Business Process Chapter Four
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Questions and Answers

What percentage of orders are lost due to paper jams?

  • 1%
  • 4% (correct)
  • 5%
  • 2%
  • How long on average does the internal mail take to deliver to the picking area?

  • 1 hour (correct)
  • 0.5 hours
  • 1.5 hours
  • 2 hours
  • What is the maximum time an order can sit in the clerk's in-box before processing?

  • 2 hours (correct)
  • 4 hours
  • 3 hours
  • 1 hour
  • What is the average time taken for a worker to pick and pack an order if the item is in stock?

    <p>20 minutes</p> Signup and view all the answers

    How many minutes does it take for the inspector to check an order?

    <p>2 minutes</p> Signup and view all the answers

    What percentage of faxes are delivered to the wrong place?

    <p>1%</p> Signup and view all the answers

    What is the total time an order sits in the internal mail before being picked up?

    <p>1 to 1.5 hours</p> Signup and view all the answers

    What is the average time for the transport firm to deliver an order?

    <p>1 to 3 hours</p> Signup and view all the answers

    What primarily drove the need for universities to improve their enrollment process?

    <p>To compete with other universities effectively</p> Signup and view all the answers

    Why is mapping business processes important for organizations?

    <p>It improves understanding of process activities and results</p> Signup and view all the answers

    What is a primary characteristic of relationship maps in business process mapping?

    <p>They illustrate the connections between major organizational entities</p> Signup and view all the answers

    What tends to happen to the performance level of business processes over time without intervention?

    <p>It tends to decrease unless maintained</p> Signup and view all the answers

    Which statement about process maps is true?

    <p>They represent specific activities within a business process</p> Signup and view all the answers

    What role does creating a baseline play in business process mapping?

    <p>It allows for measurement of improvement impact</p> Signup and view all the answers

    What should organizations focus on to ensure effective process improvement?

    <p>Understanding processes from the customers' perspective</p> Signup and view all the answers

    What does the term 'functional areas' refer to in process improvement?

    <p>Various sections of an organization that must unite in improvement efforts</p> Signup and view all the answers

    What is the primary responsibility of a first-tier supplier in the automotive supply chain?

    <p>Providing a complete cockpit including all interior pieces</p> Signup and view all the answers

    Which of the following best describes a business process?

    <p>A sequence of activities designed to achieve a specific outcome.</p> Signup and view all the answers

    Which of the following best describes the role of second-tier suppliers?

    <p>They supply families of parts to first-tier suppliers.</p> Signup and view all the answers

    What is included in the process mapping of a supply chain?

    <p>Specific activities that identify informational, physical, and monetary flows</p> Signup and view all the answers

    What is a primary process in a business environment?

    <p>Delivering a service or manufacturing a product.</p> Signup and view all the answers

    In the findings section, how often did the OEM provide forecasts to first-tier suppliers?

    <p>Weekly for the next 10 weeks</p> Signup and view all the answers

    What do support processes primarily focus on?

    <p>Performing necessary but non-value-added activities.</p> Signup and view all the answers

    In the context of business processes, what is a development process aimed at?

    <p>Improving primary and support processes.</p> Signup and view all the answers

    What is the significance of decision points in process mapping?

    <p>They require a yes or no response to determine the flow.</p> Signup and view all the answers

    Which of the following statements is true regarding supply chain costs?

    <p>They represent a significant portion of the total operating budget.</p> Signup and view all the answers

    Which statement best describes the start point for a mapping process in a supply chain?

    <p>The order submitted by the dealer to the DC.</p> Signup and view all the answers

    What was one of the complaints received by the San Diego DC from dealers?

    <p>Lost orders and lengthy processing times</p> Signup and view all the answers

    Which function is NOT involved in the class enrollment process described?

    <p>The academic advising office.</p> Signup and view all the answers

    What is a common issue with many business processes according to the content?

    <p>There is often a lack of complete control or visibility.</p> Signup and view all the answers

    What should be a focus when identifying the boundaries in process mapping?

    <p>Establishing clear starting and ending points for the process</p> Signup and view all the answers

    What is an example of a primary process?

    <p>Manufacturing a product.</p> Signup and view all the answers

    Study Notes

    Chapter Four: Business Process

    • Business processes are sets of logically related tasks or activities designed to achieve a specific business outcome.
    • These outcomes can be physical, informational, or monetary.
    • The business perspective on processes differs from a traditional functional perspective, focusing on the flow of information, products, and money across the supply chain.
    • Corporate executives increasingly recognize the importance of effectively managing processes for a successful supply chain.
    • Supply chain costs represent a majority (75%) of the total operating budget for most organizations.
    • The emphasis is on delivering value to the customer.

    Three Types of Business Processes

    • Primary processes are the core value-adding activities, like service delivery or product manufacturing.
    • Support processes are necessary but not value-adding activities, such as HR, IT, and finance.
    • Development processes aim to improve the performance of both primary and support processes.

    Example: Enrolling in Classes

    • Students interact with multiple functions (departments, registrars, and cashiers) to register.
    • The existing process can be cumbersome and inconvenient for students.
    • Many universities have streamlined enrollment into a single process for speed, accuracy, and student convenience (e.g. online registration and payment).

    What's Wrong With This Process?

    • It's convenient for everyone except the students.
    • The existing process lacks a unified perspective, potentially missing important student needs.

    The Key Point

    • Streamlining the enrollment process requires functional areas to see the entire student experience, not just their individual tasks.

    Process Improvement

    • Improving business processes is central to operations and supply chain management.
    • Processes naturally degrade over time without specific efforts to maintain or improve their performance.
    • Competitive pressures often force organizations to improve their business processes.

    Mapping Business Processes

    • Understanding a process is critical to effective management and improvement.
    • Graphic representations (e.g., relationship maps and process maps) clarify organizational relationships and activities within the process.
    • Mapping allows for a shared understanding of the process content (activities, results) and individual responsibilities.
    • It also defines process boundaries and establishes a baseline for measuring improvement efforts.

    Two Approaches to Mapping

    • Relationship maps give a high-level view of organizational entities involved in a business process and their connections.
    • Process maps are detailed maps that identify the specific activities, the informational/physical/monetary flows of a process. Process flowcharts offer complete process illustrations.

    Process Map Example: San Diego DC

    • This Distribution Center (DC) supplies dealers within a 30-mile radius.
    • Recent complaints from dealers focused on lost orders and processing time for already-stocked items.

    Facts of the Case: San Diego DC

    • Order processing involves faxes, internal mail, clerk processing, picking, and shipping.
    • Common problems include paper jams, fax delivery issues, incorrect order completion, and delays in processing already-stocked items.

    Process Mapping: Case Examples

    • Various steps and delays in the San Diego DC order fulfillment process are documented with times and averages.
    • Key indicators such as percentage of lost orders and errors are described.

    Improving Business Processes: Guidelines

    • Identify and analyze process delays.
    • Examine decision points and consider if they are necessary or if automation or elimination is possible.
    • Dematerialize documentation, moving to electronic formats whenever possible.

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    Related Documents

    Business Process PDF

    Description

    Explore the key concepts presented in Chapter Four on Business Processes. Understand the different types of business processes, including primary, support, and development processes. This chapter emphasizes the importance of managing processes effectively to achieve successful supply chain outcomes.

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