a. Brief explanation of any FIVE qualitative methods of forecasting, b. Taguchis quality loss
function)
Answer.
a. Qualitative methods of forecasting
The different qualitative methods of forecasting are as follows:

Market surveys

Nominal group testing

Historical analysis

Jury of executive opinion

Life cycle analysis

Q5. Describe the process of value analysis.

(Description of the steps in the process of value analysis) 10 (2.5 marks each)
Answer.
Steps in the process of value analysis
The process of value analysis can be divided into the following four steps:
1. Data gathering
2. Analysis and valuation of functions
3. Idea generation and evaluation of substitutes

Q6. Write short notes on

a. Tools for implementation of operations
b. Fixed position layout
(a. Tools for implementation of operations, Listing and brief explanation of tools for
implementation of operations, b. Fixed position layout- explain with examples and when to use
fixed layout)
Answer.
a. Tools for implementation of operations
Gantt charts developed by Henry Gantt long back for the purpose of visualising the work assignments and
sequence and timings are used to record progress comparing the actual against the planned activities and
to keep track of the flow of the material. In its simplest form, a Gantt chart consists of horizontal bar
graphs on time scales.

DRIVE-FALL 2014
PROGRAM-MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2
SEMESTER-II
SUBJECT CODE & NAME-MB0045
FINANCIAL MANAGEMENT
BK ID-B1628
CREDITS-4
MARKS-60
Q1. Explain the liquidity decisions and its important elements. Write complete information on
dividend decisions.
(Explanation of liquidity decisions with its important elements, Explanation of dividend decisions)5,
5
Answer.
Liquidity decisions with its important elements
The liquidity decision is concerned with the management of the current assets, which is a pre-requisite to
long-term success of any business firm. This is also called as working capital decision. The main
objective of the current assets management is the trade-off between profitability and liquidity, and there is
a conflict between these two concepts. If a

Q2. Explain about the doubling period and present value. Solve the below given problem:
Under the ABC Banks Cash Multiplier Scheme, deposits can be made for periods ranging from 3
months to 5 years and for every quarter, interest is added to the principal. The applicable rate of
interest is 9% for deposits less than 23 months and 10% for periods more than 24 months. What
will be the amount of Rs. 1000 after 2 years?
(Explanation of doubling period, Solving the problem, Explanation of present value) 2, 3, 5

Answer.
Doubling period
A very common question arising in the minds of an investor is how long will it take for the amount
invested to double for a given rate of interest. There are 2 ways of answering this question:

Q3. Write short notes on:

a) Operating Leverage
b) Financial leverage
c) Combined leverage
Answer.
a) Operating Leverage
Operating leverage arises due to the presence of fixed operating expenses in the firms income flows. It
has a close relationship to business risk. Operating leverage affects business risk factors, which can be
viewed as the uncertainty inherent in estimates of future operating income.

Q4. Explain the factors affecting Capital Structure. Solve the below given problem:
Given below are two firms, A and B, which are identical in all aspects except the degree of leverage
employed by them. What is the average cost of capital of both firms?

(Explanation of factors affecting capital structure, Solution for the problem, Interpretation) 6,3,1
Answer.
Factors affecting Capital Structure
The major factor affecting the capital structure is leverage. There are also a few other factors affecting
them. All the factors are explained briefly here.

Q5. Explain all the sources of risk in capital budgeting with examples.
Solve the below given problem:
An investment will have an initial outlay of Rs 100,000. It is expected to generate cash inflows. Cash
inflow for four years.

If the risk free rate and the risk premium is 10%,

a) Compute the NPV using the risk free rate

b) Compute NPV using risk-adjusted discount rate
Answer.
Sources of risk in capital budgeting
Capital budgeting involves four types of risks in a project: stand-alone risk, portfolio risk, market risk and
corporate risk.

Q6. Explain the objectives of Cash Management. Write about the Baumol model with their
assumptions.
(Explanation of objectives of cash management, Explanation of Baumol model with
assumptions)5,5
Answer.
Objectives of cash management
The major objectives of cash management in a firm are:

Meeting payments schedule

Minimising funds held in the form of cash balances

DRIVE-Fall 2014

PROGRAM-MBADS/ MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2

SEMESTER-2

SUBJECT CODE & NAME-MB0046- Marketing Management

BK ID-B1629

CREDIT & MARKS-4 Credits, 60 marks

Q1. Personal selling focuses in on personal or one to one selling. It involves an individual
salesman or a sales team establishing and building a profitable relationship with customers
over a period of time through a series of steps. Explain the steps in the personal selling
process which helps in the successful sales.

(Definition of Personal Selling, Explanation of steps in the Personal selling process) 2, 8

Answer.

