Ford Motor Company's invoiceless processing,which reduced headcount in Ford's North American accounts payable organization of 500 people by 75 percent.Ford changed its accounts payable process so that the purchasing department enters a purchase order into an online database that can be checked by the receiving department when the ordered items arrive.If the received goods match the purchase order,the system automatically generates a cheque for accounts payable to send to the vendor.There is no need for vendors to send invoices.This is an example of ________.
A)a paradigm shift
B)re-engineering
C)rationalization
D)automation

Question

Quizplus · Accepted Answer

Re-engineering involves fundamentally rethinking and redesigning business processes to achieve significant improvements in critical measures of performance. Ford's invoiceless processing is a complete redesign of the accounts payable process, making it an example of re-engineering.

Ford Motor Company's Invoiceless Processing,which Reduced Headcount in Ford's North