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December 2025Q. 1(a)10 marksSyllabus 2022
Case Study :
(a)Ace Motors Ltd., a leading automobile manufacturer, faced growing competition from global players in the early 2000s. With rising customer expectations for quality and efficiency, the management decided to implement Total Quality Management (TQM) as a strategic approach to improve processes, reduce waste and increase customer satisfaction.
TQM Implementation Steps :
(1)Top Management Commitment :
CEO initiated TQM as a company-wide movement. Clear communication of quality goals across departments.
(2)Customer Focus :
Feedback systems were improved.
Regular customer satisfaction surveys were conducted.
(3)Employee Involvement :
Quality Circles were established across all production lines. Employees received Six Sigma and Kaizen training.
(4)Continuous Improvement (Kaizen) : Introduction of lean practices.
Waste reduction initiatives saved ₹ 150 crores in the first two years.
(5)Use of Quality Tools :
Statistical Process Control (SPC), Pareto Analysis and Fishbone Diagrams used regularly.
ISO 9001 and ISO/TS 16949 certifications obtained.
(6)Supplier Quality Management :
Long-term partnerships with key vendors.
Supplier audits and joint training sessions conducted.
Outcomes After 3 Years :
•Defect rate reduced by 65%
•Production lead time decreased by 20%
•Customer satisfaction score increased from 78% to 91%
•Cost savings of ₹ 320 crores over 3 years Based on the above case study, answer the following questions :
(i)In context with the Ace Motors Ltd., what is Total Quality Management (TQM) ? Explain any four key principles followed by the company.
(ii)Mention any four major areas of focus for continuous improvement through Total Quality Management (TQM) used by Ace Motors Ltd. ?
(iii)What tools did Ace Motors use under its TQM program and also mention two benefits and two challenges Ace Motors faced during TQM implementation.
(i)
TQM is a management philosophy that views an organization as a collection of processes such as marketing, finance, design, engineering, and production, customer service, etc. thereby, focusing on meeting customer needs and organizational objectives. The simple objective of TQM is “Do the right things, right the first time, every time.”
American Society for Quality Control (ASQC) defines Total Quality Management (TQM) as “a management approach to long-term success through customer satisfaction. TQM is based on the participation of all members of an organization to improving processes, products, services, and the culture they work in. TQM benefits all organization members and society.
Key Principles of TQM followed by Ace Motors Limited
1.Customer-focused
The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement – training employees, integrating quality into the design process, upgrading computers or software, or buying new measuring tools – the customer determines whether the efforts were worthwhile.
2.Total Employee Involvement
All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when empowerment has occurred, and management has provided the proper environment. High-performance work systems integrate continuous improvement efforts with normal business operations. Selfmanaged work teams are one form of empowerment.
3.Strategic and Systematic Approach
A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission, and goals. This process, called strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a core component.
4.Continual Improvement
A major thrust of TQM is continual process improvement. Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective at meeting stakeholder expectations.
(ii)
Continuous improvement through TQM must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The four major areas of focus for capability improvement used by Ace Motors Ltd. are:
•Demand Generation - by improving the feedback systems and conducting the customer satisfaction surveys.
•Supply generation- by establishing long term partnerships with key vendors and conducting of supplier audits and joint training sessions.
•Operations- by initiating TQM as company-wide movements and communicating the quality goals across departments clearly
•People capability- by providing Six Sigma and Kaizen training to its employees.
(iii)
Tools used by Ace Motors Limited under its TQM program
•Statistical Process Control (SPC) – to monitor and control quality.
•Pareto Analysis – to identify major problem areas.
•Cause and Effect (Fishbone) Diagrams – to analyse root causes.
•ISO 9001 & TS 16949 certifications – to align with international standards.
Benefits of TQM implementation
•Reduction in defect rates by 65%
•Increased customer satisfaction from 78% to 91%
Challenges faced by Company during TQM implementation
•Resistance to change among employees initially.
•High initial cost of training and systems integration.
Source: ICSI Guideline Answers, December 2025, Q. 1(a) (Syllabus 2022).
June 2025Q. 1(b)10 marksSyllabus 2022
1.Case Study :
(b)Manmeet Motor Company (MMC) was started in 1984 to manufacture and sell motorcars across India and the globe. Manmeet Motor Company’s Total Quality Management (TQM) practices started in 1986. Mr. Arvind Singh, the founder of MMC had given the slogan “Quality is our Top Priority” which laid the foundation for implementation of TQM within MMC. Mr. Avadesh Singh took over as the new Managing Director of MMC in 2024.
