CINS CH. 7

________ management is a systematic, structured approach to improvement, in which people critically examine, rethink, and redesign business processes in order to achieve dramatic improvements in one or more performance measures, such as quality, cycle time, or cost. Select one: a. Business process b. Business activity c. Application service d. Business service e. Application performance

a. Business process

________ software are applications written by third-party vendors that are used by many different users and organizations. Select one: a. Packaged b. Personalized c. Bespoke d. Custom e. Tailored

a. Packaged

The two most likely benefits realized from utilizing enterprise systems are improvements in ________. Select one: a. availability of information and increased interaction throughout the organization b. reduced inventory and reduced operating expenses c. improved compliance with standards and improved supplier integration d. improved customer interaction and improved supplier integration e. reduced lead times for manufacturing and improved customer interaction

a. availability of information and increased interaction throughout the organization

In the 1990s, business process management was known as ________. Select one: a. business process reengineering b. business systems management c. application performance management d. application service management e. business service reengineering

a. business process reengineering

Companies implementing ________ enterprise resource planning (ERP) can benefit from scalability and agility. Select one: a. cloud-based b. internal-drive c. in-memory d. subsidiary e. hard drive

a. cloud-based

Which of the following goods are produced using the make-to-order approach? Select one: a. commercial aircrafts b. televisions c. home appliances d. refrigerators e. air conditioners

a. commercial aircrafts

The make-to-stock process is typically used for ________. Select one: a. commodities b. building aircrafts c. big-ticket items d. customizable goods e. building highways

a. commodities

Which of the following types of software is best suited for tasks that are unique to a particular business? Select one: a. custom b. groupware c. packaged d. ready-made application e. collaborative

a. custom

In the ________ process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received. Select one: a. make-to-order b. order-to-cash c. make-to-stock d. acquire-to-dispose e. procure-to-pay

a. make-to-order

Which of the following is a core business process? Select one: a. make-to-stock b. account-to-report c. hire-to-retire d. plan-to-produce e. time-to-purchase

a. make-to-stock

Components to simplify, standardize, and automate business processes related to inbound and outbound logistics, product development, manufacturing, and sales and service are called ________ management. Select one: a. operations b. organizing c. personal d. human resource e. financial

a. operations

Which of the following is a core activity according to the value chain model? Select one: a. operations and manufacturing b. infrastructure activities c. human resource activities d. administrative activities e. technology development

a. operations and manufacturing

Whenever an order is placed with online retailers, the retailers put together the order, ship it, and charge the payment to the customer's credit card. This process of selling a product or service is known as the ________ process. Select one: a. order-to-cash b. make-to-order c. make-to-stock d. time-to-market e. procure-to-pay

a. order-to-cash

The organization waits for an order, allowing the organization to initiate a ________ sequence to move the order through the production process. Select one: a. pulling b. rotating c. working d. pushing e. propelling

a. pulling

A(n) ________ information flow consists of information that is received from another organization. Select one: a. upstream b. legacy c. downstream d. packaged e. stand-alone

a. upstream

If the ________ version does not support a certain business process, the company may require a customized version. Select one: a. vanilla b. best-practices c. customized d. reengineered e. modified

a. vanilla

________ activities encompass all business activities associated with employee management, such as hiring, interview scheduling, payroll, and benefits management. Select one: a. Account b. Human resource c. Procurement d. Technology development e. Architectural

b. Human resource

________ software is written by third-party vendors to support standardized and repetitive tasks. Select one: a. Custom b. Packaged c. Process-based d. Unpacked e. Practices-based

b. Packaged

________ is a support activity. Select one: a. Customer service b. Technology development c. Outbound logistics d. Marketing and sales e. Operations and manufacturing

b. Technology development

In the order-to-cash process, checking credit is followed by ________. Select one: a. allocating stock b. creating an order c. collecting payment d. preparing and sending the invoice e. picking, packing, and shipping

b. creating an order

Applications that are designed and developed exclusively for a specific organization are known as ________ software. Select one: a. ready-made application b. custom c. packaged d. groupware e. collaborative

b. custom

Enterprise resource planning (ERP) extended components focus primarily on ________. Select one: a. human capital management and supply chain management b. customer relationship management and supply chain management c. product lifecycle management and supply chain management d. customer relationship management and product lifecycle management e. customer relationship management and human capital management

b. customer relationship management and supply chain management

A(n) ________ is an integrated suite of business applications for virtually every department, process, and industry, allowing companies to integrate information across operations on a company-wide basis using one large database. Select one: a. management information system b. enterprise system c. legacy system d. decision support system e. distributed software system

