Business Process Improvement (BPI), BPR & Digital Transformation – 110 MCQs with Answers
Q1. Which technique focuses on small, incremental changes to existing processes?
A. BPR
B. BPI
C. BPA
D. Digital Transformation
✅ Answer: C. BPA
Q2. The primary objective of Business Process Automation (BPA) is to improve:
A. Effectiveness
B. Innovation
C. Efficiency
D. Customer delight
✅ Answer: C. Efficiency
Q3. Which approach balances both efficiency and effectiveness?
A. BPA
B. BPI
C. BPR
D. Digitization
✅ Answer: B. BPI
Q4. Business Process Reengineering (BPR) emphasizes:
A. Incremental change
B. Departmental optimization
C. Radical redesign
D. Automation of tasks
✅ Answer: C. Radical redesign
Q5. Understanding the current process is referred to as the:
A. To-Be system
B. As-Is system
C. Target system
D. Digital system
✅ Answer: B. As-Is system
Q6. Developing the future vision of a process is called:
A. As-Is modeling
B. Root cause analysis
C. To-Be system design
D. Functional mapping
✅ Answer: C. To-Be system design
Q7. Which approach requires questioning why activities are performed at all?
A. BPA
B. BPI
C. BPR
D. Digitalization
✅ Answer: C. BPR
Q8. “Reengineering is reinvention, not modification” reflects which BPR principle?
A. Fundamental
B. Radical
C. Dramatic
D. Process-centric
✅ Answer: B. Radical
Q9. BPR seeks improvements that are:
A. Marginal
B. Departmental
C. Order-of-magnitude
D. Short-term
✅ Answer: C. Order-of-magnitude
Q10. Which organizations are most likely to undertake BPR?
A. Only startups
B. Only failing firms
C. Firms in trouble or seeking advantage
D. Only government bodies
✅ Answer: C. Firms in trouble or seeking advantage
Q11. A business process is best described as:
A. A department
B. A set of isolated tasks
C. Activities creating customer value
D. A software application
✅ Answer: C. Activities creating customer value
Q12. In the IPO model, “P” stands for:
A. Planning
B. Process
C. Performance
D. Productivity
✅ Answer: B. Process
Q13. Process integration aims to eliminate:
A. Automation
B. Innovation
C. Over-the-wall thinking
D. Digital tools
✅ Answer: C. Over-the-wall thinking
Q14. Integration between suppliers and buyers represents:
A. Intra-organizational integration
B. Inter-organizational integration
C. Functional silos
D. BPA
✅ Answer: B. Inter-organizational integration
Q15. Which of the following is NOT BPR?
A. Downsizing
B. Radical redesign
C. Process reinvention
D. Performance improvement
✅ Answer: A. Downsizing
Q16. Digitization primarily deals with:
A. Business models
B. Processes
C. Analog-to-digital information
D. Organizational culture
✅ Answer: C. Analog-to-digital information
Q17. Converting paper records into PDFs is an example of:
A. Digital transformation
B. Digitalization
C. Digitization
D. BPR
✅ Answer: C. Digitization
Q18. Digitalization focuses on:
A. Information conversion
B. Process automation using digital tools
C. Cultural change
D. Radical redesign
✅ Answer: B. Process automation using digital tools
Q19. Digital transformation differs from digitalization because it includes:
A. Hardware upgrades
B. Cultural and business model change
C. File conversion
D. Cost reduction only
✅ Answer: B. Cultural and business model change
Q20. Which technology is NOT listed as an innovative digital technology?
