CPM Operational Process Reengineering 2 — Questions and Answers
Question 1: Which technique is most commonly used to identify non-value-added steps during process reengineering?
- Value stream mapping (Correct answer)
- Balanced scorecard
- SWOT analysis
- Fishbone diagram
Correct answer: Value stream mapping
Value stream mapping visually identifies every step in a process and highlights waste and non-value-added activities.
Question 2: In BPR, what does a 'to-be' process model represent?
- The current state of operations
- The redesigned future process (Correct answer)
- A benchmarking comparison
- A risk assessment
Correct answer: The redesigned future process
The 'to-be' model depicts the redesigned, ideal future state that the organization aims to achieve after reengineering.
Question 3: Which of the following best describes 'process benchmarking' in reengineering?
- Setting internal performance targets
- Comparing processes against best-in-class external organizations (Correct answer)
- Documenting every step of a workflow
- Eliminating redundant job roles
Correct answer: Comparing processes against best-in-class external organizations
Process benchmarking involves comparing an organization's processes against top performers to identify improvement opportunities.
Question 4: What is the primary risk of conducting BPR without adequate change management?
- Lower project costs
- Employee resistance undermining implementation (Correct answer)
- Faster process redesign
- Reduced need for IT systems
Correct answer: Employee resistance undermining implementation
Without change management, employees may resist new processes, causing the reengineering effort to fail despite good design.
Question 5: Which metric best measures the efficiency improvement achieved through process reengineering?
- Employee satisfaction score
- Cycle time reduction (Correct answer)
- Number of employees retrained
- Total IT budget spent
Correct answer: Cycle time reduction
Cycle time reduction directly measures how much faster a process completes after reengineering, indicating efficiency gains.
Question 6: During reengineering, 'horizontal integration' of processes typically results in:
- More management layers
- Cross-functional teams handling end-to-end processes (Correct answer)
- Increased departmental silos
- Outsourcing all non-core tasks
Correct answer: Cross-functional teams handling end-to-end processes
Horizontal integration combines tasks across departments into cross-functional teams that own an entire process from start to finish.
Question 7: What is the role of a 'process owner' in a reengineered organization?
- Approving the annual IT budget
- Holding end-to-end accountability for a specific business process (Correct answer)
- Managing individual department headcount
- Auditing financial statements
Correct answer: Holding end-to-end accountability for a specific business process
A process owner is accountable for the performance, design, and continuous improvement of a specific end-to-end process.
CPM Operational Process Reengineering 2
Which technique is most commonly used to identify non-value-added steps during process reengineering?