b. enterprise system

A(n) ________ system coordinates business processes with customers, suppliers, and business partners of an organization. Select one: a. intermediary b. externally focused c. legacy d. internally focused e. stand-alone

b. externally focused

Two-tier ERP strategy can support operations at the corporate level, while providing the needed ________ at the subsidiary level. Select one: a. reliability and componentization b. flexibility and agility c. interoperability and reliability d. interoperability and accessibility e. scalability and manageability

b. flexibility and agility

Components which support employee recruitment, assignment tracking, performance reviews, payroll, and regulatory requirements are called ________ management. Select one: a. financial b. human resource c. personal d. organizing e. operations

b. human resource

Which of the following uses a pull-based approach? Select one: a. plan-to-produce b. make-to-order c. account-to-report d. make-to-stock e. acquire-to-dispose

b. make-to-order

In core business processes, which of the following uses a push-based approach? Select one: a. procure-to-pay b. make-to-stock c. make-to-order d. order-to-cash e. production-to-order

b. make-to-stock

Assembly processes are ________ activities. Select one: a. marketing and sale b. operations and manufacturing c. outbound logistics d. customer sales e. administrative and marketing

b. operations and manufacturing

Identify the software that is cost effective, since the vendor that builds the application spreads out the development costs by selling copies to a large number of users? Select one: a. adapted software b. packaged software c. corrected software d. bespoke software e. custom software

b. packaged software

Designing and developing applications that support the primary business activities are a part of the ________ activities. Select one: a. procurement b. technology development c. inbound logistics d. outbound logistics e. operations and manufacturing

b. technology development

The features and modules that an enterprise system comes with out of the box are referred to as the ________ version. Select one: a. best-practices b. vanilla c. reengineered d. modified e. customized

b. vanilla

________ activities are performed by the functional areas that process inputs and produce outputs. Select one: a. Extended b. Support c. Core d. Base e. Focus

c. Core

_______ immediately after the purchase order is issued in the procure-to-pay process. Select one: a. Invoices are received b. Price and terms are negotiated c. Goods are received d. Credit is checked e. Payment is settled

c. Goods are received

Which of the following is true regarding enterprise resource planning (ERP)? Select one: a. Stand-alone applications are a developed version of ERP. b. It helped in developing the manufacturing resource planning package. c. It makes the process of sharing information between business activities easier. d. It stores data in different locations. e. It is an older version of materials requirement planning.

c. It makes the process of sharing information between business activities easier.

How is business process management similar to quality improvement approaches such as total quality management? Select one: a. They focus on incremental change of processes. b. They focus on providing capabilities for discovering "hidden" predictive relationships while conducting a forecast. c. They are intended to be cross-functional approaches to improve an organization. d. They focus on radical redesign and drastic improvement of processes. e. They focus on the activities typically occurring at the operational level of the organization.

c. They are intended to be cross-functional approaches to improve an organization.

Which of the following is the first step in the procure-to-pay process? Select one: a. settle payment b. issue purchase order c. negotiate price and terms d. receive goods e. receive invoice

c. negotiate price and terms

Buying a book at Amazon.com illustrates which of the following core business processes? Select one: a. hire-to-retire b. plan-to-produce c. order-to-cash d. time-to-purchase e. account-to-report

c. order-to-cash

Administrative activities focus on the ________. Select one: a. business activities associated with employee management b. hardware and software that must be implemented to support the applications that the primary activities use c. processes and decision making to orchestrate the day-to-day operations of an organization d. design and development of applications that support the primary business activities e. purchasing of goods and services that are required as inputs for the primary activities

c. processes and decision making to orchestrate the day-to-day operations of an organization

Traditionally, companies are organized around five distinct functional areas. Which of the following is one of them? Select one: a. communication management b. risk management c. supply chain management d. technology management e. systems management

c. supply chain management

Which of the following goods are typically produced under a make-to-order approach? Select one: a. mass-produced goods b. goods from external vendors c. very expensive low-volume goods d. expensive high-volume goods e. cheap high-volume goods

c. very expensive low-volume goods

Which of the following is true regarding the formula for success of an enterprise system? Select one: a. Once enterprise systems go live, employees experience an immediate growth in productivity. b. Enterprise systems are simple to understand and implement when compared to stand-alone systems. c. Using outside consultants tends to complicate the implementation of an enterprise system. d. Enterprise systems implementations should include personnel from different departments. e. The success of an enterprise system depends directly on the support received from middle-management.

d. Enterprise systems implementations should include personnel from different departments.