A. AI
B. IoT
C. Blockchain
D. ERP
✅ Answer: D. ERP
Q21. Domino’s transformation positioned it as:
A. A logistics company
B. A food manufacturing firm
C. An e-commerce company selling pizza
D. A retail chain
✅ Answer: C. An e-commerce company selling pizza
Q22. Capital One’s cloud-first strategy enabled:
A. Higher branch count
B. Focus on infrastructure
C. Faster customer-centric innovation
D. Manual processing
✅ Answer: C. Faster customer-centric innovation
Q23. Walmart’s digital success emphasized:
A. Fancy technology
B. Getting basics right
C. Eliminating stores
D. Reducing product range
✅ Answer: B. Getting basics right
Q24. Tesla’s over-the-air updates represent:
A. Digitization
B. Digital transformation
C. BPA
D. Manual optimization
✅ Answer: B. Digital transformation
Q25. AR in automotive service improves:
A. Manual labor
B. Delays
C. Collaboration and resolution speed
D. Paper documentation
✅ Answer: C. Collaboration and resolution speed
Q26. Fin-tech transformation success depends heavily on:
A. Branding alone
B. Technology teams only
C. Enterprise-wide organizational change
D. Outsourcing
✅ Answer: C. Enterprise-wide organizational change
Q27. Healthcare’s compressed vaccine timeline demonstrates:
A. Digitalization
B. Digital disruption
C. Digital transformation
D. Digitization
✅ Answer: C. Digital transformation
Q28. Precision medicine relies heavily on:
A. Paper records
B. Batch manufacturing
C. Data, IoT, and analytics
D. Manual diagnosis
✅ Answer: C. Data, IoT, and analytics
Q29. Process transformation primarily focuses on:
A. Culture
B. Internal efficiency
C. Market expansion
D. Branding
✅ Answer: B. Internal efficiency
Q30. Netflix moving from DVDs to streaming is an example of:
A. Process transformation
B. Domain transformation
C. Business model transformation
D. Cultural transformation
✅ Answer: C. Business model transformation
Q31. Domain transformation involves:
A. Workforce reduction
B. New digital offerings
C. Organizational flattening
D. Automation only
✅ Answer: B. New digital offerings
Q32. Cultural transformation emphasizes:
A. Command-and-control
B. Agile mindset and experimentation
C. Rigid hierarchy
D. Cost cutting
✅ Answer: B. Agile mindset and experimentation
Q33. A hierarchical organization is typically:
A. Flat and flexible
B. Process-centric
C. Silo-based
D. Customer-centric
✅ Answer: C. Silo-based
Q34. A process-oriented organization is:
A. Static
B. Vertical
C. Customer-focused
D. Department-driven
✅ Answer: C. Customer-focused
Q35. A key disadvantage of functional silos is:
A. Expertise optimization
B. Clear accountability
C. Sub-optimization
D. Skill specialization
✅ Answer: C. Sub-optimization
Q36. Which is a core benefit of process perspective?
A. Increased hierarchy
B. Duplicate work reduction
C. More approvals
D. Departmental control
✅ Answer: B. Duplicate work reduction
Q37. A process has:
A. No defined output
B. Only inputs
C. A beginning and an end
D. Only tasks
✅ Answer: C. A beginning and an end
Q38. A sub-process is best described as:
A. A task
B. A department
C. A compound activity within a process
D. A role
✅ Answer: C. A compound activity within a process
Q39. The smallest unit of work is a:
A. Process
B. Sub-process
C. Activity
D. Task
✅ Answer: D. Task
Q40. The inherent advantage of a business process is:
A. It avoids technology
B. It ensures hierarchy
C. Performance measurability
D. Departmental focus
✅ Answer: C. Performance measurability
Q41. Which process perspective focuses on end-to-end value creation for customers?
A. Functional perspective
B. Departmental perspective
C. Process perspective
D. Hierarchical perspective
✅ Answer: C. Process perspective
Q42. “Silo-opia” primarily results from:
A. Excessive automation
B. Functional organizational structures
C. Digital transformation
D. Process integration
✅ Answer: B. Functional organizational structures
Q43. Which task characteristic best defines a process?
