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Objective questions for MBA 2nd semester, SMU, 2011

FINANCE Unit: 1(financial management) 1. The modern approach transformed the field of study for the narrow approach to the most analytical
nature.

2.

The core of the approach evolved around the procurement of the least core funds effective utilization for the maximization of share holders wealth. 3. Financial management is considered a branch of knowledge with focus on the procurement of funds. 4. Financial management means maximization of economics welfare share holders. 5. Profit maximization is based on the cardinal rule of efficiency. 6. Wealth maximization means maximizing the net wealth of the company shareholders. 7. Positive net present value: - the excess of present of cash inflow of any decision implemented over the present cash out flow. 8. Time value factor: - the time preference rate that is of the risk free rate and risk premium. 9. Risk free rate: - the rate that an investor can earn on any governed security for the duration under consideration. 10. Risk premium: - the consideration for the risk perceived by the in investing is that asset or security. 11. Required rate of return: - the return that investors want for investment in that sector. 12. Wealth maximization considers time value of money. 13. Wealth maximization is based on cash flow. 14. under perfect competition allocation of resources shall be balanced for goal of 15. finance function are:(a) finance decision (b) investment decision (c) liquidity decision (d) dividend decisions (e) Organization of a finance functions. 16. Financing decision relate to the acquisition of funds at the least cost. cost have two dimension: (a) Explicit cost: - the cost in the form of coupon rate, cost of floating and issuing the security. (b) Implicit cost: - is not a visible cost but it may seriously affect the company operation especially when it is exposed to business and financial risk. 17. An investor in the company share has two objectives: (a) Income from capital appreciation (b) Income from dividends 18. Investment decisions are also called capital budgeting decision hence lead to investments in real assets.

Unit:-2 (financial planning) 1. 2. 3.


4. (a) (b) (c) (d) (e) (f) 5. Financial planning is process by which funds required for each course of action is decided. operation capital = capital employed/sales generated Corporate objectives can be divided into qualitative and quantitative. steps in financial planning are: establish cooperate objectives formulate strategy delegate responsibilities forecast financial variables develop plans create flexible economic environment three method of preparing income statement are:

(a) (b) (c)

percent of sales method or constant ratio method expense method combination of both these two 6 control mechanisms is developed for allocation of funds. 7. Seasonal peak required to met from short term borrowing 8. Nature of industries has a major impact on the total assets that the firm owns. 9. Sources of financial can be grouped into debt and equity. 10. The prudent policy of any good financial plan is to match the term of the source with the term of the e 11. Flexibility in capital refers to the ability to effect change in the composites of capital structure. 12. Capital requirement of firm could be grouped into fixed and working capital. 13. Variable working capital will have to be financed only by short term sources. 14. Capitalization of firm refers to the composition of its long terms funds and its capital structure. it has two components as:- debts and equity 15. There are two theories for capitalization for the new companies: (a) cost theory (b) earning theory 16. Company is said to be over capitalized when its total capacity exceeds the true value of its assets. 17. Under capitalization is just the revenue of overcapitalization. 18. A company is considered to be undercapitalization when its actual capitalization is lower than the proper capitalization as warranted by its earnings.

Unit: 3 (time value of money) 1. Time preference rate or required rate of return: for money is generally expressed by an interest. 2. Required rate of return = risk free rate+ risk premium.
3. two methods for calculation of time value of money are: compounding technique(future value) discounting technique(present value) compounding interest can be calculated as: A=P(1+i)^n discounting technique can be calculated as: P=A(1+i)^n future value of a single flow (lump sum) as :- FVn=PV(1+i)^n doubling period (time period) One is called rules of 72. This rule state that the period within the amount doubled is obtained by dividing 72 by the rate of interest. for instant if the given rate of interest is 10% the doubling period is 72/10 that is 7.2 years. 9. Rule of 69, which is expressed as 0.35+69/interest rate. As per the above example that is ( 0.35+69)/10 10. formula for shorter compounding period is : FVn=PV(1+i)^m*n 11. effective rate of return: r=(1+i/m)^m) -1 12. Annuity refers to the periodic flow of equal amounts these flow can be either termed as receipt or payments. 13. equation for annuity is FVn= A(1+i)^n -1/i 14. Sink fund is fund which is created out of fixed payments each period to accumulate for the future sum after a specific period. 15. The important factors contributing to the time value of money are investment, opportunities and preference for consumption, risk. 16. During period of inflation a rupee has a higher value than a rupee in future purchasing power. 17. As future is characterized by uncertainty individuals prefer current consumption to future consumption. 18. formula for the present value of even series of cash flows: PVAn=A(1+i)^n -1/i(1+i)^n (PVIFA) 19. The reciprocal of the present value annuity factor is called capital recovery factor. And expressed as : A=PVAn(i(1+i)^n)/(1+i)^n -1 20. The PV of the future cash flow is the amount of the current cash that equivalent to the investor. 21. An annuity for infinity time period is called perpetuity.

(a) (b) 4. 5. 6. 7. 8.

Unit: 4(bond) 1. 2.
shareholder net worth= assets- liabilities net worth= paid up capital + reserves + surplus

3. 4. 5. 6. 7. 8. 9. 10. 11.
12.

Liquidation value: is an amount a company can relies if it sold the assets after winding up its business. Going concern value: is the amount a company can relies if it sells business as an operating one. Book value of share is calculated by dividing the net worth by the number of outstanding shares. Book value may include intangible assets at acquisition cost minus amortized value. Coupon rate: specified rate of interest in the bond. Maturity period: number of years after which the par value becomes payable to the bond holder. Face value: is also known as par value. Is the value started on the face of the bond? Redemption value: is the amount the bond holder gets on maturity. Bonds are long term debts instruments. Bond issued by government is secured. types of bonds are: (a) irredeemable bond (b) redeemable bond (c) zero coupon bond 13.bonds with annual interest payments can be expressed as: Vo=I*PVIFA(Kd,n)+F*PVIF(Kd,n) 14.semi annual interest payments can be expressed as : Vo or Po =^n t=1 I/2(I+Kd/2)^n +F/(I+Kd/2)^2n 15. Zero coupon bonds have no coupon rate. 16. Effective interest earned = discounted issued price face value. They are called deep discount bonds because these bonds are long term bonds. 17. Yielding of bond can be categorized into two parts as: (a) current yield (b) yield to maturity 18. Current yield (CY) = coupon interest/current market price 19. Yield to maturity is the rate earned by an investor who purchases a bond and holds it till its maturity. 20. Factors affecting bond value theorems are: (a) relationship between the required rate of return (Kd) and the coupon rate (b) number of years to maturity (c) yield to maturity (YTM) 21. A bond price varies inversely with yield. 22. A company share can be classified into (a) ordinary or equity shares (b) preference shares 23. Rate is fixed for preference shareholders: dividends 24. Irredeemable preference shares are perpetual. 25. People hold common stocks for: - (a) to obtain dividend in a timely manners (b) to get a higher amount when sold. 26. Types of dividends are: - (a) constant or zero dividends: Po=Do/Ks (b) Constant growth: Po=Do (1+g)/Ks-g=D1/Ks-g (c) Charging growth or supernormal growth: Po=D1/(1+Ks)^1+D2/(1+Ks)^2.. 27. The book value of share is the net worth of a company divided by the number of outstanding equity shares. 28. Expected earning per shares= (expected PAT) - (preference dividend)/number of outstanding shares 29. P/E ratio = (1-b)/r (ROE*b) 30. Liquidation is the minimum value the company accepts if it sold its business. 31. Market value per share is generally higher than the book value per share for profitable and growing. 32. Intrinsic value of a share is associated with the earning and profitable of the company dividends paid and expected and future definite prospects of the company. 33. When Kd less then coupon rate the value of the bond is greater than the face value. 34. If I=Kd value of bond goes to equal with face value 35. If Kd>I value of the bond decrease for the maturity period. 36. If Kd <I value of the bond increase for the maturity period

Unit: 5 (cost of capital) 1. Capital structure is the mix of long term sources of funds like debentures, loans, preference shares, equity shares 2. 3. 4. 5.
and retained earnings in different ratios. The capital structure of the company should generate maximum return to the shareholders. The capital structure of the company should be within the debt capacity. An ideal capital structure should involve maximum risk of loss of control to the company. Equity shareholder doesn't have a fixed rate of return on their investment.

6. According to dividend forecasting approach the intrinsic value of an equity share is the sum of present value of
dividend associated with it.

7. the cost of capital is the minimum required rate of return of a company 8. Loans and debenture come with a pre determined interest rate. 9. The cost of debenture is the discount rate.
10.costs of return earnings: Kr = Ke 11. Weighted average cost of capital is the overall cost of all sources of finance. 12. Term loan have pre-determined fixed interest rate. 13. Under dividend forecast approach intrinsic value is important. 14. Capital structure is financial structure. 15. Proper mix of funds is refers to as optimal capital structure.

Unit: 6 (leverage)
1. types of leverage: a) operational b)financial c) combined 2. classification of operational costs: fixed costs: does not varies with increase in production or sales variable cost : which vary in direct proportional to output and sales semi variable costs : which are partly fixed and partly variable in nature 3. The operating leverage in the firm's ability to use to fix operating costs to increase the effects of changes in sales on its earnings before interest and taxes (EBIT). 4. DOL = % change in EBIT/ % change in output 5. DOL = (Q(S-V))/ (Q(S-V) - F) 6. A company sources of funds fall under two categories: a) those which carry a fixed financial changes like debentures, bonds and preference shares b)Those which do not carry any fixed changes like equity shares. 7. Debentures and bonds carry a fixed rate of interest and have to be paid off irrespective of the firm revenues. 8. Financial leverage refers to the mix of debt and equity in the capital structure of the firm. 9. Financial leverage is also called trading on equity. 10. Financial leverage is considered to be favorable till such time that the rate of return exceeds the rate of return obtained when no debt is used. 11. Operating leverage arises due to the presence of fixed operating expenses in the firms income flows. 12. EBIT is calculated as Q(S-V)- F 13. Higher operating risks can be taken when income level of companies are rising. 14. Dividend on preference shares is a fixed charge. 15. value of debt is : B = I/Kd

a) b) c)

Unit: 7 (capital structure) 1. The capital structure of a company refers to the mix of long term finances used by the firm.
2. features of ideal capital structure: a) Profitability: firm should make maximum use of leverage at a minimum cost. b)flexibility

c) control d) Solvency: use of excessive debt threatens the very existence of the company. 3. creditors insist on a debt equity ratio of 2:1 for medium size and large size companies while they insist on 3:1 ratio for SSI 4. Debt equity ratio is an indicator of the relative contribution of creditors and owners. 5. Debt equity ratio is generally perceived as that lower the ratio higher is the element of uncertainty in the minds of lenders. 6. Dilution of control: the top management should have the flexibility to take appropriate decisions at the right time. 7. Floatation costs: a company desiring to increase its capital by way of debt or equity will definitely incur floatation costs. 8. Net income approach: any change in the financial leverage will have a corresponding change in the overall cost of capital and also the total value of the firms. 9. Net operating income approach: any change in leverage will not lead to any change in the total value of the firm, market price of shares and overall cost of capital. 10. Explicit cost: can be considered a the given rate of return. 11. Implicit cost: is nothing but increase in Ke attributable to Kd. 12. miller and Modigliani criticize that the cost of equity remains unaffected by leverage up to a reasonable limit and Ko remains constant at all degree of leverage. 13. Arbitrage: the process of buying a security at lower price in one market and selling it in another market at a higher price bringing about equilibrium. 14. Miller and Modigliani perceive that the investors of a firm whose value is higher will their shares and in return buy shares of the firm whose value is lower. 15. Financial decision is investment decision and has no impact on the operating earnings of the firm. 16. The value of the firm is dependent on its expected future earning and the required rate of return. 17. Equity and debt are the two important sources of long term sources of the finance of the firm. 18. As the ratio of debt to equity increases the WACC declines and market value of the firm increases. 19. As per the NO I approach the overall capitalization rate remains constant for all degrees of leverage. 20. The criticisms of miller approach are risk perception, convenience, transaction costs, taxes and agency costs. 21. The miller approach fails to explain financing decisions and the firm's value.

Unit: 8 (capital budgeting) 1. 2.


3. Indian economy growing at 6% per annum. Capital budgeting is a blue print of planned investments in operating assets. three elements of capital budgeting: a) cost b)quality c) timing Capital budgeting makes or mars a business. Capital budgeting decisions involve large outlay of funds in anticipation of cash inflows in future. Social, political, economical and technological forces make capital budgeting decisions highly complex. Capital budgeting decision is very expensive. Capital expenditure decisions are irreversible. Forecasting of future operating cash flows from uncertainty because the future is high uncertainty. Post completion audit is final in the phases of capital budgeting decisions. Identification of investment opportunities is the first in the phases of capital budgeting decisions. 12. Analyzing the demand and supply conditions of the market for the company products could be fertile source of potential investment proposal.

4. 5. 6. 7. 8. 9. 10. 11.

13.
14.

15. 16.
17.

18. 19. 20.

23.

24.

Generation of ideas for capital budgets and screening the same can be considered the most crucial phase of capital budgetary decisions. two categories of capital budgeting: a) decisions on cost reduction programmers b)decisions on revenue generation through expansion of installed capacity Capital budgeting decisions could be grouped into two categories. Cost decision and revenue generation are the two important categories of capital budgeting. capital budgeting process: a) financial appraisal b)technical appraisal c) economical appraisal Economic appraisal the project from the social point of view. Hence it is referred as social cost benefit analysis. All technical aspects of the implementation of the project are considered in technical appraisal. Financial viability of a project is examined by financial appraisal. 21. Among the elements that are to be examined under commercial appraisal the most crucial one is the demand for the product or service. 22.steps involved in the evaluation of any investment proposal are: a) estimation of cash flows b)estimation of incremental cash flows c) initial cash outlay the basic principle of cash flow estimation are: a) separation b)increment c) post tax : all cash flow d) consistency : cash flow and discount rate calculate profit after tax: Incremental PAT = incremental EBIT (1-t)

25.

Cannibalization: another problem that a firm faces on introduction of a new product is the reduction in the sale of the existing product. 26. Decision criteria are the third step in the evaluation of investment proposal. 27. A sunk cost is not a relevant cost for the project decision. 28. Effect of a project on the working of other parts of a firm is known as externalities. 29. The essence of separation principle is the necessity to treat investment elements of a project separately from that of financial elements. 30. Payback period ignores time value of money. 31. IRR gives a rate of return that reflects the profitable the project. 32. ARR is based on accounting information. 33.traditional methods: a) payback method b) accounting rate of return 34.modern techniques: a) NPV b) IRR c) MIRR d) Profitability index 35. ARR = Average income/average investment 36. NPV recognize the time value of money. 37. NPV>0 ACCEPTED 38. NPV<O REJECTED 39. IRR is the rate (discount rate) which makes the NPV of any project equal to zero.

40.

IRR is also called as yield on investment, managerial efficiency of capital, marginal productivity of capital, rate of return and time adjusted rate of return. 41. MIRR is a distinct improvement over the IRR. 42.PV of costs = TV(1+MIRR)^n 43. Profitability index is also known as benefit cash ratio. it is the ratio of the pv of cash inflow to initial cash outlays. 44. Pay back measures profitability of the project. F 45. discounted cash flow method does not include: ARR

Unit: 9(risk analysis) 1. Risk in capital budgeting may be defined as the variation of actual cash flows from the expected cash
flows. 2. types of risks: a) portfolio risk b) market risk c) stand alone risk: considered when the project is in isolation d) corporate risk 3. the degree of change in the risk depends on: a) the co-variance of return from the new project b) the return from the existing portfolio of the project 4. the five sources of risks are: a) project- specific risk b) competitive or competition risk c) industry- specific risk d) international risk e) market risk 5. Commodity risk: the risk arising from the effect of price changes on goods produced and marketed. 6. Pay-back period prefers project of short term payback to that of long term pay backs. 7. risk adjusted discount rate = risk free rate+ risk premium 8. Stand alone risk is measured by the variability of expected returns of the project. 9. Market risk is measured by the effect of the project on the beta of the firm. 10. Firms cannot diversify market risk in the normal course of business. 11. Impact of U.S. sub-prime crisis on certain segments of Indian economy is the example of international risk. 12. Risk premium is the additional return that the investors require as compensation for assumption of additional risk of project. 13. Higher the risk greater the premium. 14. certainty equivalent = certain cash flow/risky cash flow 15. CE coefficient is the risk adjustment factors 16. Discount factor to be used under CE approach is risk free interest rate. 17. Because of high conservation CE clears only good projects. 18. CE is considered to be superior to RADR. 19. There are many variables like sales, costs of sales, investment and tax rates which affect the NPV and IRR of the projects. 20. Sensitivity analysis measures the sensitivity of NPV of the project in respect to change in one of the input variables of NPV. 21. Dispersion is computed by variance or standard deviation. 22. Variance measures the diversion of each cash flow from the expected. 23. Difference between purchase price and standard price is analyzed through variance analysis. 24. In FIFO goods received first are used first.

25.a decision tree presents graphically the relationship between: a) present decision and future events b) future decisions and the consequences of such decisions 26. Decision tree approach portrays inter- related, sequential and critical multi dimensional elements of major project decisions. 27. Decision tree can handle the sequential decision of complex investment proposals. 28. Adequate attention is given to the critical aspects in an investment decision under decision tree approach. 29. Complex projects are effectively handled by decision tree approach. 30. In portfolio risk covariance reflects the degree to which the returns of two securities vary or change. 31. CE is expressed as certainty equivalent

Unit: 10 (capital rationing) 1. Capital rationing refers to a situation in which the firm is under constraints of funds, limiting its
capacity to take up and execute all the profitable projects. 2. reasons for capital rationing: a) external factors b) reasons for capital rationing c) internal factors 3. External capital; rationing is due to the imperfections of capital market. 4. Impositions of restrictions by a firm on the funds allocated for fresh investment is called internal capital rationing. 5. internal constraints: a) private owned company b) divisional constraints c) human resource limitation d) dilution e) debt constraints 6. Dilution: These constraints occur mainly when reluctance in the issuing of future equity takes place due to the fear of management losing the control over the company. 7. when a firm is imposes constraints on the total size of its capital budget it is known as capital rationing 8. Internal capital rationing is used by a firm as a means of financial control. 9. Rigidities that affect the free flow of capital between firms cause external capital rationing. 10. inability of a firm to satisfy the regularity norms for issue of equity shares for tapping the market for funds causes external capital rationing 11. Lack of man power will become a huge failure and also an essential effect of internal constraints. 12. The reasons for capital rationing are external and internal constraints imposed by management. 13. types of capital rationing: a) Hard capital rationing: the capital rationing that under no circumstances can be violated. b) Soft capital rationing: the circumstances under which the constraint on spending can be violated. steps involving in capital rationing: a) ranking of the different investment proposals: basis on their profitability b) selection of the profitable investment proposal: basis on capital rationing ranking is done on the basis of NPV, profitability index or IRR in the descending order programming approach: a) linear programming b) integer programming

14.

15.
16.

17. Project indivisibility can lead to sub optimal result when profitability index is used for capital
rationing. 18. Objective function under linear programming is maximization of sum of NPV of the projects. 19. When projects are not divisible integer programming can be employed to avoid the changes of accepting fraction of a project. 20. The selection is done mainly in the view that which investment proposal earns more profits than compared to the other proposals. 21. The proposal should have the potentiality of making large anticipated profits. 22. Under capital rationing investment proposals are ranked on profitability. 23. Imposing constraints on the total size of its capital budgeting is capital rationing. 24. Under capital rationings a firm is under the constraints of funds. 25. Under capital rationing projects are prioritized. 26. Under capital rationing it is difficult to generate additional fund. 27. While ranking the projects for investment proposal descending order is adopted for profitability index. 28. In managing cash flow speed up inflow and slow down outflow of cash.

Unit: 11(working capital management) 1. Working capital is defined as the excess of current assets over current liabilities and provisions.
2. there are two important elements to be considered under the working capital management: a) Decisions on the amount of current assets to be held by a firm for efficient operations of its business. b) Decisions on financing working capital requirements. 3. current assets current liabilities inventories sundry debtors bills receivables cash and bank balance short term investments provision for taxes sundry creditors bills payables creditors for outstanding expenses other provision against liabilities payable

3. 4.
5.

6. 7. 8. 9. 11. 13.