________ focuses on the distribution of end products within the order-to-cash business process. Select one: a. Sales and marketing activity b. Procure-and-pay process c. Make-to-stock process d. Outbound logistics e. Inbound logistics

d. Outbound logistics

Which of the following statements is true of packaged and custom software? Select one: a. Custom software is highly useful for standardized, repetitive tasks, such as writing a report or preparing a presentation. b. Custom software is cost effective since the vendor that builds the application can spread out development costs through selling to a large number of users. c. Packaged software are applications that are designed and developed exclusively for a specific organization. d. The development costs of custom software are much higher than for packaged software because of the time, money, and resources that are required to design, develop, and support them. e. Packaged software is well suited for tasks that are unique to a particular business.

d. The development costs of custom software are much higher than for packaged software because of the time, money, and resources that are required to design, develop, and support them.

According to business process management, identify the management's next step after developing a vision for the organization. Select one: a. They should understand and measure the existing processes as a baseline for future improvements. b. They should manage the information technology to be used from a business transaction perspective. c. They should design and implement a prototype of the new processes. d. They should identify the critical processes that are to be redesigned. e. They should identify the ways in which information systems can be used to improve the various business processes.

d. They should identify the critical processes that are to be redesigned.

Human resource activities ________. Select one: a. streamline the organization's internal value chain b. integrate the internal applications with suppliers, business partners, and customers c. include the purchasing of goods and services that are required as inputs to the primary activities d. are classified as a support activity since the primary activities cannot be accomplished without the employees to perform them e. include the design and development of applications that support the primary business activities

d. are classified as a support activity since the primary activities cannot be accomplished without the employees to perform them

An online retailer has finished creating a customer record. Identify the retailer's next step in an order-to-cash process. Select one: a. create order b. allocate stock c. prepare and send invoice d. check customer's creditworthiness e. pick, pack, and ship

d. check customer's creditworthiness

An internally focused system helps an organization coordinate with its ________. Select one: a. customers b. business partners c. producers d. departments e. suppliers

d. departments

Outbound logistics activities focus on the ________. Select one: a. pricing of goods and services b. receiving and stocking of raw materials, parts, and products c. processing of orders d. distribution of end products within the order-to-cash business process e. transformation of raw materials into end products

d. distribution of end products within the order-to-cash business process

A ________ information flow relates to the information that is produced by a company and sent along to another organization. Select one: a. legacy b. custom c. packaged d. downstream e. stand-alone

d. downstream

Applications that integrate business activities across departmental boundaries are often referred to as ________ planning systems. Select one: a. manufacturing resource b. capacity requirement c. computer-integrated d. enterprise resource e. materials requirement

d. enterprise resource

The hardware and software that must be implemented to support the applications that the primary activities use are a part of the ________ activities. Select one: a. procurement b. inbound logistics c. human resources d. infrastructure e. technology development

d. infrastructure

A system that communicates across organizational boundaries is also referred to as a(n) ________ system. Select one: a. legacy b. intraorganizational c. stand-alone d. interorganizational e. internally focused

d. interorganizational

In the procure-to-pay process, the negotiation of price and terms is followed by ________. Select one: a. creating the customer record b. receiving the invoice c. settling the payment d. issuing the purchase order e. receiving the goods

d. issuing the purchase order

In the ________ process, goods are produced based on forecasts and are stored in a warehouse, and sales orders are then fulfilled from inventory. Select one: a. engineer-to-order b. make-to-order c. assemble-to-order d. make-to-stock e. configure-to-stock

d. make-to-stock

For most businesses, the ________ process entails several subprocesses including creating a customer record, checking the customer's creditworthiness, creating an order, checking and allocating stock, and shipping. Select one: a. procure-to-pay b. make-to-stock c. plan-to-produce d. order-to-cash e. make-to-order

d. order-to-cash

The several processes associated with the acquiring of goods from external vendors are collectively referred to as the ________ process. Select one: a. plan-to-produce b. make-to-order c. order-to-cash d. procure-to-pay e. make-to-stock

d. procure-to-pay

In an order-to-cash process, identify the next step that the online retailer takes after creating an order for a customer. Select one: a. prepare and send invoice b. pick, pack, and ship c. create customer record d. collect payment e. check and allocate stock

