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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 35
Process Improvement and Innovation
Refer to Exercise 12.8. Suppose that clerical error is the common root cause of the nonvalue- added activities. Paying bills is a subprocess that belongs to the procurement process. The procurement process is made up of three subprocesses: purchasing, receiving, and paying bills.
Required:
1. What is the definition of a process? Identify the common objective for the procurement process. Repeat for each subprocess.
2. Now, suppose that Thayne decides to attack the root cause of the non-value-added activities of the bill-paying process by improving the skills of its purchasing and receiving clerks. As a result, the number of discrepancies found drops by 30 percent. Discuss the potential effect this initiative might have on the bill-paying process. Does this initiative represent process improvement or process innovation? Explain.
Refer to Exercise 12.8. Suppose that clerical error is the common root cause of the nonvalue- added activities. Paying bills is a subprocess that belongs to the procurement process. The procurement process is made up of three subprocesses: purchasing, receiving, and paying bills.
Required:
1. What is the definition of a process? Identify the common objective for the procurement process. Repeat for each subprocess.
2. Now, suppose that Thayne decides to attack the root cause of the non-value-added activities of the bill-paying process by improving the skills of its purchasing and receiving clerks. As a result, the number of discrepancies found drops by 30 percent. Discuss the potential effect this initiative might have on the bill-paying process. Does this initiative represent process improvement or process innovation? Explain.
Explanation
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1)Explain the definition of a process:
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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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