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MB0044 - PRODUCTION AND OPERATION MANAGEMENT
DRIVE: SUMMER 2014
MBA– (SEM 2)
Q.NO.1.
Explainthe four basic varietiesof layoutsfor manufacturing facilities.
Descriptionof each basic type oflayout
ANS.
Descriptionof each basic type oflayout
Basic layout types
The chapter describes four basic layout types. Remember though, at the end of doing this the
chapter does make the point that most layout types are hybrids of two or more of these four
basic types. Nevertheless it is important to understand each of them so that their advantages
and disadvantages can be identified.
Fixed position layout
Q.NO.2.
The major decisionareas in supplychain managementhave both strategic and operational elements.
Explainthese decisionareas in detail.
 Explanation ofdecisionareas
ANS.
Explanationof decisionareas
Location Decisions
The geographicplacementof productionfacilities,stockingpoints,andsourcingpointsisthe natural first
stepincreatinga supplychain. The location of facilities involves a commitment of resources to a long-
term plan. Once the size, number, and location of these are determined, so are the possible paths by
which the product flows through to the final customer.
Production Decisions
Q.NO.3
Business process is a total response that a business undertakes utilising the resources and delivering
the outputs that create a value for the customer. Business process modelling refers to a set of
activitiesundertakento optimise the businessprocess.Businessprocess modelling can be categorised
into two parts – Logical processing modelling and physical process modeling. Explain in detail of the
two processes of modeling.

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Logical processing modeling
 Definition
 Steps to be followed to make the work smoother
 Explanation of logical process model(including what it consists of , represents, improves and
identifies; logical modelling formats ;ways of representing logical process modeling)
 Physical process modeling(definition, what it deals with , why objects during physical
modelling vary on the database software being used, outcomes)
ANS.
Definition
Logical process modelling is the representation of putting together all the activities of business
process in detail and making a representation of them.
Steps to be followed to make the work smoother
1. Capture relevant data in detail to be acted upon
2. Establish controls and limit access to the data during process execution
3. Determine which task in the process is to be done and also the subsequent tasks in that
process
Q.NO.4.
Write short notes on:
a) Dimensions of quality
b) Characteristics of project mindset
ANS.
a) Dimensions of quality
Eight dimensions of product quality management can be used at a strategic level to analyze
quality characteristics. Garvin's eight dimensions can be summarized as follows:
Performance:
Q.NO.5.
It is possible to work according to the project plan only by careful monitoring of the project progress.
There are various steps involved in monitoring and controlling a project from start to end. One of the
steps is progress control of a project which can be achieved by completing certain steps. Explain the
steps of progress control.
Explanation of each step of progress control

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ANS.
Explanation of each step of progress control
1. EstablishingStandards:
Standards are criteria against which results are measured. They are norms to achieve the
goals. Standards are usually measured in terms of output. They can also be measured in non-
monetary terms like loyalty, customer attraction, goodwill etc. Some of the standards are as.
Q.NO.6.
Write short noteson
a) Pure strategiesemployedtoassistinaggregate planning
b) Approachesto scheduling
ANS.
a) Pure strategiesemployedtoassistinaggregate planning
Vary production to match demand by changes in employment (Chase demand strategy):
This strategy permits hiring and layoff of workers as required. When the output is to be
increased more workers are added and when the output is to be decreased, workers are
removed.

Produce at a constant rate and use inventories (Level production strategy):
MB0045 FINANCIAL MANAGEMENT
DRIVE: SUMMER 2014
MBA– (SEM 2)
Q.NO.1.
TCS has emergedasIndia's most admiredcompany ahead of Hindustan Unilever,ITC,and Infosys,says
global management consultancy Hay Group. TCS replacedlast year's winnergroup company Tata Steel
by scoring higheston parameters such as corporate governance,financial soundness,andtalent
management.Two criteriain particular, Leadership,and Creating ShareholderValue separatedthe
winners.
How do you thinkeffective interactionbetweenHRand finance departmentof a firm helpsin
achievingits skills?
Do you think that TCS has preferredthe profitmaximizationapproach over the wealth maximization
approach?
 Interaction betweenHR and finance functions
 Goalsof Financial management