Maintaining adequate working capital at the satisfactory level is very crucial for maintaining and competitiveness. A firm must have adequate working capital neither excess nor shortage. four concepts of working capital: a) gross WC b) net WC c) temporary WC d) permanent WC Gross working capital: the amount invested in various components of current assets. Managements of current assets: Are the crucial aspects of working capital management. Gross working capital: is a important component of operational capital. Net working capital: is the excess of current assets over current liabilities and provisions. 10. Permanent working capital: is the minimum amount of investment required to be made in current assets at all times carry on the day to day operation of firms business. Temporary working capital: is also known as variable working capital or fluctuating working capital. 12. To plan and monitor the utilization of funds of a firm demand working capital management is applied. When current assets exceed current liabilities the net working capital is positive.

14. 15. 16. 17. 19. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.
32. 33.

34.

Permanent working capital is also fixed working capital. Objective of working capital management is achieving a tradeoff between liquidity and profitability. Credit obtained by a firm from its suppliers is known as spontaneous finance. An aggressive policy of working capital management means depending on spontaneous finance. 18. to prevent the competitors from snatching any market for their products the firms may have conservative a policy of holding large quantum if current assets. To finance the operations in operating cycle of a firm working capital is required. 20. To finance operations during the time gap between sale of goods on credit and realization of money from customer's time gap is required. Operating cycle: the time gap between acquiring of resources and collection of cash from customer. operating cycle = Inventory conversion period + receivable conversion period Account payable period is also known as payables deferral period. cash conversion cycle = ICP + RCP - PDP Inventory conservation period: is the average length of time required to produce and sell the product. Receivable conservation period: is the average length of time required to convert the firms receivables into cash. cash conversion cycle: is the length of time between firms actual cash expenditure and its own receipt/ Capital intensive industries with longer manufacturing process will have higher requirements of working capital. There is a positive direct correlation between the volume of sales and the size of working of a firm. Under inflationary conditions sane levels of inventory will require increased investments. Longer the manufacturing cycle the larger is the investment in working capital. component of working capital: a) current assets and b) current liabilities estimation of current liabilities: a) trade creditors b) direct wages c) overheads Operating cycle is used to estimate working capital requirements of a firms. 35. Operating cycle approach is based on the assumption that production and sales occur on a continuous bases.

Unit: 12 (cash management) 1.


2. 3. Cash is the important current assets for a business operation. cash can be classified into two senses: a) narrow sense: currency and cheques b) broader sense: marketable securities and time deposits the management of cash can be categorized into four parts: a) cash planning b) managing cash flows c) optimum cash level d) investing surplus cash the main motive behind holding cash: a) transaction motive b) precautionary motive c) speculative motive d) compensating motive 5. Transaction motive: a firm holding some cash to meet its routine expenses which are incurred in the ordinary course of business. Precautionary motive: the need to hold cash to meet some exigencies which cannot be foreseen.

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7. Speculative motive: holding cash to take advantage of in expected changes in business scenario which 8.
9. are not normal on the usual course of firm's dealings. Compensating motive: to hold cash to compensate banks for providing certain services and loans. major objective of cash management: a) meeting payment schedule b) minimizing funds in the form of cash balances 10. Trade credit: the credit extended by the supplier of goods and services in the normal course of business transaction. Floatation cost: the concept of float helps firms to a certain extent in the cash management. net float = payment float - collection float two important model which determines the optimal cash needs are studied as: a) baumol model b) miller-Orr model 14. Baumol model: helps in determining the minimum amount of cash that a manager can obtain by converting securities into cash .baumol model is an approach to establish a firm's optimum cash balance under certainty. 15. baumol model: the total cost associated with cash management has two elements: a) cost of conversion of marketable securities into cash and b) opportunity cost holding cash: k(C/2) total transaction cost: c(T/C) total annual cost: k(C/2) + c(T/C) optimum cash balance(c*) = 2cT/k return point lies between the upper and lower limits(z) : 33/4*(c^2/i) Cash planning is a technique to plan and control the use of cash. Cash budget is a device which is used to plan and control cash receipts and payments.three methods of cash budgeting: a) receipts and payments b) income and expenditure c) balance sheet Management of cash balances can be done by deficit financing and investing surplus cash. The greater the creditworthiness of the firm in the market lesser is the need for precautionary balances. 25. When cheques are deposits in a bank credit balance increases in the firms books but not in banks books until the cheques is cleared and money is released. This is called collection float. The MO model assumes that cash balances randomly fluctuate between an upper bound and lower bound. upper limit = lower limit + 3z return point = lower limit + z

11. 12.
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16. 17. 18. 19. 20. 21. 22.

23. 24. 26. 27. 28. 1.


2.

Unit: 13 (inventory management)


Inventories are the most significant part of current assets of most of the firms in India. features of inventories: a) inventory as current assets b) level of liquidity c) liquidity lags the inventories are hold for following four reasons: a) smooth production b) competitive edge c) benefits of buying in large volume d) hedge against uncertain lead times liquidity lags: a) creation lag

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b) storage lag c) sale lag

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8. 9. 11.
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15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
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26. 27. 28.

5. purpose of holding inventories: a) sales b) to avail quantity discounts c) reduce risk of production stoppage d) reducing ordering costs and time costs associated with inventories: a) material cost b) ordering cost c) carrying cost d) shortage cost 7. Material cost: the costs of purchasing the goods and related costs such as transportation and handling costs associated with it. Lead time is the time required to obtain fresh suppliers of inventory. Both excess and shortage of inventory affect the firm's profitability. 10. Precautionary motive of holding inventory is for guarding against the risk of unexpected changes in demand and supply. Costs incurred for maintaining the inventory in warehouse is called carrying cost. 12. The purposes involved in holding inventory are sales, to avail quantity discounts, reduce risk of production stoppages and reducing ordering costs and time. inventory management technique: a) economic order quantity b) ABC system 14. EOQ refers to the optimal order size that will result in the lower ordering and carrying costs for an item of inventory based on its expected usage. EOQ is defined as the order quantity that minimizes the total cost associated with inventory management. EOQ = 2DK/Kc ABC system belongs to selective inventory control. ABC items are of high value but small in number. Maximum level: is that level above which stock of inventory should never rise. Minimum level: is that level below which stock of inventory should not normally fall. Ordering level: is that level at which action for replenishment of inventory is initiated. OL = MRC * MLT Minimum level: OL - (NRC *NLT) The reorder point: is that inventory level at which an order should be placed to replenish the inventory. to arrive at reorder point under certain two key required details are: a) lead time b) average usage reorder point = lead time * average usage safety stock = (maximum usage rate) - (average usage rate) * lead time normal usage = average daily usage * average lead time 29. ABC system is known as proportional value analysis because the items are classified in order of their relative importance in items of value.

Unit: 14 (receivable management) 1. Receivable are assets: accounts representing amounts owing to the firm as a result of sale of
goods/services in the ordinary course of business.

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2. Management of accounts receivable: the process of making decision relating to the investment of
funds in receivables which will result in maximizing the overall return on the investment of the firm. 3. four different varieties of costs associated with maintaining receivables: a) capital costs b) administration cost c) delinquency cost d) bad debts or default cost Selling goods on credit has consequences of blocking the firm's resources in receivables as there is a time lag between a credit sale and cash receipt from customer. when a firm sells goods on credit it has to incur two types of administration costs: a) credit investigation and supervision costs b) collection costs 6. A period of "net 30" means that it allows to its customers 30 days of credit with no inducement of early payments. four varieties of credit policy variables: a) credit standard b) credit period c) cash discounts and d) collection programme 8. Credit standards: the criteria for extending credit to customer. the bases for setting credit standards are(a) credit rating (b) references (c) average payment period (d) ratio analysis 9. Credit period: the length of time allowed to its customers by a firm to make payment for the purchases made by customers of the firm. A cash discount of 2/10 net 20 means that a cash discount of 2% is offered if the payment is made by the tenth day. Credit period is a credit policy variable. 12. incremental investment in receivables = increased in sales/no. of days in the year * average collection period* variable cost to sales ratio 13. Change in profit = (incremental contribution - bad debts on new sales)(1-tax rate) - cost of incremental investment in receivables. 14. Credit policy of a firm can be regarded as a tradeoff between higher profits from increased sales and incremental cost of having large investment in receivable. Optimum credit policy maximizes the value of the firm. 16. Value of the firm is maximized when the incremental rate of return on investment in receivable is equal to finance that investment. Credit policy to be adopted by a firm is influenced by strategies pursued by its competitors. T Firm sell goods on credit to increase the volume of sales. When goods are sold on credit finished goods get converted to receivables. Receivables form part of current assets. Unit: 15 (dividend decisions) 1. There is an inverse relationship between these two - larger the retentions, lesser the dividends and vice versa. 2. Dividend policy has a direct influence on the two components of shareholders return- dividends and capital gains. marketing price (p) = (m(D+E/3)) High dividend payout ratio will increase the P/E ratio and low dividend payout ratio will decrease the P/E ratio. dividend relevance theories: a) Walter model b) Gordon model

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15. 17. 18. 19. 20.

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13

6.

7. 8.

assumption under Walter model: a) financing b) constant rate of return and cost of capital c) 100% pay-out or retention d) constant EPS and DPS e) life The firm has a perpetual life. market price(P) = D/Ke+ r/Ke(E - D)/Ke

9.

10.

11.
12.

assumption regarding Miller and Modigliani model: a) existence of perfect capital markets b) no taxes c) constant investment policy d) certainty about future investments the two transactions which the arbitrate process refers is: a) paying out dividend and b) Raising external funds to finance additional investment programs. The arbitrage process will neutralize the increase in share value with the issue of new shares. steps in M and M models: Step 1: Po = 1/ (1+Ke) * (D1 + P1) Step 2: nPo = 1/ (1+Ke) * (nD1 + nP1) Step 3: nPo = 1/ (1+Ke) * (nD1 + n+n1) P1- n1P1) Step 4: nPo = 1/ (1+Ke) * (nD1 + n+n1) P1- I+E- n D1) analysis of MM hypothesis: a) market conditions b) floatation costs c) transaction costs d) under pricing of shares the steadiness is a sign of good health of the firm and may take any of the following forms: a) constant dividend per shares b) constant DP ratio c) constant dividend per share plus extra dividend a firm has different categories of inventors: a) old and retired persons b) pensioners c) youngsters d) salaried class e) housewives Retained earnings constitute an important source of financial investment requirements of a firm. Normal firms constitute an important source of financing investment requirements of a firm. 18. James E. Walter considers dividend pay outs are relevant and have a bearing on the share price of a firm. Floatation costs refer to the cost involved in raising capital from the market. Transaction is the costs associated with sale of securities by investors. 21. The arbitrage process refers to setting off or balancing two transactions which are entered into simultaneously.

13.

14.

15.

16. 17. 19. 20.

14

22. Gordon also contends that dividends are relevant to the share prices of the firm. Gordon uses the
dividend capitalization model to study the effect of the firm dividend policy on the stock price. 23.forms of dividend: a) cash dividends b)scrip dividend c) bond dividend d)stock dividend A stock split is a method to increase the number of outstanding shares by proportionally reducing the face value of a share.

24.

Management information system


Unit: 1 1. ITS(intelligent transportation system) 2. transformation stages: (a) appraisal of the procedures (b) types of documents (c) Storage system (d) formulation and coding (e) verifications and validation (f) Review (g) documentation 3. Organization use MIS for decision making, control of activities and operations. 4. Data is processed to form information. 5. Function of MIS (a) data processing (b) prediction (c) planning (d) control (e) assistance (f) database. 6. Rules of IS in business: (a) data processing =1950 to 1960 (b) Management reporting = 1960 to 1970 (c) Decision support = 1970 to 1980 (d) Strategies and end user supports =1980 to 1990 (e) Electronics business and commence = 1990 to 2000 7. Classification of MIS is as: (a) functionality (b) utility (c) area of application (d) Processing types (e) frequency of the usage. 8. Some of the processes like artificial intelligence, generating management related information, providing aids in decision making, necessary support system and executive information system are utility classification of MIS. 9. Structures of MIS are: (a) operational level system (b) knowledge level system(c) management level system (d) Strategies level system. 10. The text and images in electronic forms are effectives in communication ideas from source to destination. 11. MIS helps in identifying a proper mechanism of storage data. 12. Information is easy to process further. Structured. 13. Expert system gives advice to the user based on the knowledge. 14. When you are travelling or driving the transponder equipped vehicles can reroute you in real time. 15. Strategic level system: helps the senior level executives of your organization in addressing issues like planning and decision making. 16. Desktop personal computers: these are system which is kept on top of desk. 17. After the industrial revolution slowly manual system were transformed into digital form by means of computer and related instruments. 18. A PC can process data at very high speed. 19. A PC with internet offers facility of video conferencing world wide. 20. A processor refers to unit which process the input received the way it has been instructed. 21. an organization is structured that uses the resources from the environment like manpower, raw material, capital and returns the output like products and services to the environments. 22. User resistance is a major behaviour factor associated with the adoption of new system. 23. Quality of output is governed by the quality of inputs. 24. Operation level system: help you in keeping track of the daily routine activities. 25. Advantages of PC: (a) speed (b) storage (c) communication (d) accuracy (e) conferencing 26. Classification of computers: (a) processor used (b) purpose (c) size

15

27. A processor refers to the unit which process the input received. 28. Which of the following are not the characteristics of MIS? (a) MIS eliminated redundant data. (b) MIS eliminates process data. (c) MIS reduce the duplication. 31. Some of the processes like artificial intelligence, generating management related information, providing aid in decision making, necessary support systems, and executive information system are the classification of MIS utility. 32. The querying of the OLAP is very strong. 33. It is possible to carry a PDA in pocket. Unit: 2 1. MIS concepts and relationship: (a) transaction procession system (TPS) (b) Knowledge based system (KBS) (c) On line analytical processing system (OLAPS) (d) Executive information system (EIS) (e) Decision support system (DSS) (f) Business process system (BPS) (g) Object oriented system (OOS) 2. Transaction processing qualifier: system must process AIDS test. (a) Atomicity (b) consistency(c) Isolation (d) Durability. 3. KBS is automated to work on the knowledge based data and information required in a particular domain of management activity. It helps in conducting the daily routine activities like sales order entry ,airline reservation ,payroll. 4. OLAP refers to a system in which there are pre defined multiple instance of various modules used in business applications. 5. OOS is a system developed as models which are representatives of real world cases. 6. A complete business system requires models from three different perspectives class model, state model and interaction model. 7. TPS: the system adopted is capable of quick data acquisition and interpretation of the data which is necessary in decision making. 8. MRS: helps the management in decision making by providing them with reports and different statistical tools. 9. Neutral networks are a process where it is possible to capture the thought process going on in the brain of the human beings. 10. In implementing a computer based information systems the majors behavioral factors which affects the system are decision styles, need for explanation organizational expectation, resistance to change and organizational climate. 11. Information at operation level is highly structured. 12. Information at strategic level is highly unstructured. 13. Two types of knowledge based system are: (a) machine readable (b) human readable 14. OLAP is also referred to as multi dimension analytical model. 15. An object model is a system which is an abstraction of real world business problem containing all the necessary functions and data storage facility to contain detail of a business object. 16. A class model indicates the static structure of the object. 17. A state model indicates the change that takes place in the objects. 18. Interaction model indicates how to coordinates objects with other objects. 19. Polymorphism means the behaviour of the object differently to different messages. 20. Templates refer to a mechanism of implementation a class object type of data. 21. A system which combines the concepts of object oriented system and that of data storage and data access is known as object oriented database. 22. Expert system refers to the system which contains the knowledge databases of human expert suggestions stored in the computer database. 23. Inheritance: the mechanism of acquiring properties of one object class by another object class. 24. Information of an organization is not only with respect to the department or one fluctuation but consists of: management, technology and organization. 25. Four generic strategies are: (a) cost focus (b) differentiation (c) focus differentiation (d) cost leadership

16

26. Technical implementation issues: (a) Level of complexity (b) System response time (c) Inadequate function (d) Lack of equipment (e) Lack of standardization (f) Problem with the network (g) Mismatch of hardware and software (I) Low level of technical capacity 28. In outsourcing form activities previously performed within one enterprise due to high transaction risk may be shift to third party providers. 29. The existing relationship with customers and suppliers can become mote tightly coupled in vertical quasi integration. 30. Assumption of IT by governance: a) Vertical quasi integration b) Quasi- diversification c) Outsourcing

Unit: 3

1. 2.

SIS: strategies information system porter(1980) two basic factors are: (a) low cost (b) product differentiation 3. under porter framework enterprises have four generic strategies available to them whereby they can attain above average performance as: (a) cost leadership (b) Differentiation (c) cost focus (d) focused differentiation 4. Scott Morton (1991) five forces influencing the organization objectives are: Revolutionary level business scope redefinition business network redesign business process redesign Evolutionary level localization exploitation internal integration

5. Localized exploitation: this is a part of evolutionary level exit within individual business function. 6. Business network redesign: it involves reconfiguration of the scope and the task of the business network. 7. Business process redesign is a part of the revolutionary level which involves more thought re-valuation of the enterprise value chain and the production process. 9. As per Borden 1984 many differentiation can be classified as 4ps: (a) product (b) price (c) place (d) promotion 11. Business uses SIS to gain an edge over competition. 12. Competition means cultivating unique strength and capable and defend the margin limitation by other forms. 13. Competitive strategy: is an enterprises plan for achieving sustainable competitive advantages over or reducing the edge of its adversaries. 14. The original idea of automated mechanical processes got quickly succeeded by the rationalization and integration of system. 15. SIS is a support to the existing system and helps in achieving competitive advantages over the organization competitor in terms of its objectives. 16. Product differentiation is the degree to which buyers perceive products from alternative suppliers to different. 17. Business process redesign is part of the revolutionary level which involves more thorough re-valuation of the enterprise value chain and the production process.

17

18. Business process redesign is part of the revolutionary level which involves more thorough re-valuation of the enterprise value chain and the production process. 21. The nature of IT governance ranges from a common role to a unique role. 22. Inbounded logistics mean receiving and warehousing of raw materials their distribution to manufacturing as they are required. 23. Some of the supporting activities that are used too support primary activities are: (a) firm infrastructure (b) technology development (c) HRM (d) procurement. 24. Primary activities are: inbounded logistic, out bounded logistic, marketing and sales, after sale service 26. Information system has become the main tools used by managers in decision making. 27. New technology changes the direction of value chain. 28. Porters representation: Cost leadership Cost focus Differentiation Focused differentiation

Unit: 4

1. 2. 3.

9. 10.

The process for changing the betterment of organization is called business process re-engineering. PSD=public distribution shop the process in which the existing system in the organization is totally reexamined and radically modified for incorporating the latest technology is called BPR 4. BPR helps in reorganization of the entire work frame along with various flows, minimizing the wastages, and giving the system a new dimension. 5. The process reengineering brings about a radical change in the production of the information and related documents from one business function to another very efficiently. 6. six sigma = specific measure of quality 7. customers focus = service, product features, quality 8. Benchmarking = measuring performance against standard. An object has mainly a procedure defined within and a set of a value called attributes. OOM(object oriented methodology) two major issues are: (a) object oriented analysis/ design-BOOCH,UML,OML (b) object oriented programming-c++, java 11. Eight major processes in an organization are: (a) The strategic management process (b) The innovation process (c) The customers service process (d) The resources management process (e) Supply chain management process (f) Logistic management process (g) Measurement process (h) Other supporting process 12. Any organization will have number of processes aligned with their business activities. 13. A concepts called as TQM is used to make everybody and all the process in organization contribute towards better quality. 15. Data mining: collaborative tools 16. Characteristics of data warehouse: subject oriented integrated, non volatile and time variant. 17. The architecture of data mining has following components as (a) database, data warehouse and information repository (b) database servers (c) data mining engine (d) patterns evaluation model (e) graphical user interface 18. Characteristic of data warehouse: (a) subject oriented (b) integrated (c) non volatile (d) time variant 19. Shorter cycle time: it eliminates many hidden costs arising out of errors in the process. 20.

18

particular Structure Indexes Joins Duplicate data Derived data

OLTP Complex Few Many normalized DBMS Rare

Data warehouse Multi-dimension Many Some De-normal common

Unit: 5

1.

