Suppose that clerical error is the common root cause of the non-value-added activities. Paying bills is a subprocess that belongs to the procure- ment process. The procurement process is made up of three subprocesses: purchas- ing, receiving, and paying bills.

Required:

1. What is the definition of a process? Identify the common objective for the pro- curement process. Repeat for each subprocess.

2. Now, suppose that Whitley decides to attack the root cause of the non-value- added activities of the bill-paying process by improving the skills of its purchas- ing 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.