Deck 8: Business Process Management

Question 1

BPM for interorganizational processes is much more difficult than for cross-functional systems.

Answer 1

True

Question 2

Based on the as-is model,system components are generated only for the elements of the information system that are entirely automated.

Answer 2

False

Question 3

One of the advantages of cross-functional processes is that authority belongs to a single manager who has authority to resolve BPM issues.

Answer 3

False

Question 4

Customer support in an organization can justify high levels of support by being able to know which customers have high value.This is an outcome of the integration possible through functional processes.

Question 5

Cross-functional processes often lead to islands of automation,sometimes called information silos.

Question 6

In a business process management scenario,teams make adjustments necessary to solve process problems before building an as-is model.

Question 7

The BPM cycle consists of six stages.

Question 8

Human resources and sales forecasting are examples of functional processes.

Question 9

Customer relationship management is an example of a cross-functional process.

Question 10

The problem with information silos is that decisions that are appropriate when considering only a single function like purchasing may create inefficiencies when the entire process is considered.

Question 11

Business process management applies only to commercial,profit-making organizations.

Question 12

The benefit of functional processes is the integration of data across functional processes.

Question 13

Functional processes involve activities among several business departments.

Question 14

BPM is the systematic process of creating,assessing,and altering business processes.

Question 15

BPM for cross-functional processes is shared across several departments that most frequently need to resolve conflict via committee and policy.

Question 16

Independent,isolated processes are the most important factor in producing the productivity and efficiency necessary for businesses.

Question 17

The cycle of business processes repeats as change occurs and companies adjust to those changes.

Question 18

Well-managed organizations create policy,procedures,and committees to continually assess business process effectiveness.

Question 19

Supply chain management is an example of a functional process.

Question 20

The problem with interorganizational processes is that problem resolution occurs via negotiation,contracts,and litigation.

Question 21

Fire-and-forget activities are those in which,after the activity is completed,they are never revisited for feedback or assessment.

Question 22

Typically,an order-management application obtains customer contact and shipping data,verifies customer credit,validates payment method,and enters the order into a queue for processing.

Question 23

The standard set of terms and graphical notations for documenting business processes was created by the International Standards Organization.

Question 24

The primary purpose of the sales process is to find prospects and transform them into customers by selling them something.

Question 25

Most organizations develop their own functional applications.

Question 26

Adding or removing resources to a given process without changing its structure is the only way process designers can increase the performance of a business process.

Question 27

One of the goals of business process change is to enable the organization to reduce resources required to obtain the same result.

Question 28

An operating system is a computer program that supports or possibly automates the major activities in a functional process.

Question 29

According to Porter's model,one should add cost to a business process if the change generates value greater than its cost.

Question 30

The role of information systems in business processes is to implement process activities.

Question 31

The standard set of terms and graphical notations for documenting business processes is called Business Process Modeling Notation.

Question 32

In BPMN notation,solid arrows document process flow.

Question 33

Customer support and training is typically part of the sales and marketing function.

Question 34

The resources that are added to change a process may include information systems as well as human resources.

Question 35

Lead tracking is not a customer service application.

Question 36

Customer management is a functional application on the customer service function.

Question 37

Operations applications are especially prominent for nonmanufacturers,such as distributors,wholesalers,and retailers.

Question 38

One reason why organizations buy off-the-shelf functional applications is that the off-the-shelf applications usually provide a perfect fit to an organization's business processes.

Question 39

In a BPMN process diagram,the swim-lane layout is used to simplify process diagrams and to draw attention to interactions among components of the diagram.

Question 40

Manufacturing activities include finished-goods inventory management.

Question 41

The ultimate expression of the view that inventories are liabilities is demonstrated in the just-in-time inventory policy.

Question 42

When a company generates a master production schedule (MPS)using an analysis of past sales levels and makes estimates of future sales,this is called a push manufacturing process.

Question 43

Disjointed systems lead to a lack of integrated enterprise information which in turn leads to inefficiencies.

Question 44

Budgeting applications concern the management and investment of the organization's cash and payment of cash dividends.

Question 45

Independent functional systems result in decreased costs for the organization.

Question 46

Compensation refers not only to pay,but also to the processing and tracking of vacation,sick leave,and health care and other benefits.

Question 47

Manufacturing organizations operate finished-goods inventory applications.

Question 48

CRM applications integrate all of the primary business activities.

Question 49

Inventory-management applications use past data to compute stocking levels,reorder levels,and reorder quantities in accordance with inventory policy.

Question 50

MRP is a manufacturing information system used in the planning of materials,personnel,and machinery that has links to sales and marketing functions.

Question 51

MRP II is an application that plans the need for materials and inventories of materials used in the manufacturing process.

Question 52

The reason why data is duplicated in functional processes is because each functional application has its own database.

Question 53

Integration of business processes is a result of the isolation of applications.

Question 54

MRP does not include the planning of personnel,equipment,or facilities requirements.

Question 55

Planning manufacturing in response to signals from customers or downstream production processes that products or components are currently needed is called pull manufacturing.

Question 56

A stock report is a list of the materials that comprise a product.

Question 57

The BOM is a list of materials,and materials within materials,and materials within materials within materials,and so forth.

Question 58

Manufacturing processes that have a push process must be more flexible than those that have a pull process.

Question 59

Cost-accounting applications determine the marginal cost and relative profitability of products and product families.

Question 60

In addition to the BOM,if the operations application schedules equipment,people,and facilities,then a record of those resources for each manufactured product is required as well.

Question 61

In building an ERP system,variations from the standard business blueprint are usually very expensive.

Question 62

The primary users of ERP systems are service organizations.

Question 63

ERP represents the ultimate in cross-functional systems.

Question 64

The BPM process begins with the ________ stage.

A)create components
B)assess work flows
C)create processes
D)model processes

Question 65

Accounts payable is an example of the ________ scope of business processes addressed by business process management.

A)cross-functional
B)industry-wide
C)interorganizational
D)functional

Question 66

Prioritizing customers using purchase history and increase sales of existing customers are the relationship management functions of a CRM application.

Question 67

True ERP is an informal approach that is based on innovative and unique business models.

Question 68

ERP integrates the primary value chain activities with human resources and accounting.

Question 69

Organizations have found that by implementing ERP,it is not necessary to maintain large buffer stocks.

Question 70

Inherent processes are those processes in the business blueprint that have been tried and tested over hundreds of organizations.

Question 71

________ is the systematic process of creating,assessing,and altering business processes.

A)Business delivery management
B)Business process management
C)Strategic management
D)Core competency management

Question 72

Which of the following represents the correct sequence of the different stages in BPM?

A)create components;model processes;assess results;implement processes
B)create components;model processes;implement processes;assess results
C)implement processes;model processes;create components;assess results
D)create components;assess results;implement processes;model processes

Question 73

One advantage of implementing ERP is that it helps organizations increase lead times.

Question 74

SAP defines the comprehensive set of inherent processes for all organizational activities as the process blueprint.

Question 75

Implementing the ERP system happens after the differences between the as-is processes and the blueprint have been reconciled.

Question 76

In BPM,the teams build a(n)________ that documents the current situation and then change it to make adjustments necessary to solve process problems.

A)process map
B)organizational chart
C)as-is model
D)operational flowchart

Question 77

Data inconsistency problems are a common issue because all ERP data are stored in an integrated database.

Question 78

One benefit of the inherent processes in ERP is that organizations that convert to ERP do not need to reinvent business processes.

Question 79

CRM applications store data in separate databases for each function.

Question 80

Supporting direct mail,catalog,other traditional promotion belongs to the lead tracking component of a CRM application.