Total Quality Management at MMC :
Quality has been a pioneering element in the success of MMC since its foundation. During the initial years, MMC’s business was impacted by global tariffs on automobile spare parts which led to an increase in the cost of production for MMC and a subsequent decline in its margins. To combat this situation, Mr. Arvind initiated the TQM movement across MMC. The results of this movement were stunning at MMC. After racking up ₹ 3 crore in losses from 1984 to 1986, MMC started trial runs to manufacture the spare parts in-house to reduce the cost of production. By 1989, on completion of three years after the implementation of TQM principles in its value chain, MMC had turned into the most profitable company in the automobile segment with margin percentages beating the industry standards considerably.
Current Developments at MMC :
A series of setbacks are tarnishing MMC’s hard-won reputation for quality. There has been a media controversy over substantial environmental degradation due to the in-house production of spare parts. Further, the recent customer survey also revealed that the customer satisfaction index proved to be below industry standards, which was detrimental to MMC’s reputation. In light of these developments, Mr. Avadesh attended a symposium at NYU Stern on the success of Six Sigma implementation in mature enterprises. He was impressed by the ideology and felt its relevance for MMC. On his return to India, he asked Ms.
Nivedita, his Executive Assistant to schedule a roundtable of all the Senior Executives of MMC to deliberate on the Six Sigma implementation in MMC. Ms. Nivedita is a recently qualified management graduate from the Indian Institute of Management Bangalore and has joined as an Executive Assistant to Mr. Avadesh at MMC. Considering her recent academic stint, Mr. Avadesh has specifically asked her to present her views in the roundtable.
Required :
(i)Assuming yourself as Mr. Avadesh, explain the principles of TQM to the senior executives that led to the success of TQM at MMC.
(ii)Assuming yourself as Mr. Rolston, a Senior Vice President and a member of the roundtable, state the reasons that necessitate the adoption of Six Sigma at MMC.
(iii)Assuming yourself as Ms. Nivedita, brief the members of the roundtable on the steps involved in the implementation of Six Sigma using the DMAIC approach.
(i)
The following are the principles of Total Quality Management (TQM) that led to its success at Manmeet Motor Company (MMC):
a)Customer-Focused Approach : The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement, training employees, integrating quality into the design process, upgrading computers or software, or buying new measuring tools, the customer determines whether the efforts are worthwhile.
b)Total Employee Involvement : All employees participate in working towards common goals. Total employee commitment can only be obtained after fear has been driven from the workplace when empowerment has occurred, and management has provided the proper environment. High-performance work systems integrate continuous improvement efforts with normal business operations. Self-managed work teams are one form of empowerment.
c)Process-centered Approach : A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transform them into outputs that are delivered to customers (again either internal or external). The steps required to carry out the process are defined and performance measures are continuously monitored to detect unexpected variation.
d)Integrated Systems : Although an organization may consist of many different functional specialties often organized vertically structured departments, it is the horizontal processes interconnecting these functions that are the focus of TQM.
e)Strategic and Systematic Approach : A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission and goals. This process, called strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a core component.
f)Training and Education: This approach is utmost important in determining the success of Total quality management. Employees should receive formal, systematic quality management induction and training. Education and training programs ought to be organised for the purpose.
g)Continual Improvement: A major thrust of TQM is continual process improvement. Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective at meeting stakeholder expectations.
h)Fact-based Decision Making: In order to know how well an organization is performing, data on performance measures are necessary. TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history. • Communications During times of organizational change, as well as part of day-to-day operation, effective communications play a large part in maintaining morale and in motivating employees at all levels. Communications involve strategies, method, and timeliness.
(ii)
With the budding costs cost of resources and rise in other factors such as competition, the organizations are forced to look around for alternative methods which add to efficiency. Adoption of Six Sigma methodology helps in improving efficiency in any organization as it meticulously identifies defects and minimizes the variations within a process. This is because, each Six Sigma project is supposed to follow a defined sequence of steps and includes specific improvement targets. The reasons for adoption of Six Sigma at Manmeet Motor Company are:
a)Decrease in process cycle time.
b)Decrease of scrap generated by a process.
c)Growing customer satisfaction.
d)Decline in the number of factory defects.
e)Decrease or elimination of costly reworks
f)Cost Reduction
g)Quality Improvement
h)Improved Customer Satisfaction
i)Take steps to lower the environmental impact due to in-house production of spare parts
(iii)
Steps involved in the implementation of Six Sigma using the DMAIC approach at MMC are as under:
•Define the problem statement process goals in terms of key critical parameters on the basis of customer requirements or Voice Of Customer (VOC) and setting project boundaries.;
•Measure a complete picture of the current state of the process and establishes a baseline through measurement of the existing system in context of goals and collecting the data regarding possible causal factors.
