The Big Difference Between Business Process Reengineering and Continuous Improvement

question 79

Multiple Choice

The big difference between business process reengineering and continuous improvement programs such as TQM or Six Sigma is that

• A)reengineering is a tool for installing process organization,whereas TQM and Six Sigma concern defect-free production methods and delivering world-class customer service.
• B)reengineering helps create core competencies,whereas TQM and Six Sigma are tools for making a core competence stronger and more efficient.
• C)reengineering is a tool for achieving one-time quantum improvements,whereas TQM and Six Sigma programs aim at incremental progress improvement (striving for inch-by-inch gains again and again in a never-ending stream).
• D)business process reengineering requires benchmarking,whereas TQM and Six Sigma do not.
• E)reengineering represents an effort to totally revamp a firm's value chain,whereas TQM looks at incrementally improving the performance of two or three targeted value chain activities.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Worksheet

An informal accounting document used inside an organization, facilitating the preparation of financial statements and supporting the adjustment process at the end of an accounting period.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income.