Directorate of Online Education

ASSIGNMENT

NAME JASVIR SINGH

ROLL NUMBER 2214503044
SESSION NOVEMBER 2023
PROGRAM BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SEMESTER II
COURSE CODE & NAME DBB1204 – QUALITY MANAGEMENT
CREDITS 4
NUMBER OF ASSIGNMENTS & 02
MARKS 30 Marks each

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of
400 - 450 words. Each question is followed by evaluation scheme.

Q.No Assignment Set – 1 Marks Total Marks

Questions
1. Discuss Deming Cycle and Crosby’s Four Absolutes of Quality. 5+5 10
2. How is the McKinsey 7S model used for carrying out strategic planning 4+6 10
and implementation?
3. What is cost of quality? Why is it important to measure? List common costs 2+4+4 10
of poor quality.

Q.No Assignment Set – 2 Marks Total Marks

Questions
4. What is meant by Quality Audit? What is its purpose? 2+8 10
5. Write short notes on the following concepts: 5+5 10
a) Recognition and rewards
b) Suggestion systems
6. Discuss about IMC Ramakrishna Bajaj National Quality Award. 10 10
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ASSIGNMENT SET-1
Question-1
Answer: Deming’s most important contribution to quality management is Deming cycle.
The Deming cycle define quality as a product of four related processes: Plan – Do – Check –
Act (PDCA) cycle.

 Plan
The planning stage involves two activities:
1. The PDCA cycle identifies the goals or objectives to be accomplished.
2. Processes are created to accomplish the specified goals and objectives.
 Do: newly design process is implemented. First, implementation ought to be done on a
modest scale before being progressively expanded. This stage entails keeping an eye on
the process's performance and gathering data on it.
 Check: Based on the performance data collected in the previous phase, analysis is
conducted. In this case, analysis involves an in-depth evaluation and comparison with the
initial aims and objectives. Data graphing can be used for analysis.
 Act : To explain differences between the intended goals and objectives and the actual
outcome, causes are found. Following the identification of the causes, actions are done to
enhance the procedure and produce better outcomes.
Four absolutes of quality by Philip Crosby.
They were the fundamental principles that defined his approach to quality management.
 Quality means conformance to requirements, not goodness. After the specifications
are established, the only factor used to assess quality is whether or not the requirements
are met. Today, every business has embraced the idea of quality.
 Quality is achieved by prevention, not appraisal. Crosby highlighted that prevention
should be the main goal of quality systems. He was passionately in favour of doing
things correctly the first time. The creation of error-free procedures was the main goal.
 Quality performance standard must be zero defects: Systems for managing quality
should always strive for improvement. Zero defects should be the aim of any quality
management system.
 Quality is measured by the price of non-conformance, not by indices: When
requirements are not met, the price should be used as the basis for measurement rather
than quality indices. Crosby divides expenses into two categories: "the price of
conformance" and "the price of non-conformance." The importance of meeting
requirements is emphasised.
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Question:02
Answer:
McKinsey 7S Model: One often discussed framework for analysing the relationship between
strategy design and implementation is the McKinsey 7S model. Four authors met in 1981 and
came up with the 7S-model: Richard Pascale, Anthony Athos, Tom Peters, and Robert
Waterman. It was adopted as a fundamental tool. It is currently referred to as the McKinsey
7S model.
The model assists in drawing managers' attention to the significance of connecting the
selected strategy to a range of actions that may have an impact on the strategy's execution.
Now let's examine each component in more detail:

