Lesson 01 — Short & Easy Exam Answers
1. Define Industrial Management with major objectives.
Industrial Management is the branch of management that deals with planning, organizing, and controlling
industrial operations to achieve maximum efficiency.
Major Objectives:
Maximum output with minimum effort
Efficient use of all production factors (men, machine, material, money)
Reducing overall production cost
Ensuring quality and productivity
Smooth workflow and timely production
2. Significance of industrial management to stakeholders.
Industrial Management benefits:
Owners/Managers: Higher profit, better resource use
Employees: Clear tasks, less stress, better working conditions
Customers: Better quality products
Society: More employment, stable economy
Suppliers: Steady demand and coordination
3. Subject matters / Areas of application of industrial management.
Production planning and control
Quality control
Inventory management
Work study & method improvement
Maintenance management
Cost control & budgeting
HR planning and scheduling
4. Types of businesses based on ownership in Bangladesh.
Sole Proprietorship: Owned by one person (e.g., small shops).
Partnership: Owned by 2–20 people (e.g., small firms).
Private Limited Company: Owned privately, shares not public (e.g., PRAN).
Public Limited Company: Shares traded publicly (e.g., BEXIMCO).
Cooperative Society: Owned by group members (e.g., milk cooperatives).
Government Enterprises: Govt-owned (e.g., BRTC, BPDB).
5. What is Industry? Explain its levels with examples.
Industry is the economic activity of converting raw materials into finished goods.
Levels:
Primary: Extraction of raw materials (e.g., farming, mining).
Secondary: Manufacturing (e.g., garments, steel).
Tertiary: Service sector (e.g., banking, IT, transport).
✅ Lesson 02 — Short & Exam-Ready Answers
1. Types of power in an organization (Position vs Personal Power).
Position Power: Comes from the job/authority.
Types: Legitimate, Reward, Coercive
Example: Manager giving salary or punishment.
Personal Power: Comes from skills, personality, or expertise.
Types: Expert power, Referent power
Example: A skilled programmer everyone respects.
2. Skills required to be a successful manager.
Technical skills: Knowing job-related techniques
Human skills: Communication, teamwork
Conceptual skills: Planning, decision-making
Leadership skills: Motivating others
Time management: Organizing work efficiently
3. Different leadership styles with examples.
Autocratic: Leader makes all decisions (e.g., strict supervisor).
Democratic: Leader includes team in decisions (e.g., IT project lead).
Laissez-faire: Employees work freely (e.g., creative teams).
Transformational: Inspires and motivates (e.g., startup founders).
4. Types of plans used in organizations.
Strategic Plan: Long-term goals (3–5 years)
Tactical Plan: Mid-term actions
Operational Plan: Daily/weekly tasks
Contingency Plan: Backup/emergency plan
✅ Lesson 03 — Short Answers
1. Factors of production.
Land (resources)
Labor (people)
Capital (machines, money)
Entrepreneurship (business organizer)
2. Why productivity is important?
Reduces cost
Increases profit
Ensures competitiveness
Improves quality
Utilizes resources effectively
3. Factors affecting productivity.
Worker skills
Technology used
Working environment
Raw material quality
Motivation and leadership
Machine maintenance
✅ 4. Productivity Calculation Question
Given:
Input Factor Cost (Tk.)
Labor Cost 4,000
Material Cost 3,500
Capital Cost 4,000
Energy Cost 1,400
Other Expenses 1,100
Total Inputs = 4,000 + 3,500 + 4,000 + 1,400 + 1,100 = Tk. 14,000
Total Output Produced = 18,000 units
(i) Total Productivity
Total Productivity=Total OutputTotal Input Cost\text{Total Productivity} = \frac{\text{Total
Output}}{\text{Total Input Cost}}Total Productivity=Total Input CostTotal Output =18,00014,000=1.2857≈1.29=
\frac{18,000}{14,000} = 1.2857 \approx 1.29=14,00018,000=1.2857≈1.29
✅ Total Productivity = 1.29
(ii) Labor Productivity
Labor Productivity=Total OutputLabor Cost\text{Labor Productivity} = \frac{\text{Total Output}}{\text{Labor
Cost}}Labor Productivity=Labor CostTotal Output =18,0004,000=4.5= \frac{18,000}{4,000} = 4.5=4,00018,000
=4.5
✅ Labor Productivity = 4.5
Comment on results:
The labor productivity (4.5) indicates very efficient labor use.
The total productivity (1.29) shows that output is significantly higher than the cost of inputs.
Overall, the firm is performing well and using its resources effectively.
Previous Year Qsn
Section A (Theory & Productivity)
1. Definitions & Importance
1. a) Industrial Management
Industrial Management ⚙️ is the branch of engineering that applies management principles (planning,
organizing, controlling) to optimize industrial production processes and systems. Its goal is maximizing
productivity and profitability while ensuring quality.
1. b) Types of Companies in Bangladesh (Ownership)
Company Type Key Feature (Memory Hook)
Sole Proprietorship Owned by one person; owner takes full risk.
Partnership Owned by two or more partners; risk/profit is shared.
Private Limited Company Separate legal identity; shares are not public (2 to 50 members).
Public Limited Company Can offer shares to the general public; highly regulated (min 7
(PLC) members).
1. c) Importance of Productivity
Productivity (Output/Input) is vital because it:
Increases Profitability: Lower unit cost leads to higher profit margins.