A. Repetition
B. Informality
C. Sequence with defined inputs and outputs
D. Individual ownership
✅ Answer: C. Sequence with defined inputs and outputs
Q44. The main drawback of functional silos is:
A. Skill specialization
B. Clear authority
C. Sub-optimization
D. Faster decisions
✅ Answer: C. Sub-optimization
Q45. In a process-oriented organization, accountability is:
A. Individual-based
B. Department-based
C. End-to-end process-based
D. Management-only
✅ Answer: C. End-to-end process-based
Q46. Which of the following best represents a cross-functional process?
A. Payroll processing
B. Customer order fulfillment
C. Departmental budgeting
D. Staff appraisal
✅ Answer: B. Customer order fulfillment
Q47. Excessive approvals and checks are examples of:
A. Value-adding activities
B. Non-value-adding activities
C. Digital transformation
D. Process optimization
✅ Answer: B. Non-value-adding activities
Q48. Sequential task execution instead of parallel execution leads to:
A. Faster throughput
B. Reduced quality
C. Increased cycle time
D. Better control
✅ Answer: C. Increased cycle time
Q49. Which IT support capability is critical for effective processes?
A. Manual reporting
B. Input once, use everywhere
C. Decentralized data storage
D. Paper documentation
✅ Answer: B. Input once, use everywhere
Q50. Process integration mainly aims to:
A. Increase departmental power
B. Improve coordination across functions
C. Replace employees
D. Reduce customer interaction
✅ Answer: B. Improve coordination across functions
Q51. A procurement-to-shipment flow is an example of:
A. Functional structure
B. Business process
C. Task
D. Sub-process
✅ Answer: B. Business process
Q52. The order-to-payment cycle is commonly known as:
A. Production process
B. Sales process
C. Order fulfillment process
D. Logistics process
✅ Answer: C. Order fulfillment process
Q53. Which role benefits most from a process-centric view?
A. Individual contributors
B. Middle managers
C. Process owners
D. External auditors
✅ Answer: C. Process owners
Q54. Which is a key feature of flattened organizations?
A. Centralized control
B. Multiple management layers
C. Empowered teams
D. Strict hierarchies
✅ Answer: C. Empowered teams
Q55. Process-based organizations are typically:
A. Static and rigid
B. Vertical in structure
C. Dynamic and flexible
D. Bureaucratic
✅ Answer: C. Dynamic and flexible
Q56. Which activity transforms inputs into outputs?
A. Strategy
B. Process
C. Policy
D. Governance
✅ Answer: B. Process
Q57. Business processes primarily move:
A. Authority
B. Policies
C. Information and materials
D. Profits
✅ Answer: C. Information and materials
Q58. Government processes are primarily designed to create value for:
A. Shareholders
B. Vendors
C. Citizens
D. Regulators
✅ Answer: C. Citizens
Q59. Passport issuance is best classified as a:
A. Task
B. Activity
C. Service supported by processes
D. Department
✅ Answer: C. Service supported by processes
Q60. Document verification in passport issuance is a:
A. Process
B. Sub-process
C. Function
D. System
✅ Answer: B. Sub-process
Q61. Printing a fee receipt represents a:
A. Task
B. Sub-process
C. Process
D. Service
✅ Answer: A. Task
Q62. A key benefit of the process approach is:
A. Increased specialization
B. Improved estimation accuracy
C. More documentation
D. Reduced accountability
✅ Answer: B. Improved estimation accuracy
Q63. Process ownership improves:
A. Bureaucracy
B. Accountability
C. Hierarchy
D. Paperwork
✅ Answer: B. Accountability
Q64. Which phase comes first in new product development?
A. Production start
B. Market test
C. Needs analysis
D. Product release
✅ Answer: C. Needs analysis
Q65. Equipment design is closely associated with:
A. Marketing
B. Manufacturing
C. R&D
D. Finance
✅ Answer: B. Manufacturing
Q66. Credit checking is a part of which process?
A. Product development
B. Procurement
C. Order fulfillment
D. Sales promotion
✅ Answer: C. Order fulfillment
Q67. Which function is most involved in billing?