Implementation of MIS in an organization is a process where organizational transformation takes place. LEWIN MODEL. 2. the LEWIN MODEL suggest three steps in this process as first one is unfreezing, second one is choosing and the last one is refreezing. 3. A long range MIS plan provides direction for the development of system and provides a basis for achieving the specific targets or task against a time frame. 4. The architecture of the MIS plan provide a system structure and their input, output and linkages. 5. System analysis consists of two phase as: (a) study phase and (b) definition phase. 6. To accomplish the survey phase objectives the system analyst will work with the system owner, system users, IS manger and IS staff. 7. Four major types of feasible study are as: (a) technical (b) economic (c) operational (d) scheduling. 8. DFD = data flow diagram 9. Feasibility is a measure of how beneficial the development of an information system would be to an organization. 10. The goal of feasibility study is to evaluate alternatives system and to propose the most feasible and desirable system for development. 11. feasibility study is concerned with determining the cost effectiveness of various alternatives in the design of the information system and the priorities among the various system components 12. Major steps involving in system design are: (a) input design (b) output design (c) development (d) testing. 13. Input design is defined as the input requirement specification as per a format required. 14. Conversion is the process of changing from the old system to the new system. 15. Maintenance is also necessary for the failures and problems that arise during the operation of a system. 16. The data dictionary also stores some of the description of data structure such as entities, attributes and relationships. 17. Prototype is a simplified implementation that is produced in order to verify in practice that the previous phases of the design were well conducted. 18. (a) (b) (c) 19. (a) (b) (c) (d) 20. (a) (b) 21. (a) (b) planning of information system development of long range planning contents of MIS plan MIS goals and objectives strategic for the plan achievement are: development strategic system development strategic resources for system development manpower composition the architecture of MIS are: the system development schedule hardware and software plan development of information systems are : development and implementation of MIS prototype approach

19

(c) (d)

life cycle approach implementation of MIS 21Four major conversion strategy as: (a) parallel (b) direct (c) pilot (d) phases strategy. 22Prototyping approach: small scale, open and uncertainty. 23 Life cycle approach: closed system based on principles and practices. 24. In the refreezing step of Lewin model the change is consolidated and equilibrium in reinforced. 25. DFD can easily illustrate relationship among data, flows, external entities and stores. 26. In the systems lifecycle the design phase leads to prototyping and implementation. 27. The architecture of the MIS plan provides a system structure and their input, output and their leakages.

Unit: 6

1. The production manager uses it for scheduling, rescheduling and loading of the jobs on the shop floor depending upon the person presents. 2. The functions information can be assessed on the following three parameters: the work, the responsibility and the functional objectives. 3. The overall business plan objectives give rise to the objectives for each business function. 4. The design of the MIS should consider the class of information as a whole and provide suitable information system architecture to generate the information for various users in the organization. 5. low (near certainty) : operation management 6. precise probabilities knowledge (a risk situation) : middle management 7. not able to determine in probabilistic terms precisely ( very risky): middle and top 8. high uncertainty) : top management 9. there are four methods of determining the information requirements are : (a) asking or interviewing (b) determining for the existing system (c) analyzing the critical successes factors (d) experimentation and modeling 10. The experts or experienced users are asked to give their best answers this approach is called Delphi method. 11. The sole purpose of the MIS is to produce such information which will reduce uncertainty risk in given situation. 12. Locus of control: the degree of perception in assessing the control which in internal to the organization. 13. Personal dogmatism: the degree of faith in belief, options and past experienced. 14. risk propensity : the ability to take the risk 15. Manipulative intelligence: the ability to manipulate the data and information the storage information and knowledge. 16. Perfect quality just as perfect information in non-achievable and has cost benefit implication. 17. All the inputs are processed and controlled as input and process design. 18. Backup of the data and files are taken to safeguard corruption or loss of data. 19. Proper people organization is basic to the management of any activities or function.
20. (a) (b) (c) (d) (e) (f) (g) (h) (i) approach to MIS development identification business goals determining critical success factors develop business strategy and IS strategies identify critical business applications make decision analysis and enumerate operational and strategic decision Develop business performance indicators. Identify information entities to decision supports for business. Determine IS structure to generate information to build MIS Build MIS superset as prescribed in general model of MIS

20

21.
(c)

design information reporting structure : (a) periodic report (b) exception reports Control reports. 22. One can define the as the information required by a number of personnel, departments and divisions or the functions in the organization. Organizational function. 23. Functional information is largely factual, statistical and detailed in multi-dimensions of the function. 24. The functional information is used by a manager to plan and control the function. 25. Information can be determined by constructing a matrix of information versus user as per the table given below 26. The managers in the functional areas of management are responsible for achieving the targets and accomplishing the goal and objectives. 27. Organizational class of information is often used by many users at all levels. 28. Functional managerial knowledge class of information is often is used by functional heads and other middle and top management. Unit: 7

1. 2. 3.

Operation planning decides on the investment and the cost control. Costing and pricing of products are also important aspects of operational planning. An organization is a structure which takes in capital, raw materials, manpower, and machines etc as

inputs. 4. The senor executives can be in direct contact with the lower level working units and get information about the workings. 5. The term ERP originally referred to how a large organization planned to use organizational wide resources. 6. Management function were all once stand alone software applications, usually housed with there database and network, today they can also fit in our umbrella the ERP system. 7. The management cost is reduced and the efficiency increased due to the use of information technology and thus the revenues of the organization increases. 8. Information system can be used to support strategy at the business firm and industry level. 9. MRP (material requirement planning) to evaluate into new concepts. Manufacturing resourcing planning (MRP2) and finally the genetic concept enterprise resource planning (ERP). 10. CRP: customer relationship management 11. MDSS: management and decision supporting system. 12. SRM: supplier relationship management. 13. ERP system will require significant changes on staff and work practices. implementation 14. ERP vendors have designed their systems around standard business processes based upon best business practices. Process preparation 15. Balancing the way you want the system to work with the way the system lets you work. Configuration 16. Consulting services are responsible for the initial stages of ERP implementation. 17. Customization is the process of extending or changing how the system works by writing new user interfaces and underlying application codes. 18. Integration is an extremely important part to ERP. 19. ERP delivered in a single database that contains all data for the software modules. 20. Middle management and operations management people use the information class of type decision support. 21. The functional information can be assessed on the following three parameters the work the responsibility and the functional objectives. 22. Information used in a decision support system for model building and problem solving. 23. Decision made about what task has to be done, when it has to be done, by whom and how it has to be done is known as planning. 24. The planning is adopted by the top level executives in the organization. 25. All organizations have their own culture and policies arising from differences in interest groups.

21

26.

Match the following: P) Manufacturing - workflow management, quality control, BOM Q) Financials - accounts payable, receivable, fixed assets R) Human Resources - benefits, training, payroll

Unit: 8 1. The DSS database is a collection of current or historical data from a number of applications or groups. 2. DSS uses rules and models for processing data to support various managerial levels ranging from top executives to managers in their decision making .intelligence, design, choice and implementation. 3. Artificial intelligence is the science and technology based on various functions to develop a system that think and work like a human beings. 4. NPL: NATURAL LANGUAGE PROCESSING 5. A business decision making process depends upon the level of risk and uncertainty. 6. Neuron is a micro cell which is connected to thousands of others micro cell in the brain. 7. Neural network can be used in various applications like forecastings, stock analysis, market analysis etc. 8. The goal of AI is to develop computers that can simulate the ability to think, see, hear, talk and feel. 9. three major area of AI are: (a) cognitive science (b) robotics (c) natural interfaces 10. cognitive focuses on researching 11. Fussy logic systems can process data that are incomplete and ambiguous. 12. The human brain is estimated to have over 100 billions neuron brain cells. 13. Genetic algorithm software uses Darwinian, randomizing and other mathematical functions to simulate evolutionary processes that can generate increasingly batter solution to the problems. 14. Robotics: AI engineering and physiology are the basic disciplines of robotics. 15. Expert system can provide decision support to the end users in the form of advice from an expert consultant in a specific problem area. 16. Case based reasoning: representing knowledge in an expert systems knowledge base in the form of the cases. 17. Expert system helps diagnose illness, search minerals, analyze compounds, recommend repairs and do financial planning. 18. AI can be divided into three parts as : (a) Cognitive science application: expert, learning system, fuzzy logic. genetic algorithm, neutral network and intelligence agents (b) robotics application : visual perception, tactility, dexterity, locomotion and navigation (c) natural interface application : natural learning, speech reorganizations, multi-sensory, visual reality 19. A DSS has the capacity to updates its decision database. 20. Functional managerial knowledge class of information is often is used by functional heads and others middle and top management. 21. some of the component of DSS are: DSS database and user interface Unit: 9 1. The basic of conventional organization design in command and control which is now collaborate and control. 2. The four business models that work together in an e-enterprises organization are ecommunication, e-collaboration, e-business and e-commerce. 3. The core business processes of the organization are procurement, manufacturing, buying, selling, distributing and pricing. 4. In e-business enterprises traditional people organization based on command principle is absent. 5. four transformation e-enterprises namely: (a) domestic business to global business (b) Industrial manufacturing economy to knowledge based service economy.

22

(c) (d) process.

Enterprises resource management to enterprises network management Manual document driven business process to paperless, automated electronically transacted business

6. The new channel of business is well known as e-commence. 7. e- Business enterprises is more process driven, technology enabled and uses its own information and knowledge
to perform. T 8. Customer satisfaction and high level customer service is possible using knowledge based proactive management systems. T 9. E-business system use client/server architecture and run on internet platform. 10. Unique and typical to e-commerce there is one more participant known as merchant server. 11. e-commerce process model van be viewed into four ways as: (a) B2C: business organization to customer (b) B2B: business organization to business (c) C2B: customer to business organization (d) C2C: customer to customer

11.

Inter organization communication application like news bulletin, communicating change of rules; announcement and price revisions are very common in B2C. 12. In C2B model a customer interacts with information databases such as product catalogues, price information, configures the product, compare the cost, places the order and gets it delivered after the electronic payment process. 13. B2B business model actually run with the help of B2C, C2C models. 14. Web master controls the website inflow/outflow, content management and regulation of the traffic. 15. The look and feel of e-commerce website should be customer friendly. 16. The job of web administrator is to keep the website very responsive and keep contents latest and updates. 17. Most popular and widely used messaging system is email and voicemail. 18. When there is a need for communication in real time, systems available are voice conferencing, videos conferencing and electronics meeting. 19. Voice conferencing provides capabilities of video and audio for participants situated at different locations. 20. Video conference also becomes an interacting and effective communication system when it has a feature of white boarding and document sharing. 21. In electronic meeting system participants worked sit in a meeting room with net PCs and online screen projector to discuss the meeting agenda. 22. Web publishing uses websites and portals for storing documents, catalogues, drawings, pictures and so on for sharing. 23. Internet and web technologies are used for forming different interest groups to communicate and share the information. These groups are popularly known as user groups. 24. The biggest advantages of e collaboration is that it taps the collective wisdom, knowledge and experience of the members. 25. Group web tools help in automatic scheduling, notification and reminding to the participants. 26. Merchant server in e-commence secures payment to seller by authorization and authentication of commercial transaction. 27. In an e-business virtual store provides information about and sells and delivery directly to customer or business organization. 28. In B2C model transaction processing applications has payments and delivery through couriers. 29. in B2C model business organization uses websites ot portals to offer information about products. 30. Some of the major characteristics of business decision makers are: sequential in nature, exceeding complex due to risk and trade off. 31. transaction process application of B2B model: (a) order processing and execution (b) payment processing

23

1. 2. 3. 4. 5.
6.

(c) money transfer Unit: 10 The business decision making is in nature. Sequential In reality there is no right or wrong decision but a rational or irrational decision. Decision making at the middle level is of type risk and that at the top level is of uncertainty. The value and scope of information also changes depending upon the risk in decision making. Simon Herbert types of rationality are: objectively, subjectively, consciously and organizationally. gross Bertram M. suggested three dimension of rationality as; (d) the degree of satisfaction of human interest (e) the degree of feasibility in achieving the objectives (f) consistency in decision making

7.

8.
9.

The problems in making rational decision are: (a) ascertaining the problem (b) insufficient knowledge (c) not enough time to be rational (d) The environment may not co-operate. Herbert Simon model: (a) intelligence (b) design (c) choice types of decision making systems: (a) closed DM system: operating in known environment (b) open DM system: operation in unknown environment

10 If the decision can be based on rules, methods or even guidelines it is called programmed decision. 11 In program DM it is necessary for the manager to enumerate all the stages to the decision making situation and
provides the necessary support through rules and a formula for each one of them. 12 In a closed DM situation the programmed decision making work efficiently. 13 When all the alternatives and their outcomes are not known with certainty the decision is made with the help of pay off analysis. 14 The concepts of utility relates to the money value considered by the decision makers. 15 Decision analysis by analytical modeling in four ways as : (a) what if analysis (b) goal seeking analysis (c) sensitivity analysis (d) goal achieving analysis 16. What if analysis creates confidence in decision making by painting a picture of outcomes under different conditions. 17. In goal seeking analysis one analyses the problem in exactly reverse way as that of want if analysis or sensitively analysis. 18. In a goal seeking analysis one does not fix the goal but tries to achieve a goal of an optimum value arrived at after satisfying all the constraints operating in the problem. 19. In optimization analysis one comes to know which critical constraints are and which are limiting the value of goal. 20. An organization is an arrangement of individual having different goal. 21. According to the Simon Herbert if the decision is to maximize the value of the objective it is called objectively. 22. When decision maker must use a sequence of decision the decision tree analysis is used in selecting the set of decision. 23. Rational is the one which effectively and efficiently ensures the achievement of the goal for which the decision is made. 24. According to Simon Herbert if the decision is to maximize the attainment of value within limitation of the knowledge and awareness of the subject is called subjectively.

24

Unit: 11 1. DSS are an application of Herbert Simon model. 2. The DSS helps in making a decision and also in its performance evaluation. 3. Management science models are developed on the principle of business management, accounting and econometrics. 4. DSS models are: (a) behavioral models: trend analysis (b) management science models: principle of business management (c) operational research: mathematical

5. The forecasting model is a DSS an there are many models to choose from. 6. The ratio analysis is a standard method of assessing the financial status of the organization. 7. Break even analysis model is used to decide the alternatives based on the cost, volume and price. 8. BEP = FC/REV-VC 9. NPV = (PV of further cash flow) investment = PV 1 10. formula for PV is : PV = [1-(1+i)^-T/i ] 11. corporate model of return on investment is also known as du-Pont model 12. Cash budgeting is a continuous process. 13. if the stock level less than the recorder level then the draw a purchase order of the quality equal to the
economics order quality(EOQ). 14. Accounting system is not necessary for decision making but they are desirable to keep track of the major aspects of business or a function. 15. Data analysis is based on comparative analysis and use of a formula or an algorithm. 16. The trend analysis forecasting and the statistical analysis models belong to behavioral category. 17. Manpower planning and forecasting are the examples of relation to personnel management. 18. a queuing theory consider two cost the cost of waiting time to customer and the cost of idle time of the facility and decides on the facility design with a pre-determined service standard. 19. the activity time estimate (te) = to+4tm+tp/6 20. Three types of accounting system are: job order, process and periodic cost system. 21. Knowledge management system architecture deals with knowledge identification, generation and delivery for the application in business. 22. Approach of km system is: the knowledge body, tacit or explicit is an output. 23. Three basic components of KBES are: knowledge base, user control mechanism and interference mechanism. 24. In job order cost system the costs are assigned to the jobs passing through the plant and are accumulated by recording the basic job statistics on the job card. 25. The basic characteristics of DSS are that it is based on some tools. 26. LP model is applicable where the decision variables assume the values which are non-zero and the relationship among the various variables is linear. 27. Quadratic programming, integer programming and dynamic programming are all special cases for mathematical model. 28. Interference is a tool to interpret the knowledge available and to perform logical deduction in a given situation. 29. KM deals with knowledge generation, knowledge codification and refinement and knowledge transmission. 30. When reasoning is goal driven it is called backward chaining the goal and when it is data-driven it is called forward chaining the goal. 31. Behavioral models are useful in understanding the behavior amongst the business variables. 32. Knowledge can be grouped as explicit and tacit. Unit: 12

25

1. 2. 3.

ISDN: integrated services digital network TCP: transmission control protocol UDP: user datagram protocol 4. The first computer network was called DARPNET which later becomes famous as ARPANET (national science foundation network. 5. LAN may be used to transfer data with reasonably high data transfer rates. T 6. TCP and UDP are the protocol by which data is transmitted over networks. T 7. Web publishing: allows cumbersome corporate knowledge to be maintained and easily accessed thought the company using hypermedia and web technologies. 8. Enhance collaboration: with information easily accessible by all authorized users team work is enabled. 9. Intranet is private computer network. 10. In extranet can viewed as apart of a company intranet that is extended outside the company. 11. Modem is a device that converts digital signals to analog signal. 12. Switching switching allow data connections that can be initiated when needed and terminated when communication is complete. 13. With intranet organizations can make more information available to employees in less time. 14. An extranet requires security and privacy. 15. A point to point link provides a single pre estimated WAN communications path from the customer premises through a carrier network such as Telephone Company to a remote network. 16. MIS is likely to be verbal and qualitative in nature. 17. WAN uses routers and public communication links with a very high data transfer rates. 18. The internet some time called the information superhighway. 19. HTTP: hypertext transfer protocol. 20. According to Hughes in1993 www is: a wide area hypermedia information retrieval initiative aiming to give universal access to a large universe of document. 21. Speed, vast resources and ability to directly communicate are benefits of internet. 22. EDI: electronic data interchange

1. 2.
3.

4. 5. 6. 7. 8. 9.
10.

Unit: 13 A new trend is the creation of an IT leadership team comprising the chief information officer and the chief technology officer. As a monitor the CIO must scan the external environment to keep up with technical changes and competition. Modernization project is carried out which can include any combination of (a) Migration: databases, platform (b) transformation and : data field adjustment, naming standardization (c) Redevelopment: application mining, process mining A CIO proactive and knowledgeable about opportunities for the use of IT in the respective industry. A major responsibility of IS manager is to be ensure that the rapidly evolution technical opportunities are understood, planned, implemented and strategically exploited in the organization. In contemporary IT savvy organization a network is used to move information around the organization and between desktops. T The CIO role is more oriented towards technology, implementation of project and steaming back office operations. F CIO is senior executives responsible for all aspects of their companys information technology and system. T The CFO has taken a leaderships role in reengineering their organization business processes and the underpinning IT infrastructures to achieve more productive, efficient and valuable use of information within the enterprises. F the role of CIO are: (a) leader (b) spokesman (c) monitor

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(d) liaison (e) entrepreneur 11. One of the major challenges includes transforming the IT function from tactical operations to more global strategic planning. T 12. Understanding why the current CIO role remains lately out of sync with the increasing importance of IT to a company success. T 1. Unit: 14 the database is broadly classified into four levels: (a) flat file (b) the hierarchical databases (c) the network databases (d) the relational databases

2. In network type of databases a record is stored with a link to other records.


3. types of end users are: (a) casual users (b) nave users:( first time user) 4. The three schema architecture has three levels of architecture, an internal level, a conceptual level and the external level. 5. A property that describes an entity is an attributes. 6. DDL: data definition language 7. Two types of DML :( data manipulating language) (a) High - level/non procedural (b) Low level/ procedural 9. DML is a family of computer language used by computer program or database user to retrieve, insert delete update data in the database. 10. DBA (database administrator): is responsible for creating, modifying, maintaining database and also for granting permission to the user of the database. 11. DMA defines procedure to recover the database resulting from failures due to human, natural or hardware. 12. The selection criteria for evaluation have the following dimensions to be satisfied simultaneously Modularity, functionality and utility. 13. The business management process has changed from function management to process management. 14. Super computer are used to solve extremely complex problems like mapping of human genome, forecasting weather a modeling complex processes like nuclear fission. 11. Transaction is processed with reference to business rules it is scrutinized for conformance to the rules, policy or guidelines before it is taken up for further processing. 12. KBES model consists of: (a) User control mechanism (b) Knowledge bases (c) Inference mechanism 13. Methods of KBES knowledge representation: a) Semantic network b) Frames and rules 13. Entity: it has distinct separate existence through its need not be of a material existence. 14. Schemas: the description of database means defining the name, data, types,size of column in a table and database. 15. Instances: the collection of data stored in database at a particular moment is a database instance or database or snapshot. 16. SQL: structured query language Unit: 15

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1. 2. 3.
4.

Information systems control assures the accuracy, validity and proprietary of information system activities. before any transaction can be input into system a specific code should be assigned to it called as: transaction codes Information system control assures the accuracy, validity and proprietary. types of security control: (a) administrative control (b) information system control (c) procedural control (d) physical facility control

5. Control is the process through which manger assures that actual activities are according to standards leading to
achievement common goals. T 6. Input controls further divided into hardware and software control. F 7. A list of authorized users is provided to computer system with details such as type of information they are authorized to retrieve or receive from it. T 8. Insurance is also available to cover the cost of reconstructing data and program files. T 9. Sabotage and riot: in case strike and lockout. 10. procedural techniques: (a) integrity (b) isolation (c) identification (d) authorization (e) authentication (f) monitoring

11. In malfunctioning type of security hazard all the components of the system are involved. 12. Physical security deals with a number of hazards like fire, natural disaster while procedural controls deals
with access control. 13. Ethics is the study of the principles and practices which guides to decide whether the action taken is morally right or wrong. T 14. Checking technical feasibility protects you from violation or branch of law enacted for privacy protection, obligation to provide healthy, hygienic, and congenial work atmosphere. F 15. Respecting ethical values means making a beginning to protect generally accepted individual human rights. T 16. As internet and web enables solutions become common, individuals risk of privacy exposure increased many fold. T 17. This activity of capturing data, monitoring its use and storing happens at the front end with the knowledge of the user. F 18. Web bugs are plain text (tiny graphic) files inserted in email message and web pages which monitor the visitor behavior. F 19. The technology produces tiny deposited on computer hard disc cookies. 20. Encryption technology helps scramble messages data so that nobody can read and understand. 21. A DBMS is a complex set of software program that control the organization, storage and retrieval of data in a database. 22. A database designer should design the database in such a manner that it should meet the requirements of the clients. 23. In relational model a row is called a tuple and column is termed as attributes.

