Managing Quality: Integrating the Supply Chain, 6e (Foster)
Chapter 6 The Voice of the Market
1) Toyota developed the world-class production system known as ________.
A) business process reengineering
B) just-in-time
C) total quality management
D) benchmarking
E) statistical process control
2) The sharing of information between companies so that both can improve is called ________.
A) reengineering
B) baselining
C) benchmarking
D) interfacing
E) data mining
3) The goal of ________ benchmarking is to identify and to observe the best practices from one
or more benchmark firms.
A) product
B) strategic
C) process
D) financial
E) functional
4) ________ benchmarking allows initiator firms to assess their competitive position by
comparing products and services with those of target firms.
A) Functional
B) Strategic
C) Product
D) Performance
E) Process
5) The process of dismantling competitors’ products to understand the strengths and weaknesses
of their designs is referred to as ________.
A) benchmarking
B) reengineering
C) baselining
D) inverse production
E) reverse engineering
6) ________ benchmarking involves observing how others compete.
A) Strategic
B) Product
C) Performance
D) Functional
E) Process
7) A benchmarking effort that is limited to studying the purchasing department of another firm is
referred to as ________ benchmarking.
A) functional
B) performance
C) process
D) strategic
E) product
8) ________ is based on the concept of 5w2h.
A) Business process benchmarking
B) Statistical process control
C) Total quality management
D) Business process reengineering
E) Reverse engineering
9) In the ________ process of business process benchmarking, the inputs are aligned together to
form the product or service.
A) reconstruction
B) control
C) reengineering
D) transformation
E) conversion
10) The ________ process of business process benchmarking results in outputs that are
eventually sold to customers.
A) transformation
B) conversion
C) control
D) reconstruction
E) reengineering
11) In the conversion process, the feedback loop that involves gathering, analyzing, and using
the data to adjust the process is called the ________ process.
A) control
B) reengineering
C) reconstruction
D) development
E) transformation
12) What is the first step in Xerox’s 10-step process to benchmarking?
A) determine the current performance gap
B) identify whom to benchmark
C) decide what to benchmark
D) develop action plans
E) project future performance levels
13) Which of the following steps in Xerox’s 10-step process to benchmarking helps companies
prioritize which areas are the first candidates for change and improvement?
A) determine the current performance gap
B) plan and conduct the investigation
C) identify whom to benchmark
D) decide what to benchmark
E) develop action plans
14) Which of the following steps in Xerox’s 10-step process to benchmarking involves predicting
whether the performance gap for the benchmarked processes will narrow or widen in the coming
years?
A) develop action plans
B) determine the current performance gap
C) plan and conduct the investigation
D) project future performance levels
E) implement specific actions and monitor progress
15) Which of the following types of benchmarking does not require direct interaction between
the initiator firm and the target firm?
A) functional
B) product
C) performance
D) financial
E) process
16) ________ benchmarking often includes reverse engineering in order to develop new design
ideas.
A) Product
B) Strategic
C) Process
D) Financial
E) Functional
17) ________ benchmarking to assess overall competitiveness can be accomplished by gathering
and comparing business results using online databases such as Lexis/Nexis.
A) Functional
B) Strategic
C) Product
D) Financial
E) Process
18) Which of the following is not one of the purposes of benchmarking?
A) learning from success
B) national leadership
C) stealing ideas
D) beating industry standards
E) best-in-world
19) A benchmark is an organization recognized for its exemplary operational performance.
20) Toyota developed the world-class production system known as business process
reengineering.
21) Openness can create a competitive advantage through creating psychological barriers to
competition.
22) The first step a benchmarking firm must take is to document current performance.
23) In a benchmarking relationship, the initiator firm is the firm that is being studied.
24) In performance benchmarking, the initiator firm focuses its observation and investigation on
business processes.
25) Financial benchmarking involves direct interaction between the initiator firm and the target
firms.