A. Logistics
B. Finance
C. Manufacturing
D. Marketing
✅ Answer: B. Finance
Q68. Moving from functional silos to process centricity primarily improves:
A. Authority
B. Coordination
C. Control
D. Compliance
✅ Answer: B. Coordination
Q69. Matrix organizational structures emerged mainly due to:
A. Automation
B. Deregulation and competition
C. Downsizing
D. Digitization
✅ Answer: B. Deregulation and competition
Q70. Market-oriented banks emphasize:
A. Bureaucratic control
B. Result orientation
C. Functional dominance
D. Cost cutting
✅ Answer: B. Result orientation
Q71. Processes extending across organizational boundaries aim to:
A. Increase control
B. Reduce transparency
C. Improve customer service
D. Increase hierarchy
✅ Answer: C. Improve customer service
Q72. Which perspective focuses on “How work is done”?
A. Functional
B. Process
C. Hierarchical
D. Structural
✅ Answer: B. Process
Q73. Process orientation shifts focus from:
A. Customers to tasks
B. Tasks to departments
C. Departments to customers
D. Innovation to control
✅ Answer: C. Departments to customers
Q74. Which is NOT an advantage of the process perspective?
A. Reduced duplication
B. Better communication
C. Optimized workflows
D. Increased departmental autonomy
✅ Answer: D. Increased departmental autonomy
Q75. Questioning “why we do things this way” reflects:
A. Compliance
B. Status quo thinking
C. Process mindset
D. Bureaucracy
✅ Answer: C. Process mindset
Q76. Cross-functional processes typically cut across:
A. Time zones
B. Technologies
C. Departments
D. Job grades
✅ Answer: C. Departments
Q77. Procurement-to-shipment best illustrates:
A. Vertical optimization
B. End-to-end process flow
C. Departmental efficiency
D. Task specialization
✅ Answer: B. End-to-end process flow
Q78. Parallel task execution primarily improves:
A. Cost
B. Cycle time
C. Compliance
D. Documentation
✅ Answer: B. Cycle time
Q79. Rework is usually caused by:
A. Over-automation
B. Errors and poor integration
C. Excess staffing
D. Digital maturity
✅ Answer: B. Errors and poor integration
Q80. An organization lacking timely information support is likely to face:
A. Innovation overload
B. Process delays
C. Excess agility
D. High morale
✅ Answer: B. Process delays
Q81. Process integration with ERP systems enables:
A. Manual intervention
B. Isolated operations
C. Seamless data flow
D. Functional silos
✅ Answer: C. Seamless data flow
Q82. Sales order entry is typically the first step in:
A. Procurement
B. Production
C. Sales order process
D. Logistics
✅ Answer: C. Sales order process
Q83. MRP is most closely linked with:
A. Marketing
B. Production planning
C. Sales forecasting
D. Accounting
✅ Answer: B. Production planning
Q84. Goods receipt is common to:
A. Sales only
B. Procurement and production
C. Finance only
D. Marketing
✅ Answer: B. Procurement and production
Q85. Quality inspection primarily ensures:
A. Speed
B. Compliance and standards
C. Cost reduction
D. Automation
✅ Answer: B. Compliance and standards
Q86. Process integration reduces:
A. Transparency
B. Collaboration
C. Manual handoffs
D. System usage
✅ Answer: C. Manual handoffs
Q87. Empowered knowledge workers are a hallmark of:
A. Hierarchical organizations
B. Functional silos
C. Process-oriented organizations
D. Bureaucratic systems
✅ Answer: C. Process-oriented organizations
Q88. Digital support enables processing capability:
A. Only at headquarters
B. Only by managers
C. Where and when needed
D. After approvals
✅ Answer: C. Where and when needed
Q89. The process approach emphasizes:
A. Individual performance
B. Systematic management of activities
C. Departmental efficiency
D. Task isolation
✅ Answer: B. Systematic management of activities
Q90. Output of one process often becomes:
A. Waste
B. Final product