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Marketing management
Unit: 1 1. Marketing is often considered to be synonymous with selling. 2. In perfect competition price is determined by the market force of supply and demand. 3. In the case of oligopoly a few seller dominate the market. 4. The industrial goods market is known as organizational market. 5. Customer focus is the very essence of marketing. 6. Marketing research function is considered with gathering, analyzing and interpreting data in a system and scientific manner. 7. PETER DRUCKER the famous management thinker in one of his classic articles has said marketing is everything. 8. THEODORE LEVITT product oriented management with excessive attention to product rather than customer leads to short sightedness about business. This was termed as marketing myopia. 9. Product concept = marketing myopia 10. Production concept = mass production and distribution 11. Marketing concepts = customer satisfaction 12. Societal marketing concepts = ethical marketing practices 13. Selling concepts = aggressive promotion 14. one of the features of marketing research is it is multi-disciplinary. 15. The objective of test market is to predict product performance and its future. 16. Task of marketing is to influence needs. 17. the different between total benefits received and the total incurred by a customer is known as customer value. Unit: 2

1. 2. 3. 4. 5. 6.

Traditional 4Ps are: product, price, promotion and distribution / place. Modern 3Ps are: people, processes and physical evidences. EDLP = every day low price Four steps of marketing control are: (a) set specific marketing goals (b) measure the marketing performance (c) evaluates the marketing performance against objectives (d) take corrective actions. characteristic of marketing audit are : (a) comprehensive (b) systematic (c) independent (d) periodic Component of marketing audit are: (a) marketing environment (b) marketing strategic audit (c) marketing organizational audit (d) marketing system audit (e) marketing function audit (f) marketing productivity audit. Marketing audit is used as a strategic control tools.

7. 8. Marketing implementation depends on organizational structure. 9. PEST analysis helps to identify a company opportunities and threats. 10. Segmentation, targeting and positioning is a part of a marketing plan. 11. A marketing audit is comprehensive because it examines all aspects of a company marketing performance. 12. Pricing is one of the essential components of marketing mix. 13. Logistics includes all the physical aspects of distribution. T 14. Cellophane wrapped glasses in hotel rooms are examples of physical evidence in services. T 15. Marketing of service is based on the traditional 4 ps. F 16. Services are people intensive. 17. The various promotion techniques used at big bazaar include saal ke sabse sasta teen din. 18. Marketing is everything. Peter ducker 19. Big bazaar promises consumer the lower available price without coupon clipping and waiting for discount 20. 21. promotional pricing: psychological discounting and special event pricing 22. differential pricing: time pricing 29
promotion this is value pricing. value pricing: lowest available price

23. bundling: selling combo packs


Unit: 3 24. 1. Minimum wages act is an example of legislation.

25. Forces in micro environment are: company, customers, competitor, publics, suppliers, intermediaries. 26. Markets can be divided into five different categories as: (consumer .business, reseller, government and
international) market.

27. A jobber is an example of intermediaries. 28. Banks are the part of financial publics. 29. Business marketed is parts of company micro economics. 30. Todays company have to manage relationship with their suppliers in order to insure timely 31. 32. Demography study of population characteristics.
Factories act =1948 meets customers requirements. A company competition arises from its substitute.

supplies and

33. shops and establishment act = 1953 34. companies acts = 1956 35. industrial dispute acts = 1957 36. copyright act = 1957 37. patents act = 1970 38. contract labor = 1970 39. sales promotion employees act = 1976 40. foreign exchange management and trade act = 1999 41. designs act = 2000 42. PEST (political and legal, economic and natural, social and cultural and technology environment. 43. The economic environment includes inflation, interest rate, and exchange rate. 44. Metro sexuality is a part of social cultural environment, household work. 45. Consumer spending pattern is apart of economic environment. 46. India 54.4% females are never married. 47. Publics are the main focus of micro environment in this connection what are TRAI and IRDA. Regulation
agencies.

48. behavioral: split loyal 49. demographic: children 50. psychographic: believers 51. geographic: egyptian 52. Environment scanning helps in identifying the opportunities that company has in the future.
53. macro environment: (a) size: large

(b) (c) (d)

complexity: high examples: political, social, cultural uncertainty: very high

Unit: 4 1. Marketing information system is a set of procedures to collect, analyze and distribute accurate prompt and appropriate information to different levels of marketing decision makers. 2. PHILIPS KOTLER defines MIS as a system that consists of peoples, equipments and procedures together, sort, analyze, evaluate and to distribute needed, timely and accurate information to marketing decision makers. 3. MDSS= Marketing Decision Support System.

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4. 5. 6.

Storing of huge database is called data warehouse. The process of searching through information in data warehouse to identify meaningful patterns that guide decision making is called data mining. component of MIS are : (a) internal record system (b) marketing intelligence system (c) marketing research system (d) analytical marketing system under internal record system : (a) order to payment cycle (b) sales information system Marketing intelligence system: happenings data.

7.

8. 9. MIS enables a company to develop effective safeguard against emerging marketing threats. 10. Recurrent information is the data MIS supplies periodically. 11. Customized information is developed and provided in response to any specific data requested by marketing
managers.

12. In MDSS the manager is provided direct access to database. 13. AMA = American marketing association 14. The main features of market research are that it is a systematic process, it should be objectives and it should
be multidisciplinary in nature. 15. process of marketing research are as follows : (a) defines the problems and research objectives (b) develop the research plan and design (c) collection of information (d) analyze the information (e) Present the findings. 16. General format of report as: introduction, statements of purpose, research methodology, analysis the data, finding and conclusion, recommendation and appendix and bibliography. 17. Focus group research involves collection of information from a group of 8-12 persons who are invited to discuss matters related to a product or service. 18. Secondary data are data collected for some other purpose.

19. Experimental research tries to capture causes and effect relationships. 20. In non probability sampling method respondents are chosen based on researchers judgment. 21. Mall intercept method involves involving peoples while they are shopping and requesting an interview. 22. Experiences are young enthusiastic, impulsive and rebellious. 23. The services of market research agencies like IMRB and ORG-MARG are used in marketing intelligence
system.

24. internal record system : timing and size of order 25. marketing intelligence system : sources to obtain every day information 26. marketing research system : provides information to marketing managers 27. analytical marketing system : MDSS 28. order of marketing research:
(a) collection data (b) recording data (c) analyzing data (d) reporting data innovators: successful, sophisticated, active

29. 30. thinkers: mature, satisfied, comfortable 31. achiever: successful career, work oriented people 32. experiences: young, vital, enthusiastic

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Unit: 5

1.
(a) (b) (c) (d) (e)

2. 3. 4. 5. 6. 7. 8. 9.
retention

McKinney consultancy classified social classes can be divided into five different categories: deprived aspires seekers strivers global Indians derived : 90,000 annually aspires : between 90,000 to 200,000 seekers : 200,000 to 500,000 strivers : 500,000 to 100,000 global Indian : 100,000 Abraham Maslow : need hierarchy theory It is the process of acquiring, interpreting, selecting and organizing sensory information. perception three different selection procedures are as : (a) selective attention (b) Selective distortion (c) selective

10. 11.

Religion is one of the cultural factors that influence consumers behaviour. The habit of the people to analyze the information completely and interpreting it is called selective attention. 12. Dissonance reduces behaviour is: few differences between the brands and the high involvements. 13. five different stages while purchasing the products (a) need recognition (b) information search (c) evaluation of alternatives (d) purchase decision (e) post purchase behaviour 14. parameters for evaluation of alternatives are: (a) price (b) features (c) availability (d) quality (e)durability 15. Adoption process: (a) awareness (b) interest (c) evaluation (d) trial (e) adoption 16. Sales peoples are commercial sources of information. 17. the third stage in the adoption process is evaluation 18. The customer groups who adopt the new product at the end are called as laggards. 19. 13.5% of consumers belong to early adopter category. 20. Customer satisfaction or dissatisfaction is determined in post purchase stage of consumer decision process. 21. The thought, feeling, emotions and instincts that includes customer to buy a product are called as buying motion. D.J. DUNCAN 22. Individual factors like age, lifestyle and personality influence the consumer decision making. 23. Peoples have two types of buying motives: (a) rational (b) patronage 24. Five important consumer behaviour (a) economic (b) learning (c) psychoanalytic (d) sociological (e) Nicosia model. 25. The id, the superego and the ego are components of psychoanalytical model. 26. Buying roles are played by different people of organization. Lathe machine is used by the shop floor employee. Who is he? Actual user 27. In which stages of business buying process thr required items are assessed on the basis of reliability, durability and price. Need description. 28. Adoption ratio: Consumer innovators Early adoption 2.5% 13.5%

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Early majority laggards 29. HENRY ASSAEL MODEL: Significance between brands

34% 16%

High involvement Complex buying behaviour Dissonance reducing

Low involvement Variety seeking habitual

Few difference between brands

30. When each party has something that could value to other party it result into exchange process. 31. Product convenience becomes the rational product buying motives. 32. Appearance of the shop, visual merchandising in the shop imitating other reference groups members fall under: emotional patronage buying motives. Unit: 6

1. To find out the difference in behavioral characteristics between the final consumers and what is
known as business consumers. 2. characteristics Demand No of customers Locomotion Nature of buy No of buying roles Negotiation promotion Consumer market Direct Large Dispersed Personal Few Easy advertising Business market Derived Few Concentrated Profession Many Complex Personal selling

3. three types of buying situations are :


(a) New task: first time (b) Straight re-buy: follows routine steps (C) modified re-buy: modification 4. Classification of buying roles: A. actual user b. influencers c. buyers d. deciders e. gatekeepers 5. Any market in which customers buys the products for other than personal consumption is called business market. 6. Common method used in promoting the products in the business marketing is personal setting. 7. Derived demand exists in business market. 8. Gatekeeper plays the role of an agent between the buyer organization and the suppliers. 9. Entry a large foreign retail chain like WAL-MART.

10. Steps in business buying process: Buying process

New task

Modified re-buy

Straight re-buy

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Problem reorganization General need description Products specifications Suppliers search Proposal solicitation Suppliers selection Order routine specification Performance review

Y Y Y Y Y Y Y Y

SOMETIMES Y SOMETIMES SOMETIMES Y Y Y

11. Whenever to continue with existing suppliers or should search for the new vendor. PERFORMANCE REVIEW 12. In suppliers selections is known as vendor selection stage. 13. In proposal solicitation stage qualified suppliers are invited to make formal presentations. 14. The full form of MRO is maintenance, repair and operational items. 15. Buyers may have too narrow image of the brand over positioning. 16, cash and carry scheme focuses on small wholesaler customer. 17. Classification of business product: a) Farm product: used for further product development b) Component parts: heat resistance steel for further product development c) Capital items: developing building fixed equipments d) Supplier: lubricants, maintenance and repair Unit: 7 1. Marketing segmentation is the first step in applying the marketing strategy. in this process marketers divide the market into homogeneous sub-markets. 2. Market segmentation is the process of dividing a potential market into distinct sub-markets of consumers with common needs and characteristics. 3. The size profile and other relevant characteristics of the segment must be measurable and obtainable in terms of data. Measurable and obtainable 4. Be large enough to be profitable. substantial 5. He segments should be different from each other and may require different 4ps and programs. differentiable 6. Evaluate the proposed segment attractiveness on the basis of measurability, accessibility and size. 7. Future wants of customers should be analyzed before identifying the segments. 8. In psychographic buyers are classified into different groups on the basis of life style or personality and values. 9. The customers who shows no loyal to any brands. Switchers 10. Customers who buy only one brand all the time. Hard core loyal 11. Customers who are loyal to two or three brands. Split loyal 12. A group of people or organization for which an organization designs, implements and maintains the marketing mix. targeting 13. It is the market coverage strategy in which company follows one product one segment principle. Concentrated marketing

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14. focus product segment Marketing mix undifferentiating One/few all one differentiating many many many concentrated One/few One/few One/few

14. Positioning is the act of designing the company offering and image to occupy a distinctive place
in the target markets mind. Constrained firm resources Common usage products undifferentiated More suitable Most suitable differentiating Least suitable More suitable concentrated Most suitable Least suitable

Different needs satisfying products

Least suitable

most suitable

More suitable

15. company must avoid four major positioning errors are: (a) under positioning (b) over positioning (too narrow image of the brand ) (c) confused positioning (d) doubtful positioning 16. two dimension of positioning maps are : (a) price (b) quality 17. bases for positioning the product are: (a) attribute positioning e.g. sun feast (b) benefit positioning ( leader in certain benefits) e.g. Hyundai Santo (c) Application positioning (as best for some use) e.g. ken star (d) user positioning (as best for user groups) e.g. Parle G (e) Competitor positioning (claims to be better than competitor) e.g. advertising (f) Product category positioning e.g. CT 100 (g) Quality or price positioning e.g. Dhara 18. When the target market views a brand as one more entry in the market it is called under position.

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Unit: 8 goods 1 2 3 4 tangible inventories Non perishable homogeneous services intangible Simultaneous production and consumption perishable heterogeneous

2. Levels of products are: (a) Core product: the fundamental good or services offered to the consumers. E.g. hospital services (b) Generic product: basic version of the product. E.g. hospital having beds, nurses (c) Expected products: the minimum attributes that consumer expects in the product. E.g. qualified doctors (d) Augmented product: addition service to the expectation e.g. online facility (e) Potential product: future product provided by the company which customer didnt anticipate. E.g. medical insurance.

3. Classification of products into two broad categories as: Consumer products 1 convenience 2 3 4 Shopping goods Specialty goods Unsought goods: unaware or ignorant the product to purchase it.

Business products Materials and parts: raw material and manufacturing materials and parts Capital items Suppliers and services

5. Product hierarchy: (a) Need family: the core needs that underlies the product family (b) Product family (c) Product class (d) Product line (e) Product types (f) Brand (g) Items 6. Product line: the group of related product which uses same marketing efforts to reach the consumer. 7. Product line length: the number of items in the product line 8. Product line strength: company lengthen its product line either by strengthen upwards or downwards or both. 9. Product line filling: adding more items in the present product line. 10. Product line pruning (out of line): removing the unprofitable products from the product line. 11. Product mix: the number of product line and items offered by marketers to the customers. 12. Product mix width: the total number of product lines that company offers to the consumers.

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13. Product mix length: the total numbers of items that company carries within its product line. 14. Product line depth: the number of version offered of each product in the line. 15. Product mix consistency: if company product lines usage production and marketing are related then product mix is consistent. 16. Packaging: the process of designing and producing the container or wrapper for the product. 17. Labeling: it carries information about the product and the seller and this informations presented on the package as well as on the package. 18. Types of levels: (a) brand label (b) grade label (c) descriptive label 19. Process of new product development: 1. Idea generation 2. Idea screening 3. Concept development 4. Concept testing 5. Marketing strategy development 6. Business analysis 7. Product development 8. Test market 9. Commercialization 20. Five stages of product life cycle: (a) Product development stage (b) Introduction stage (c) Growth stage: company gets experience over the period and now tries to get the maximum market share. (d) Maturity stage: the product has already established itself in the market. (e) Decline stage: product sales and profit decline. 21. Other product life cycle: (a) Style: a style is a basic and distinctive mode of expression that appears in the study of human behavior. 22. Fashion: currently accepted or popular style. 23. Fad: a fashion that quickly is adopted with great zeal peaks early and declines fast. 24. Imitative products are also considered as a new product. T 25. In product development stage of the product life cycle sales are zero. 26. Marketing communication mix is also called as promotion mix. 27. Such product which can be directly fitted in the final product is: component materials. 28. In the shopping goods customer is highly involved in the information of product suitability, quality and price. 29. Company using its well known brand name to introduce additional item in given product category is line extension. 30. Convenience goods: fast moving customer goods (FMCG) 31. Shopping goods: washing machines 32. Specialty goods: digital home theater 33. Unsought goods: insurance schemes Unit: 9

1. one of the disadvantages of branding is- it is costly 2. A particular geographical location indicates sales territory. 3. A brand which bears the name of the sellers or store where its sold is called as private brand.
4. characteristics of a brand: (a) consistency (b) security (c) offering functional and emotional attributes component of brand equity: (a) Brand loyalty (b) Brand awareness (c) Perceived quality (d) Brand associations

5.

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6. A brand name can include symbols. T 7. Brand loyalty indicates customers commitment towards the brand. 8. The quality as seen by the customer is called as perceived quality. 9. When customers related specific attributes of the brand it is called as brand associated. 10. Value addition to a brand name is also called as brand equity.

11. brand managers have four options of sponsoring the brand as : (a) manufacturer brand (b) private brand : store brands (c) licensing brand (d) co- branding 12. The number of customers exposed to the brand is called brand awareness. 13. Positioning the products on safety belongs to benefits. 14. The practice of using the established brand names of the two different companies on the same product: co- branding. 15. Line extension strategy is used in existing product category and existing brand name. 16. The technique of introducing the product or items in existing product category with a new brand name is called multi- brand. 17. private brands and labels are used by: manufacturer 18. brand development: a) line extension b) brand extension c) multi brand d)new brand Unit: 10 1. perfect market: many buyers and sellers exists 2. monopolistic competition: many buyers and sellers but doesnt have total control over the market 3. oligopolistic competition: few sellers 4. monopoly: one seller 5. unit cost = variable cost + fixed cost/unit sales 6. price = unit cost/(1- desired return on sales) 7. break even volume = fixed cost/(price- variable cost) 8. Value based pricing: setting the price of the product on the basis of consumer perceived value of the product rather than manufacturer cost. 9. destroyer pricing: used as an attempt to eliminate competition 10. Current profit maximization strategy is used to defend the marketing position. 11. Break even point occur when total cost equals total revenue(TC=TR) 12. Every day low pricing is value based pricing. 13. five different types of pricing strategy ; (a) discounts and allowances (b) location pricing (c) psychological pricing (d) international pricing 14. price reduction for customers: (a) cash discount (b) quantity discount (c) functional (d) FOB = free on board

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15. Optional product pricing strategy is used to set a price for a product that must be used along
with a main product.

16. the pricing strategy in which company sells its several products at reduced price: bundle pricing 17. razor and cartridge example indicates : captive pricing 18. Cash discount is given when the customer makes early payment before the due date. 19. Merchants: those who buy the product take title and resell the merchandise.
20. product mix strategy: a) product line pricing: price according to the range of product b)optional line pricing: price not included in the main product c) captive product pricing: price for the product that must be used along with main product d)by- product pricing: it makes main products price more attractive e) product bundling: combo pack Unit: 11 1. determining intensity of distribution: (a) intensive distribution (b) selective distribution (c) exclusive distribution 2. Selecting the criteria to evaluate the channel member: (SCPCA) (a) sales (b) costs (c) profitability (d) control (e) adaptability 2. types of grievances: (a) payments (b) dispute/disagreement in business (c) unethical/integrity/code of conduct violation communication with partners is done at different levels: (a) functional directors (b) user owner (c) supply chain team (d) governance team

3.

4.

5.

6. 7. 8. 9.

major logistics functions: (a) warehousing (b) inventory management (c) transportation different modes of transportation: (a) air (b) water (c) surface (d) pipelines (e) internet carriers A strategy in which company stores goods in maximum number of retail outlets is intensive distribution. In exclusive distribution maximum number of retailers enjoys the right to sell in their territory. F SCPCA method is used to analyze: channel design Pipeline mode of transport is used to transport goods like oil.