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ANS.
Financial management is also related to human resource department as it provides manpower to
all the functional areas of the management. Financial manager should carefully evaluate the
requirement of manpower to each department and then allocate the required finance to the human
resource department as wages, salary, remuneration, commission, bonus, pension, and other
monetary benefits to the human resource department.
Q.NO.2.
A) The currentprice of an Ashok Leylandshare is Rs. 30. The company is expectedtopay a dividendof
Rs. 2.50 per share which goesup annually at 6%. If an investor’srequiredrate ofreturn is 11%, should
he or she buy this share or not?
B) A bond with a face value of Rs. 100 providesan annual return of 8% and paysRs. 125 at the time of
maturity, which is 10 yearsfrom now. If the investor’srequiredrate ofreturnis 12%, what shouldbe
the price of the bond?
ANS.
A) The currentprice of an Ashok Leylandshare is Rs. 30. The company is expectedto pay a dividendof
Rs. 2.50 per share which goesup annually at 6%. If an investor’srequiredrate ofreturn is 11%, should
he or she buy this share or not?
Here the valuation is with constant growth in dividends of 6% annually.
The formula for calculating the share value with constant growth in dividends is as follows:
Po = D1 / (Ke – g)
Q.NO.3
a) How do you think the trend of capital structure across the Indian corporates affect the economy as
a whole?
b) What proportion of debt and equity should be taken up in the capital structure of a firm?
c) Discuss the theoriesthat are propoundedtounderstandthe relationshipbetweenfinancial leverage
and value of the firm.
 Trend of capital structure
 proportion of debt and equity
 explain the theories
ANS.
The proper and strategic management of capital structure ensures access to the capital needed
to fund future growth and enhance financial performance. The key benefits of effective capital
structure management are increased capital access, added flexibility, and lower overall cost of
capital.

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Impact of liberalisation on capital structure of Indian corporate
Q.NO.4.
HPCL was established in 1952, operates from 500 different locations, including refineries, terminals,
LPG plants,aviation service facilities,etc.TheydevelopedaLotus Notesworkflowtool and deployedit
across the organisation so that any capital investment proposal from any operating location in the
country can be routed to relevant reviewers and approving authorities. With the implementation of
the newonline system,the total cost savings as a result of reduced man-hours amounts to about Rs 25
lakh per annum.
1. Whatdo you think wouldhave beenthe complexities involved in implementing this new project at
HPCL?
2. What are the various phases in the capital budgeting process? To what extent do you believe that
automation can ease out the process?
 capital budgeting process
 phases in capital budgeting decisions
ANS.
1. Capital budgeting process
After the screening of proposals for potential involvement is over, the company should take up
the following aspects of capital budgeting process:A proposal should be commercially viable.
The following aspects are examined to ascertain the commercial viability of any investment
proposal:
Q.NO.5.
a) Indicate whetherthe operatingcycle in the followingindustriesisshort (less than 30 days), medium
(less than 6 months) or long (more than 6 months)
Steel, rice, vegetables, fruits, jewelry, processed food, furniture, mining, flowers and textiles
b) Companies with the shortest working capital cycles have current ratios much lower than the firms
with longercycles. What is your view on this statement? How do you think the operating cycle affects
operating profit margins?
c) Discuss the relationship between working capital management and market performance of a
company? Do you think the kind of relationship varies depending on the type of industry?
 duration
 operating cycle
 need for working capital
ANS.
A. Operating Cycle:
Operating cycle of a firm involves the following elements:
 Acquisitionof resourcesfromsuppliers
 Paymentdisbursementstosuppliers
 Conversionof rawmaterialsintofinishedproducts