C. Input to another process
D. Inventory loss
✅ Answer: C. Input to another process
Q91. End-to-end process visibility improves:
A. Politics
B. Customer satisfaction
C. Paperwork
D. Micromanagement
✅ Answer: B. Customer satisfaction
Q92. A documented set of activities designed to meet objectives defines a:
A. Task
B. Function
C. Process
D. Policy
✅ Answer: C. Process
Q93. Grouping related tasks forms an:
A. Activity
B. Output
C. Department
D. System
✅ Answer: A. Activity
Q94. Process optimization through integration primarily leads to:
A. Complexity
B. Ownership clarity
C. Delays
D. Redundancy
✅ Answer: B. Ownership clarity
Q95. Citizen focus in government processes enhances:
A. Bureaucracy
B. Service quality
C. Control
D. Hierarchy
✅ Answer: B. Service quality
Q96. Measuring process performance helps in:
A. Avoiding accountability
B. Continuous improvement
C. Increasing silos
D. Reducing transparency
✅ Answer: B. Continuous improvement
Q97. Training becomes more effective when:
A. Roles are ambiguous
B. Processes are undocumented
C. Processes are standardized
D. Tasks are isolated
✅ Answer: C. Processes are standardized
Q98. Process mobility allows employees to:
A. Change departments frequently
B. Move easily between projects
C. Avoid accountability
D. Reduce skills
✅ Answer: B. Move easily between projects
Q99. Customer-oriented results are central to:
A. Functional thinking
B. Process thinking
C. Bureaucratic control
D. Task execution
✅ Answer: B. Process thinking
Q100. A key outcome of process centricity is:
A. Departmental dominance
B. Holistic organizational view
C. Increased hierarchy
D. Reduced collaboration
✅ Answer: B. Holistic organizational view
Q101. Process thinking encourages organizations to:
A. Preserve legacy systems
B. Avoid change
C. Challenge the status quo
D. Increase paperwork
✅ Answer: C. Challenge the status quo
Q102. “Because we’ve always done it this way” contradicts:
A. Functional thinking
B. Process mindset
C. Bureaucratic control
D. Standard operating procedures
✅ Answer: B. Process mindset
Q103. Cross-company processes are enabled mainly through:
A. Manual coordination
B. Paper workflows
C. Digital networks
D. Departmental meetings
✅ Answer: C. Digital networks
Q104. Which organizational model best supports digital transformation?
A. Rigid hierarchy
B. Functional silos
C. Flat and flexible
D. Centralized bureaucracy
✅ Answer: C. Flat and flexible
Q105. Knowledge workers thrive best in:
A. Command-driven structures
B. Rule-bound hierarchies
C. Empowered team environments
D. Isolated roles
✅ Answer: C. Empowered team environments
Q106. Process integration primarily supports:
A. Vertical reporting
B. Horizontal workflows
C. Isolated optimization
D. Departmental silos
✅ Answer: B. Horizontal workflows
Q107. Horizontal processes typically deliver value to:
A. Managers
B. Departments
C. Customers
D. Regulators
✅ Answer: C. Customers
Q108. Functional optimization without process view often leads to:
A. System efficiency
B. Organizational agility
C. Local optimization
D. Customer focus
✅ Answer: C. Local optimization
Q109. Process-centric organizations think:
A. Locally, act locally
B. Functionally, act hierarchically
C. Globally, act locally
D. Digitally, act manually
✅ Answer: C. Globally, act locally
Q110. The ultimate goal of process management is to:
A. Increase paperwork
B. Reduce accountability
C. Deliver sustained value to customers
D. Strengthen silos
✅ Answer: C. Deliver sustained value to customers
BPI MCQs, BPR MCQs, Business Process Reengineering Questions, Digital Transformation MBA MCQs, BPA vs BPI vs BPR, Process Management MCQs, Digitization vs Digitalization, Digital Transformation Examples, MBA IT Systems MCQs
, BPR \u0026 Digital Transformation – 110 MCQs with Answers){kind=link}