Ch7 Process Management

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CHAPTER 7
PROCESS MANAGEMENT

TRUE/FALSE QUESTIONS

1.Process management is defined as the controlling and improving of processes after they have been designed. Answer: F
AACSB: Analytic Skills

2.Support processes generally do not directly add value to products and services. Answer: T
AACSB: Reflective Thinking Skills

3.Processes must be both measurable and repeatable to be improved. Answer: T
AACSB: Analytic Skills

4.A well-run manufacturing operation can usually compensate for a poor product design. Answer: F
AACSB: Analytic Skills

5.Stretch goals often result from benchmarking activities.
Answer: T
AACSB: Analytic Skills

6.Reengineering usually results in additional process steps or activities in order to improve a process. Answer: F
AACSB: Reflective Thinking Skills

7.The first step in the product development process is preliminary concept development. Answer: F
AACSB: Analytic Skills

8.The configuration of Dell computers to meet individual customer requirements is an example of mass customization. Answer: T
AACSB: Analytic Skills

9.Simplifying a product’s design frequently reduces product cost, but rarely improves quality. Answer: F
AACSB: Reflective Thinking Skills

10.Product liability issues are best addressed once the product design phase has been completed. Answer: F
AACSB: Reflective Thinking Skills

11.Concurrent engineering processes improve product design quality but cause product development times to increase. Answer: F
AACSB: Reflective Thinking Skills

12.Process design is more readily applied to manufacturing operations than to services. Answer: F
AACSB: Analytic Skills

13.Long-term improvements cannot be made to a process unless the process is first brought under control. Answer: T
AACSB: Reflective Thinking Skills

14.One component of a control system is the comparison of actual results with a standard or goal. Answer: T
AACSB: Analytic Skills

15.The act of taking apart a competitor’s product and analyzing it is referred to as process benchmarking. Answer: F
AACSB: Analytic Skills

16.Improvements under kaizen usually require minimal financial investment. Answer: T
AACSB: Analytic Skills

17.Automation is the most valuable asset in the kaizen philosophy. Answer: F
AACSB: Analytic Skills

18.Unlike kaizen, the goal of reengineering is to achieve large and dramatic improvements in performance. Answer: T
AACSB: Analytic Skills

19.The entire ISO 9000:2000 standards are focused on an organization’s ability to understand, define, and document its processes. Answer: T
AACSB: Analytic Skills

20.Agility is crucial to customer-focused strategies.
Answer: T
AACSB: Analytic Skills

MULTIPLE CHOICE QUESTIONS

1.The employees of an insurance firm are given the task of studying the very successful employee training program at a bank. This is an example of: a. process management.
b. strategic reengineering.
c. benchmarking.
d. quality control.
Answer: c
AACSB: Reflective Thinking Skills

2.The employees of a manufacturing company who bill customers are involved in a(n) _________ for this manufacturing company. a. value-creation process
b. support process
c. outsourced process
d. supplier process
Answer: b
AACSB: Reflective Thinking Skills

3.Which of the following is TRUE of support processes?
a. Support processes are those that are most important to an organization’s value- creation processes. b. They provide infrastructure and add value directly to the product or service. c. Support processes do not include administrative services. d. Value creation processes...
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