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 Sale of finishedproductstocustomers
 Collectionof cashfromcustomersforthe goodssold
Q.NO.6.
Nirma acquired Core Healthcare Ltd. inFY 2007. To bring about improvementinterms of liquidityin
the script of the Company , it has gone for a stock splitbecause it hasn’t had any buyback in the recent
past. Nirma paid Interimdividendin2007 to avoid the higherdividendtaxannounced inthat year’s
budget.
Henkel,onthe other hand, has a veryweak DividendPolicy.The major reason beingthat the company
has weak operationsand low margins. There is no recordof Stock Splitsand Buybacks by Henkel India
in the past.
Discuss the dividendpolicesofthese two companies.
 Analyse the dividendpoliciesofthe two companiesfor the last 10 years
 Explainstock splitand buyback of shares
ANS.
The dividends policy of a company is very important for various reasons as discussed bellow.
The two companies has different policies that it had applied.
A stock split is a method to increase the number of outstanding shares by proportionately
reducing the face value of a share.
MB0046- Marketing Management
DRIVE: SUMMER 2014
MBA– (SEM 2)
Q.NO.1.
A brand isa composite set ofbeliefsandassociations in the mind of consumers.In brand
development,asa part of branding strategy decision,the brand manager can decide to create new
brand elementsforthe newproducts, apply some ofthe existingbrand elementsto the newproduct,
or use a combination of existingandnew brand elementstothe existingand newproducts. Explain
the differentbrandingstrategiesusedby the companiesfor theirrange of products.
 DefinitionofBrand
 Advantages of Brand
 Explanation ofdifferentbrandingstrategiesadopted by companies
ANS.
DefinitionofBrand
A traditional definition of brand stands as a name, word, mark, symbol, device, or a combination
thereof, used to identify some product or service of one seller and to differentiate them from

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those of the competitors. The definition clearly focuses on the function of a brand, that is, to
identify, irrespective of the specific means employed for the identification. A modern
definition talks about the brand as a vehicle for delivering a certain value to the consumers.
Hence, a brand is a mental patent and set of associations that delivers a set of functional and
emotional value to the consumer in a unique way as compared to others in the business.
Advantagesof Brand
The following are the advantages of branding.
Q.NO.2.
Describe the international marketentry strategiesinbrief.
 Joint ventures
 Strategic alliances
 Direct investment
 Contract manufacturing
 Franchising
ANS.
Jointventures
A joint venture is a strategic alliance where two or more parties, usually businesses, form a
partnership to share markets, intellectual property, assets, knowledge, and profits. A joint
venture differs from a merger, in the sense that there is no transfer of ownership in the deal.
For example, Best Price Modern Wholesale is a joint venture between Wal- Mart and Bharti
Enterprises. American retail giant Wal-Mart chose this route to enter the Indian market.
Strategicalliances
Q.NO.3
Explain the classification of market based on nature of Competition and area.
 Definition of market
 Classification of market based on nature of Competition and area
ANS.
Definition of market
A ‘market’ can be defined as a group of customers who exhibit similar needs and have the
ability to satisfy those needs. Market can also be defined in terms of the benefits sought by the
customer, not in terms of particular products or technical specifications. In this unit, we will

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discuss ways in which the marketing strategists can enhance their product or service position in
the mind of the targeted customer.
Classification of market based on nature of Competition and area
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Q.NO.4.
Personal selling focuses in on ‘personal’ or ‘one to one’ selling. It involves an individual salesman or a
sales team establishing and building a profitable relationship with customers over a period of time
through a seriesof steps.Explainthe stepsin the personal sellingprocesswhich helpsinthe successful
sales.
 Definition of Personal Selling
 Explanation of steps in the Personal selling process
ANS.
Definition of Personal Selling
Personal selling is an activity which involves a face-to-face interaction with the customers
wherein there is a quick response and personal confrontation. This allows for more specific
adjustment of the message. Here, the communication message can be adjusted as per the
customer’s specific needs or wants. It offers you the opportunity to develop long-term
familiarity and relationship.
Explanation of steps in the Personal selling process
Q.NO.5.
List out the various methods of pricing and explain the product mix pricing strategies in detail with
examples.
 Define pricing
 List of Various methods of pricing
 product mix pricing strategies with examples
ANS.
Define pricing
In the previous unit we studied the important concepts of product management. We discussed
how brand equity, brand name selection, brand sponsorship, and brand positioning affects the
product management and how brand development process is carried out. We, as a consumer,
pay a particular price for any product that we purchase. We buy different products at different
prices. Our buying pattern to a large extent depends upon the price range of the product or
service we intend to purchase.
List of Various methods of pricing