Definition of Personal Selling

Personal selling is an activity which involves a face-to-face interaction with the customers
wherein there is a quick response and personal confrontation. This allows for more specific
adjustment of the message. Here, the communication message can be adjusted as per the
customers specific needs or wants. It offers you the opportunity to develop long-term familiarity
and relationship.

Q2. A brand is a composite set of beliefs and associations in the mind of consumers. In
brand development, as a part of branding strategy decision, the brand manager can decide
to create new brand elements for the new products, apply some of the existing brand
elements to the new product, or use a combination of existing and new brand elements to
the existing and new products. Explain the different branding strategies used by the
companies for their range of products.

(Definition of Brand, Advantages of Brand, Explanation of different branding strategies

adopted by companies)2,2,6

Answer.

Definition of Brand

Brand is name linked to one or more items in the product line that is employed to recognise the
source or character of item(s).

Example: prudential help in recognising the source or character of an item of a product line.

Q3. Describe the international market entry strategies in brief. (Joint ventures, Strategic
alliances, Direct investment, Contract manufacturing, Franchising) 2, 2, 2, 2, 2

Answer:
International Market Entry Strategies
There are two methods to entry into foreign markets. They are indirect exporting and direct
exporting. In the first method, the manufacturers take the help of merchant exporters to get
products exported to foreign markets.
In direct exporting, the manufacturers decide to export themselves. Thus, the manufacturers have
to decide, whether they will go directly for exports or take the help of merchant exporters who are
very often recognised as export houses, trading houses, etc. Some government trading
organisations like State Trading Corporation, MMTC, and National Small Industries Corporations
also act as trading houses.

Q4. Personal selling focuses in on personal or one to one selling. It involves an individual
salesman or a sales team establishing and building a profitable relationship with customers
over a period of time through a series of steps. Explain the steps in the personal selling
process which helps in the successful sales.

(Definition of Personal Selling, Explanation of steps in the Personal selling process) 2, 8

Answer.

Definition of Personal Selling

Personal selling is an activity which involves a face-to-face interaction with the customers
wherein there is a quick response and personal confrontation. This allows for more specific
adjustment of the message. Here, the communication message can be adjusted as per the
customers specific needs or wants. It offers you the opportunity to develop long-term familiarity
and relationship.

Q5. Describe the stages in consumer decision making process.

(Explanation of the stages in consumer decision making process) 10
Answer.
Stages in consumer decision making process
Consumer buying decision process is explained through a number of stages and is influenced by
ones psychological framework comprising the individuals personality, learning process, levels
of motivation, perception towards products and brands, and formation of positive attitude towards
the brand. Figure below depicts the process of consumer decision-making in detail.

Q6. Do you think the argument of some theorists that the traditional Ps are not enough for
services marketing? Give suitable examples to prove your point.

(Define Service Marketing, Explanation of 4ps, Explanation of Additional 3 ps) 2, 4, 4

Answer.

Define Service Marketing

Service sector is one of the key contributing factors for the growth of our economy and
civilisation. Though marketing literature is dominated by manufacturing and product-centric
business practices, service marketing constitutes a strategic area, which has propelled growth and
success for many organisations. Pure services and products are hypothetical extremes as every
product today is associated with some level of service.
DRIVE Fall DRIVE 2014

PROGRAM-MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2

SEMESTER-II
SUBJECT CODE & NAME-MB0047 MANAGEMENT INFORMATION SYSTEM
BK ID-B1968
CREDIT-4
MARKS-60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q1. In the current e-world any organisations massive operations are managed by various types of
information systems that help them to achieve their goals of servicing their clients. This can be done
by the growth of modern organization. Discuss some of the essential features of modern
organisation.
(Listing the features, Explaining each of them in brief)2,8
Answer.
Essential features of modern organisation
Some essential features of modern organisations:
IT-Enabled organisation

Q2. Marketing managers are keener to look for a least cost route that also allow a sales person to
meet all his customers. Identifying a least cost route with these features is slightly complicated.
Therefore, managers depend on decision support tools to find the most cost effective routes to cover
the market. The travelling salesman problem is one of such tool. Describe the tool with a diagram.
(Graphical representation of Travelling salesman problem, Describing the problem)4, 6
Answer.
Graphical representation of travelling salesman problem

Figure depicts the travelling salesman problem which is an example of an operational decision. The
salesman has to cover all the cities in one tour at the lowest possible cost.

Q3.
There are many examples of digital goods. Companies such as Amazon.com are selling digital
versions of books over their site. These digital books can be read on special readers that display the
pages on a screen.
a. List the important properties of information goods
b. Explain positive feedback with diagrams
(a. Listing the properties, b.) Explain positive feedback with diagrams) 4, 6
Answer.
a. List the important properties of information goods
Information goods have certain properties that make them distinct from physical goods. Information
goods are typically expensive to produce but very cheap to reproduce. For example, the original cost of
producing a music track by a professional band may run into millions of rupees. However, once the
digital version of the track is available, it can be reproduced or copied for almost no cost or at a very low
cost.