•Analyze the current scenario in terms of causes of variations and defects and determining the root cause.
•Improve the process by systematically reducing variation and eliminating defects and root causes.
•Control the future performance of the process and support and maintain the gains realized.
Source: ICSI Guideline Answers, June 2025, Q. 1(b) (Syllabus 2022).
December 2024Q. 84 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public is known as :
(A)TQM
(B)Stress management
(C)Crisis management
(D)None of the above
Answer: (C) Crisis management
Source: ICSI Guideline Answers (answer key), December 2024, Q. 84 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 87 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The approach of setting goals and measuring productivity of firms based on best industry practices or against the products, services and practices of its competitors or other acknowledged leaders in the industry is called ..................
(A)Benchmarking
(B)TQM
(C)Six Sigma Approach
(D)Quality Marking
Answer: (A) Benchmarking
Source: ICSI Guideline Answers (answer key), December 2024, Q. 87 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 98 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a key feature of Total Quality Management ?
(A)Continuous improvement
(B)Establishing clear specifications
(C)Identifying customers and their needs
(D)Teamwork, trust and empowerment
Answer: (B) Establishing clear specifications
Source: ICSI Guideline Answers (answer key), December 2024, Q. 98 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 99 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
What is six-sigma risk/return level ?
(A)High-Low
(B)Medium-High
(C)Low-Low
(D)High-High
Answer: (B) Medium-High
Source: ICSI Guideline Answers (answer key), December 2024, Q. 99 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 98 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a key feature of Total Quality Management ?
(A)Continuous improvement
(B)Identifying customers and their needs
(C)Situation based decisions
(D)System approach to management
Answer: (C) Situation based decisions
Source: ICSI Guideline Answers (answer key), June 2024, Q. 98 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 71 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Following is based on the participation of all members of an organization to improving processes, products, services, and the culture they work in :
(A)TQM
(B)BPR
(C)Benchmarking
(D)Six Sigma
Answer: (A) TQM
Source: ICSI Guideline Answers (answer key), December 2023, Q. 71 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 96 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Ford Motor Company total quality management or TQM practices started in the 1980s when ............... was their slogan.
(A)‘‘Quality is main Job’’
(B)‘‘Quality is most important’’
(C)‘‘Quality is Job 1’’
(D)‘‘Quality is priority’
Answer: (C) ‘‘Quality is Job 1’’
Source: ICSI Guideline Answers (answer key), June 2023, Q. 96 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 97 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
is a disciplined, statistical- based, data-driven quality control program.
(A)TQM
(B)Six Sigma
(C)Quality Control Management
(D)None of the above
Answer: (B) Six Sigma
Source: ICSI Guideline Answers (answer key), June 2023, Q. 97 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 99 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a principle of Total Quality Management ?
(A)Management Commitment
(B)Suppliers Empowerment
(C)Fact Based Decision Making
(D)Continuous Improvement
Answer: (B) Suppliers Empowerment
Source: ICSI Guideline Answers (answer key), December 2022, Q. 99 (Financial and Strategic Management paper, Syllabus 2017).
June 2022Q. 84 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a key principle of Total Quality Management ?
(A)Management Commitment
(B)Periodic Improvement
(C)Fact-based Decision-making
(D)Employee Empowerment
Answer: (B) Periodic Improvement
Source: ICSI Guideline Answers (answer key), June 2022, Q. 84 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 96 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The simple objective of total quality management is ..................
(A)Production aim to manufacture quality products
(B)Production aim to arrest zero defectives
(C)Do the quality plan, strict with the quality timeframe, re-examine the quality achievement
(D)Do the right things, right the first time, every time
Answer: (D) Do the right things, right the first time, every time
Source: ICSI Guideline Answers (answer key), December 2021, Q. 96 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 97 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The term ‘‘ASQC’’ stands for :
(A)Amritsar Society for Quality Control
(B)African Society for Quality Control
(C)American Society for Quality Control
(D)Ahmedabad Society for Quality Control
Answer: (C) American Society for Quality Control
Source: ICSI Guideline Answers (answer key), December 2021, Q. 97 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 100 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Choose the correct sequence of banchmarking wheel :
(D)Involves everyone, continual improvement, use of data and knowledge
Answer: (D) Involves everyone, continual improvement, use of data and knowledge
Source: ICSI Guideline Answers (answer key), December 2020, Q. 96 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 99 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
In TQM, which of the following is not classified as ‘costs of non-conformance’ ?