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Q.NO.6.
Do you think the argumentof some theoriststhat the traditional Ps are not enoughfor services
marketing?Give suitable examplestoprove your point.
 Define Service Marketing
 Explanation of4p’s
 Explanation ofAdditional 3 p’s
ANS.
Define Service Marketing
Service sector is one of the key contributing factors for the growth of our economy and
civilisation. Though marketing literature is dominated by manufacturing and product-centric
business practices, service marketing constitutes a strategic area, which has propelled growth
and success for many organisations. Pure services and products are hypothetical extremes
as every product today is associated with some level of service. Alternatively, physical
evidences are created for augmenting services and reducing customer’s perception of risk.
Explanationof 4p’s
MB0047 – MANAGEMENT INFORMATION SYSTEM
DRIVE: SUMMER 2014
MBA– (SEM 2)
Q.NO.1.
In the current e-worldany organisation’s massive operations are managed by various typesof
informationsystemsthat helpthem to achieve theirgoals of servicingtheirclients.This can be done
by the growth of modernorganization. Discuss some of the essential featuresofmodernorganisation.
 Listing the features
 Explainingeach of themin brief
ANS.
Listing the features
1. Statement of values
2. Code of conduct
3. Example of senior executives

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Q.NO.2.
Marketingmanagers are keenertolook for a least cost route that alsoallow a salespersonto meetall
his customers.Identifyingaleast cost route with this featuresisslightlycomplicated.Therefore,
managers dependondecisionsupport toolsto findthe mostcost effective routestocover the market.
The travellingsalesmanproblemisone of such tool. Describe the tool with a diagram.
 Graphical representationof Travellingsalesmanproblem
 Describingthe problem
ANS.
Graphical representationofTravellingsalesmanproblem
TSP can be modelled as an undirected weighted graph, such that cities are the graph's vertices,
paths are the graph's edges, and a path's distance is the edge's length. It is a minimization
problem starting and finishing at a specified vertex after having visited each other vertex exactly
once. Often, the model is a complete graph (i.e. each pair of vertices is connected by an edge).
If no path exists between two cities, adding an arbitrarily long edge will complete the graph
without affecting the optimal tour.
Q.NO.3
There are many examplesofdigital goods. Companies such as Amazon.com are selling digital versions
of books overtheir site. These digital books can be read on special readers that display the pages on a
screen.
a. List the important properties of information goods
b. Explain positive feedback with diagrams
 Listing the properties
 Two diagrams
 Explanation on positive feedback
ANS.
Listing the properties
Information good in economics and law is a type commodity whose main market value is
derived from the information it contains.
Q.NO.4.
Decision support systems (DSS) are used extensively across organisations to assist managers with
making decisions. Decision making by managers involves the phases of intelligence, design, and
choice,and DSS helpmainly with the choice part as they support structured and unstructured types of
decisions.
a. What is it that managers do when they make decisions?