Q4. Decision support systems (DSS) are used extensively across organisations to assist managers
with making decisions. Decision making by managers involves the phases of intelligence, design,
and choice, and DSS help mainly with the choice part as they support structured and unstructured
types of decisions.
a. What is it that managers do when they make decisions?
b. Explain the different types of decisions
(a. Explaining decision making process, b. List and describing the different types of decisions)5,5
Answer.
a. What is it that managers do when they make decisions?

This is a fundamental question that needs to be answered before one can think of using DSS to support
decision making in any meaningful manner. Herbert Simon, the Nobel Prize winning researcher, showed
that humans went through three essential stages in the act of problem solving. He called these the
Intelligence, Design, and Choice stages. Decision making can also be considered as a type of problem
solving. When making a decision, humans tend

Q5. What is crowdsourcing? How does the site Galaxy Zoo manage crowdsourcing?
(Crowdsourcing definition, Explaining site Galaxy Zoo management)2,8
Answer.
Crowdsourcing
The phrase crowdsourcing is often used to describe projects that encourage collaboration. The term refers
to the idea that a crowd of people, not necessarily known to each other, participate in working on a
project.
Many critics have argued that crowdsourcing works for some kinds of tasks, but for others it is not
effective. For

Q6. Data and information relating to individuals could be of sensitive nature. Give some examples
of such kind of data
(Explaining five examples)10
Answer.
Examples
Data and information relating to individuals could be of sensitive nature. Some examples of such kind of
data are as follows:

1. Employees, who work extensively with computers, log in every morning when they come to work
and log out in the evening when they leave. During the working day, every time they leave their
desk or are not working on the computer, the system logs their inactivity at work. For example, a
United Airlines worker, in the USA, was
DRIVE- Fall 2014

PROGRAM-MBADS / MBAN2 / MBAHCSN3 / PGDBAN2 / MBAFLEX

SEMESTER- II
SUBJECT CODE & NAME- MB0048 OPERATIONS RESEARCH
Q1 Explain the types of Operations Research Models. Briefly explain the phases of Operations
Research. (Meaning of Operations Research, Types of Operations Research Models, Phases of
Operations Research) 2,4,4
Answer:
Definitions of operations research
Churchman, Aackoff, and Aruoff defined operations research as the application of scientific methods,
techniques and tools to the operation of a system with optimum solutions to the problems where
'optimum' refers to the best possible alternative.
The objective of OR is to provide a scientific basis to the decision-makers for solving problems involving
interaction with various components of the organisation. This can be achieved by employing a team of
Q2. a. Explain the graphical method of solving Linear Programming Problem.
b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it
cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper in a week.
There are 160 production hours in a week. It requires 0.20 and 0.40 hours to produce a ton of grade
X and Y papers. The mill earns a profit of Rs. 200 and Rs. 500 per ton of grade X and Y paper
respectively. Formulate this as a Linear Programming Problem.
Answer:
a.
Graphical Methods to Solve LPP
While obtaining the optimal solution to an LPP by the graphical method, the
statement of the following theorems of linear programming is used:
The collection of all feasible solutions to an LPP constitutes a convex set whose extreme points
correspond to the basic feasible solutions.
There are a finite number of basic feasible regions within the feasible solution space.
If the convex set of the feasible solutions of the system of simultaneous equation is a convex
polyhedron, then at least one of the extreme points gives an optimal solution.
If the optimal solution occurs at more than one extreme point, the value of the objective function
will be the same for all convex combination of these extreme points.
Q3. a. Explain how to solve the degeneracy in transportation problems.
b. Explain the procedure of MODI method of finding solution through optimality test.
(a. Degeneracy in transportation problem, b. Procedure of MODI method ) 5, 5
Answer:
a. Degeneracy in transportation problem
A basic solution to an m-origin, n destination transportation problem can have at the most m+n-1 positive
basic variables (non-zero), otherwise the basic solution degenerates. It follows that whenever the number

of basic cells is less than m + n 1, the transportation problem is a degenerate one. The degeneracy can
develop in two ways:
Case 1 - The degeneracy develops while determining an initial assignment via any one of the initial
Q4.
a. Explain the steps involved in Hungarian method of solving Assignment problems.
b. What do you mean by unbalanced assignment problem? How do you overcome it?
Answer.
a.)
Hungarian Method Algorithm
Hungarian method algorithm is based on the concept of opportunity cost and is more efficient in solving
assignment problems. The following steps are adopted to solve an AP using the Hungarian method
algorithm.
Step 1: Prepare row ruled matrix by selecting the minimum values for each row and subtract it from the
other elements of the row.
Step 2: Prepare column-reduced matrix by subtracting minimum value of the column from the other
values of that column.