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10. Internet is satellite type of transportation mode. 11. Philips kotler: all activities involved in selling goods and services to those buying for resales or
business use. 12. types of wholesalers: (a) merchant wholesalers: cash and carry (b) brokers and agents (c) Tarnish is an example of specialty type of store. 13. Discount stores sell the product at low price and high margin. F 14. Hyper markets are examples of super stores. 15. Direct selling is types of retailing. T 16. Cash and carry business is an example of limited service merchant wholesalers. 17. factors that are involved insetting up a channel: (a) determining intensity of distribution: intensive, selective, exclusive (b) selecting the criteria to evaluate the channel member: sales, cost, profitability (c) determining the objectives on which channel is to be developed: reach, profitability, different ion (d) identify types of channel members: merchants, resellers, agent 18. strategic partner: strategic partnership can be done 19. airtel facilities for partners: office space, canteen, parking 20. risk: risk sharing 21. advances: max.5% 23 evaluation channels members with suitable weight age: parameters Cost, Quality, delivery, SLA Development, innovation, new technology, flexibility Backward compatibility/scalability, system and processes weight age 25 15 10 5

22. discount store: low price, low margin 23. super store: large merchandise, huge space 24. super market: low cost, low margin, high volume, self service 25. off price retailer: less than retailer 26. Automatic vending and online shopping are the example of non storing retailing.
Unit: 12

1. Promotion mix: this is an assortment of advertising, sales promotion, public relation, etc must
have an idea promotion mix to promote its products.

2. promotion mix strategy and its benefits:


(a) (b) (c) (d) advertising personal selling sales promotion public promotion

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(e) public relation (f) direct marketing (g) publicity 3. communication development process: (a) preparing target customer profile (b) identifying promotion objectives (c) designing a message (d) selecting channels of communication (e) selecting the message source (f) target customer feedback 2. target customer profile: Customers characteristic Types of customer income Media exposure occupation Need of the product

description individual Upper middle class and upper class print Salaried or business class OEM of a car

3. AIDA MODEL:
(a) (b) (c) (d) attention interest desire action

4. Three types of appeals: Emotional appeal: positive emotion appeal or negative emotional appeals 5. 6.
7. are strong tools used to intensify the purchasing activity of the customer. Rational appeals: highlights on the desired benefits about the products. Moral appeals: concerned towards public health or environment or social responsibility. four different methods on which a media planner decides the allocation of advertisement budget: (a) affordable method (b) percentage of sales method (c) follow the competitor method (d) objective and the task The technique of using the social network on the internet to create the brand image is called as vital marketing. Percentage of sales method of advertisement budget decision is determined on the basis of adorability of the company. F the promotion objective used when customer may have preference over the product but he still not able to decide is conviction Pioneer advertisement is used to create awareness. Product stage in the PLC and market share is factors that determine the advertisement budget. Television is a type of broadcast media. A sales promotion technique in which marketer offers two or more products together at a discount price or some incentive is given on a combination pack is called as combination promotion. Lobbying is the method of public relations.

8. 9. 10. 11. 12. 13. 14. 15.

16. types advertising: (a) Institutional advertising: to enhance the image of company rather than selling. (b) product advertising 19. Types of product advertising:

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(a) Pioneer advertising (b) Competitive (C) comparative 20. Contents of emotional appeals are: joy, humor, love and pride. 21. Methods of public relations are: (a) News conferences (b) Participation in social responsibilities (c) Preparation interactive websites Unit: 13 1. personal selling approaches: (c) stimulus response selling (d) need satisfaction selling (e) problem solving selling 2. sales management basic or key aspects are: (a) deciding the sales territory (b) determining sales force size (c) sales organization steps in selection process: (a) application blank (b) screening (c) reference (d) personal interviewing (e) test (f) medical examination (g) final interview

3.

4. Training programme: (ACMEE) = aim of training, content of training, method of training,


execution of training and evaluation.

5. training methods: (a) group training (b) individual training 6. Sales quota: the target set for the sales executives to achieve in a fixed period. 7. different types of sales quotas:
(a) Expenses quotas: sales generated (b) Profit quotas: better margins for the sell (c) Activity quotas: meeting the different persons (d) sales quotas: selling a particular volume 8. Medical representative works is missionary type of sales job. 9. Work load is used to determine the sale force size. 10. Employee is internal source of recruitment. 11. Application blank is the first step in the selection process. 12. personal selling process: (a) lead generation : identification of prospects (b) lead evaluation : willingness, purchasing power and authority (c) buyer analysis : customer buying habits and attitudes (d) approaching the customer : how to build and meet the rapport (e) presentation and demonstration (f) providing solutions to customers (g) order generation (h) follow up 13. methods of direct marketing: (a) direct mail : postal mails (b) telephone marketing : call centre

42

(c) catalogue marketing : mailed to select customers (d) kiosk marketing : parents along with children
(e) online marketing

14. Customer directories are used in lead generation of personal selling. 15. Organizations which sell their products on the internet directly to consumers are called B2C. 16. J.C. penny is famous for catalogue marketing format of direct marketing. 17. The ideal presentation should be vivid, simple and attracting. 18. In out bounded call centre employees telephone the customers and the sell the products. 19. Lead generation is identification of prospects is first step in personal selling process. 20. In the activity quotas sales executive should do multiple tasks. 21. Discussion training methods an imaginary case is given with specific problem to be solved by
different group. Unit: 14

1. Berry defines CRM as attracting, maintaining and in multi service organization enhancing
2. customer relationships. customer development process: (a) suspect (b) Prospects: people having strong potential in the product and the ability to pay for it. (c) first time customers (d) repeat customer (e) Client: people who buys only from the company in the relevant product categories. (f) member (g) Advocate: people who praise the company and encourage others who buy from it. (h) partner

3. Customer catching is the process of attracting new customers while customer keeping aims at
the process of retaining the existing ones.

4. CRM involve using set of discrete software and technology which focuses on automating and 5. 6. 7. 8. 9. 10. 11.
improving the business process. T Soft version of relationship marketing is more reminiscent of humanistic relationship development where the hard version reflects a utilitarian instrumentalism. Service needs to be consumed as and when it if offered. T Kotler and heskett found that form that emphasized the interests of three constituencies namely customer, employee and stakeholders out performed those that emphasized only one or two. Rural market is different and more challenging than the urban market. T Online sopping or virtual shopping cannot replace the experience of physical shopping. Automatic vending and online shopping are example of non store retailing. In the customer development process the company acts to convert repeat customer into clients.

12. modern customer oriented company organization chart: customers Front- line peoples Middle management Top management

43

13. reason behind loosing customer by an organization are: (a) benefit related: various augmented benefits (b) service related: services offered at different stages (c) product related: technological advancement (d) price related: price and value of the products Unit: 15 1. Company can enter international market by adopting any of these following: (a) exporting (b) licensing (c) contract manufacturing (d) management contract : management know-how is transferred (e) joint ownership (f) Direct investment: company invests in manufacturing or assembling directly. 2. three common approaches used in international marker: (a) domestic market extension approach (b) multi- domestic market orientation (c) global market orientation

3.

organization adopt five different types of products strategic in the international market as: (a) product extension (b) Communication adoption: doesnt change the product but adopt a different communication strategic. (c) product adoption (d) product and communication adoption: dual adoption (e) product invention 4. Global market orientation focuses on product standardization. T 5. Money off vouchers is illegal in Germany. 6. Transfer pricing: means the determination of the prices at which an MNC moves goods between its subsidiaries in various countries. 7. Country of origin need not be marked on the shopping goods but should be entered in the export/import documents. F 8. coca-cola is world number 1 brand on the basis of its valuations 9. Competitor pricing is not used while setting the transfer pricing. 10. criteria for setting the transfer pricing: (a) the price of the product (b) cost of the product (c) political negotiation (d) acquisition/production cost (e) senior management perceptions 11. nature of international market concepts: characteristics culture Data accessibility Data reliability control Consumer preference Product mix Business operations Currency exposure International marketing Multi culture Very difficult Very low difficult Vary form country to country Adaptability required More than one country required

44

12. Companies are adopting ------------------- software to add value to their chain. (a) partner in profit sharing (b) partner in distribution (c) partner in business (d) partner relation management 13. Cost reduction, automation better communication and efficiency are------------------ environment. (a) demography (b) political (c) economic (d) technological 14. the contribution of service sector in the GPD of India in 2006- 2007 is: (a) 55% (b) 54% (c) 53% (d) 52%

15. The different between total benefit received and the total costs incurred by a customer is known
as: customer value.

45

Operational research Unit: 1 1. 2. 3. 4. 5. 6.


7. The main objective of OR is to provide a scientific basis to the decision makers. OR employs a team of scientists and different disciplines. How can a hospital benefits from the application of OR method? To solve waiting OR imbibes inter disciplinary approach. OR increases the effectiveness of decision making ability. OR gives qualitative solution. three phases of OR are: (a) judgment phase (b) research phase (c) action phase 8. OR methodology is: (d) problem definition (e) model construction (f) model solution (g) model validation (h) result implementation mathematical models: (a) decision variables (b) objectives functions (c) constraints (d) diet problems Model represents a real life system. Parameters represent the controlled variables of the system. OR totally eliminates intuitive approach. OR approaches problem solving and decision making from the total system view. In the research phase we decide formulation of hypothesis and model. 15. Graph and chart belongs to physical model. 16. The production department wants to have a longer run so as to minimize set up costs and hence require large inventory. But finance department would like to minimize inventory cost. The tools that can help them belong to OR applied with system overview. 17. During World War II scientist from UK studied the strategic and tactical problems. 18. OR stand for scientific method for getting optimal solution on quantitative basis. 19. When and where OR come into existence in India? 1949, Regional research laboratory, Hyderabad 20. By effectiveness measures of a model we mean A measure of success of the model relative to the objectives. 21. Formulation of the problem relative to the objective comes under judgment phase. The need for OR in industry is due to Complexity of problem

9.

10. 11. 12. 13. 14.

22.

46

In both developing and developed economies OR helps in activating. In Finance OR can be applied in Profit plan for the company. Optimal solution to EOQ model is based on differential calculus. 26. In numerical procedure of trying various values of controllable variables in the model, their value approaches optimum. Through successive iteration. 27. Mathematical models are classified by degree of abstraction. 28. Organization chart belong to Analogue model 29. One of the advantage of the model is: Provides a logical and systematic approach 30. Queuing model is based on the concept of concept of probability 31.

23. 24. 25.

Unit: 2(linear programming) 1. Both the objectives function and constraints are expressed in linear forms. 2. LPP requires existence of alternate course of action. 3. Solution of decision variables can also be fractious. 4. canonical form: (a) All decision variables are non-negative. (b) All the constraints are of type. (c) The objective function is of the maximization type. 5. Personal planning problems can also be analyzed with linear programming. 6. Linear programming is a powerful tool for selecting alternatives in a decision problem. 7. Linear programming can be used to determine the proper mix of media. 8. Quite often in the process industries a given raw material can be made into a wide variety of products. 9. The solution space (region) of an LP problem is Unbounded due to: an in correct formulation
of LP model.

10. The feasible region represented by the constraints X 1+ X 21, 3 X 1+ X 23, X 1 0, X 20 of the
objective function Z= X 1 +2 X 2 is: polygon

11. While plotting constraints on a graph paper, terminal points on both the axes are connected by a straight
line because The resources are limited in supply 12. A feasible solution to an LP problem Must satisfy all of the problem's constraints simultaneously 13. In a maximization LPP, if at least one artificial variable is in the basis, but not at zero level and the coefficient of M in each of the net evaluation (Zj-Cj) is non-negative , then we have No feasible solution 14. To formulate a problem for solution by the simplex method, we must add artificial variable to only equality constraints, only greater than constraints. 15. which of the following is not correct: a) The key column in simplex table indicates the incoming basic currently non-basic variable and the key row represents the basic variable that will become non-basic in the next iteration. If all entries in the key column are negative or zero and the corresponding (Zj-Cj) <0, then there is an unbounded solution to the LPP. In improving a non-optimum solution, the leading element may be positive, negative or Zero. For a maximization problem, the optimum solution is attained when all (Zj-Cj)=0.

b)

c)
d)

Unit: 3(graphical analysis of LPP) 1. 2. 3.


feasible region: any non-negative value of(x1,x2) (i.e. x1 0, x2 0) non negative conditions are expressed as: 0 Optimal solution always occurs: at the corner of feasible region.

47

4. 5.

The feasible solution to the problem exists: at the corner point of the region. Existing of alternating course in L.P.P. is basic requirements. 6. Convex polygon is a convex set of formed by the intersection of finite number of closed half planes. 7. Basic feasible solution: for m and n variables (m<n) is solution where m variables are none negative ( 0) and n-m variables are called non basic variables. Zero. 8. The collection of all feasible solution is known as feasible region. 9. A linear inequality in two variables is known as half planes. 10. graphical method :(WPIDI) (a) write down the equation (b) plot the straight lines (c) identify the convex polygon (d) determines the vertices of the polygons (e) identify the value of (x1, x2) 16. Any non-negative values of the variables lead to feasible solution.

UNIT: 4(simplex method) 1. All constraints are equations constraints except for the non-negatively conditions which remains inequalities (, 0)
only.

2. The right hand side elements of each constraint equation are non negative. 3. The non-negative variable that has to be added to a constraints inequality of the form to change it to an equation
is called slack variables. 4. The non-negative variable that has to be subtracted from a constraints inequality of the form to change it to an equation is called surplus variables. 5. standard form of LPP as: n Minimize (z) = Ci Xi i=1 6. Standard form of LPP as: column vector with decision, slack, surplus and artificial variables. Optimize (z) = C^TX Subjected to AX=B And X 0 7. If one or more values of the basic variables are of valued at zero values, then the solution is said to degenerate else non degenerate. 8. Steps in simplex algorithm: Step1: locate the negative number Step2: form ratios Step3: user elementary row operations Step4: replace variables in pivot row and column Step5: repeat step1 through 4 Step6: arrive at an optimal solution. 9. The column that has negative number is called the work column. 10. Element to the work column to yield the smallest ratios is called pivot element. 11. Penalty cost or big M method: Step1: break the last row into two rows Step2: follow the step1 through 4 of simplex method Step3: artificial variables cease to be basic variables Step4: delete the last row in the table Step5: arrival at optimal solution. 12. Two phase method: Phase1: formulate the new problem Phase2: start phase 2 using the optimum solution of phase1 as the base. 13. If a system of m equation in n (nm) variables we assign n-m variables as zero then the n-m variables are called as non basic variables. 14. The standard form of LPP requires constraints to be inequalities and variables to be non- negative.

48

15. if we get a solution to LPP having three variables x1, x2 and x3 as x1= x2= 0 x3 =15 then the solution is said to be degenerate and feasible. 16. At every iteration of simplex method, for minimization problem, a variable in the current basis is replaced with another variable that has A negative Zj-Cj value A positive Zj-Cj value Zj-Cj=0

Unit: 5(duality)
1. LPP for maximization problems must constraints: 2. LPP for minimization problems must constraints: 3. The coefficient of decision variables in the objectives function becomes qualities on the right hand side of dual. 4. constraints changes to type in dual LP. 5. For every LPP there exist unique dual problems.

6. Primal and dual: 7. Dual problem is used when primal problem has several constraints and small variables. 8. Dual LPP plays an important role when primal LPP results in infeasible solution and large constraints. 9. If primal LPP is that of maximization and has constraints "" then in dual LPP they are converted into minimization and ".

Unit: 6(transportation problem)


Transportation problems are of special types of LPP. The number of row and column need not always be equal. Transportation problems develop a schedule at minimum cost. All the values of Cij-Ui-Vj should be zero. In unbalanced transportation problems ai is not equal to bj. If the number of allocation is less than m+n-1 then it is said to be degenerate transportation Problems.

. . . . . .

. . 0. 1. 2. 3. 4. 5. 6.

transportation : In transportation problems ai = bj is a sufficient and necessary condition for getting a feasible solution. T Transportation problems can also be solved by simplex method. T Matrix minima method gives optimum solution. F In matrix-minima method you start allocating from the left top cell of the table. F In Vogel approximation method you first construct penalty and then start allocating. T North West corner rule gives optimum solution. F Vogel's approximation method gives solution near to the optimum solution. T If there are "m" origins and "n" destinations then total number of cells available for allocation is mn. 17. Transportation model assumes number of supply units = number of demands units and cost of transportation is known and fixed. 18. If there are 3 rows and 5 columns then the TP has 8 constraints and 15 cell values.

49

Unit: 7(assignment problem) 1. In AP the constraints are of equality type. T 2. The number of facilities should be equal to the number of resources. T 3. The decision variables can take on any value. F 4. In Hungarian method you prepare row reduced matrix. T 5. The number of assignment should be equal to the number of rows for an optimum solution. T 6. There can be more than one allocation in a row. F 7. In unbalance AP the number of rows to the number of column. 8. Hungarian method cannot be applied directly to maximization problems. 9. If some jobs cannot be assigned to some machines then it is called infeasible assignment problem. 10. In travelling salesman problems the objective is to visit each cities only ones. 11. Salesman has (n-1) different sequences if n are the number of cities to be visited.
12. methods to solve assignment problem: enumeration method simplex method transportation method Hungarian method

Unit: 8 (integer programming problem) 1. Integer programming is applied to problems that involve discrete variables. T 2. If some variables take on non-negative values then it is known as pure IPP. F 3. Branch and bond technique is applied when some variables have upper and lower bounds. T 4. We start the technique with lower bound. F 5. Do you select the variable for gomorys constraints whose fractional value is more? T 6. Optimum values in an pure IPP can be x=2 and y= 3.5. F 7. Optimum solution to IPP is first obtained y using simplex method. 8. With the addition of Gomorys constraints the problem is solved by dual simplex methods.
9. 1. 2. 3. 4. 5. 6. 7. 8. all IPP algorithms: convert minimization IPP to maximization introduce slack or surplus variables test integrality of optimum solution examine constraint equation express negative fractions find gomorian constant start a new equation set Arrive at new optimum solution.

Unit: 9 (infinite queuing models) 1. Customers arrive at a bank at regular interval. F 2. Queuing identifies the optimal service facilities to be provided. T 3. Queuing theory is based on the deterministic model. F 4. Every queuing process has an arrival pattern a service facility and a queue discipline as its constituents. T 5. If the arrivals are completely random then it follows Poisson distribution. T 6. One of the indicators of efficiency of system is utilization factor. 7. Analysis of queuing system explores various alternatives. 8. Simulation technique can be also used for analysis. 9. Multiple service channels may be arranged in series or in parallel. 50

The services time can be constant or varying. When customers keep on switching over from one queue to another then it is called jockeying. Balancing, collusion, balking, jockeying and reneging are the types of customer behavior. 13. queuing process: 1. preliminary study 2. exploration of various alternatives 3. collection of data and analysis 4. evaluation of alternatives 5. implementation 14. queuing system: arrival pattern service facility queue discipline

10. 11. 12.

Unit: 10(queuing theory) 1. E(m) refers to average length of queue 2. Probability density function of the time spent by a customer in the system is denoted by F (v). 3. No simultaneous arrivals are allocated. 4. the expected number of customer in non-empty queue is given by m/m-1. 5. the probability that an arriving customer has to wait for receiving service is given by 1/ 6. mean customer time spent waiting in the line: E(w) = /(-) 7. mean customer time receiving or waiting for service: E(v) = 1/(-) 8. mean number of persons in line: E(m) = ^2 /(-) 9. mean number of persons receiving or waiting for service: E(n) = /- 10. probability that a person arriving at the booth will have to wait: p(x 1) = 1- p(x<1)
: 1 -Po = 1 - (1-) = 1-(1-/)

11. 12. 13.


(1+ p+ p^ 2)

expected number of waiting cars: = ^ 2/1- probability of device being idle = Po= 1- the probability that an arriving customer can drive directly to the space in front of window= (1-p)

Unit: 11(finite queuing model)


1. queuing discipline: FIFS priority random LIFS system efficiency (F) = T +U/T +U + W Service factor X = T/T + U notations: 1. D - probability that if unit call for service 2. F - efficiency factor 3. H- average number of unit being served 4. J- average number of unit in operation 5. L - average number of unit waiting in service 6. M- service channel 7. N- population 8. T- average service time 9. U- average running time 10. W- average waiting time Finite queuing tables steps: 1. find service and running time

2. 3.
4.

5.

51

6. 7. 8. 9.

2. compute the service factor 3. select corresponding table 4. locate service factor value 5. read values for number of service crews 6. calculate other measures When the possible number of arrivals is limited then we apply infinite queuing model. F The queue discipline in a finite queuing process can be random. T the efficiency factor for this model is H J /H+ J+ L. F Utilization factor () = /s where (s) is the fraction of the system service.

