Code No: RT42052 R 13 Set

No. 3
IV B.Tech. II Semester Regular Examinations, April-2017
MANAGEMENT SCIENCE
(Common to computer science & Engineering, Information
Technology and Automobile Engineering)
Time:3 Hrs Max
marks :70

Note: 1. Question paper consists of two parts (Part-A and Part-B)

2. Answering ALL Sub question from Part-A
3. Answer any THREE questions from Part-B
*****

PART-A

1. a) Define elements of planning? [4M]

2M for defining Elements of Planning as below

Planning is the process of determining the best course of action to achieve the given
goals

1. Aim:

2. Objectives:

3. Policies:
.

4. Procedures:

5. Methods:

6. Rules:

7. Budget:

8. Programmes:

9. Strategies:

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 b) Write a short note on Stores ledger account?
[4M]

4M for enlisting and explaining all 4 of the below points

A stores ledger is a manual or computer record of the raw materials and production supplies stored in a
production facility. It is maintained by the person responsible for these assets, such as the warehouse manager.
A stores ledger is particularly useful for maintaining a perpetual inventory system, since it tracks the current
quantity of items on hand.
A stores ledger can be used for the following purposes:

By auditors, to see how well the company's inventory records compare to its on-hand quantities.
By the purchasing staff, to determine when and in what quantities to purchase additional inventory items.
By the accounting staff to use as the basis for calculating the ending cost of inventory on hand.

c) Write about labor turnover [3M]

3Mfor enlisting and explaining any 3 aspects as below

The ratio of the number of employees that leave a company through attrition, dismissal, or
resignation during a period to the number of employees on payroll during the same period.

There are two main categories of turnover: voluntary and involuntary. Each of them has different
causes.

Voluntary turnover is when an employee quits. This can be due to finding a better position at
another company, a conflict with a supervisor or a personal reason, such as needing to stay home with
a family member.

Involuntary turnover is when an employee is laid off or fired, generally due to reducing staff
because of a business downturn or change in business focus or because of an employee taking some
action that is cause for termination, such as theft.

d) Mention about crash time?

[4M]

4M for explain Gantt chart as below

When we say that an activity will take a certain number of days or weeks, what we really mean is:
normally, this activity takes this many days or weeks. We could make it take less time – but it would
cost more money. To spend more money so as to get something done more quickly is called
“crashing” the activity.
NT = normal time to complete an activity
NC = normal cost to complete an activity
CT = crash time to complete an activity, that is, the shortest possible time it could be completed in.
CC = crash cost - the cost to complete the activity if it is performed in its shortest possible time.

e) What do you mean by Retrenchment strategy?

[4M]

4Mfor enlisting and explaining Definition from below

This strategy is often used in order to cut expenses with the goal of becoming a more
financial stable business. Typically the strategy involves withdrawing from certain
markets or the discontinuation of selling certain products or service in order to make a
beneficial turnaround.
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f) Define Business Process outsourcing ?
[3M]

3Mfor enlisting and giving definition for Bench Marking as below

Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a
third-party provider. BPO services include payroll, human resources (HR), accounting and customer/call
center relations. BPO is also known as Information Technology Enabled Services (ITES).

PART-B
2. a) Discuss the scientific management principles?
[8M]
3M for Definition of Scientific Management:-
Scientific management is a theory of management that analyzes and synthesizes workflows. Its main objective is improving
economic efficiency, especially labor productivity by F W Taylor.

Scientific management is based on the work of the US engineer Frederick Winslow Taylor (1856-1915) who in his 1911 book The
Principles Of Scientific Management laid down the fundamental principles of large-scale manufacturing through assembly-line
factories. It emphasizes rationalization and standardization of work through division of labor, time and motion studies, work
measurement, and piece-rate wages.

5M for describing nature and features of Scientific Management principles:-

Principles of Scientific Management

1. Development of Science for each part of men’s job (replacement of rule of thumb)
2. Scientific Selection, Training & Development of Workers
3. Co-operation between Management & workers or Harmony not discord
4. Division of Responsibility.
5. Mental Revolution
6. Maximum Prosperity for Employer & Employees

b) What is organization chart and describe its characteristics.