26) Dismantling competitors’ products to understand the strengths and weaknesses of their
designs is called reverse engineering.
27) Strategic benchmarking involves observing how others compete.
28) In functional benchmarking, a company focuses its benchmarking efforts on a single function
to improve the operation of that function.
29) The 5w2h concept is labeled as such because a business process benchmarking project
should result in the answers to five questions.
30) The 5w2h questions should be viewed in the context of a process.
31) The conversion process results in outputs that are eventually sold to customers.
32) In the control process, the inputs are aligned together to form the product or service.
33) The first step in Xerox’s 10-step process to benchmarking is identifying whom to benchmark.
34) Determining the current performance gap helps the company prioritize which areas are the
first candidates for change and improvement.
35) Explain the process of benchmarking.
36) Differentiate between an initiator firm and a target firm. Are these static roles?
37) Describe the concept of performance benchmarking.
38) Describe the concept of functional benchmarking.
39) Describe the concept of 5w2h.
40) Describe the conversion process and the control process in business process benchmarking.
41) State Xerox’s formal 10-step process to benchmarking.
42) Return on assets (ROA) and return on investments (ROI) are examples of ________.
A) structural measures
B) market share data
C) productivity ratios
D) quality measures
E) financial ratios
43) ________ are useful in measuring the extent to which a firm effectively uses the scarce
resources that are available to the firm.
A) Quality measures
B) Financial ratios
C) Productivity ratios
D) Market share data
E) Structural measures
44) ________ are important for monitoring and tracking the effectiveness of a company’s cycle
times, waste-reduction measures, and value-added measures.
A) Customer-related measures
B) Productivity ratios
C) Quality measures
D) Operating results
E) Structural measures
45) Reject rates, capability analysis, and performance information are examples of ________.
A) structural measures
B) market share data
C) productivity ratios
D) financial ratios
E) quality measures
46) ________ include objectives, policies, and procedures followed by a firm.
A) Productivity ratios
B) Quality measures
C) Market share data
D) Structural measures
E) Operating results
47) ________ dictates that decisions are made based on the sound collection and analysis of data.
A) Strategic benchmarking
B) Baselining
C) Business process reengineering
D) Management by fact
E) Reverse engineering
48) ________ is defined as the fundamental rethinking and redesign of business processes.
A) Process redesign
B) Benchmarking
C) Baselining
D) Reverse engineering
E) Restructuring
49) Which of the following best defines the breadth factor of process redesign?
A) It refers to organizational elements such as responsibilities, measurements, information
technology, and skills.
B) It refers to the monitoring of key internal firm performance measures over time to identify
trends such as improvement in managerial decision making.
C) It refers to the impact of the process redesign to the entire organization.
D) It refers to the dismantling of competitors’ products to understand the strengths and
weaknesses of their designs.
E) It refers to the sharing of information between companies so that both can improve.
50) Which of the following best defines the depth factor of process redesign?
A) It refers to organizational elements such as responsibilities, measurements, information
technology, and skills.
B) It refers to the monitoring of key internal firm performance measures over time to identify
trends such as improvement in managerial decision making.
C) It refers to the impact of the process redesign to the entire organization.
D) It refers to the dismantling of competitors’ products to understand the strengths and
weaknesses of their designs.
E) It refers to the sharing of information between companies so that both can improve.
51) ________ requires the monitoring of key internal firm performance measures over time to
identify trends such as improvement to inform managerial decision making.
A) Baselining
B) Benchmarking
C) Process redesign
D) Reverse engineering
E) Restructuring
52) The ________ process involves identifying measures, establishing time frames for future
data collection, gathering data, and analyzing data on an ongoing basis to identify performance
trends and changes.
A) restructuring
B) baselining
C) reengineering
D) reverse engineering
E) benchmarking
53) The concept of ________ implies that you must have something to offer the target firm in
return for sharing information.
A) reciprocity
B) baselining
C) process redesign
D) interfacing
E) restructuring