Reengineering How a Firm Performs a Business Process

question 65

Multiple Choice

Reengineering how a firm performs a business process:

• A) is a tool for pulling the pieces of strategy-critical processes out of different departments and unifying their performance in a single department or cross-functional work group that is in charge of the whole process.
• B) is the most frequently used tool of total quality management (TQM).
• C) requires that a company have many strategic partnerships and alliances with outsiders.
• D) is typically cheaper and easier than using Six Sigma techniques to achieve the same cost savings.
• E) is usually a company's most important "best practice" for achieving operating excellence.

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Definitions:

Weighted-Average Time

A calculation that determines the mean time until cash flows are received, adjusted for the relative size of each cash flow, often used in bonds.

Cash Flow Payment

Payments of money, particularly from a company or government to an individual, which can arise from operations, financing, or investments.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all payments of principal and interest.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, representing the weighted average of the time until a bond's cash flows are received.