THE BMZ ACADEMY
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213Page 1 of 42
, THE BMZ ACADEMY
Table of Contents
Question 1[42 marks] .................................................................................................... 5
1.1. By globalising, organisations considerably change their physical environment, the task
environment, and the social environment. Explain the social environment of a globalising
organisation. (2) ............................................................................................................ 5
1.2. Describe the difference between prevention, appraisal, and failure (PAF) costs. (3) ..... 5
1.3. Briefly explain the various forms of this power. (5) ..................................................... 7
1.4. A guarantee takes into account customer rights and promotes the confidence about the
purchase of the product. Discuss the conditions that a guarantee should adhere to. (5) ..... 9
1.5. The CEO of your company asked you to explain “service blueprinting” to the board of
directors. Write a short report on this topic. (4) .............................................................. 10
Core Elements of a Service Blueprint ............................................................................ 11
Benefits and Strategic Value ........................................................................................ 12
1.6. The third step in the product development process includes a technology feasibility
statement. What issues does the technology feasibility statement assess? (5) ................ 14
Necessary Parameters for Performance ........................................................................ 15
Manufacturing Imperatives .......................................................................................... 15
Limitations in the Physics of Materials .......................................................................... 15
Special Considerations and Constraints ....................................................................... 15
BMZ ACADEMY 061 262 1185/068 053 8213Page 2 of 42
, THE BMZ ACADEMY
Changes in Manufacturing Technologies and Quality Conditions .................................... 15
1.7. Briefly explain Garvin’s five definitions of quality. (5)] ............................................... 16
Transcendent Definition .............................................................................................. 16
Product-Based Definition ............................................................................................ 16
User-Based Definition ................................................................................................. 16
Manufacturing-Based Definition................................................................................... 16
Value-Based Definition ................................................................................................ 16
1.8. Distinguish between services and manufactured goods. (5) ..................................... 17
Intangibility................................................................................................................. 17
Heterogeneity (Inconsistency)...................................................................................... 17
Customer Contact and Co-Production ......................................................................... 17
Simultaneity of Production and Consumption ............................................................... 17
Liability and Professional Standards ............................................................................. 18
1.9. Discuss any five of the most commonly benchmarked performance measures. (5) ... 18
Financial Ratios .......................................................................................................... 19
Productivity Ratios ...................................................................................................... 19
Customer-Related Results........................................................................................... 19
Quality Measures ........................................................................................................ 19
BMZ ACADEMY 061 262 1185/068 053 8213Page 3 of 42
, THE BMZ ACADEMY
Market Share Data ...................................................................................................... 20
1.10. Briefly discuss the first three building blocks for a system of quality improvement. (3)
.................................................................................................................................. 20
People........................................................................................................................ 20
(Leadership) Organizational Learning and Knowledge .................................................... 21
Culture ....................................................................................................................... 21
Question 2 [28 marks] ................................................................................................. 22
2.1 Draw a Pareto chart and point out how it reflects the 80/20 principle. (4) ................... 22
2.2 Consider a single sampling plan with n = 50 and c = 3. .............................................. 25
(a) Construct an OC curve for this sampling plan. (4) ..................................................... 25
(b) Suppose that AQL = 2%. Determine the producer’s risk. ............................................ 27
2.3 Construct a histogram in order to present the quality manager of Luigi Bikes Inc. with a
graphical representation of the data. (4)........................................................................ 27
2.4 Calculate the control limits for an xchart, based on the range. (5) .............................. 29
2.5 Determine the reliability of the system .................................................................... 34
2.6 The control limits for a p chart ................................................................................ 35
References ................................................................................................................. 37
BMZ ACADEMY 061 262 1185/068 053 8213Page 4 of 42
THE BMZ ACADEMY
@061 262 1185/068 053 8213
BMZ ACADEMY 061 262 1185/068 053 8213Page 1 of 42
, THE BMZ ACADEMY
Table of Contents
Question 1[42 marks] .................................................................................................... 5
1.1. By globalising, organisations considerably change their physical environment, the task
environment, and the social environment. Explain the social environment of a globalising
organisation. (2) ............................................................................................................ 5
1.2. Describe the difference between prevention, appraisal, and failure (PAF) costs. (3) ..... 5
1.3. Briefly explain the various forms of this power. (5) ..................................................... 7
1.4. A guarantee takes into account customer rights and promotes the confidence about the
purchase of the product. Discuss the conditions that a guarantee should adhere to. (5) ..... 9
1.5. The CEO of your company asked you to explain “service blueprinting” to the board of
directors. Write a short report on this topic. (4) .............................................................. 10
Core Elements of a Service Blueprint ............................................................................ 11
Benefits and Strategic Value ........................................................................................ 12
1.6. The third step in the product development process includes a technology feasibility
statement. What issues does the technology feasibility statement assess? (5) ................ 14
Necessary Parameters for Performance ........................................................................ 15
Manufacturing Imperatives .......................................................................................... 15
Limitations in the Physics of Materials .......................................................................... 15
Special Considerations and Constraints ....................................................................... 15
BMZ ACADEMY 061 262 1185/068 053 8213Page 2 of 42
, THE BMZ ACADEMY
Changes in Manufacturing Technologies and Quality Conditions .................................... 15
1.7. Briefly explain Garvin’s five definitions of quality. (5)] ............................................... 16
Transcendent Definition .............................................................................................. 16
Product-Based Definition ............................................................................................ 16
User-Based Definition ................................................................................................. 16
Manufacturing-Based Definition................................................................................... 16
Value-Based Definition ................................................................................................ 16
1.8. Distinguish between services and manufactured goods. (5) ..................................... 17
Intangibility................................................................................................................. 17
Heterogeneity (Inconsistency)...................................................................................... 17
Customer Contact and Co-Production ......................................................................... 17
Simultaneity of Production and Consumption ............................................................... 17
Liability and Professional Standards ............................................................................. 18
1.9. Discuss any five of the most commonly benchmarked performance measures. (5) ... 18
Financial Ratios .......................................................................................................... 19
Productivity Ratios ...................................................................................................... 19
Customer-Related Results........................................................................................... 19
Quality Measures ........................................................................................................ 19
BMZ ACADEMY 061 262 1185/068 053 8213Page 3 of 42
, THE BMZ ACADEMY
Market Share Data ...................................................................................................... 20
1.10. Briefly discuss the first three building blocks for a system of quality improvement. (3)
.................................................................................................................................. 20
People........................................................................................................................ 20
(Leadership) Organizational Learning and Knowledge .................................................... 21
Culture ....................................................................................................................... 21
Question 2 [28 marks] ................................................................................................. 22
2.1 Draw a Pareto chart and point out how it reflects the 80/20 principle. (4) ................... 22
2.2 Consider a single sampling plan with n = 50 and c = 3. .............................................. 25
(a) Construct an OC curve for this sampling plan. (4) ..................................................... 25
(b) Suppose that AQL = 2%. Determine the producer’s risk. ............................................ 27
2.3 Construct a histogram in order to present the quality manager of Luigi Bikes Inc. with a
graphical representation of the data. (4)........................................................................ 27
2.4 Calculate the control limits for an xchart, based on the range. (5) .............................. 29
2.5 Determine the reliability of the system .................................................................... 34
2.6 The control limits for a p chart ................................................................................ 35
References ................................................................................................................. 37
BMZ ACADEMY 061 262 1185/068 053 8213Page 4 of 42
