Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CPA BEC > Business 6: Operations Management - Process Management > Flashcards

Business 6: Operations Management - Process Management Flashcards

1
Q

What do you call the management approach that seeks to coordinate the functions of an organization toward an ultimate goal of continuous improvement in customer satisfaction?

A

BPM (Business process management)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does BPM stand for?

A

Business process management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

BPM activities can be grouped into what five categories?

A

1) Design
2) Modeling
3) Execution
4) Monitoring
5) Optimization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

In BPM, what does the design phase involve?

A

Id existing processes and the conceptual design of how processes should f(x) once they have been improved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

In BPM, what does the modeling phase involve?

A

Introduces variables to the conceptual design for what-if analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

In BPM, what does the execution phase involve?

A

Design changes are implemented AND key indicators of success are developed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

In BPM, what does the monitoring phase involve?

A

Info is gathered and tracked and compared to expected performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

In BPM, what does the optimization phase involve?

A

Using the monitoring data and the original design, the process manager continues to refine the process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What techniques do we use as part of the BPM process?

A

1) Define - Where are we now?
2) Measure - Are we getting better?
3) Analyze - What’s the ideal goal? What’s the best what-if?
4) Improve - Can I actually make the change happen?
5) Control - Did it work? If not, can I make other changes to try and make it work?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Process management also has been commonly referred to as what?

A

PDCA

  • Plan
  • Do
  • Check
  • Act
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are four examples of measures or process metrics that are compared to expectations to monitor progress?

A

1) Gross revenue (financial)
2) Customer contacts (e.g. leads)
3) Customer satisfaction (e.g. complaints)
4) Operational statistics (e.g. time)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are three benefits of process management?

A

1) Efficiency
2) Effectiveness
3) Agility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define agility.

A

Responses to change are faster and more reliable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Define effectiveness.

A

Objectives are accomplished with greater predictability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define efficiency.

A

Fewer resources are used to accomplish organizational objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What refers to seeking out redundant services, combining them, and then sharing those services w/i a group or organization?

A

Shared services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Shared services create efficiency through consolidation of redundant services. What are the two downsides?

A

1) Service flow disruption

2) Failure demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is outsourcing?

A

Contracting of services to an external provider

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Give an example of outsourcing.

A

Payroll service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is offshore operations?

A

Outsourcing of services or business functions to an external party in a different company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the four most common types of offshore outsourcing?

A

1) IT outsourcing
2) Business process outsourcing (e.g. call centers)
3) Software R&D (e.g. software development)
4) Knowledge process outsourcing (e.g. reading x-rays)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the implications for business risks and controls for offshore outsourcing?

A
  • Generally same as outsourcing but with greater emphasis on LACK OF CONTROLS associated with proximity, as well as potential LANGUAGE ISSUES
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Rational and irrational methods may be used to select process improvement initiatives. What characterizes irrational methods?

A

Intuitive and emotion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Rational and irrational methods may be used to select process improvement initiatives. What characterizes rational methods?

A

Structured and systematic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are four crucial features of successful implementation activities?

A

1) Internal leadership
2) Inspections
3) Executive support
4) Internal process ownership (accountability)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What refers to techniques to help organizations RETHINK how work is done to dramatically improve customer satisfaction and service, cut costs of operations, and enhance competitiveness?

A

BPR (business process reengineering)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is the key difference between BPM and BPR?

A

BPM - seeks incremental change

BPR - seeks radical changes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

True or false.

BPM has been criticized for what some believe was overaggressive downsizing.

A

False (BPR not BPM)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What do performance improvement philosophies and techniques seek to provide?

A

Seek to provide

  • highest quality goods and services
  • in the most efficient and effective manner possible
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

How does JIT management anticipate achievement of efficiency?

A

By scheduling the deployment of resources JIT to meet customer or production requirements

31
Q

According to JIT management, does inventory add value?

A

NO (produces wasteful costs)

32
Q

True or false.

A benefit of JIT implementation is greater efficiency in the use of employees with multiple skills.

A

True

33
Q

What is broadly defined by the marketplace as a product’s ability to meet or exceed customer expectations?

A

Quality

34
Q

The costs of quality include costs associated with activities related to what?

A
  • Conformance costs: Conformance w/ quality standards

- Non-conformance costs: Opportunity costs or activities associated w/ correction nonconformance w/ quality standards

35
Q

The costs of ensuring conformance w/ quality standards are classified as what?

A

1) Prevention costs

2) Appraisal costs

36
Q

Prevention costs are conformance costs incurred to do what?