(A)Testing equipment
(B)Reworking
(C)Warranty claims
(D)Product design
Answer: (A) Testing equipment
Source: ICSI Guideline Answers (answer key), December 2020, Q. 99 (Financial and Strategic Management paper, Syllabus 2017).
December 2019Q. 63 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Total Quality Management was initially applied in :
(A)South Korea
(B)Japan
(C)United Kingdom
(D)United State of America
Answer: (B) Japan
Source: ICSI Guideline Answers (answer key), December 2019, Q. 63 (Financial and Strategic Management paper, Syllabus 2017).
December 2019Q. 65 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
What is six-sigma risk/return level ?
(A)High-Low
(B)Medium-High
(C)Low-Low
(D)High-High
Answer: (B) Medium-High
Source: ICSI Guideline Answers (answer key), December 2019, Q. 65 (Financial and Strategic Management paper, Syllabus 2017).
December 2018Q. 5(d) (FSM)4 marksFinancial and Strategic Management paper, Syllabus 2017
(d)A food processing company has started losing its market share for its products. Based on the result of market survey for its products, it observed that the customers were not being satisfied with the existing quality of products. Hence, in the light of above, explain the concept of continuous improvement by TQM.
TQM or Total Quality Management is mainly concerned with continuous improvement in all tasks, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor. It stems from the belief that mistakes can be avoided and defects can be prevented. It leads to improving results, in all aspects of work, as a result of continuous improvement in capabilities, people, processes, technology and machine capabilities. Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. The five major areas of focus for capability improvement are-
•Demand generation
•Supply generation
•Technology
•Production and Operations and
•People capability
Therefore, the food processing company should focus on conducting market survey on a continuous basis in order to study the changes in the processes involved for capability improvement to produce better results.
Source: ICSI Guideline Answers, December 2018, Q. 5(d) (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 97 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
A ................... receives that highest level of training in the statistical tools of Six Sigma. They develop the plans for Six Sigma project implementation.
(A)Yellow Belt
(B)Green Belt
(C)Red Belt
(D)Black Belt
Answer: (D) Black Belt
Source: ICSI Guideline Answers (answer key), June 2024, Q. 97 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 2(d)5 marksSyllabus 2022
(d)What is meant by Six Sigma ? Briefly explain.
Six Sigma is a disciplined, statistical-based, data-driven quality control program. It is a:
•Business Strategy: Using Six Sigma Methodology, a business can strategize its plan of action and drive revenue increase, cost reduction and process improvements in all parts of the organization.
•Vision: Six Sigma Methodology helps the Senior Management create a vision to provide defect free, positive environment to the organization.
•Benchmark: Six Sigma Methodology helps in improving process metrics. Once the improved process metrics achieve stability; we can use Six Sigma methodology again to improve the newly stabilized process metrics. For example: The Cycle Time of Pizza Delivery is improved from 60 minutes to 45 minutes in a Pizza Delivery process by using Six Sigma methodology. Once the Pizza Delivery process stabilizes at 45 minutes, we could carry out another Six Sigma project to improve its cycle time from 45 minutes to 30 minutes. Thus, it is a benchmark.
•Goal: Using Six Sigma methodology, organizations can keep a stringent goal for themselves and work towards achieving them during the course of the year. Right use of the methodology often leads these organizations to achieve these goals.
•Statistical Measure: Six Sigma is a data driven methodology. Statistical Analysis is used to identify root- causes of the problem. Additionally, Six Sigma methodology calculates the process performance using its own unit known as Sigma unit.
•Robust Methodology: Six Sigma is the most accepted methodology available in the market today which is a documented methodology for problem solving. If used in the right manner, Six Sigma improvements are sometimes considered bullet-proof and they give high yielding returns.
Source: ICSI Guideline Answers, June 2024, Q. 2(d) (Syllabus 2022).
December 2023Q. 69 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Following are the components of Six Sigma process :
Source: ICSI Guideline Answers (answer key), December 2023, Q. 69 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 94 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a certification of six sigma ?
(A)Champion
(B)Black belt
(C)Blue belt
(D)Master Black belt
ICSI did not treat any of the given options as correct.
Source: ICSI Guideline Answers (answer key), December 2023, Q. 94 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 67 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Organizations should not only keep a close watch on their rivals, but should also go beyond the boundaries of their competitors and make an assessment of other factors impacting the business environment. This viewpoint is reflected in:
(A)Portor’s Model
(B)Strategic Planning Cycle
(C)TOWS approach
(D)Six Sigma
Answer: (A) Portor’s Model
Source: ICSI Guideline Answers (answer key), December 2022, Q. 67 (Financial and Strategic Management paper, Syllabus 2017).
June 2022Q. 85 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The concept of Six Sigma was developed by :
(A)General Electric Company
(B)General Motors
(C)Motorola
(D)Mitsubishi Corporation
Answer: (C) Motorola
Source: ICSI Guideline Answers (answer key), June 2022, Q. 85 (Financial and Strategic Management paper, Syllabus 2017).
June 2022Q. 98 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Adoption of Six Sigma methodology helps in improving efficiency due to which of the following factors ?
(A)It meticulously identifies defects and minimizes the variations in the process
(B)It takes a bird’s eye view of the production process
(C)It relies on external agency to make assessment of the production process
(D)None of the above
Answer: (A) It meticulously identifies defects and minimizes the variations in the process
Source: ICSI Guideline Answers (answer key), June 2022, Q. 98 (Financial and Strategic Management paper, Syllabus 2017).
June 2022Q. 99 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following signifies a Six Sigma Green Belt individual ?
(A)One who has the basic understanding of Six Sigma, Statistical Tools and DMAIC
(B)One who has the highest levels of training in the statistical tools of Six Sigma
(C)An individual who works on projects on part-time basis either as a team member for Complex Projects or as a Team Leader for simple Projects
(D)An individual who understands the theory of Six Sigma but does not yet have the quantitative skills to function as an active Six Sigma Project Team Member
Answer: (C) An individual who works on projects on part-time basis either as a team member for Complex Projects or as a Team Leader for simple Projects
Source: ICSI Guideline Answers (answer key), June 2022, Q. 99 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 95 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The term DMAIC stands for ...................
(A)Decision, Meet the target, Approve, Improve, Carryout the plan
(B)Difine, Measure, Analyze, Improve, Control
(C)Desire, Measure, Alternative, Improve Check and proceed
(D)Decision, Meet the target, Analyze Improve, Check and proceed
Answer: (B) Difine, Measure, Analyze, Improve, Control
Source: ICSI Guideline Answers (answer key), December 2021, Q. 95 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 98 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The X Co. Ltd., wants to achieve the six sigma status in their manufacturing set-up and to achieve this the company must reduce the manufacturing defects to a level of no more than :
(A)3.4 per million
(B)2.33 per million
(C)6.21 per million
(D)0.01 per million
Answer: (A) 3.4 per million
Source: ICSI Guideline Answers (answer key), December 2021, Q. 98 (Financial and Strategic Management paper, Syllabus 2017).
June 2021Q. 99 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
In which Six Sigma, an individual should have a basic understanding of Six Sigma, statistical tools and DMAIC methodology?
(A)Yellow Belt
(B)Green Belt
(C)Black Belt
(D)Master Black Belt
Answer: (A) Yellow Belt
Source: ICSI Guideline Answers (answer key), June 2021, Q. 99 (Financial and Strategic Management paper, Syllabus 2017).
June 2021Q. 100 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
In ‘DMAIC’, with reference to Six SigmaD stands for :
(A)Direction
(B)Define
(C)Decision
(D)Dignity
Answer: (B) Define
Source: ICSI Guideline Answers (answer key), June 2021, Q. 100 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 98 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Source: ICSI Guideline Answers (answer key), December 2020, Q. 98 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 100 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
“Six Sigma” management has several levels of certification. It does not include:
(A)Yellow Belt
(B)Green Belt
(C)Champion
(D)White Belt
Answer: (D) White Belt
Source: ICSI Guideline Answers (answer key), December 2020, Q. 100 (Financial and Strategic Management paper, Syllabus 2017).
December 2025Q. 2(c)5 marksSyllabus 2022
(c)“A well-conducted execution of Business Process Reengineering (BPR) can prove to be a game-changer for an organization. BPR can revive a failing entity and lead it to the path of profit maximization. However, executing BPR may not be easy as it involves enforcing a change in the entire organization”. What are the steps to be followed in this regard ?
A well-conducted execution of Business Process Reengineering can prove to be a game-changer for an organization. BPR can revive a failing entity and lead it to the path of profit maximization. However, executing BPR may not be easy as it involves enforcing a change in the entire organization. BPR comprises the following steps:
Define: Objectives and Framework
There must be a clear definition of the objectives of choosing BPR. Such objectives must be clearly laid out in qualitative and quantitative terms. After defining such objectives, the requirement for change must be communicated to the employees to apprise them about the upcoming processes. This becomes important as the willingness of the employees to adopt the change is a key for the success of BPR.
Identify: Customer Needs
The requirements and feedback of the customers must be given due importance while designing the BPR. It must be ensured that the new processes are able to deliver the added value to the customer.
Study: The Existing Process
In order to re-engineer, the company must have to analyze its existing business process. A SWOT should be carried out to have a clear view of the strengths and weaknesses of the existing processes.
Formulate: A Redesigned Business Plan
After an analysis of the prevailing business process, the modifications to be made are chalked down. These modifications form a base for the re-designing of process. Then, a plan is laid down by selecting the best alternative.
Implement: The Redesign
The last step is to implement the redesigned plan. Management should make sure that the new process is operational and adopted by the team. Such a support from the team is indeed critical to the success of BPR.
Source: ICSI Guideline Answers, December 2025, Q. 2(c) (Syllabus 2022).
December 2024Q. 93 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The principles of the Business Process Re-engineering (BPR) approach does not include :
(A)Scrapping any process line over two years old and starting again from scratch
(B)Striving for improvements in performance by radical rethinking and redesigning the process.
(C)Checking that all internal customers act as their own suppliers to identify problems
(D)Rethinking business processes cross functionally to organize work around natural information flows
Answer: (A) Scrapping any process line over two years old and starting again from scratch
Source: ICSI Guideline Answers (answer key), December 2024, Q. 93 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 95 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is objective of Business Process Reengineering (BPR) ?
(A)Improve efficiency in the production processes
(B)Providing more meaningful work to employees
(C)Boost effectiveness and produce higher quality products for end customer
(D)All of the above
Answer: (D) All of the above
Source: ICSI Guideline Answers (answer key), December 2024, Q. 95 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 93 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
What is the term for the act of recreating a core business process with the goal of improving product output, quality or reducing costs ?
(A)Business Process Improvement
(B)Business Process Enhancement
(C)Business Process Management
(D)Business Process Reengineering
Answer: (D) Business Process Reengineering
Source: ICSI Guideline Answers (answer key), June 2024, Q. 93 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 94 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is the objective of Business Process Reengineering (BPR) ?
(A)Boost effectiveness and produce higher quality products for the end customers
(B)Improve efficiency in the production processes
(C)Providing more meaningful work to employees
(D)All of the above
Answer: (D) All of the above
Source: ICSI Guideline Answers (answer key), June 2024, Q. 94 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 95 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
.................. Is an approach to setting goals and measuring the productivity of firms based on best industry practices or against the products, services and practices of their competitors or other acknowledged leaders in the industry.
(A)Benchmarking
(B)Business Process Reengineering
(C)Tatal Quality Management
(D)Quality Engineering
Answer: (A) Benchmarking
Source: ICSI Guideline Answers (answer key), June 2024, Q. 95 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 2A(a)5 marksSyllabus 2022
(a)What is the rational behind Business Process Re-engineering (BPR) ? What steps would you recommend to implement BPR in an organization ?
Business Process Reengineering (BPR) is an endeavour to fabricate the operations of the business on an extensive scale and the act of recreating a core business process with the goal of improving product output, quality, or reducing costs. The primary objective of BPR is to eliminate redundancies or futile layers in the whole process and eliminate enterprise costs.
BPR involves the following steps:
i.Define objectives and framework: There must be a clear definition of the objectives of choosing BPR. Such objectives must be clearly laid out in qualitative and quantitative terms. After defining such objectives, the requirement for change must be communicated to the employees to apprise them about the upcoming processes. This becomes important as the willingness of the employees to adopt the change is a key for the success of BPR.
ii.Identify customer needs: The requirements and feedback of the customers must be given due importance while designing the BPR. It must be ensured that the new processes are able to deliver the added value to the customer.
iii.Study the existing process: In order to re-engineer, the company must have to analyze its existing business process. A SWOT should be carried out to have a clear view of the strengths and weaknesses of the existing processes.
iv.Formulate a redesigned process plan: After an analysis of the prevailing business process, the modifications to be made are chalked down. These modifications form a base for the re-designing of process. Then, a plan is laid down by selecting the best alternative.
v.Implement the redesign: After an analysis of the prevailing business process, the modifications to be made are chalked down. These modifications form a base for the re-designing of process. Then, a plan is laid down by selecting the best alternative.