Unit: 12(simulation) 1. Simulation is useful to analyze problems where analytical solution is difficult. T 2. Simulation cannot be used where mathematical techniques can be used. F 3. Simulation solution would be identical to those using mathematical techniques. F 4. In any simulation problem initial conditions are started. T 5. Random numbers are assigned for cumulative probability values. T 6. Without identifying any relationship between variables you can solve the simulation problem. F 7. Simulation gives optimum solution. F 8. Simulation interrupts real system activities. F 9. This technique can be easily understood by non-technical managers. T 10. Standard errors for percentage of success= (P (1-P) /N) ^ 0.5. T 11. It is possible to determine the number of trials. T 12. The accuracy of results increases as the square of number of trails. F 13. Simulation can be called experimentation in the management laboratory. 14. Random numbers have the property that any number has equally likely to occur. 15. The totality of probability assigned to the variable should always be equal to 1. Unit: 13(monte- Carlo simulation method)
1. 1. 2. 3. 4. 5. 6. 7. steps of monte-carlo simulation procedure: define the problem construct an appropriate model prepare the model for experimentation using 1 and 3 experiment with the model summarize and examine the results obtained in step 4 evaluate the results of the simulation formulate proposals for advice to management Monte -Carlo simulation involve modeling a deterministic system. F The technique of monte-carlo involves the selection of random observations within the simulation

2. 3.
model.

4.

The critical path and the project duration can be found out with a randomly selected activity times for each activity. 5. The range of application of simulation in business is extremely wide. 6. Large complicated simulation models are appreciated because they may be expensive to write and use as an experimental device. 7. Analytical results are taken into consideration before a simulation study so as to identify suitable values of decision variables for the specific choices of system parameters.

Unit: 14(PERT - CPM) 1. 2.


Project consists of inter related activities. T Project activities are to be completed in a specified time according to a specified sequence. T

52

3. 4. 5.

PERT and CPM identifies non critical activities. T PERT is an activity oriented network. F CPM is used for project that is reparative in nature. T

6.

phases of PERT and CPM : a) planning b) scheduling c) controlling the critical path calculation are done in two phases: a) forward pass b) backwards pass determination of floats: a) latest start b) earliest completion two important types of float: a) total float b) free float In a project network sequence of activities may form a loop. F A critical activity must have its total and free floats equal to zero. T A non-critical activity cannot have zero total float. T The critical path of project network represents the minimum duration needed to complete the network. T A network may include more than one critical path. F Events do not consume time and resource. Arrows head number is greater than its tail number. Dummy activity is introduced in a network to keep proper precedence relationship. expected duration: To +Tp +4 Tm/6 variance = (Tp-To/6)^2

7. 8. 9.

10. 11. 12. 13. 14. 15. 16. 17. 18.


19.

Unit: 15(game theory)


1. a) b) c) types of competitive situations: marketing different brands campaigning for election fighting military battles

2.
3. a) b)

Competitive situation arise when two or more parties with conflict operate. types of strategy: pure mixed 4. Saddle point occurs at row minimum and column maximum. T 5. If the value of the game is zero then it is called zero sum game. T 6. The pay off matrix represents the gain for top player. F 7. The row whose elements are less than the corresponding elements of another row is deleted. 8. If the average of any 2 columns is less than or equal to the corresponding elements of another column it is deleted.

53

Production and operation management Unit: 1 1. 2.


Production management encompasses all the activities that go into conversion of a set of inputs into outputs. JIT (just-in time) and lean manufacturing methodologies were developed to minimize wastages and increase productivity. T 3. Master production schedule sets the quality of each end items to be completed each week of the short rage planning. T 4. Managing the raw materials is the management function where by procurement, storages and issuance of the same for purposes of manufacturing the products or consumptions are conducted. 5. Inventories are materials held at various locations in production systems. 6. Production function management can be broadly identified as estimating, routing and scheduling. 7. Information flow as every stage identifies the value addition that taking place.

54

8. 9. 10. 11. 12.

The quantities of each of the items have to be assessed for procurement, storage, inspection and receipt. Quality circle is very efficient in incorporating low cost and non-intrusive method of improving. Inventory and breakdown drag the productivity of manufacturing system. The operations are based on sequencing, loading and dispatching. When the task is performed systematically under supervision and guidance the jobs gets done better. The purpose of training is to enhance performance. 13. productivity=output/input 14. Labor productivity=number of products produced/hour. 15. strategy employed to increase capital productivity a are: (a) outsourcing (b) balancing of work station (c) quality circle (d) methods improvements (e) rationalization of packaging methods 16. factors restrict outsourcing are: (a) lack of expertise (b) quality consideration (c) nature of demand (d) cost 17. The movement, storage, controls and protection of materials goods and products throughout the processes of manufacturing is called material handling. 18. A production facility comprising of one or more machines or one or more workmen considered as a single unit for the purpose of estimation of capacity is work centre. 19. The analysis of a specific job in an effort to find the most efficient method in terms of time and effort is motion study. 20. The number of items that can be stored in a unit volume is storage density. 21. Measurement of time required for any task is measured using motion study and work measurement methods. 22. Work measurement: accurate observation and recording determine the time. 23. Three steps involved in labor productivity are: (a) balancing operation in assembly line. (b) Reallocation of workers (c) Setting of productivity norms. 24. in the matching method: the production capacity is adjusted to match the forecast demand by the level of the work force hiring or laying off. 25. in the level capacity methods: production capacity is held constant at an optimum level. 26. Routing keeps close track of verifying the completion of operation as per specification. Unit: 2 1optimization at every stage is necessary to derive competitive advantages. 2 CAD= COMPUTER AIDED DESIGN 3 CIM= COMPUTER INTEGRATED MANUFACTURING 4 SKU= STOREKEEPING UNITS 5. CIM process helps in rapid production and reduces indirect cost. 6 mechanization helps in improving identification, pick up and repacking the material in addition to relieving monotony of the workers. 7. Accuracy of fulfillment of order is ensured by two basics factors. (a) Order extent (b) coverage extent. 8. Batches are made to consolidate the priorities for executive: merge and sort. 9. When order are routed around those zones when packed are required we call them routing the picks. 10. Two methods of order packing are: (a) pack immediate (b) assemble and pack. 11. The three major factor for classification systems are: 1st Letter: discrete order picking or batch order 2nd letter: zone or tour picking 3rd letter: immediate or assemble and pack

12. BsZcA: indicates a system with a batch order picking in chaining multiple zones with an immediate sorting function leading to a separate order assembly and picking area. BS=BATCH ORDER SORT IMMEDIATE Zc= ZONE PICKING WITH CHAINING

55

A = ASSEMBLE Bm =BATCH ORDER MERGE AND SORT Zr = ZONE PICKING WITH ROUTING Zp = ZONE PICKING IN PARALLEL 13. There are 24 ways of coding representing the types of split order picking. 14. Choice of optimal fulfillment strategies: (a) wholesales distribution: (large number of items of a few items) (b) Retail distribution: (large quantities for large number of items) (c) Direct marketing: (small quantities) (d) Consumer distribution: (small quantities of different items) 15. When multiple zones are covered simultaneously in different zones we call them parallel routing. 16. rounting of order from zone to zone is chaining. 16. Communication plays a vital role in any organization and the directives they need to have are accurate, timely and sufficient. 17. Type of storage we provides depends on the average duration of storage and frequencies of retrieval. 18. Many times mechanization will solve some fundamental problem of basic design of system inadequate forecasting or in appropriate methodologies. 19. Sometimes bulk handling belt conveyors systems are used for sorting and transporting. 20. Productivity measures though dependent on piece per hour or lines per hours will have to be adjusted to suit the peculiarities of the situation. 21. The major cost that is necessary to be included for an online storage system is space costs and equipment costs. 22. Failure of split case order due to two reasons they are: (a) tote sorting (b) items sorting 23. The number of order to be packed simultaneously by a picker in an assignment is called order extent. 24. Communication of picking detectives are: (a) labels (b) reports (c) radio frequency terminals (d) displays lights. 25. Cash flow rank is the lowest cost options per cubic meters. 26. Labels are bar-coded for items sorting and order verification and radio frequency terminals are used in combination of bar-coded shipping labels to identify the orders for purpose of sorting and routing. Unit: 3

1. The factors and location where all activities take place machinery and heavy equipments. plant 2. Methodologies, technology tools fixing for estimating, maintaining and improving productivity. processes 3. This is an informal management system which initiates, directs, monitors and collect feedback to enable efficient use
of all others Resources. Planning and controlling. 4. Quality system has to be established to enables the organization to move towards leadership position. 5. the three major function of business organization are (a) operation management (b) marketing (c) finance 6. Formation of strategies depends on (a) assessment of strength (b) understanding of the weakness c) Nature of external environments (d) resilience of the internal environments. 7. market analysis : (a) market segmentation (b) needs assessment 8. competitive priorities : (a) cost (b) quality (c) time (d) flexibility 9. new services /product design : (a) design (b) analysis (c) development (d) full launch 10. Organizational strategies should be such that the strategies of different designed to lead support to one another. 11. four main core complementary process are : (a) costumers relationship (b) new products (c) suppliers relation ships (d) Order fulfillment. 12. Decision is taken after lot of deliberation which involves data gathering, analysis and predicting outcomes. 13. Organization should be aware of the business environment in which the firm exists and have to complete continually by exhibiting potential for opportunities and threats.

56

14. Four core competency process area as: (A) Customers relationship (b) New product/ service development (c) Suppliers relationships (d) Order fulfillment 15. Companies have different potential in terms of maneuverability along with target market, place, promotion and This is affected by company position in the market, and the industrial structure. MILAND LELE. 16. Boston consulting group (BCG) has classified four types of industries and approaches available, depending upon the cell the particular industry fits into. 17. BCG classification as: (a) volume (b) specialized (c) stalemated (d) fragmented 18. The components and parts that are integral to the product may not be visible but will have forms which make it easy for assembly, identification, extraction, insertion and inspection. 19. The dimension is optimized for safe use, safety and durability. 20. Features contribute to a large extent in that the address the requirement of the customers. 21. Aesthetics is the ultimate differentiator to attract the customer and make him comfortable using it. 22. The planning is the process of estimating, routing and scheduling. 23. Two controlling function is: dispatching and expediting. 24. Scheduling is mainly concerned with allocating time slots for different jobs. 25. Pragmatic benchmarking is a method of measuring a company processes, methods and procedures, in a way that all functions is great detail. 26. Four steps recognized in the process of benchmarking are: (a) Planning (b) Analysis (c) Integration (d) Action 27. A systematic approach to waste reduction is explained using ALEN ROBINSON 5W2H method is the modified version of goal the famous 5W1H method. 28. The approach is recommended by the TQM guru EDWARDS DEMING. His expression is making them proud. 29. Tools like pareto analysis are used to make the choice or choices from among many aspects in any on of the above categories . 30. Internal benchmarking is resorted to as a measure of identifying strength in the organization. 31. Phases of operation strategy are: quality, time cost and flexibility. 32. Factors to be reduced during operation are: (a) planning time (b) design time (c) processing time (d) changeover time (e) delivery time (f) response time to consumers complaints. 33. Decision making is the most crucial management function. 34. Core processes of an organization are not determined by the core competences. F 35. BCG'S classification: 2. FEW 1. MANY price. 3. LARGE STALEMATED 4. SMALL Unit: 4 FRAGMENTED VOLUME SPECIALIZED

1. With the increased variety of products and reduced lead times all the stages of the supply chain, flexibility has
become vital to affect economies. 2. Frederick Taylor introduced the science of management. 3. Automation is the use of scientific and technological principles in the manufacturing of machines that take over work normally done by humans. 4. Automation in the banking sectors has resultant in ATM which saves a huge amount of bank labor and it is found to have given great customers satisfactions. 5. CNC: computer numerically controlled 6. ASRS: automated storage and retrieval system

57

7. AGVS: automated guided vehicles system 8. ASRS: receives order for materials from anywhere in the production area, collect materials and delivers
materials to the workstations. 9. AGVS: like pallet trucks and unit load carriers follow embedded guide wires or paint strips to reach destinations as programmed. 10. Several automated machines are linked by a transfer system which moves the parts by using handling machines. Automated flow lines. 11. The global trends are favoring flexibility in the manufacturing systems. 12. In special purpose machines where one component is manufactured using several operations and machines it is possible to achieve this condition or very nearly. 13. It is not possible to think of inventories a flow line bottleneck cannot be permitted. 14. Product layouts are designed so that the assembly tasks are preformed in the sequences they are designed. 15. In automated assembly lines moving pallets move the materials from station to station. 16. Flexible manufacture system consists of production machines, material handling, transferring machines and a computer system. 17. Automated system helps in reducing costs but they demand huge investment. 18. Cellular layout of arrangement machines helps in flexibility because when machines that have similar processes are grouped together. 19. Since reprogrammed operations are capable of producing different components we have flexibility in the manufacturing process. 20. Prototyping is the process by which a new product is developed in small numbers. 21. advanced rapid prototype modeling process are: (a) SLS: selective laser sintering (b) FDM: fused deposition modeling (c) LOM: laminated objects manufacture (d) EBM: electronic beam melting 22. Flexibility has three dimensions in the manufacturing field. They are: variety, volume and time. 23. A bi-monthly magazine called rapid prototyping as the time compression techniques. 24. Robots are higher in the order of automation as they perform a variety of tasks T 25. Automation means increasing in quality and productivity using labor saving devices. T Unit: 5

1.
2. (a) (b) (c) (d) 3. (a) (b) 4. (a) (b) 5. (a) (b) (c) (d) 6. (a)

(b)

Facilities management is an important strategic level decision taken by an organization. considering of manufacturing system are: group technology flexible manufacturing system extent kind of automation two parts of planning process are: planning the location of the plant planning the manufacturing facility layouts factors influencing plant locations are: general and special factors special factors are: economic stability cultural factors wages joint ventures rating methods are as : rating plan method factor rating methods

58

(c) (d) (e)

point rating methods break even analysis centre of gravity 7. Cx= LX/SL 8. Product layout is also called as production lines or assembly lines. 9. Factor influencing plant location can be divided in to two types namely product process and type of production.

10.
(a) (b) (c) (d) (e) (f) (g)

seven wastages are as : transportation product defects overproduction waiting time inefficient work method inventory over processing 11. Historical data and projection based on simulation or some other techniques helps in optimizing this aspect. 12. Optimization is a process where elements in each of them are analyzed. 13. A work centre is a production facility comprising of ine or more machines or one or more workmen considered as a single unit for purposes of estimation of capacity. 14. in the pipeline of production each work centers contribution is vital as materials are scheduled, routed and loaded to be sent to it. 15. Resources will have in terms of their availability quantities and timeliness. 16. Category of resources and suppliers are classified into 3 groups. 17. Production layout is suitable when: 18. Material handling system are mostly outsourcing and the expertise of the contractor will be of great help. 19. ISO 9000 acts as a starting point towards higher efforts for achieving TOM. 20. the main trust of TOM is to achieve customer satisfaction by involving everybody in the organization across all the functions with continuous improvements driving all activities. Unit: 6 1. quality control is exercised mainly by two methods (a) design (b) process 2. TQM is management and control of quality related activities. 3. Customers perception of adequacy if not excellence goes a long way in establishing long term processing. 4. Variability is inherent in any process. 5. seven quality control tools are: (a) flow chart (b) check sheet (c) histogram (d) pareto analysis (e) scatter diagrams (f) control chart (g) cause and effect diagram 6. Histogram is graphical representation of distribution of data. 7. Pareto analysis: - tools for classifying problem areas according to the degree of importance and attending to the most important. 8. When supplier and customer agree upon accepting a lot by inspecting a small number taken randomly from bulk supply the process is called acceptance sampling.

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9. 10. 11.

scatter diagram: relation between two variables Check sheet: to record the number of defect, types of defects, location at where they are occurring etc. Flow chart: visible representation of objects through various steps. The flow chart helps in pin pointing the exact point at which errors has crept in. 12. Cause and effect diagram is also called fish bone diagram. 13. control chart: UCL = x + 3 UCL= x + 3R/d2n LCL= x - 3R/d2n

14.
(a) (b) (c) (d) 15.

16. 17. 18. 19. 20. 21.


22. a) b) c) d) e) f) 23.

Deming wheels four steps approaches are:-(PDCA) plan do check act L = C(X-T) ^2 Quality improvement measures are essential to keep the quality culture alive. Quality is measured as the price paid for non-conformance. ISO9000 acts as a starting point towards higher efforts for achieving TQM. TPM puts the responsibility of maintenance where it belongs to the operator who uses the equipments Deming TQM helps organization to improve the quality of the products and services. Juran uses his famous universal breakthrough sequence to implement quality programmers. universal breakdown sequence are: proof of need project identification top management commitment diagnostic journey remedial action holding on to the gain Juran has categorized cost of quality into four : failure cost- internal : loss of morale, machine time, labor, costs of rejections failure cost- external : expenses of the personnel, warranty costs and loss of goodwill, onsite appraisal costs : certification, segregations costs, costs of inspections Prevention costs: quality planning, quality control, quality improvement.

(a) (b)
rework

(c) (d) 24.

Crosby also lays emphasis on top management commitment and responsibility for designing the system so that the defects are not inevitable. 25. Crosby ingredient are: (a) integrity (b) communication (c) system and operations 26. Taguchi focuses on quality loss function 27. Taguchi contention is that quality comes from design. 28. Historical records indicate the probability of failures over different periods thus enabling us to plan to attend to them. 29. Autonomy is the starting point for learning and excellence. 30. TPM : total productive maintenance

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Unit: 7

1. 2. 3. 4.

Business process modeling is synonymously used for the software tools also. Logical process model consists of only the business activities and shows the connectivity among them. ERD: entity relationship diagram Business process is a total response that a business undertakes utilizing the resources and delivering the outputs that create a value for the customer. 5. BPM refers to a set of activities undertaken to optimize the business process. 6. reasons for optimizing BPM: Improve the performance of the process Maximize the earning 7. (a) (b) two parts of BPM: logical process modeling physical process modeling ways of representing logical process modeling: process description flow chart flow diagrams function hierarchies function dependency diagram Believe better value for the customer Keep its head above competition

8.
(a) (b) (c) (d) (e)

9. 10. 11.

Every business activity can be considered as a logical process model and represented by diagrams. the business system contains a combination of people application organized to meet business objectives, The data collected will be set in logical order making the logical data model complete in all aspects before we attempt to define the process. 12. Process definition enables us to go into details at every stage of the process and verify the adequacy of data. 13. Physical process modeling is concerned with the design of database meeting the requirements of the business and represents using tables. 14. skills, knowledge and functions required for a business analyst should have: (a) lead the team member to a consensus (b) Gather the critical requirement of the business process. (c) Identify the core requirements (d) Question business area experts and seek relevant information (e) Separate the grain from the chaff with the collected data.

15. 16.
Unit: 8

Managing information and workflow is business process management. BPM is another concept when implemented makes workflow more productive.

1. 2. 3.

Schedule is one of the dimensions of project management. a drive degree is key objective of the project DIN 69901 defines project management as the complete set of tasks, technique and tools applied during project execution 4. PMBOK: Project management is the application of knowledge, skill, tools and technique to project activities to meet project requirements. 5. The five dimension of project management are: features, quality, cost, schedule and staff. 6. ICT offer enormous opportunities for enhancing business and economics viability.

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7.

Characteristics of project mindset: time, responsiveness, information sharing, processes and structured planning. 8. A Gantt chart is a graphical representation of the duration of tasks against the progression of time. 9. Lead time: a successor task can overlaps with its predecessor task, i.e. the time before the completion of the predecessor at which the successor can start. 10. Lag time: an amount of time between a predecessor and a successor task, i.e. the time after the completion of the predecessor that the start of successor is delved. 11. A project id a preliminary document that guides the execution of a project. 12. WBS is a technique to analyze the content of work and cost by breaking it down into its component parts. 13. two categories of project processes: (a) project management process (b) product oriented process 14. Process group consists of initial, planning, execution, controlling and closing processes. 15. In the customization process smaller projects may need relatively less details. 16. Every business activity can be considered as a logical and represented by a diagram. 17. A kiviat diagram is a graph which allows up to plot several values as an irregularly shaped polygon on a set of normalized axes. 18. Project management is complete set of tasks, techniques and tools applied during project execution.

Unit: 9 1. six phases of project management life cycle: (a) analysis and evaluation phase (b) marketing phase (c) design phase (d) execution phase (e) control inspecting, testing and delivery (f) closure and post completion analysis phase

2. 3.

Project management life cycle has 6 phases In the PERT method one can find the variance and use the variance to analyze the various probabilistic estimates pertaining to the project. 4. Specific requirement analysis (SRA): has been conducted to determine the essential requirement of a project in order to achieve the target. 5. Feasibility study: to be conducted to analyze whether the project is technical, economically and practically feasible to be undertaken. 6. trade off analysis : to be conducted to understand and examine the various alternatives which could be considered for solving the problem 7. system design : as per customer a general system design has to be chosen to fulfill the requirements 8. Project evaluation: it is evaluated in terms of expected profit, cost and risk involved. 9. steps for monitoring and controlling: (a) preliminary work (b) project progress (c) stage control (d) resources (e) quality control (f) progress control (g) approvals 10. phases of quality control: (a) schedule quality review (b) agenda for quality review (c) conduct quality review

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(d) (e)

follow up review quality control procedures

11.