Q5. A) Explain Monte Carlo Simulations.

Answer: Monte Carlo simulations, a statistical technique used to model probabilistic (or stochastic)
systems and establish the odds for a variety of outcomes. The concept was first popularized right after
World War II, to study nuclear fission; mathematician Stanislaw Ulam coined the term in reference to an
uncle who loved playing the odds at the Monte Carlo casino (then a world symbol of gambling, like Las
Vegas today). Today there are multiple types of Monte Carlo simulations, used in fields from particle
physics to engineering, finance and more.

B) A Company produces 150 cars. But the production rate varies with the distribution.
Production 147
148
149
150
151
152
153
rate
Probability 0.05
0.10
0.15
0.20
0.30
0.15
0.05
At present the track will hold 150 cars. Using the following random numbers determine the average
number of cars waiting for shipment in the company and average number of empty space in the
truck. Random Numbers 82, 54, 50, 96, 85, 34, 30, 02, 64, 47.
Answer.
Production rate and probability

Q6.
a. Explain the dominance principle in game theory.

b. Describe the Constituents of a Queuing System.

c. Differentiate between PERT and CPM
a.
Dominance
In a rectangular game, the pay-off matrix of player A is pay-off in one specific row ( r row ) th exceeding
the corresponding pay-off in another specific row( s row ) th . This means that whatever course of action is
adopted by player B, for A, the course of action Ar yields greater gains than the course of action As .
Therefore, Ar is a better strategy than As irrespective of Bs strategy. Hence, you can say that Ar
dominates As . Alternatively, if each pay-off in a specific column ( p column ) th is less than the
DRIVE- FALL 2014
PROGRAM
MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2
SEMESTER
II
SUBJECT CODE & NAME
MB 0049 - PROJECT MANAGEMENT
Qus:1 Describe the CPM model.

Explain the main focus of CPM and how is it different from PERT
List the assumptions of CPM
Explain the procedure of CPM analysis
Answer:
Explain the main focus of CPM and how is it different from PERT:
For projects considered uncertain, the PERT model was developed and for projects which are
comparatively risk-free the CPM model was developed. Both the approaches start with the
development of the network and a focal point on the critical path. Tthe PERT approach is
'probabilistic' while the CPM approach is 'deterministic'. This does not, however, mean that in
Qus:2 Write short notes on:
The Shewhart Cycle
Project procurement process
Role of Risk Management in Overall Project Management
Design of PMIS(Project Management Information System)
Answer:
The Shewhart Cycle:
PDCA (plandocheckact) is an iterative four-step management method used by the
companies to control and continually improve their processes and products. PDCA is
also referred to as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle,
or plando studyact (PDSA). Figure below depicts the Shewhart cycle.

Qus:3 As an investor, how will you choose the projects to invest in?
List the cash flow techniques you will use
Explain any four commonly used methods in brief- list the criteria for choosing a
project in each method
Answer:
List the cash flow techniques you will use:
If there are many alternative projects, all of which, at first sight, appear to be more or less equal
in profit earning capacity, the investor should make a comparative study of the return on the
different alternative proposals before choosing one. Such financial analysis broadly falls under
Qus:4 Write a note on Earned Value Method (EVM).
EVM explanation
Parameters to calculate performance measures
Plot of BCWS versus time
Plots BCWS, ACWP, and BCWP for a typical project
Answer:
EVM explanation:
The Earned Value Method (EVM) is a useful tool that allows the calculations of cost and
schedule performance measures including cost variance, schedule variance, cost and time overruns for a project.

Qus:5 Discuss the various methods of conflict resolution.

List and explain the methods of conflict resolution and with examples

Argue if one method suits all situations or if project managers need to need to use
different methods to resolve conflicts.
Answer:
List and explain the methods of conflict resolution and with examples:

Conflict in the workplace is common. Conflicts occur when different people have different goals
and needs; when one party thinks that the other party has done something to block the
completion of their goals. There are many methods of conflict resolution. Generally, there are

Qus:6 Answer the following questions:

a. What are the advantages of using PM software package?
b. What are the types of project performance evaluation techniques?

List and briefly explain the key advantages of using project management software.

List and explain types of project performance evaluation techniques

Answer:
List and briefly explain the key advantages of using project management software:
The following are the key advantages of using project management software:

Speed, effort, and accuracy: For a large project, manually carrying out activities like
drawing a network, carrying out time analysis, reporting project progress, generation of
various types of reports, updating network, and maintaining records is quite time and effo