Source: ICSI Guideline Answers, June 2024, Q. 2A(a) (Syllabus 2022).
December 2023Q. 84 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is/are tools of BPR ?
(A)Visualization for end process and benchmarking
(B)Change management
(C)Business process mapping
(D)All of the above
Answer: (D) All of the above
Source: ICSI Guideline Answers (answer key), December 2023, Q. 84 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 92 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is NOT one of the objectives of the Business Process Reengineering (BPR) ?
(A)Boost effectiveness and produce higher quality products for end customer
(B)Improve efficiency in the production processes
(C)Providing more meaningful work to employees
(D)Cost saving in short-run
Answer: (D) Cost saving in short-run
Source: ICSI Guideline Answers (answer key), June 2023, Q. 92 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 93 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following may NOT be the reason for failure of Business Process Reengineering ?
(A)Employees’ resistance against change
(B)Communication Breakdown
(C)Personnel Turnover during transition
(D)None of the above
Answer: (D) None of the above
Source: ICSI Guideline Answers (answer key), June 2023, Q. 93 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 94 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Point out the FALSE statement :
(A)BPR challenges process fundamentals whereas Six Sigma prioritizes by Cost of Poor Quality
(B)BPR relies on outside consultants whereas Six Sigma on internal experts
(C)BPR based as process maps, whereas Six Sigma on Statistical analysis
(D)Risk/return of BPR is Medium-High, whereas that of Six Sigma is High-Low
Answer: (D) Risk/return of BPR is Medium-High, whereas that of Six Sigma is High-Low
Source: ICSI Guideline Answers (answer key), June 2023, Q. 94 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 95 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not an example of ‘‘Support Processes’’ from the perspective of Business Process Reengineering ?
(A)Information Technology
(B)Order Fulfilment Process
(C)Financial Systems
(D)Human Resource Systems
Answer: (B) Order Fulfilment Process
Source: ICSI Guideline Answers (answer key), December 2022, Q. 95 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 96 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The correct sequence of steps of Business Process Reengineering is :
Expected benefit from Improvement Program = ₹ 6 - ₹ 3 = ₹ 3 crore
(iv)Recommended Strategic Actions based on Benchmarking
Cost Efficiency : Adopt lean systems to reduce the gap in operating cost of ₹ 8 crore
Inventory Management : Implement Just in Time (JIT) or Economic Order Quantity (EOQ) model to improve turnover
Quality Improvement : Reduce complaints via Total Quality Management (TQM)/Six Sigma
HR Utilization : Improve workforce productivity
Process Re-engineering : Align operations with best practices
Source: ICSI Guideline Answers, June 2026, Q. 2(d) (Syllabus 2022).
December 2024Q. 96 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The managers use to ......... identify the best way to compete in the market.
(A)Performance Benchmarking
(B)Process Benchmarking
(C)Strategic Benchmarking
(D)Internal Benchmarking
Answer: (C) Strategic Benchmarking
Source: ICSI Guideline Answers (answer key), December 2024, Q. 96 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 97 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not Benchmarking Wheel stage process ?
(A)Plan
(B)Find
(C)Repeat
(D)Analyze
Answer: (C) Repeat
Source: ICSI Guideline Answers (answer key), December 2024, Q. 97 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 96 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
................ refers to a process when a company compares itself with the competitors inside its industry.
(A)Functional Benchmarking
(B)Competitive Benchmarking
(C)Generic Benchmarking
(D)Industrial Benchmarking
Answer: (B) Competitive Benchmarking
Source: ICSI Guideline Answers (answer key), June 2024, Q. 96 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 99 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not Benchmarking Wheel stage process ?