e. check and allocate stock

According to business process management, identify the next step taken by management after identifying the ways in which the information systems can be used. Select one: a. identifying the critical processes that are to be redesigned b. reducing costs and shortening the time it takes to get products to market c. developing a vision for the organization that specifies the business objectives d. understanding and measuring the existing processes as a baseline for future improvements e. designing and implementing a prototype of the new process

e. designing and implementing a prototype of the new process

Components to support accounting, performance management, and corporate governance are called ________management. Select one: a. organizing b. personal c. human resource d. operations e. financial

e. financial

An effective ________ process can create customer satisfaction, speed up the collection process, and serve to provide valuable inputs into business intelligence and customer relationship management applications. Select one: a. make-to-stock b. procure-to-pay c. plan-to-produce d. make-to-order e. order-to-cash

e. order-to-cash

The ________ process entails the process related to selling goods or services. Select one: a. goods-to-market b. make-to-stock c. make-to-order d. procure-to-pay e. order-to-cash

e. order-to-cash

Customers can purchase ________ software off the shelf to help them with their personal documents and communications. Select one: a. custom b. tailored c. bespoke d. personalized e. packaged

e. packaged

Subprocesses of the procure-to-pay process include ________. Select one: a. creating customer satisfaction b. speeding up the collection process c. creating customer records d. collecting the payment e. price and terms negotiations

e. price and terms negotiations

An effective ________ process can help to obtain favorable conditions, reduce transaction costs, and, ultimately, create customer goodwill as it helps to efficiently fulfill customer orders. Select one: a. procure-to-buy b. find-to-sell c. find-to-buy d. procure-to-sell e. procure-to-pay

e. procure-to-pay

Inbound logistics involves business activities associated with ________. Select one: a. communicating with potential and existing customers b. creating marketing literature c. distributing end products within the order-to-cash business process d. order processing e. receiving and stocking raw materials, parts, and products

e. receiving and stocking raw materials, parts, and products

Receiving the goods is followed by ________ in the procure-to-pay process. Select one: a. negotiating the price and terms b. creating the order c. issuing the purchase order d. settling the payment e. receiving the invoice

e. receiving the invoice

A legacy system is an integrated suite of business applications for virtually every department, process, and industry that allows companies to integrate information across operations on a company-wide basis using one large database. Select one: True False

false

Enterprise resource planning (ERP) core components support the primary external activities of the organization that deals with suppliers and customers. Select one: True False

false

Enterprise resource planning extended components support internal operations such as financial management, operations management, and human resource management. Select one: True False

false

In the make-to-stock process, raw materials, subcomponents, and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received. Select one: True False

false

Industry surveys have shown that 50 percent of companies that undertake enterprise system implementations did not realize any benefits. Select one: True False

false

Internally focused systems coordinate business processes with customers, suppliers, and business partners. Select one: True False

false

One of the traditional functional areas that companies are organized around is information systems management. Select one: True False

false

The order-to-cash process entails subprocesses such as price and terms negotiations, issuing of the purchase order, receiving the goods, and receiving and paying the invoice. Select one: True False

false

A system that communicates across organizational boundaries is sometimes referred to as an interorganizational system (IOS). Select one: True False

true

Companies that have successfully installed enterprise systems are found to follow a basic set of recommendations related to enterprise system implementations. Select one: True False

true

Customer relationship management applications concentrate on the activities involved in promoting and selling products to the customers as well as providing customer service and nourishing long-term relationships. Select one: True False

true

Enterprise resource planning control refers to the locus of control over the computing systems and data contained in these systems, as well as decision making authority. Select one: True False

true

Enterprise resource planning replaces stand-alone applications by providing various modules based on a common database and similar application interfaces that service the entire enterprise rather than portions of it. Select one: True False

true

Rather than storing information in separate places throughout the organization, enterprise systems provide a central repository common to all corporate users. Select one: True False

true

Systems that focus on the specific needs of individual departments are typically not designed to communicate with other systems in the organization and are therefore referred to as stand-alone applications. Select one: True False

true

The core business processes common to most business organizations are order-to-cash, procure-to-pay, and make-to-stock. Select one: True False

true

The main objective of enterprise systems is to create competitive advantage by streamlining business activities within and outside a company. Select one: True False

true

The make-to-order process uses the pull-based approach. Select one: True False

true

The processes associated with buying goods from external vendors are together referred to as the procure-to-pay process. Select one: True False

true

There are two major categories of enterprise resource planning (ERP) components—ERP core components and ERP extended components. Select one: True False

true