Enhances Competitiveness: Allows for better pricing or higher quality.
Optimizes Resources: Ensures minimal waste of material, labor, and capital.
Drives Growth: Generates wealth for expansion and better employee compensation.
2. Material Productivity Calculation
(D) Material Cost
Tile Type (C) Value of Output (Tk.) (E) Mp=DC
(Tk.)
Floor $5000 \times 185 =
3,80,000 2.43
Tiles 9,25,000$
Wall $3500 \times 85 =
1,50,000 1.98
Tiles 2,97,500$
Roof $1200 \times 150 =
65,000 2.77
Tiles 1,80,000$
Bath $800 \times 115 =
45,000 2.04
Tiles 92,000$
Total $M_p = \frac{14,94,500}{6,40,000} =
Total 14,94,500 6,40,000
2.335$
3. Levels of Management
1. Top-Level (CEO, President):
o Focus: Strategic planning, setting long-term goals. (Conceptual Skills).
o Memory: Sets the "Vision."
2. Middle-Level (Department Manager):
o Focus: Executing top-level plans, linking levels. (Human/Interpersonal Skills).
o Memory: The "Link."
3. Lower-Level (Supervisor, Foreman):
o Focus: Directly supervising daily operations and workers. (Technical Skills).
o Memory: The "Daily Controller."
4. Productivity Techniques
i) Levels of Productivity
Macro-Level: Country's overall output (e.g., GDP/Capita).
Industry-Level: A specific sector (e.g., Textiles, IT).
Firm-Level: A single company's efficiency.
Individual-Level: Output of one employee or machine.
ii) Techniques of Improving Productivity
1. Technology: Automation and new machinery.
2. Methods/Work Study: Simplifying and standardizing work processes.
3. Training: Developing employee skills (improving labor quality).
4. Material Management: Reducing waste (JIT, better handling).
5. Incentives: Offering bonuses/wage schemes for higher output.
Section B (Quality Control, HR, & Inventory)
5. Quality Control (SQC)
5. a) Benefits of Quality Control (QC)
1. Reduced Costs: Less scrap, rework, and warranty claims.
2. Customer Satisfaction: Products meet expectations.
3. Improved Reputation: Builds brand loyalty and trust.
4. Better Management: Early identification of process problems.
5. b) Control Limits Calculation ($n=4$)
Given: $\bar{\bar{X}} = 15.875$, $\bar{R} = 6.25$. Constants: $A_2 = 0.729$, $D_3 = 0$, $D_4 = 2.282$.
Chart Central Line (CL) UCL Formula LCL Formula Result Summary
$\bar{X}$- $\bar{\bar{X}} = $\bar{\bar{X}} + $\bar{\bar{X}} - UCL=20.431,
Chart 15.875$ A_2 \bar{R}$ A_2 \bar{R}$ LCL=11.319
UCL=14.2625,
$R$-Chart $\bar{R} = 6.25$ $D_4 \bar{R}$ $D_3 \bar{R}$
LCL=0
6. Human Resources
6. a) Group Interaction Development (Tuckman's Stages)
1. Forming: Getting acquainted, defining tasks (Polite, Anxious).
2. Storming: Conflict over leadership and roles (Clash, Resistance).
3. Norming: Establishing rules, cohesion develops (Unity, Consensus).
4. Performing: High productivity, focused on the goal (Efficient, Functional).
5. Adjourning: Wrapping up and dissolving the team (For temporary groups).
6. b) Group vs. Individual Interview
Individual Interview Group Interview (Memory Hook: Team Player Test)
Focus: Candidate's personal skills and Focus: Interaction, communication, and leadership among
experience. candidates.
Time: Longer time per candidate. Time: Shorter time to screen many candidates.
Environment: Formal, one-on-one
Environment: Dynamic, observing reaction to competition.
assessment.
7. Inventory Management & EOQ
7. a) Types of Inventory
1. Raw Materials: Unprocessed items (e.g., steel, cotton).
2. Work-in-Process (WIP): Partially finished products (e.g., a car chassis on the line).
3. Finished Goods: Ready for sale (e.g., packaged laptops, completed shirts).
4. MRO Supplies: Items for maintenance, not part of the final product (e.g., lubricants, spare parts).
7. b) EOQ Calculation
Annual Demand ($D$): $20,000 \text{ units/bi-annually} \times 2 = \mathbf{40,000 \text{
units/year}}$
Ordering Cost ($S$): Tk. 25
Holding Cost ($H$): Tk. 3
$$EOQ = \sqrt{\frac{2DS}{H}}$$
$$EOQ = \sqrt{\frac{2 \times 40,000 \times 25}{3}} = \sqrt{666,666.67} \approx \mathbf{817 \text{ units}}$$
8. Performance Appraisal
i) Selection Criteria
The standards used to choose the best candidate:
Knowledge, Skills, Abilities (KSAs): Technical requirements (education, specific proficiencies).
Behavioral/Personal: Fit with the company (attitude, communication, experience).
ii) Purpose of Performance Appraisal
1. Compensation: Justifies salary hikes, bonuses, and promotions.
2. Development: Identifies weaknesses for targeted training and coaching.
3. Feedback: Provides formal recognition and motivates employees.
4. Validation: Checks if the hiring process is selecting high performers.