A

Prevent the production of defective units (e.g. employee training, product redesign, etc.)

37
Q

Appraisal costs are conformance costs incurred to do what?

A

Discover and remove defective parts before they’re shipped to the customer or the next department (e.g. testing, inspection, etc.)

38
Q

Are statistical quality checks an appraisal cost?

A

YES

39
Q

What type of costs are often difficult to compute b/c most of these costs are in the form of opportunity costs (e..g lost sales or rep damage)?

A

Nonconformance costs

40
Q

What do you call the costs to cure a defect discovered before the product is sent to the customer?

A

Internal failure costs

41
Q

Give an example of an internal failure cost.

A
  • rework costs
  • scrap
  • tooling changes
  • costs to dispose
  • cost of the lost unit
  • downtime
42
Q

What do you call the costs to cure a defect discovered after the product is sent to the customer?

A

External failure costs

43
Q

Give an example of an external failure cost

A
  • warranty costs
  • cost of returns
  • liability claims
  • lost customers
  • reengineering an external failure
44
Q

An ______ relationship b/w conformance and nonconformance costs exists.

A

Inverse

45
Q

“Cost of quality” reports display the financial result of quality which include what four types of costs.

A

APIE

Appraisal
Prevention
Internal failure
External failure

46
Q

What does TQM stand for?

A

Total quality management

47
Q

What does TQM represent?

A

An organizational commitment to customer focused performance that emphasizes both QUALITY and CONTINUOUS IMPROVEMENT

48
Q

How many critical factors does TQM identify?

A

7

49
Q

What do you call the technique used as part of the strategic positioning function in which management assesses the quality practices of the organization?

A

Quality audits

50
Q

What do you call the analysis that determines the gap between industry best practices and the current practices of the organization?

A

Gap analysis

51
Q

What is lean manufacturing?

A

Requires use of only those resources required to meet the requirements of customers

52
Q

Does lean manufacturing have a quality focus?

A

No (waste reduction and efficiency focus)

53
Q

What does the Japanese term “Kaizen” refer to?

A

Continuous improvement efforts that improve the efficiency and effectiveness of organizations through greater operational control

54
Q

ABC and ABM are highly compatible with process improvements and _______.

A

TQM (total quality management)

55
Q

ABC and ABM systems highlight the costs of activities. The availability of cost data by activity makes the id of costs of quality and value-added activities more ______.

A

obvious

56
Q

Demand flow manages resources using what?

A

Customer demand as the basis for resource allocation

57
Q

Which theory states that organizations are impeded from achieving objectives by the existence of one or more constraints?

A

Theory of constraints

58
Q

True or false.

The organization or project must be consistently operated in a manner that either works around or leverages the constraint.

A

True

59
Q

When are internal constraints evident?

A

When market demands more than system can produce

60
Q

When do external constrains exist?

A

When our system produces more than the market requires

61
Q

What eliminates the effect of the constraint on work flow?

A

Buffers

62
Q

In a quality control program, which is categorized as internal failure costs?

I. Rework
II. Responding to customer complaints
III. Statistical quality control procedures

A

I. Rework

63
Q

What type of program is Six Sigma?

A

Continuous quality-improvement program that requires specialized training

64
Q

What model of process management does Six Sigma expand on?

A

Plan-Do-Check-Act model

65
Q

Six Sigma outlines methodologies to improve current process and develop ___ processes.

A

New

66
Q

What methodology does Six Sigma outline to improve current processes?

A

DMAIC for existing product and business process improvements

  • Define the problem
  • Measure key aspects of current process
  • Analyze data
  • Improve or optimize current processes
  • Control
67
Q

What methodology does Six Sigma outline to develop new processes?

A

DMADV for new product or business process development

  • Define design goals
  • Measure CTQ issues
  • Analyze design alternatives
  • Design optimization
  • Verify the design
68
Q

All of the following would be included in a cost of quality report, except:

a) Lost CM
b) Design engineering
c) Supplier evaluations
d) Warranty claims

A

a) Lost CM

69
Q

Which of the following is not a characteristic of TQM?

a) Continuous improvement
b) Waste reduction
c) Customer focus
d) Quality circles

A

b) Waste reduction

70
Q

The maximization of throughput is an inherent concept in which management philosophy?

A

Theory of Constraints

71
Q

Which management philosophy strives to please customers by improving their products?

A

Total quality management

72
Q

Which management philosophy emphasizes cost reduction above production constraints?

A

Six Sigma

73
Q

Which management philosophy focuses on value added by identifying the cost drivers that add value?

A

ABC

CPA BEC (26 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions