Q.1 What is Mutual Fund? Discuss the advantages of mutual funds.

Mutual Fund & Its Advantages

Definition: As per SEBI (MF) Regulation 1996, a mutual fund is a trust that raises money from the
public through various schemes and invests in securities like stocks, bonds, and money market
instruments.
Meaning: A mutual fund pools investors' money and is managed by professional fund managers. The
income generated is shared among unit holders, and the fund's performance is measured by Net
Asset Value (NAV).
History in India:
1963: Unit Trust of India (UTI) was the first mutual fund.
1990s: Public sector banks and private firms were allowed to enter.
1996: SEBI introduced new regulations.
Now: Governed by SEBI, with multiple mutual fund companies like HDFC, SBI, and Reliance.
Advantages of Mutual Funds:
Professional Management: Managed by experts who conduct research before investing.
Diversification: Investment in various securities reduces risk.
Liquidity: Easy to buy/sell units whenever needed.
Choice of Schemes: Various schemes to suit different investment goals.
Convenience & Flexibility: Simple investment process with switching options.
Safety: Regulated by SEBI, ensuring transparency and investor protection.

Q.1 What is Production Management? What are its objectives?

Production Management & Its Objectives
Definition: Production management involves decision-making related to the production process to
ensure goods and services are produced as per specifications, in the required quantity, on schedule,
and at minimal cost.
Objectives of Production Management:
Improve Quality: Ensure high-quality products using techniques like ISO certification, TQM, Six
Sigma, etc.
Reduce Cost: Minimize production costs by producing in bulk and controlling expenses.
Ensure Regular Supply: Maintain the right production volume to avoid surplus or shortage.
Face Competition: Gain a competitive edge by delivering the right product at the right time, price,
and quality.
Achieve Organizational Goals: Contribute to revenue growth, profit increase, market share
expansion, and corporate image enhancement.
Other Objectives:
Higher returns for shareholders
Customer satisfaction
Employee motivation
Business expansion

Q.9 Explain the techniques of Inventory Control/Management.

Ans. Some of the techniques of inventory control are as under.
1. Cardex file 2. ABC (Always Better Control) analysis
3. MAPICS (Manufacturing, Accounting and Production Information Control System) 4. Economic
Order Quantity (EOQ) 5. JIT (Just In Time) 6. High, Medium and Law(HML) 7. Vital, Essential and
Desirable (VED) 8. Fast moving, Slow moving and Non-moving classification (FSN) 9. Material
Requirement Planning (MRP)
Q.1 What is quality? Explain its dimensions.
Quality & Its Dimensions
Concept of Quality:
Joseph Juran: "Fitness for use."
Philip Crosby: "Conformance to requirements."
Johan Bank: "Fully satisfying customer requirements at the lowest cost."
Dimensions of Quality:
Performance: Primary function of a product (e.g., TV’s picture and sound quality).
Features: Additional characteristics enhancing the product (e.g., CD player in a car).
Reliability: Dependability over time, ensuring fewer breakdowns.
Conformance: Adherence to design and operational standards.
Durability: Product lifespan and resistance to wear and tear.
Serviceability: Ease of maintenance, repairs, and customer support.
Aesthetics: Visual appeal, feel, sound, and overall sensory impact.

Q.4 What is Total Quality Management (TQM)? Explain its importance

Total Quality Management (TQM) & Its Importance
Definition:
“TQM represents a customer-oriented, quality-focused management philosophy.” – Prof. K.K.
Chaudhari
Meaning:
TQM is a management approach focused on continuous quality improvement across all business
processes. Introduced by W.E. Deming, it ensures customer satisfaction through efficient
management practices.
Principles of TQM:
Prevention: Focus on avoiding defects rather than fixing them.
Zero Defects: Aim for no or minimal defects.
Getting it Right First Time: Avoid defective production.
Quality Involves Everyone: All departments contribute to quality.
Continuous Improvement: Regularly enhance processes.
Employee Involvement: Workers help identify quality improvements.
Importance of TQM:
Customer Satisfaction: Ensures high-quality products at reasonable prices.
Competitive Advantage: Helps produce quality goods at lower costs.
Goodwill: Builds a strong market reputation over time.
Better Employee Performance: Leads to improved work conditions and motivation.
Lower Rejection Rate: Reduces waste and associated costs.
Expansion & Diversification: Higher profits enable business growth.

Q.5 Discuss the process involved in Six Sigma.