[8M]

3M for elaborating the levels of Management as below

Meaning of Organization:

Organization is the foundation upon which the whole structure of management is built.
Organization is related with developing a frame work where the total work is divided into
manageable components in order to facilitate the achievement of objectives or goals. Thus,
organization is the structure or mechanism (machinery) that enables living things to work
together. In a static sense, an organization is a structure or machinery manned by group of
individuals who are working together towards a common goal.

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5M for describing the Characteristics of organization as below:-

Characteristics / Features of Organization

The main characteristics or Features of organization are as follows:

 Outlining the Objectives:

 Identifying and Enumerating the Activities:
 Assigning the Duties:
 Creating Authority Relationship:

3. a) explain the stores documents with appropriate illustrations

[8M]
3Mfor defining the Stores documets as below

The following documents or records are used "on recording the store items:

A. Bin Card

B. Stores Ledger

C. Stores Issue Requisition

D. Bill of Material

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E. Material Transfer Note.
5Mfor illustrating the Store documets as below

The specimen of Bill of Material is given below:

ABC Company Ltd Bill of Material
Job Order No.
Prepared by Checked by
Advantages of Bill of Material
(i) It serves the purpose of an advance intimation to all concerned of the order to be executed.
(ii) It acts as an authorization for issue of materials from store.
(iii) It serves the production department as an authority to place material requisition.
(iv) It may be used as a guide for controlling consumption of materials as it provides detailed list of materials
required. >'
(v) It is possible to calculate material cost of all articles before their production.
(vi) It may be used as a basis for passing accounting entries in the stores ledger and cost ledger.
E. Material Transfer Note
Material Transfer Note is prepared when materials or equipments are transferred from one sub-store to another sub-
store or from one production section to another or from one job to another in the factory. Normally inter department
transfer is not allowed. However, it may be encouraged in the following situations:
(a) Where the surplus materials ark of very heavy weight and involves more handling expenses.
Where production is not to be stopped due to want of materials.

b) A company deals in the manufacturing of RAM for CPUs on

mass production basis. Below are the numbers of defects
found in RAM every day? [8M]

The answer is attached separately by hand writing document

4. a) Define merit rating and describe its methods elaborately

[8M]

4Mfor describing product life cycle with an example:-

A merit rating is a score that each state assigns to employers based on their employment
stability and employee turnover. The state then uses the merit rating to levy state unemployment
taxes on each employer. Companies with lower ratings will have to pay lower unemployment tax
percentages.
4Mfor describing Ranking Methods with an example:-

1. Ranking Methods:

2. Paired Comparison Method:

3. Grading system:

4. Forced distribution method:

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5. Check list method:

.
b) What is job specification? How is job description related to
job specification?
[8M]

2Mfor defining Job specification

Job Specification is a statement of the essential components of a job class including a

summary of the work to be performed, primary duties and responsibilities, and the minimum
qualifications and requirements necessary to perform the essential functions of the job.

6Mfor describing How is job description related to job specification?

Comparison Chart

Key Differences between Job Description and Job Specification

The difference between job description and and job specification can be drawn clearly on the following
grounds:
1. Job Description is a descriptive statement that describes the role, responsibility, duties, and
scope of a particular job. Job Specification states the minimum qualifications required for
performing a particular job.
2. Job Description is the outcome of Job Analysis while Job specification is the result of Job
Description.
3. Job Description describes jobs, but Job Specification describes job holders.
4. The job description is a summary of what an employee will do after getting selected. Conversely,
Job Specification is a statement showing what a person must possess for getting selected.
5. Job Description contains designation, place of work, scope, working hours, responsibilities,
reporting authority, salary range, etc. On the other hand, Job Specification contains educational
qualifications, experience, skills, knowledge, age, abilities, work orientation factors, etc.

5. a) The essential cost and duration are provided

Draw the network diagram and calculate cost slopes
[16M]

Answer is attached separately by hand writing net work diagram.

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 6a) Enumerate the role of the strategist in the modern era
[8M]

2Mfor defining the role of the strategist in the modern era

THE IMPORTANCE OF STRATEGIC MANAGEMENT

The environmental shocks during the decades of the 1970s and 1980s forced managers to develop a
Systematic means of analyzing the environment, assessing their organization's strengths and weaknesses,
Identifying opportunities that would give the organization a competitive advantage, and incorporating these
findings into their planning. The value of thinking strategically was recognized.