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b. Explain the different types of decisions
 Explaining decision making process
 List and describing the different types of decisions
ANS.
Explaining decision making process
Before making a decision managers spend a lot of time and effort in gathering and analysing information.
Decision Support Systems (DSSs) were created to assist managers in the task of data gathering and
analysing.
Q.NO.5.
What is crowdsourcing? How does the site Galaxy Zoo manage crowdsourcing?
 Crowdsourcing definition
 Explaining site Galaxy Zoo management
ANS.
Crowdsourcing definition
Crowdsourcing is the process of obtaining needed services, ideas, or content by soliciting
contributions from a large group of people, and especially from an online community, rather than
from traditional employees or suppliers.This process is often used to subdivide tedious work or
to fund-raise startup companies and charities,
Q.NO.6.
Data and informationrelatingto individualscouldbe ofsensitive nature.Give some examplesofsuch
kind of data
Explainingfive examples
ANS.
Explainingfive examples
Information relating to individuals, called ‘personal data’, is collected and used in many aspects
of everyday life. An individual gives personal data when he/she, for example, registers for a
library card, signs up for gym membership, opens a bank account, etc. Personal data can be
collected directly from the individual or from existing data base.

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MB0048 OPERATIONS RESEARCH
DRIVE: SUMMER 2014
MBA– (SEM 2)
Q.NO.1.
Discuss the various stages involvedinthe methodologyofOperations Research.Brieflyexplainthe
techniquesand toolsof OperationsResearch.
 OperationsResearch Methodology
 Techniquesand toolsof Operations Research
ANS.
Operations Research Methodology:
The firstand the most importantstepinthe OR approach of problemsolvingistodefinethe problem.
One needstoensure thatthe problemisidentifiedproperlybecause thisproblemstatementwill
indicate the followingthree majoraspects:
Q.NO.2.
Explainthe stepsinvolvedinlinearprogramming problemformulationwithan example.Discussin
briefthe advantagesof linearprogramming.
StepsinvolvedinLPP
Example
Advantagesof LPP
ANS.
Steps involved in LPP
STEP1: Study the given situation to find the key decisions to be made.
STEP2: Identify the variables involved and designate them by symbols Xj (j=1,2…)
STEP3: State the feasible alternatives which generally are : Xj >= 0, for all j.
Q.NO.3
a. What is degeneracy in transportation problem? How it can be resolved?
b. Solve the following transportation problem using Vogel’s approximation method.
Factories Distribution Centres Supply
C1 C2 C3 C4
F1 3 2 7 6 50

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F2 7 5 2 3 60
F3 2 5 4 5 25
Requirements 60 40 20 15
 Degeneracy in transportation problem and resolving it
 Computation/Solution to the problem
ANS.
Degeneracy in transportation problem and resolving it:
A basic solution to an m-origin, n destination transportation problem can have at the most m+n-
1 positive basic variables (non-zero), otherwise the basic solution degenerates. It follows that
whenever the number of basic cells is less than m + n – 1, the transportation problem is a
degenerate one. The degeneracy can develop in two ways:
Q.NO.4.
a. Explain the steps in Hungarian method. Differentiate between Transportation and Assignment
problem.
b. Find the optimal assignmentoffour jobs and four machineswhenthe cost of assignmentis given by
the following table:
J1 J2 J3 J4
M1 10 9 8 7
M2 3 4 5 6
M3 2 1 1 2
M4 4 3 5 6
 Steps in Hungarian method
 Differences between Transportation and Assignment problem
 Computation/Solution to the problem
ANS.
Steps in Hungarian method.
The followingstepsare adoptedtosolve an APusingthe Hungarianmethodalgorithm.
Step 1: Prepare row ruledmatrix byselectingthe minimumvaluesforeachrow andsubtract it fromthe
otherelementsof the row.
Q.NO.5.
Define Simulation. Explain the Simulation procedure. Discuss the use of Simulation with an example.
 Meaning of Simulation
 Simulation procedure
 Use of simulation with an example
ANS.