Six Sigma Process
Meaning:
Six Sigma is a quality management approach developed by Motorola in 1986. It aims to eliminate
defects by improving processes, using statistical methods, and involving trained experts (Black Belts,
Green Belts, etc.). It ensures 99.99966% defect-free production (only 3 defects per million).
DMAIC Methodology in Six Sigma:
Define Phase:
Form project team.
Identify customer needs.
Develop project charter.
Create SIPOC (Suppliers, Inputs, Process, Outputs, Customers) process map.
1. Measure Phase:
Collect data on current performance.
Analyze data to calculate defects.
Use FMEA (Failure Mode and Effect Analysis) to predict and prevent defects.
2. Analyze Phase:
Source Analysis: Identify root causes of defects.
Process Analysis: Map out defect-prone areas.
Resource Analysis: Improve training & materials.
Communication Analysis: Fix internal/external communication gaps.
3. Improve Phase:
Test solutions to eliminate defects.
Enhance processes for future defect prevention.
4. Control Phase:
Maintain quality using control charts, process monitoring, and standardization.
Ensure sustained process improvements.

Q.6 Explain the procedure involved in obtaining ISO 9000 certification.

Procedure for Obtaining ISO 9000 Certification
Introduction:
ISO (International Organization for Standardization) is a global body based in Geneva, Switzerland,
that sets international quality standards. BIS (Bureau of Indian Standards) represents India in ISO.
ISO 9000:
It is a quality management system ensuring consistent product quality. Companies following ISO
9000 standards can obtain ISO 9001 certification, proving compliance with quality norms.
Certification Process:
1. Evaluation of Existing Quality Procedures:
Assess current quality processes within the organization.
2. Taking Corrective Actions:
Fix any deficiencies to meet ISO standards.
3. Preparation of Quality Manual:
Create a Quality Policy Manual outlining procedures for purchasing, inventory, repairs, packing, etc.
4. Selection of Certification Agency:
Choose an accredited agency to conduct the ISO audit.
5. Pre-Assessment Meeting:
Review documents and requirements before the audit.
6. Audit Visit:
Certification agency inspects compliance with ISO standards.
7. Certification:
If all requirements are met, the company receives ISO 9001 certification (valid for 3 years).
1. Cost of Quality
o It refers to the total cost incurred in ensuring that a product or service meets quality
standards.
o It includes four components:
1. Prevention costs – Costs of activities to prevent defects (e.g., training, quality improvement
programs).
2. Appraisal costs – Costs of measuring and monitoring quality (e.g., inspections, testing).
3. Internal failure costs – Costs due to defects found before delivery (e.g., rework, scrap).
4. External failure costs – Costs due to defects found after delivery (e.g., warranty claims,
returns).
2. Routing and Scheduling
o Routing: It determines the path or sequence of operations for manufacturing a product. It
helps in optimizing resource utilization and reducing production time.
o Scheduling: It involves planning the time frame for different production tasks to ensure
timely completion. Proper scheduling improves efficiency and minimizes delays.
3. Speculators
o Speculators are traders or investors who buy and sell financial assets (such as stocks,
commodities, or currencies) with the goal of making short-term profits from price
fluctuations.
o They take higher risks but contribute to market liquidity. There are different types of
speculators:
1. Bull speculators – Expect prices to rise and buy assets.
2. Bear speculators – Expect prices to fall and sell assets.
3. Stag speculators – Invest in new issues expecting quick profits.
4. Systematic Investment Plan (SIP)
o SIP is a disciplined way of investing in mutual funds by contributing a fixed amount at
regular intervals (monthly, quarterly, etc.).
o Benefits of SIP:
1. Encourages savings and financial discipline.
2. Reduces risk through rupee-cost averaging.
3. Allows compounding benefits over time.
5. Sources of Funding a Start-up
Start-ups require funding to develop their products, expand operations, and sustain business
growth. Some common sources of funding include:
1. Bootstrapping – Using personal savings or revenue generated from the business.
2. Angel Investors – Wealthy individuals who provide early-stage funding.
3. Venture Capital – Investment firms that provide capital in exchange for equity.
4. Bank Loans – Traditional financing through banks or financial institutions.
5. Crowdfunding – Raising small amounts from a large number of people via online platforms.
6. Government Grants and Schemes – Support from government initiatives for start-ups.
[Link] Sigma Process
Six Sigma is a quality management methodology aimed at reducing defects and improving.
It follows the DMAIC process:
1. Define – Identify the problem and project goals.
2. Measure – Collect data and analyze current performance.
3. Analyze – Identify the root causes of defects.
4. Improve – Implement solutions to eliminate defects.
5. Control – Maintain improvements through monitoring and standardization.