Prior to putting any strategy into action, the organisation should be examined using these
seven standards. In order to assess a company's present state, it must respond to several
inquiries. The queries are:
1. Strategy:
 What is our strategy?
 How do we intend to achieve our objectives?
 How do we deal with the competitive pressure?
 How are changes in customer demands dealt with?
 How is strategy adjusted for environmental issues?
2. Structure:
 How is the company/team divided?
 What is the hierarchy?
 How do the various departments coordinate activities?
 How do the team members organise and align themselves?
 Is decision making and controlling centralised or decentralised? Is this as it should be,
given what we are doing?
 Where are the lines of communication? Are they explicit or implicit?
3. Systems:
 What are the main systems that run the organisation? Consider financial and HR systems as
well as communications and document storage.
 Where are the controls? How are they monitored and evaluated?
 What internal rules and processes does the team use to keep on track?
4. Shared Values:
 What are the core values?
 What is the corporate/team culture?
 How strong are the values?
 What are the fundamental values that the company/team was built on?
5. Style:
 How participative is the management/leadership style?
 How effective is that leadership?
 Do employees/team members tend to be competitive or cooperative?
 Are there real teams functioning within the organisation? Or are they just nominal groups?
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6. Staff:
 What positions or specialisations are represented within the team?
 What positions need to be filled?
 Are there gaps in required competencies?
7. Skills:
 What are the strongest skills represented within the company/team?
 Are there any skills gaps?
 What is the company/team known for doing well?
 Do the current employees/team members have the ability to do the job?

Question:03
Answer:
Cost of Quality: The expense required by the producer to reach a specific quality level is the
traditional definition of the term "cost of quality." It has undergone changes, and the
definition given to it now is the cost borne by the community, producer, and user in order to
reach a specific standard of quality.
This is an essential concept because managers need to be fully aware of how their decisions
will affect costs before they make any quality-related decisions. Details on quality costs are
also important for the following reasons:
The following points supports the importance of quality cost measurement:

1. When deciding on investments and capital budgeting, it is an important factor to

consider.
2. It assists in locating outdated systems.
3. It makes the assessment of opportunities for profit-making easier.
4. It helps in setting goals for profit planning and budgeting.
5. It identifies excessive overhead associated with non-customer-related operations.
6. It supports the fairness of methods for performance evaluation.

Common costs for poor quality work are as follows:

 Waste: Wastage increases expenses. Profit is decreased by this cost increase because the
pricing must remain unchanged.
 Scrap: Scrap comprises the cost of the discarded material and labour value.
 Rework: Although it may seem insignificant, the cost of rework has an impact on overall
expenses. It could rise dangerously if left untreated.
 Repair: Repair includes the value of labour and the price of the spare parts that may be
required for repair.
 Concessions: Customers demand concessions (at times, large ones) if the quality of a
product is not up to the mark.
 Re-inspection: Re-inspection includes operative, administrative, and direct costs
incurred for inspection of faulty products and reworked and repaired products.
 Warranty: Warranty costs directly cut into the profit of the company.
 Replacement: When a product cannot be repaired or reworked, it has to be replaced with
a new identical product.
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 Extra Overhead: This expense results from additional overhead related to replacement,
rework, and repairs.
 Returned product shipping and packaging: This expense covers the expense incurred
for product replacement and repair, as well as packaging and shipping.
 Adjustments for claims: This expense impacts the amount owed to cover concessions.
 Goodwill: Measuring this expense is challenging. But one knows how expensive it is to
lose a customer's goodwill. It has a negative impact on potential future sales from clients
and their friends and family.

Assignment Set – 2
Question:04
Answer:
An audit is a methodical, impartial investigation to ascertain whether actions and associated
outcomes align with prearranged arrangements and whether these arrangements are executed
efficiently and appropriately to meet goals.

1. Conformance to Standard: An important and required part of the certification

procedure are audits. As an example, an organisation must undergo an audit before
obtaining an ISO certification. The audit procedure makes sure that the company has
all the structures and procedures required to support the QMS as required by the
standard.
2. Improvement of Program: Many organisations conduct audits even in the absence
of certification applications. This is so that audits can identify the program's strong
and weak points. Furthermore, audits offer suggestions for solutions and remedial
measures to address the deficiencies. As a result, audits are a significant instrument
for evaluating an organization's capacity and launching internal improvement
initiatives.
3. Statutory Requirement: In addition, audits are carried out because the nation's laws
mandate them. We refer to these audits as statutory audits. For instance, in order to
guarantee correct book keeping and moral accounting procedures, the majority of
nations mandate that businesses conduct financial audits. Audits therefore help in the
prevention of fraud and white collar crimes.
In most multinational corporations, audits pertaining to environmental and safety
matters are also required.
Additionally, audits are conducted to ensure the following:
 Assess the system's efficacy.
 Assist in issue solving;
 Facilitate communication, decision-making, and training.
 Promote employee involvement, as audits typically involve a wide range of stakeholders.
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Question:05
Answer:

