University of Houston

MBA 6205

Chapter 3: Process Thinking: SCM’s Foundation

Multiple Choice

1)A   organization is defined as the grouping of resources into specific departments, such as research and development, purchasing, production, logistics, and marketing.

 

9. 1. business unit
10. matrix
11. SCM

50. functional

 

2. A process consists of a set of identifiable flows and value added activities. Three distinct flows define each process: an information flow, a                                           flow, and a financial flow.

9. 1. physical
10. theoretical
11. value-stream

50. supply chain

 

3. Essential elements of                         management include the timely flow of information, efficient flow of physical materials and the effective cash flow management.
   1. business

10. process
11. product

50. project

 

4. “Systems Thinking” regarding process management is the holistic process of considering both: the immediate local outcomes and the longer-term                             ramifications of decision.

5. systems-wide
6. local
7. strategic
8. departmental

 

5. “Functional Thinking” regarding process management seeks the local, departmental optimum, often at the expense of the overall                                  performance.
   1. departmental

10. system’s
11. customer

50. individual

 

6. When cultivating “Systems Thinking” and promoting organizational transformation, managers need to recognize and understand all of the following elements for managing a supply chain except              .
   1. A holistic view of company organization

10. information availability and accuracy
11. tradeoffs between cost and efficiency

50. performance measurement

 

7. Getting all functional business contributors to support the core goals of a business as a team requires a system that considers all of the following requirements except                                      .

5. defining system boundaries
6. determining interrelationships
7. developing departmental tactical plans
8. performing trade-off analysis

8. Decisions made in one function area of a company often affect performance in other areas of a company. This situation requires business teams to perform a                                         in order to decide what decision is best for a company.

5. strategic plan
6. trade-off analysis
7. gap analysis
8. value stream map analysis

 

9. A                      is the value a company promises to deliver to customers.

5. objective
6. goal
7. value-add
8. value proposition

 

10. A                      is a capability the company is so good at that it provides the company a competitive advantage.

 

9. 1. strategic value
10. core competency
11. economies of scale

50. target task

 

11.                     is the radical redesign of business processes made possible by systems think and improved information technology.
    1. Process reengineering

10. Produce design
11. Project management

50. Development engineering

 

12. The first question a process reengineering team should ask before improving a process is

                    .

1. 2. “What is the desired outcome/end goal of the team’s effort?”
   3. “Why is the process performed?”
   4. “What are the operating costs of the current process?”
   5. “Are there real opportunities to improve process performance?”

 

13. The primary reason a process map should be created when improving a process is to              .
    1. explain to customers all process activity
       10. satisfy regulatory requirements
       11. determine what activities must change to accomplish the team objective

1. 1. 50. unify the understanding of the activities, the people performing the activities and critical performance dimensions of the process

 

14. A major reason why reengineering efforts have produced mixed performance results is             .

1. the team has a limited understanding of the project goals
2. the elimination of system boundaries has caused confusion regarding responsibility C) efforts emphasize technology without accounting for the challenge inherent in bridging functional boundaries

D) The statement above is not true. Reengineering efforts almost always produce efficient and beneficial results.

 

15. Systems analysis consists of all of the following steps except                      .
    1. perform trade-off analysis

10. determine the individual costs of process steps
11. determine interrelationships

50. establish a core goal

 

16. When the text cites management’s lack of a “holistic view” of process management, this is interpreted as                                           .

1. minimal resources to adequately implement the holistic view
2. functional organizations seldom are transformed into systems organizations
3. each step of the process must be assessed regarding its value
4. no single management level of a business typically understands the departmental interrelationships or value-added activities across all of the functional organizations

 

17. RFID is interpreted as                          .
    8. this term has no specific meaning in this text or course
    1. radio frequency inventory and distribution
    10. regional funding and identification

D) radio frequency identification tags

 

18. The “total cost of ownership” of a purchased material referred to in the text is explained as

                    .

9. 1. purchasing the lowest price component
10. the sum of the costs of purchasing, transportation, using, warranting and disposing
11. the global sourced cost

50. purchase price plus the direct labor expense

 

19. What key element of a business enables the business defines its value propositions and drives competency development?
    1. strategic plan

10. customer focus
11. core competency

50. systems thinking

20. All of the following are business resources as part of a value-added system of the internal and external supply chain except                                   .

5. technology
6. people
7. competition
8. materials

 

 

True/False

 

1. Research and Development is a functional business group that translates customer needs into tangible products. The goal is to build appealing, -to-make products with shorter concept-to-market lead times.

 

2. Logistics acquires the right materials at the right price for use in operations. The goal is to select the right suppliers and then build the right relationships with them.  

 

3. Traditional organization structures drive systems thinking—managers begin to see the world from a narrow, functional perspective, acting as if their function were the company.  

 

4. One of the pitfalls of functional thinking is that managers view every decision from their own function’s perspective, ignoring other viewpoints.

 

 

5. Every process consists of a set of identifiable flows and value-added activities that are comprised of information flow, physical flow and financial flow.

 

 

6. Meeting customer expectations requires a shift from a functional organization to a process orientation.

 

 

7. The requirements for systems thinking are (a) a holistic view of the system, (b) access to accurate information, (c) functional organizational structure, (d) supportive measurement, and (e) rigorous systems analysis.  

 

 

8. A process view of the company links systems thinking to strategy so that all of the company’s functional and resource decisions are consistently focused on achieving the company’s most important objectives.

 

 

9. Process reengineering is the radical redesign of business products.  

 

 

10. One of the most serious challenges is to achieve process integration’s agility and differentiation without losing functional expertise.

 

 

11. Process mapping identifies individual activities, their specific roles, the people involved, and critical performance dimensions such as time taken by each step.

 

 

12. A value proposition is something the company is so good at that it provides the company a competitive advantage.  

 

 

13. Core competencies are rare and very hard for competitors to copy.

 

 

14. To achieve cost leadership, a company must create an intrinsic advantage such as economies of scale, uniquely productive processes or low-cost factors.

 

 

15. Innovation requires a company to develop a product or process attribute that reduces price sensitivity.  

 

 

16. The responsibility for a process redesign should be performed where the work is done.

 

17. The transformation from a functional organization to a process-driven company is challenging under the best of circumstance. One of the biggest hurdles is the uncertainty introduced by the transformation.

 

 

18. Organizing by functional group impedes system process thinking.

 

 

19. To cultivate systems thinking and promote organizational transformation, managers need to recognize and understand the five requirements for managing a company or a supply chain as a system. They include a holistic view, information, teamwork, performance measurement, and systems analysis.

 

 

20. The process steps for “systems analysis” in support of company and supply chain systems management include: establish core goal, define system boundaries, determine interrelationships, determine information requirements, trade-off analysis, identify system constraints, and make a decision.

 

 

21. Defining the system boundaries is a prerequisite to identifying the process goal.  

 

 

22. Usually decisions made in one area of process seldom affect performance in other areas.