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Meaning of Simulation:
Simulationisanumerical technique forconductingexperimentsthatinvolve certaintypesof
mathematical andlogical relationshipsnecessarytodescribe the behaviorandstructure of a complex
real worldsystemoveranextendedperiodof time.Inotherwords,itisa quantitative techniquethat
utilisesacomputerisedmathematical model inordertorepresentactual decisionmakingunder
conditionsof uncertaintyforevaluatingalternative coursesof actionbaseduponfactsandassumptions.
Simulation procedure:
Q.NO.6.
Explainthe following:
a. Integerprogramming model
b. PERT and CPM
c. OperatingCharacteristicsof a QueuingSystem
ANS.
Explanation of Integer programming model:
The IPP is a special case of Linear Programming Problem (LPP), where all or some variables
are constrained to assume non-negative integer values. In LPP, the decision variables as well
as slack or surplus variables were allowed to take any real or fractional value.
MB0049 - PROJECT MANAGEMENT
DRIVE: SUMMER 2014
MBA– (SEM 2)
Q.NO.1.
There cannot be a single ideal structure for all organisationsas differentorganisations have different
size,environment,resources,technologies,andgoals. There are many differentwaysin whichpeople
can be organisedto work on projects.Explaininbrief the concept of organisational structure.
 Briefexplanationfollowingorganisationstructures, advantages, disadvantagesand examples
for each type ofstructure
ANS.
Briefexplanationfollowingorganisationstructures, advantages, disadvantagesand examplesfor each
type ofstructure

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There cannot be a single ideal structure for all organisations as different organisations have
different size, environment, resources, technologies, and goals. There are many different ways
in which people can be organised to work on projects.
Q.NO.2.
Write short noteson:
Work Breakdown Structure(WBS)
Rulesfor network construction
Risk retention
Emergingmethodsof communication
ANS.
Work Breakdown Structure(WBS)
The project’s Work Breakdown Structure (WBS) provides the relationship among all the
components of the project and the project deliverables.
Rulesfor network construction
1. Each event must have a distinct number. The number specified to an event can be chosen in
any way, provided this condition is fulfilled.
Q.NO.3
Purchase cycle is a standard process that corporations and individuals progress through (in order)
when purchasing a product or service. It is also known as the 'buying cycle' or 'purchase process'.
Explain the elements of the purchase cycle of a project.
 Elements of the purchase cycle
 Conclusion
ANS.
Elements of the purchase cycle
Purchase cycle is a standard process that corporations and individuals progress through (in
order) when purchasing a product or service. It is also known as the 'buying cycle' or 'purchase
process'. This cycle discusses about the decision points that the buyer or the purchasing team
goes through. Usually, purchase cycle of a project consists of the following
elements.
Indent goods
Q.NO.4.
Write a note on Earned Value Method (EVM)

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 EVM explanation
 Parameters to calculate performance measures
 Plot of BCWS versus time
 Plots BCWS, ACWP, and BCWP for a typical project
ANS.
EVM explanation
The Earned Value Method (EVM) is a useful tool that allows the calculations
of cost and schedule performance measures including cost variance,
schedule variance, cost and time over-runs for a project.
Parameters to calculate performance measures
Q.NO.5.
What are the common features available in PM software packages?
 Common features available in PM
 Conclusion
ANS.
Common features available in PM

Project data and calendar: A project start date is specified. A calendar can be used to define
the working days and hours for each individual resource on a project. The calendar is used in
calculating the schedule for the project.
Q.NO.6.
A project shouldearn sufficientreturn on the investment.The very ideaof promotinga projectby an
entrepreneuristo earn attractive returns on investmentonthe project.
If there are many alternative projects,all of which, at first sight,appear to be more or lessequal in
profitearning capacity, the investorshouldmake a comparative study of the return on the different
alternative proposalsbefore choosingone.Such financial analysis broadly fallsundertwo categories.
They are:
No discountedcash flowtechniques
Discountedcash flowtechniques
Explainthe subdivisionswithinthe above two categories.
 Explanation ofsubdivisionsofNo discountedcash flow techniques
 Explanation ofsubdivisionsofdiscountedcash flow techniques
ANS.

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In finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or
asset using the concepts of the time value of money. All future cash flows are estimated and
discounted to give their present values (PVs)—the sum of all future cash flows, both incoming
and outgoing, is the net present value (NPV), which is taken as the value or price of the cash
flows in question.

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