a) Recognition and Reward: Managers might effectively motivate employees and

encourage them to maintain and improve their performance within a company by
implementing Recognition and Rewards. When an employee or team is recognised
by management for their accomplishments and valuable contributions that contributed
to the organization's success, it is referred to as recognition. This can be accomplished
by presenting presents or mementos, awarding certifications, or praising someone
verbally or in writing.
Rewards on the other hand are something tangible. It may include cash prize,
promotion, package tours, etc. to promote a desirable behaviour. Usually recognition
and reward go hand in hand.
On the other hand, rewards are material. It could be a cash award, a promotion, a tour
package, anything to encourage a desired behaviour. Reward and recognition typically
go hand in hand.
Effective employee recognition and awards can result from a few essential
strategies, such as:
 Rewarding the team as well as the individual.
 Including every employee to ensure commitment from everyone
 Connecting incentives to measurable and reachable goals.
 Allowing peers and other groups to suggest and acknowledge exceptional work.
 Widely announcing the accomplishments.

b) Suggestion System: One of the best and most effective ways to increase employee
involvement is through a suggestion system. It is a management tool for employee
submission, assessment, and implementation of cost- and quality-saving and
innovative ideas & excellence. Employers even give rewards to staff members whose
suggestions work well for the company. Receiving such recognition and prizes
encourages other staff members to participate in the operation of the company and
look for ways to improve every aspect of their work.
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Question: 06
Answer:
Established in 1996, the IMC Ramakrishna Bajaj National Quality Awards.
It bears the name of Mr. Ramakrishna Bajaj, an extremely prosperous businessman,
philanthropist, social worker, and independence warrior. In order to advance social
welfare, he founded a number of foundations and other organisations. The goal of the
IMC Ramkrishna Bajaj National Quality Awards is to honour outstanding work in
organisations. It is given out every year.

There are three category of award:

1.Excellance in Business: Manufacturing, services, and small enterprises receive these

awards. It comprises foreign divisions that conduct business in India. It also include Indian
subsidiaries that conduct business abroad.

2. Excellence in Education: All public, private, and government-run educational institutions

in India that offer educational services are given these awards. It consists of foreign divisions
that conduct business in India. It also consists of Indian subsidiaries that conduct business
abroad.

3. Excellence in health care: Institutions offering medical, surgical, or other healthcare

services are given these awards. It encompasses foreign subsidiaries functioning within India.
It also includes Indian subsidiaries that conduct business abroad.

 Award Criteria

1. Leadership: The leadership category looks at the function of the organization's

leaders and upper management. This category also looks at how effectively the
company complies with its social, ethical, and legal obligations.
2. Strategic Planning: This category looks at the organization's capacity for strategic
planning. It comprises an assessment of the organization's action plan and strategic
goals. It also involves an evaluation of how well the current plans and strategies are
being carried out, tracked, and measured, as well as an analysis of how adaptable and
flexible the planning process is in response to environmental changes.
3. Customer focus: The Customer Focus category looks at how well the company
satisfies the needs of the customers. It assesses the organization's current customer
relationship management practices, particularly how well it pays attention to "the
voice of the customers."
4. Measurement, Analysis & Knowledge Management: The category of
measurement, analysis, and knowledge management looks at how an organisation
collects, tracks, measures, and evaluates data in order to use it for purposes of
improvement. It looks at how successfully a company gathers and makes use of its
internal knowledge resources.
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5. Workforce Focus: This category looks at an organization's personnel management
practices. It entails looking at how a company evaluates the abilities and skills of its
workers, how it offers chances for skill and knowledge growth, and how it inspires
and drives workers.
6. Process Management: The organization's current procedures are examined in this
category. It assesses how successfully these procedures accomplish their goals and
how well-designed they are. It assesses organisational procedures in relation to the
long-term viability of the business and customer value.
7. Result: The organization's performance is examined in each of the aforementioned
categories under the Results category.
It also covers the organization's financial and competitive performance in the market.