6Mfor describing the role of the strategist with a diagram

6. b) What type of the strategies to be used to improve sales

[8M]
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 2M for explaining the definition of business strategy

The is a long term plan of action designed to achieve a particular goal or set of goals or
objectives. Strategy is management's game plan for strengthening the performance of the
enterprise. It states how business should be conducted to achieve the desired goals.

6M for explaining the Strategies to Improve Sales Performance

10 Strategies to Improve Sales Performance

1. Clarify your mission.

2. Break the mission into specific goals.

3. Sell to customer needs.

4. Create and maintain favorable attention.

5. Sell on purpose.

6. Ask, listen, and act.

7. Take the responsibility but not the credit.

8. Work on the basics.

9. Develop your attitude.

10. Maximize your time.

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7. Describe the process of Six Sigma in the organization
[16M]

6M for explaining the Six Sigma

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Six Sigma (sometimes stylized as 6σ) is a set of techniques and tools for process improvement. It
was introduced by engineers Bill Smith while working at Motorola in 1986.[1][2] Jack Welch made it
central to his business strategy at General Electric in 1995.
It seeks to improve the quality of the output of a process by identifying and removing the causes of
defects and minimizing variability in manufacturing and business processes. It uses a set of quality
management methods, mainly empirical, statistical methods, and creates a special infrastructure of
people within the organization who are experts in these methods. Each Six Sigma project carried out
within an organization follows a defined sequence of steps and has specific value targets, for
example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction,
and increase profits.

10M for explaining the process of Six Sigma with some illustrations

“Six Sigma is a quality program that, when all is said and done, improves your customer’s
experience, lowers your costs, and builds better leaders. — Jack Welch
Six Sigma at many organizations simply means a measure of quality that strives for near
perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating
defects (driving toward six standard deviations between the mean and the nearest
specification limit) in any process – from manufacturing to transactional and from product to
service.
The statistical representation of Six Sigma describes quantitatively how a process is
performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per
million opportunities. A Six Sigma defect is defined as anything outside of customer
specifications. A Six Sigma opportunity is then the total quantity of chances for a defect.
Process sigma can easily be calculated using a Six Sigma calculator.
The fundamental objective of the Six Sigma methodology is the implementation of a
measurement-based strategy that focuses on process improvement and variation reduction
through the application of Six Sigma improvement projects. This is accomplished through the
use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process
(define, measure, analyze, improve, control) is an improvement system for existing processes
falling below specification and looking for incremental improvement. The Six Sigma DMADV
process (define, measure, analyze, design, verify) is an improvement system used to develop
new processes or products at Six Sigma quality levels. It can also be employed if a current
process requires more than just incremental improvement. Both Six Sigma processes are
executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by Six Sigma
Master Black Belts
According to the Six Sigma Academy, Black Belts save companies approximately $230,000 per
project and can complete four to six projects per year. (Given that the average Black Belt
salary is $80,000 in the United States, that is a fantastic return on investment.) General
Electric, one of the most successful companies implementing Six Sigma, has estimated
benefits on the order of $10 billion during the first five years of implementation. GE first began
Six Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail. Since then,
thousands of companies around the world have discovered the far reaching benefits of Six
Sigma.

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Many frameworks exist for implementing the Six Sigma methodology. Six Sigma Consultants
all over the world have developed proprietary methodologies for implementing Six Sigma
quality, based on the similar change management philosophies and applications of tools.

Summary
PART-A PART-B
Q MARKS Q MARKS Q MARKS Q MARKS
# # # #
1A 4 2A 8 4A 8 7 16
1B 4 2B 8 4B 8
1C 3 5 16

1 4 3A 8
D
1E 4 3B 8 6A 8

1F 3 6B 8

*as per the detailed plan above Puttu Guru

Prasad
S&H DEPT
VASIREDDY VENKATADRI INSTITUTE OF TECHNOLOGY (BQ)-NAMBUR
807 444 95 39
puttuguru@vvit.net
puttuvvit@gmail.com

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