A PERT chart is a project management tool. It is used to schedule, organize and coordinates tasks within the project. 12. steps involved in PERT planning process: (a) identify the specific activities and milestones (b) determine the proper sequence of the activities (c) construct a network diagram (d) estimate the time required for each activity (e) determine the critical path (f) update the PERT chart as the project processes

13. 14.

expected time (Te)=to+4tm+tp/6 variance (v) = (tp-to/6)^2 and SD= V 15. normal deviate (z) = Ts-Te/sdcp 16. Change control is necessary to control the increase of work at various stages of project. 17. CMS is a mythology which requires collection of all formal documented procedure defining how project performance will be monitored and evaluated. 18. Design phase involves the study of inputs and outputs of the various project stages whereas in execution phase the project manager and the team members work on the project objectives as per the plan.

Unit: 10 1. ESS stands for Effective exit strategy 2. The perception of managers in current trends in project management is to obtain results. 3. Continual improvement is one of the management mantra. 4. Partnering decision making: substitutes to monitoring and controlling 5. Empowerment title: reflect relative important of members of organization in 3 levels 6. K - factor : index of the extent to which todays knowledge will be useful tomorrow 7. Force field analysis: identify major external force that could affect development process 8. Management assurance measure: it is a task performed by the project leader to convince management against wavering. 9. Strategic inflection point: a real test for the project leader and the management team to be accurately predict the exact point of the development process where the team might face a massive problem. 10. KSF : evolving key success factor 11. PDM : partnering decision making 12. MBE : management by exception 13. EVMS : earned value management system 14. BCWS : budgeting cost of work schedule 15. BCWP : budgeting cost of work performance 16. ACWP :actual cost of work performance 17. Review is a check process in the PDCA cycle. 18. The KSF should be evolved based on a basic consensus document. 19. DMAIS: (a) D- define : benchmark, customer requirement, process flow map, project management plan (b) M- measure : data collection, defect matrices, sampling (c) A- analysis : cause and effect, failure mode and effect analysis (d) I- improve : design of experiments, modeling , robust design (e) S- standardize : control chart, time series, procedural adherence, performance management

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20. 1. 2. 3. 4. 5. 6. 7. 8. 9.

nine horizon in PM: believing the discontinuity and not continuity with incremental improvements owing the problems and sharing the solutions breaking the status quo mentality stepping out of comfortable zone human capital by passing financial transform work culture fro 5 to 7 dimension real number of encounters replacing number of years of experience seeking meaning out of change Detachment from the fruits of results. 21. Key success factor (KSF) should be available to the management duly approved by the project manager before execution and control. 22. Continuous business process improvement is a process through which a project team passed on the details of any system as recommendation for standardization and strategic inflection point in real test for the project leader and the management team is to accurately predict the exact of the development process where they might face a massive problem. Unit: 11 There are 2 major decision areas in SCM. SCM is defined by kalakota as an integrating process based on flawless delivery of basic and customized services. 3. SCM can be easily adopted and integrated with ERP.

1. 2.

4. a.
b. c. d. e. f.

SCM implementation steps as: (SUS-EIS-F) Study the strength and weakness Understand the organization objectives Study the existing system Evolve the consensus Integrate solution Study the overall impact g Finalize SCM document, circulate and implement 5. Four major decision area of SCM are: (a) Location (b) Production (c) Inventory (d) Transportation 6. Supply chain decisions: (a) Strategic (b) Operational 7. Supply chain modeling approaches are: (a) Network design methods: geoffrion and Graves (1974) (b) Rough cut methods (c) Simulation based methods 8. Managing the chain: (a) Product flow (b) Information flow (c) Financial flow

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1. 2.

7.

9. Supply chain is an integrated process where raw material are transformed into final products then delivered to customers. Beamon 10. Supply chain is a process of strategically managing movement- Johnson 11. Supply chain is a network of facilities and distribution options- Ganeshan and Harrison 12. A system whose constituent parts include material supplies. Berry 13. An integrating process based on flawless delivery of basic customized services.. Kalakota 14. The seven principles: 1. Group customer by needs 2. Customize the logistic network 3. Listen to signal of market demand and plan accordingly 4. Differentiate the product closer to the customer 5. Strategically manage the sources of supply 6. Develop a supply chain wide technology strategy 7. Adopt channel spanning performance measures 15. SCM is the practice of coordinating the flow of goods, services, information and finance as they move from raw material to parts supplier to manufacturer to wholesalers to retailer to customer. 16. SCM is the process to integrate and manage the SCM as one entity. 17. Bullwhip effect may arise because of: (a) Increase in the lead of the project due to increase in variability of demand (b) Increase in the stock to accommodate the increasing demand arising out of complicated demand models and forecasting techniques. (c) Reduced service level in the organization (d) Inefficient allocation of resources (e) Increased transportation cost 18. The bullwhip effect is the uncertainty caused from distorted information flowing up and down the supply. 19 supply chain processes can be categorized into three as (a) upstream or inbound logistics (b) internal or in house processes (c) downstream or outbound logistics 20. Objectives of financial SCM: 1. Fiscal discipline and control 2. Integrated networking of information 3. multi- dimensional financial management cockpit 4. Control of inventory and idling of assets 21. Bullwhip may be avoided by multiple demand forecasting. 22. With the internet emerging as an important way to contact business an alternative model has emerged often called the net model in which intermediate nodes link many buyers and sellers. 23. The network design method for the most part provides normative models for the more strategic decisions. 24. Rough cuts methods: give guiding policies for the operational decisions. 25. Simulation method: by which a comprehensive supply chain model can be analyzed considering both strategic and operational elements. 26. Breitman and Lucas (1987) : attempt to provide a framework for a comprehensive model of a production distribution system. Unit: 12 SMS stand for single mode stochastic Moveable shelves are the type of special equipment 3. CDS algorithm given by Campbell, dudek, smith gives m-1 solutions and we can choose the most optimal among them. 4. Johnson algorithm of sequencing algorithm is used for n jobs through two machines. 5. Material handling is defined as the movement, storage, control and protection of materials, goods, and products thought the process of manufacturing, distribution, consumptions and disposal. 6. factors influencing material flow: (a) quantities produced (b) rate of production at each centre (c) number of operations (d) total production required Ghosh and Gagnon categorized the assembly line balancing problems into four as:

65

(a) (b) (c) (d) 8.

single model deterministic( SMD) single model stochastic (SMS) multi/mixed model deterministic (MMD) multi/mixed model stochastic( MMS)

9.
10.

the economic criteria can be minimized by minimizing: (a) number of workstation (b) number of operators (c) quantum of buffers Johnson algorithm is used for sequencing of n jobs through two work centers. special equipments: (a) movable shelves (b) rotary racks (c) mobile shuttles that travel in lanes (d) Automatic item picker which has dispensing mechanisms that erects items on a conveyor belt. 11. economic factors: (a) investment required (b) project life (c) rate of return 12. Ergons mean work and nomos means laws. 13. Material handling systems are mostly outsourced and expertise of the contractor will be of great help. 14. Dr. Bill Marris developed a technology called lumber motion monitor by studying the low back injuries which is famous as LLM. 15. Johnson algorithm: job time (hr) on machine 1 machine 2 A 6 4 B C D E B ANSWER: E A 4 5 3 4 C D 6 3 2 7

Unit: 13.

1. 2. 3. 4.

According to JIT there are seven wastes that need to be eliminated. TPM is one of the essential requirements for JIT. single minute exchange of dies: SMED JIT manufacturing is a process by which companies dont keep lot of excess inventory, instead they manufacture a product as an order come in 5. JIT is a management philosophy of continuous and forced problem solving. 6. Controlling material flow using cards through the manufacturing system implementing JIT is called kanban. 7. Kanban means a visible card and also signal in Japanese languages. 8. Kanban system is a physical control system which uses card and containers. 9. Breakdown generally occurs as the symptoms are neglected. 10. SMED gives flexibility for production process. 11. The supply chain creates a value chain along its path. 12. There should no bottlenecks and no extra martial lying at any of the points in the supply chain. 13. JIT requires the use of a flexible force to overcome production hold ups even with lesser number of workers.

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. Unit: 14 1. Value engineering or value analysis is a methodology by which we try to find substitutes for a product or operations. 2. Process of value analysis can be divided into four steps. 3. aims of value engineering: a. product simplification b. better and less costly material c. improved product design d. high efficiency in the process 4. Simplification of processes reduces the cost of manufactures. 5. four process of value analysis: 1. data gathering 2. analysis and valuation of functions 3. ideal generation and evaluation of substitutes 4. implementation and regularization 5. Special purpose machines, robots are built to produce higher accuracy components at greatly reduced cost. 6. Since there are a numbers of factors to be considered and to break away from the conventional thinking brain storming is preferred. 6. Value engineering: started in 1947 in general electrical corporation 7. Aim of value engineering: economy in all activity 8. process of value analysis : analysis and valuation of function 9. pre-sourcing : procedure of involving suppliers from the design stage 10. Engineering starts at the product concept and design and is carried down the value chain. 11. VE provides an opportunity for finding substitutes for material and processes to reduce cost without sacrificing quality. Unit: 15 1. three steps of quantitative approach are: (a) Define the problem (b) Construct a mathematical model (c) Test the model and its solution 2. types of quantitative models: (a) linear programming (b) transportation model (c) assignment model (d) inventory control model (e) waiting line models (f) simulation models (g) PERT and CPM models

3. 4. 5. 6.

The simulation model is used when we are not able to formulate a mathematical model. Queues are formed when the rate of services is at variance with the rate of arrival. Work study helps in designing the optimum work method and standardization of the work method. We use a number of statistical tools like regression, forecasting, probability theory established relation between factors that affects decision. 7. Rewards are important for recognizing good work that is done. 8. Work measurement can be defined as a systematic application of various techniques that are designed to establish the content of the work involved in performing a specific task.: 9. method to increase productivity: (a) maintain uniformity and fairness among employees (b) establish reasonable goals of production

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(c)

treat complaints as opportunities

10. 11.

Performance of workforce can be achieved by establishing reasonable goals of production. The range of temperature which is considered to make it comfortable for workmen is between 24 and 32 degrees Celsius. 12. quantitative model: a) procurement of material b) allocation of funds c) scheduling production d) carrying of inventories TRUE OR FALSE 1. Productivity norms are done by various methods of time and motion studies which use predetermined motion system. T 12. The process of relocation should results in better utilization of equipment and smoother throughout. T 13. Measurement of time required for any task in arrived at by motion study and work measurement methods. T 14. Personnel are ones who facilities the operations. T 15. Planning is perhaps the most important function of management. T 16. In factor rating methods the various factors for loading a plant are given rating depending upon the perception of the management. F 17. Each work centre receives information along with material that enters it. T 18. Location means the positioning of various equipments, machinery and department facilities so as to maximize productivity and valuable space utilization. F 19. The project management dimension is independent on one another. F 20. A graphical way to depict the project management dimension is to a kiviat diagram. T 21. A process is a part of the project which consists of complex instructions to achieve desired results of any activity of the project. T 22. Project management involves understanding its scope and various processes in the project cycle. T 23. A project is a set of activities which are networked in order and aimed towards achieving the goals of a project. T 24. A good project management mythology provides a framework for the processes. T 25. Time is not a characteristic of project mindset. F 26. Project mindset doesnt lay emphasis on flexible processes. F 27. A life cycle of a project consists of monitoring and controlling the project resources as on of the phase. T 28. SRA has to be conducted to determine the non essential requirements of a project in order to achieve the target. F 29. The project member must keep track of the project progress and need not communicate to other related members of the project. F 30. Project files have to be frequently updated with suitable version control number and revision status should be maintained for each change. T 31. Risks are those elements or conditions that may occur and whose occurrence has a harmful or negative impact on a project. T 32. The risk mitigation steps must be prepared executed by incorporating them into the project schedule. T 33. The deliverable at the end of each stage could be a set of specific outputs for stage of the project. T 34. For successful completion of a project every aspect of the project should be monitored and controlled. T 35. An information system dealing with project management tasks in the PIMS. T 36. A good PMIS is possible to be developed from the system manager and not from the system administrator of a company. F 37. Continuity or status quo is a function of quantum of change. T

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38.

If the member decides to feel comfortable to step out of the comfort zone and be innovative and contribute then this would amount to emergence of the future leaders. T 39. SCM is considered by many experts worldwide as the ultimate solution towards efficient enterprise management. T 40. The geographical placement of production facilities stocking points, and sourcing points is the last step in creating a supply chain. F 41. SCM implementation involves test firing individual solutions as one of the steps. T 42. The decision for supply chain management is classified into two broad categories- strategic and operational. T 43. The strategic decisions are for the most part global or all encompassing in that they try to integrate various aspects of the supply chain. T 44. The collaborative use of technology to improve the operations of supply chain activities as well as the management of supply chain is known as collaborative supply chain. T 45. Inventory management is necessary to manage the certainties involved in the usage of the stock items. F 46. Kanban system is a physical control system which uses cards and containers. T 47. Bullwhip effect may arise because of increased transportation cost. T 48. Kanban means a visible card and also signal in Korean language. F 49. Workforce productivity is measured by the ratio of number of hours spent to the numbers of pieces produced. F 50. In the supply chain, storage, retrieval, and delivery do not add value to the product but are necessary. T 51. The very purpose of JIT is to reduce inventory at all places in the supply chain. T 52. Ergonomics is the study of physical human factors for his functioning. T 53. Models represent the objects in all aspects. F 54. Decision taken with the help of statistical tools is perfect. F 55. feasibility study: to analyze technical, economical and practical 56. Trade off analysis: to understand and examine the various alternatives. 57. system design : to choose a general design that can fulfill requirement 58. estimation: to estimate the project cost

PROJECT MANAGEMENT Unit: 1 1. 2.


Project management: It is an art of controlling the cost, time, manpower, hardware and software resources involved in a project A project cycle basically consists of the various activities of operations, resources and the limitations imposed on them.

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3. 4. 5.

6.

7.

A process is responsible to bring about the changes in the input fed to the process and gives out desired outputs as results of the process Scope: It refers to the various parameters that affect the project in its planning, formulation and executions Project life cycle: a) understanding the scope of the project, b) objectives of the project, c) formulation and planning various activities, d) project monitoring and control the project resources. Responsibilities of the project manager Budgeting and cost control Scheduling tasks Allocating resources Tracking project expenditures Ensuring technical quality Manage relations with the customer and company Phases in project management life cycle -Analysis and evaluation -Marketing -Design -Inspecting, testing and delivery -Post completion analysis 8. Five dimensions: 1. Features 2 Quality 3.Cost 4.Schedule 5. Staff 9. Project management is necessary because technology used may change during the course of project execution. 10. A project life cycle consists of understanding the scope and objectives of the project, formulation and planning various activities project execution and project monitoring and controls the project resources. 11. The project manger is responsible to carry out all the task of a project. 12. Life cycle of project manager overlaps with the development life cycle in the middle. 13. Project management consists of interacting processes namely project process, project groups, interactions and customization which are organized in the groups. 14. Project process is classified into project management and project oriented. 15. Tools and technique refers to the mechanism applied on the inputs to creates desired outputs. 16. A constraints gives the project team virtually no flexibility. 17. Kiviat diagram is a graphical way to present the five project dimensions. 18 relationships with other management disciplines are not essential for a project to be successful. F 19. SQC has to be conducted to determine the essential requirements of a project for achieving the target. F 20. A project may be started as a single disciplined team brought together for the project. F 21. The players in the project management are the individuals and the organization. T 22. An experienced project manager and his team can manage only one project at a time. F 23. The estimation approaches are the logarithmic and sequential approaches. T 24. The economy of India has been growing over the last few years. T 25. A project cycle basically consists of the various activities of operations and resources and the limitation imposed on them. T 26. PM is the art of controlling the cost, time manpower, and hardware and software resources involved in a project. T 27. The analysis and evaluation phase starts with receiving a request to analyze the problem for the manger. T 28. Design phase consists of input received and output. T 29. Project feedback analysis and project execution report are done in post completion analysis phase of the project. T 30. One of the reasons why a project may fail is that project management is not observed. T 31. If the project objectives are in alignment with business objective then the project may be a failure. F 33. Scope, coat, and scheduling are some of the parameters used for the project negotiation. T

34. Some of the steps of good PM are: (a) define the project (b) reduce it to a set manageable tasks (c) obtain appropriate and necessary resources. T 35. The team member is responsible for completion of the project as per the plans of the project. T

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36. The staff performance has to be evaluated post completion analysis phase. 37. Controlling process controls: cost, time, quality 38. A workable scheme is maintained to accomplish the business need in planning process. 39. A team negotiates for: (a) Scope cost and scheduling objectives (b) Contract and condition, resource (c) Change to scope, cost or schedule 40. The kiviat graph is a useful tool in project management to compare the relative flexibility of the parameters considered. 41. In initial stage the project manager along with the team members draft the outline of the project. 42. The create flash report provides a record of current achievement and immediate expectations of the project and create status report summarize the major issues. 43. Documentation and authorization should be closely watched for the success of projects. 44. A project review is a process where we capture information for the team experiences and see the variances and deviations from the plan. 45. The final measures of success of the project is satisfaction of the customer. Unit: 2 1. The main project planning processes: a. The identification process b. The Review Process c. The Analysis Process 2. Work Breakdown Structure (WBS) The entire process of a project may be considered to be made up on number of sub process placed in different stage called the Work Breakdown Structure (WBS). 3. Root cause analysis (RCA) is a problem solving method aimed at identifying the root cause of problems or events as opposed to merely addressing the immediately obvious symptoms. 4. Two estimation approach are: a) top down b) bottom up 5. Classification and categories of risks are: a) risk assessment and identification b) risk prioritization c) risk control 6. In the control process the progress is monitored and the change is managed. 7. Lead time is the amount of time which a successor takes can overlap with its predecessor task i.e. the time before the completion of the predecessor at which the successor can start. 8. The probability of completion of the project can be estimated based upon the normal distribution curve. In the initial stage of the project the probability of completing the project is low through not zero; it gradually increases and as the project tends to become 100%. 9. Bottom approach is estimation consists of the following: Project managers first divides the project under development into modules, each modules further subdivided into smaller units, defines a standard for manufacturing and self testing 10. The top down approach is estimation consists of the following: Get the estimate of the total size of the product in function points, fix the productivity level for the project, and obtain the overall efforts estimate for the productivity and size estimates. 11. Any project is under taken to deliver either service or a product. T 12. Project logic diagram, key stages responsibility chart, Gantt chart are the only key issued documentation in a project plan. F 13. The five characteristic of a project are resources requirement, fund, and probability of completion, risk and design changes. T 14. The purpose of project planning and scoping is to first identify the areas of the project work and identify the forces affecting the project and then to define the boundaries of the project. T 15. Avoiding area of problems which may affect the progress of the project is the only factor to be considered for scoping a project. F 16. Assessing the capabilities and skills of all those identified as part of the project organization is a step in the analysis process. T 17. Comparing the actual details with that in the plan with respect to project stages is a task of the identification. F 18. The estimation approaches are the logarithmic and sequential approaches. T 19. Expert judgment and analogy are types of estimation tools that may be used in managing a project. F 20. Risk management aims to identify the risk and then take actions to minimize their effect on the project. T

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21. Important components of the risk assessment, risk control, risk ranking and risk migration. T 22. Identifying the actions needed to minimize the risk consequences are generally called risk development steps. F 23. Resources requirement increases at rapid rate at become constant while the project is during its 80% to 95% progress stage. T 24. The scope of project planning include the identification of key areas from client through meeting, discussion and interviews. 25. Project feedback analysis and project execution report are done in post completion analysis phase of the project. T 26. Prepare a check list of items to be monitored and control during the course of execution of project in review process. 27. Five condition imposed on every project are: quality, scope, time , cost and resources. 28. Individuals assigned to a key resource role may work towards gathering "business key resources and technical key resources" they are project. Coordinators and team invitees 29. WBS is produced by identifying the key elements breaking each element down into component parts and continuing to breakdown until manageable. 30. WBS does not show dependences. T 31. Risk assessment involves the identification of the possible risks and assesses the consequences by means of check list of possible risks, survey, meeting and brainstorming and reviews of plan, processes and products. Unit: 3 1. Process Groups: a. Initiating processes b. Planning processes c. Executing processes d. Controlling processes e. Closing processes 2. Project Monitoring and Control a. Preliminary work b. Project Progress c. Stage Control d. Resources e. Quality Control f. Schedule Quality Review g. Agenda for quality review h. Conduct quality review I. Follow up j. Review quality control procedures 3. Changing Project Management Process a. Request for a change b. Identify alternate solutions c. Decide on the actions for the change d. Implement change 4. A weekly status report may include: a) Accomplishment during the period b) Items not completed during the period c) Proposed activities for the next period d) Predicted slippage e) Predicted cost overrun 5. Tools for changing a process a) CMS Change Management System b) CM configuration Management 6. Post Implementation Review a) Final product review b) Outstanding project work review c) Project Review d) Process Review