(A)Plan
(B)Find
(C)Analyze
(D)Repeat
Answer: (D) Repeat
Source: ICSI Guideline Answers (answer key), June 2024, Q. 99 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 83 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Benchmarking against external organisations that do not compete directly with the competitors inside its industry is called :
(A)Competitive benchmarking
(B)Collaborative benchmarking
(C)Non-competitive benchmarking
(D)Generic benchmarking
Answer: (C) Non-competitive benchmarking
Source: ICSI Guideline Answers (answer key), December 2023, Q. 83 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 95 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Match the following :
A1 Benchmarking
B1 Determining how strong a company’s products & services are
A2 Strategic
B2 Finding and benchmarking implementing Best Business Practices
A3 Performance
B3 Looking others to benchmarking identify best practices to improve own
processes
A4 Process
B4 Identifying best benchmarking way to compete in the market
(A)A1-B4; A2-B2; A3-B1; A4-B3
(B)A1-B4; A2-B2; A3-B3; A4-B1
(C)A1-B2; A2-B4; A3-B1; A4-B3
(D)A1-B2; A2-B4; A3-B3; A4-B1
Answer: (C) A1-B2; A2-B4; A3-B1; A4-B3
Source: ICSI Guideline Answers (answer key), June 2023, Q. 95 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 97 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not an approach of Benchmarking ?
(A)Internal Benchmarking
(B)External Benchmarking
(C)Divisional Benchmarking
(D)Functional Benchmarking
Answer: (C) Divisional Benchmarking
Source: ICSI Guideline Answers (answer key), December 2022, Q. 97 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 98 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a component of Benchmarking Wheel ?
(A)Plan
(B)Collect
(C)Implement
(D)Analyze
Answer: (C) Implement
Source: ICSI Guideline Answers (answer key), December 2022, Q. 98 (Financial and Strategic Management paper, Syllabus 2017).
June 2022Q. 82 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Strategic Benchmarking is concerned with which of the following ?
(A)It helps the companies to identify the winning strategies used by successful companies and thereafter adopt them in their own strategic process
(B)It looks at other companies that engage in similar activities and identifies the best practices that can be applied
(C)It compares other companies’ financial performance
(D)It determines how strong a company’s products are as compared to that of competitors
Answer: (A) It helps the companies to identify the winning strategies used by successful companies and thereafter adopt them in their own strategic process
Source: ICSI Guideline Answers (answer key), June 2022, Q. 82 (Financial and Strategic Management paper, Syllabus 2017).
June 2022Q. 83 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Generic Benchmarking approach deals with which of the following ?
(A)It focuses on excellent work processes rather than on the business practice of a particular organization
(B)It compares the work of different teams or business units or divisions within the same organization
(C)It compares itself with the competitors inside the industry itself
(D)It compares the functional area of the organization with similar organizations
Answer: (A) It focuses on excellent work processes rather than on the business practice of a particular organization
Source: ICSI Guideline Answers (answer key), June 2022, Q. 83 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 99 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a type of bench- marking identified by Tuominen and Bogan and English ?
(A)Strategic benchmarking
(B)Performance benchmarking
(C)Process benchmarking
(D)Quality benchmarking
Answer: (D) Quality benchmarking
Source: ICSI Guideline Answers (answer key), December 2021, Q. 99 (Financial and Strategic Management paper, Syllabus 2017).
June 2021Q. 97 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
With reference to benchmarking, select the correct statement out of the following:
(A)Finding and implementing the best business
(B)Traditional controlling is also known as benchmarking
(C)The focus of benchmarking is to identify and eliminate non-value added activities
(D)Benchmarking deals only with medium size organisation
Answer: (A) Finding and implementing the best business
Source: ICSI Guideline Answers (answer key), June 2021, Q. 97 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 97 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Match the following benchmarking events with historical development :
Source: ICSI Guideline Answers (answer key), December 2020, Q. 97 (Financial and Strategic Management paper, Syllabus 2017).
December 2019Q. 69 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which category of benchmarking involves multi-site comparison of process and performance ?
(A)Internal
(B)Generic
(C)Competitive
(D)Functional
ICSI accepted any of these answers: (A) Internal; (B) Generic
ICSI's note: Internal benchmarking is used to compare the work of such teams, units or divisions to identify the ones that are best performing and share the knowledge throughout the company to other teams to achieve higher performance. General benchmarking refers to comparisons which “focus on excellent work processes rather than on the business practices of a particular organization. Here in this question, it is no where mentioned that multi-site comparison of similar processes or unrelated processes. Hence, both options A and B may be correct. ***
Source: ICSI Guideline Answers (answer key), December 2019, Q. 69 (Financial and Strategic Management paper, Syllabus 2017).