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7. Project Documentation a. Key stages of the project b. Project logic diagram c. Key stages responsibility chart d. Estimates for all key stages e. Optimized project GANTT chart f. Updated and reviewed project risk log g. Risk management forms for new high risks h. Project operating budget 8. It is possible to work according to the project plan only by careful monitoring of the project progress. 9. During the project progress the members must keep a track of the project progress and communicate the same to other related members of the project. 10. Quality control is possible if the project members follow the quality charts and norms very strictly. 11. Responsiveness refers to quickness of response of an individual. T 12. It is possible to improve the place of the project by reducing the time frame of the process. T 13. Project mindset lays emphasis on rigid processes. F 14. Identifying variances from the plan is a part of closing processes. T 15. The individual processes are linked by inputs and outputs. F 16. Inputs refer to the documents that are results of the process. F 17. Large projects may need details which might indicate every detail in the initial stages. T 18. We updates the schedule for actual start date for tasks started, actual finish date for the task finished and actual hours worked per tasks, latest estimated work in hours to complete the task. T 19. While creating status reports, summaries the accomplishments for the month, schedule status, upcoming tasks for the month and any major issues. T 20. Change control is necessary to control the increase of work at various stages of the project and to manage effectively the disruption in the stages if any. T 21. SCM and CM are the tools used for changing a process. T 22. Project review questionnaire may become important if the reviews are to be structured and individual discussion may be initialed depending upon the point to be discussed. F 23. Reviews, findings and analysis of the project performance is done during closing process. 24. Agenda for quality review specify the objective, products, logistics, roles, responsibility and time frame. 25. To check the deviation from the baseline during re-plan stage schedule Gantt chart, cost workbook is used. 26. To identify the alternative solutions evaluate the change request with request with respect to the functional scope, schedule and effort and cost. 27. The objective performance criteria, financial criteria, resource utilization, slips and gain of time, adherence to the project definition and plans have to be reviewed during project review. 28. Normal information systems tells -------------- if they are working with the scope of the budget. 30. The project manager should understand the business of the organization he works for. Unit: 4 1. The four major aspects of a PMIS a. Provide information to stakeholders b. assisting the team members c. assisting the managers d. Help organizational learning by helping the members to learn about project management

2. Project Management Tools a. Continuous Business Process Improvement b. Force Field Analysis

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c. Information Risk Management d. Management Assurance Measure e. Quality Certification f. Strategic Inflection Point 3. Conducting the review -Preparing an agenda before review -Making necessary arrangements to gather inputs fro the review -Incorporating points, which are external to the project -Documenting key points of the meeting -Formulating an automated checklist for the session. 4. Partnering Decision making (PDM) PDM process is made scientific through: Earned value management system (EVMS) Budgeted cost of work scheduled (BCWS) Budgeted cost of work performed (BCWP) Actual cost of work performed (ACWP) Management by Exception (MBE) Knowledge Factor (K) 5. Modern Mantra of Project Management D-Define: benchmark, project management plan, process flow map. M-Measure: data collection, sampling A-Analyze: cause and effects, failure mode and effect analysis I-Improve: robust design: design of experiments S-Standardize: control chart, time series, performance management 6. Irrespective of which way one wants to cooperate for effective outputs the essential processes are the meticulous planning of all the activities referring to check lists which could have been creativity designed adopting quality control measures, standards. 7. As per the current trends in the project management the perception is that the job of the manager is to obtain results. A more result-cum-profit oriented corporate strategy lays greater emphasis on maximized efficiency of operation. 8. Continuous business process improvement (CBPI): is a process through which a project team passes on the details of any system as recommendation for standardization. 9. Management assurance measures is a task performed by the project leader to balance efforts to convince management against wavering with efforts to prepare team member to counter any unexpected storms in the project. 10. Reviews are check preformed in the PDCA cycle of a quality circle. 11. The team can finds benefits for the project manager because it helps in team of a discipline and control. 12. It is possible to manage conflict by discussing and sharing the problems. T 13. Build employee trust in the communications process so that hones feedback becomes a part of the natural way of working is the only essential characteristic of the communication network. F 14. Quality of any product or service is defined as its conformance to the standards or the started requirements. T 15. Continuity or status quo is a function of quantum of changes. T 16. Modern domains and development process are highly static. F 17. The secret formula for a member is to build an inventory of encounters meaningful to his own dreams or passion profiles. T 18. CFT-Cross functional team for each project is useful to find that for each project that will be in charge of the project and POR-plan of record should be prepared for the process and tools used in the project. T 19. Project is a set of non- repetitive activities which creates a unique product or services. 20. Force field theory given by Kurt Lewin. 21. ISO 9000 AND ISO 9000: 2000 are certification standards mostly for firms where the products have drawings, materials which are purchased, processes which can be seen, inspected corrected and products which can be measured. T 22. Every project will have a huge information inflow which have sorted, classified, distributed and analyzed for purpose of decision making and actions taken.

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UNIT: 5 1. role of project management office (a) project management service (b) governing committee 2. in case where there are many project running the PMO will act as a coordinating body giving support to all of the terms of human resources, budgets and procurement of materials. 3. Documentation and authorization should be closely watched for the success of project. 4. types of review (a) initiation review (b) planning review (c) procurement review (d) quality assurance review 5. Internal Project Management Strategies (a) Executive support (b) Competence (c) Project Team (d) Management Information System 6. External Project Management Strategies Developing a sound stakeholder environment Stakeholder grouping Project public relations 6. Qualities of Project manager: 1.Enthusiasm 2. High Tolerance for Ambiguity 3. High Coalition and Team Building Skills 4. Client/Customer Orientation 5. Business Orientation 7. The POR is for both process and tools. 8. A project review is a process where we capture information from the team experience and see the variances and deviations from the plan. 9. By their very nature project are very orderly. F 10. The final measure of success of the project is satisfaction of the customer. 11. The project manager should understand the business of the organization he works for. 12. During implementation there will be doubt about the correctness of decision. T 13. Installing development metrologies and quality system is the responsibility of managers. 14. We have more numbers of employees per unit value in the conventional project than in IT project. T 15. Both types of project have diversity and complexity peculiar to each of them. 16. Unlike productivity on shop floors, personnel productivity can be considered on a collective basis. 17. As members are from different functions understanding the requirements or compulsions of others is easy. F Unit: 6

1.

Stages of Project Development -Obtaining the Specification -Creating a work breakdown structure (WBS) -Preparing a comprehensive Project Evaluation and Review Technique (PERT ) Chart -Forming groups and teams -Forming the core group -Fixing the responsibility areas -Preparing budget, supplier contracts -Setting up communication channels, feedback routes and monitoring mechanism

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2. Modern trends in Project Management


-Contentious business process improvement (CBPI) -Force Field analysis -Information risk management -SEI-CMM and ISO certification 3. Recent Development in Project Management -Information Technology (IT) -Automation of Physical Work -Workplace Flexibility -Elimination of Traditional Jobs and Work Structures -Globalization of Markets, supplies and workforce -Domination of Knowledge holders 4. A project generally satisfies the need for something which will be useful only for a short time. F 5. In PERT we give three time estimates optimistic, Most likely and pessimistic. 6. Many good projects have floundered on account of project overruns. 7. Force field theory enunciated by Kurt Lewin states that the two sets of forces are in opposition. 8. The project manager should take the assistance of a system administration and run check as frequently as possible. 9. Principle TQM, kizen and lean manufacturer are being applied by most companies to derive leverage by eliminating waste. 10. Having given autonomy to team the management needs not keep track of their activities. F Unit: 7 1. Types of Organizational change Evolutionary Change Revolutionary change 2. The first is the evolutionary change which is gradual incremental and with a narrow focus on one or a few processes. 3. Evolutionary change: (a) Socio Technical Change (b) TQM (c) Flexibility Workers and Flexible Work Teams 4. Revolutionary change (a) Reengineering (b) E-engineering (c) Restructuring (d) Innovation 5. traits of a project manager: (a) leadership (b) people relationship (c) integrity (d) quality customer oriented (e) innovation and creativity (f) performance management (g) identification (h) empowerment (i) coping with changes 6. steps of performance management: 1. set performance standards 2. communicate to employees 3. review/monitor 4. check actual vs. standards 5. identify gap 6. decide corrective action 7. reset objectives for cycle

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8.

change management model: (a) motivating change (b) creating vision (c) developing political supports (d) managing transition (e) sustaining momentum 9. Organization will have structure, hierarchy, functional and most importantly cultures which define them and make them unique. 10. Make changes with the outcome in mind and not the task those results. 11. Such a work culture is very conductive for problem solution which is the aim of all creativity. 12. To implement change successfully it is essential that employees are involved in the implementation of change. 13. Project manager do not delegate authority they delegate responsibility. F 14. Opportunities for creativity are many in projects. T 15. When multiple projects are handled restructuring is rare. F Unit: 8 1. In an industry where over 70% of project have consistently failed to meet business objectives. 2. Projectised organized are not special or a separate species but those which tend to treat most of the work they do as compartmentalized projects. 3. The portfolio of projects consists of both programmed of projects and individual project projects. 4. the two level of management focus: (a) program (b) project 5. under program : (a) organization level initiative (b) portfolio management 6. under project: (a) individual level initiative (b) task management 7. Aspects of program me management: (a) risk (b) process (c) change management (d) personnel (e) support services 8. The initiatives taken up for multiple benefits and issues related to risk constitute P2M. 9. Two main supporting devices for project management are IT and HR. 10. Projectised organizations achieve higher efficiencies because they do the same jobs repeatedly. F 11. All the tenets of project management can be applied to traditional organizations. F 12. Assign priority of divisional management efforts based on paretos law backed by statistics or rules of thumbs for prevention of problems. 13. Rules/Guidelines to Strengthen Organizations : 1)Identify Critical Technologies 2) Aim high 3) Multi-Use Technologies 4) Competency of Division 5) Ensure Redundancy 6) Focus Efforts 7) Build Concurrency 8) Long Term Partnership 9) Problem Forecasting & Prevention 10) Continuous & Integrated PM 14. High technology development has a long gestation period. 15. With the use of computer systems this costly procedure of aerospace testing can be substituting by computational fluid dynamics.

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16.

Identification of these hidden technologies will open up opportunities for technology substitution. 17. P2M: project and programmed management helps in evaluating the business operations with the program the planned changes.

Unit: 9 1. new horizons in project management are: 1. being ready to accept discontinuity and be flexible 2. owing the problem and sharing the solutions 3. breaking the status quo mentality 4. stepping out of comfortable zone 5. human capital by passing financial 6. transforming work culture 7. real number of encounter replacing number of years of experience 8. seeking meaning out of change 9. cultivating emotional intelligence 2. Modern development processes in the field of project management are very dynamic and call for high technology and extensive outsourcing. 3. One of the most dangerous aspects of the thinking process is to expecting, assuming and favoring. 4. Value goes on getting added along the supply chain. 5. five steps of DMAIS: D Define - Benchmark - Customer Requirement - Process Flow map - Quality function Deployment - Project Management Plan M Measure - Data Collection - Defect Metrics A Analyze I Improve - Design of Experiments - Robust Design - Tolerance S - Standardize 6. Benchmark the supply chain standard achieved by the best in the industry. 7. Cause and effect diagrams also called fish bones diagrams. 8. Measures to remove the defects found earlier for improving the process for improving design of experiments, robust design and tolerances. 9. Data management consists of conducting activities which facilitates acquiring data, processing it and distributing it. 10. The three important characteristics of data are timeliness, sufficiency and relevancy. 11. ERP package helps in integrating data from all sources and presents them to individual members in the way they require. 12. Project managers are the key persons on whom top management depend upon for accurate periodic reports about the project. 13. The top management may determine which of the metrics they would like to use to measure efficiency which they can communicate to the client also. Then the project manager will set up

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suitable reporting systems and analysis the progress accordingly. Success is the culmination of all measuring activities which brings satisfaction to all stakeholders. 14. The metrics that will be used to determine acceptability of the end products is quality. 15. Periodic reports shows clearly indicate the success of the project. F Unit: 10 1. Project management review process for corporate and major information systems was instituted to review all major information systems in development, enhancement or production of a product or a service. T 2. These reviews provide a forum for bringing together key project stakeholders to communicate project status, plans and issues to management and senior management. 3. Project management reviews service as a forum to raise issues and concerns that will impact the project and ensure that acceptable actions or corrective plans exist for addressing any significant positive impacts. F 4. There is no benefits for corporate and major information systems project teams and many of the programs as a result of the information exchange by the project management reviews. F 5. Project management reporting requirements: 1.General Project Overview 2.Project Status 3.Product Status 4.Issues and Risks 5.Project Unique Information 6. two types of review briefing format: (a) first time review (b) ongoing review 7. Through the project life cycle it is important to apply standard project management best practice including tracking and reporting to all projects regardless of size. 8. The full form of CSIA is corporate system information architecture. 9. The project management review is scheduled every three months in conjunction with the fiscal year. 10.basics categories of performance management : (a) efforts (b) efforts to accomplishments (c) accomplishment Return on investment (ROI): is the calculated benefits that an organization is projected to receive in return from investing money, time and resources in a project. 12. Each project management review meeting starts with an introduction of the face to face and meet me call participants and an opportunity for general comments. T 13. The templates serve as a means of standardizing the reporting requirements and enabling a common set of criteria for evaluating the health and progress of the departments corporate and major information systems. T The customer is expected to check this list in preparation for the current review include all listed items on the slide and provide the status of each item. F The program manager is responsible for ensuring that capitalization costs and captured for the project. T a program may be any activity, project, function or policy that has an identifiable manager. F post review activities: 1.Issues or Concerns Requiring Attention 2.Status of Open Items from Review 3.CIO Reports 18. The summary will include the following: a) Summary status b) Open issues/items c) Status performance objectives/measures d) Status of schedule/cost 19. Project manager is responsible for raising issues for concerns that requires assistance or guidance to the attention of the CIO.

11.

14. 15. 16.


17.

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20. The staff supporting the CIO quarterly reviews will prepare a summary report after each project management review. Unit: 11 1. types of project risks: a) project b) market c) industry d) social and political 2. steps for project management: a) risk identification b) risk analysis c) risk management planning d) risk review 3. Risk management is insurance for projects and can help reduce your costs and efforts when trouble strikes. T 4. Industry risks arise out of change in labor situation, labor laws, environment law etc. F 5. Risks are potential problems ones that are guaranteed to occur. F 6. quantitative risk analysis: a) Sensitivity analysis: study is done to analyze the change in the variable value because of a change in one or more of the decision criteria. b) probabilistic analysis: the frequency of a particular events occurring is determined based on which its average weighted average value is calculated 7. the first steps of risk analysis is to make each risk item more specific 8. In managing a risk the first step is to take action to increase the likelihood of the risk occurring. F ( reduce) 9. In managing a risk the second step is to take action to reduce the impact if the risk does occur. T 10.steps to handle risk: a) identify risks b) analyze risks c) mitigate risks d) review risks e) control risks 11. Risk management involves identifying potential problems, analyzing those risks, planning to manage them and reviewing them. Risk identification can be done using a brainstorming session. CPIC: capital planning and investment control CSIA: corporate system information architecture 15. Performance measurement is used in project management and quality processes to determine and communicate status and accomplishment measured against specific objectives, schedules and milestones. T unit: 12 1. model types: a) function tree b) process chain 2. supply chain monitoring level: a) level 0 - work package b) level 1 - process c) level 2 - sub process 3. two types of supply chain modeling: a) vertical navigation b) horizontal navigation 4. The intent of this document is to define the structure of the documentation system its content the method of content generation and attain common documentation of all standard processes of ODETTE. T

12. 13. 14.

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5.

One of the objectives of process documentation is to allow flexible and quick adaptation in case of process changes or enhancements and to provide the super ceded information immediately. F 6. The entry level of the process documentation structure is the function tree that shows the hierarchic structure of the process documentation. T 7. The process chain describes a process based on the technological interdependencies. F 8. KPI = key performance indicators 9. four different aspects of the organization structure and planning: a) processes b) procedures c) resource planning d) work environment and human resource 10. The task of the ARIS web publisher is to create HTML pages of the models that can be released in the internet/intranet and displayed via the internet explorer. 11. On the object page one can find information on the following points namely attributes, relationships and occurrences. 12. Organizational procedures exist for all functions within materials planning and logistics. 13. The organization shall manage engineering revision levels with documented procedures for customer, suppliers and internal changes. 14. Microsoft is designed for people who manage projects independently and don't require the capacity to manage resources. T 15. The baseline created can be used to replace the original project plan with actual events and achievements. F 16. After a baseline has been established and the project has begun it is desirable to determine if the tasks are being accomplished on time and/ or if cost runs are occurring. T Unit: 13 1. PILIN = persistent identifiers and linking infrastructure. 2. SCMo principles: a) integration of supply chain participants b) exchange of demand and inventory information c) transparence and visibility of inventories d) demands for multi level supply chains 3. Prevention of stock out and over supply is one of the main objectives the SCMo system which is adds on to existing ERP system. T 4. The main principle behind SCMo is the integration of supply chain participant's exchange of demand and inventory information, transparency and visibility of inventories and demands for multi level supply chain. T 5. steps to write a business plan: 1. select a quiet place and time 2. have all of your data easily available 3. start working by yourself 4. get the content down quickly 5. send a first rough draft to others quickly 6. do a self review and make necessary changes 7. finalize the draft after incorporating feedback from reviewers 6. A well drafted business plan would ideally serve this purpose provided it is handled systematically and professionally. 7. Writing a plan is tough because it requires disciplined balance. 8. The documentation system is intranet based to provide immediate access to current up to date process documentation. 9. The vertical navigation is the navigation on different levels. 10. MME : Microsoft model Enterprises 11. Several software vendors have seized the opportunity with offering that substantially fill these gaps effectively at a friction of the costs quoted by the major vendors. T

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12.

The ARROW project will identify and test software or solution to support best practice institutional digital repositories comprising e-print, digital these and electronic publishing. T 13. Support adoption and use of persistent identifiers and shared persistent identifier management services by the project stakeholders is one of the objectives of FEDORA. F Unit: 14

1. 2.

Changes requested by customer will be logged in change request. T In estimating the phase wise effort the total effort with respect to each activity and efforts for each phase of a project expressed as percentage of production. F 3. If a change request has a major impact discussion with customer using a detailed impact analysis can be very helpful in setting the right expectations and doing a proper cost benefits analysis. T 4. The global delivery model (GDM): enables an industry or business to plan, design and deliver products and services to any customer worldwide with speed, accuracy, economy and reliability. T 5. feature of GDM : a) standardization b) modularization c) minimum customization d) maximum micro structure 6. Unimaginable speeds of response and introduction is one of the special features of SCMo. F

Extra:

1.

Project management plan includes the material, man, activity, scheduling, milestones etc benchmark are the standard achieved by the best in the industry robust designs. Reduces the variations equipment design is made robust. When improvement have becomes consistent the method adopted are standardized.

2. Use the data on measure to perform testing the cause and effect diagram also called fishbone diagram. FMEA
stand for failure mode and effect analysis. process flow map activities the take place to result in the product at the end of them

3. A life cycle of project consists of understanding the scope and objectives of the project, formulation and
planning various activities, project execution and project monitoring and controlling the project resources.

4. The perception of a manager in current trends in project management is to obtain result. A more result cum
profit oriented corporate strategy lays greater emphasis on maximized efficiency of operations.

5. Project management consists of interacting processes namely project processes, process group's interactions 6. The project manager is the key person on whom top management depends upon for accurate periodic reports
about the project matrix are important when predicting and controlling the outcome is important.

7. The top management may determine as to the matrices they would like to use to measure efficiency which they
can communicate to the client also. Then the project manager will set up suitable reporting systems and analysis the progress accordingly. Success is the culmination of all activities which bring stratification to all stakeholders.

8. Transaction is online making reporting feedback and decision become faster. 82

9. The project manager and his team committed to any one of project will have to depend upon the various
functionaries in the administrative function like HR, finance and procurement.

10. 11. 12. 13.

TQM is a ongoing effort among members across functions to find new ways to improve quality in product and service. Each worker can substitute another worker and can change his team depending upon the exigency. this means that all the workers are trained for multiple tasking this change has been found to promote quality. Review helps in resetting the goal when they cannot be achieved for various reasons such as shortage of resource and time. The main concept that a project has a team responsible for all activities. The time schedule is derived for the specific set of objectives.

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