Question 1

Takt time is a measure which calculates the longest period of time that can be spent processing a unit of product while still meeting the level of demand. Which of these steps is NOT included in the calculation of Takt time?

Accepted Answer

A)  Calculating cycle time against Takt time.
B)  Calculation of the demand in days, weeks, or months.
C)  Calculation of the total available time.
D)  Calculation of the delivery time. D

Question 2

Customer satisfaction is the main goal of lean. Which of the following is NOT included in the lean measures for customer satisfaction?

Accepted Answer

A)  Attribute Satisfaction Measurements.
B)  Cost Savings Measurement.
C)  Loyalty Measurement.
D)  Intention to Repurchase Measurements. B

Question 3

Waste is identified as anything that does not add value to a product or process. Lean measurements reveal waste in processes. Which of these statements is incorrect concerning guidelines for lean measurements?

Accepted Answer

A)  What gets measured in lean gets done.
B)  Flow requires measuring process times.
C)  Financial measurements can substitute for lean metrics.
D)  Lean measurements should be real-time measurements, not averages over months, quarters, or years. C

Question 4

Which tool used in management decisions to build the improvement strategy includes a quadrant-based tool of performance measures?

Accepted Answer

A)  Organizational benchmarking.
B)  ISO 9000.
C)  A Gap Analysis.
D)  A balanced scorecard.

Question 5

Lean measures which have financial impact are those that create cost reduction, inventory reduction, or increased revenue. Which measure would be used if the hourly wage rate is computed and counted each time a process is executed?

Accepted Answer

A)  The financial impact of errors.
B)  The financial impact of inventory.
C)  The financial impact of revenue.
D)  The financial impact of time.

Question 6

Queue times are important lean measures in processing times. There are five elements of the cycle time of a process: run time, queue time, move time, wait time, and setup time. Of these choices, which one is the only value-added time?

Accepted Answer

A)  Queue time of a process.
B)  Setup time of a process.
C)  Move time of a process.
D)  Run time of a process.

Question 7

Strategic lean metrics include return on capital, revenue, cash flow, and market position. Dr. Genichi Taguchi was a Japanese engineer and statistician whose work determined what product specification meant and how it could be applied to a cost effective production. Taguchi Product Development includes three stages. Which of the following is NOT included?

Accepted Answer

A)  Finding the balance between manufacturing unit cost profit and loss.
B)  Organizational strategic planning.
C)  System designs.
D)  Determining how the product should perform.

Question 8

Visual feedback on key measures should be provided to employees in real time. The information in the real time feedback will include all of the following EXCEPT:

Accepted Answer

A)  The key metrics being measured.
B)  The target value of the measures.
C)  Possible process improvement initiatives.
D)  Data source and the data collector.

Question 9

Lean waste measurements impact a business's bottom line. Which factor given below can hide quality defects by increasing the time between the creation of a defect and when it is discovered?

Accepted Answer

A)  Inaccurate calculations of the total cost of production.
B)  Incorrectly managed cycle time.
C)  An employee who is not properly trained.
D)  A high level of inventory.

Question 10

The concept of "time economy" for quality improvement teams typically leads to all of the following EXCEPT:

Accepted Answer

A)  Reduced data collection costs
B)  Too much information
C)  Slow data collection process
D)  Data management issues

Question 11

Internal measures should be aligned with the voice of the customer (VOC). Which of the following examples would provide a supporting measure for the voice of the customer?

Accepted Answer

A)  Improvement ideas from employees.
B)  A reduction in the cost of production labor.
C)  Increased cost of input supplies.
D)  Success of new products.

Question 12

The desired characteristics of Performance Measurement Systems would include all of the following EXCEPT?

Accepted Answer

A)  Should supporting the strategic intentions of the organization.
B)  Should be easily understood by employees.
C)  Should not include both drivers and results for activities.
D)  Should include visual indicators.

Question 13

Measuring the voice of the customer helps an organization validate customer expectations, requirements, and unhappiness with current processes. When performing a Voice of the Customer Analysis, which example would be a form of "reactive data"?

Accepted Answer

A)  Complaints or comment cards.
B)  Customer interviews.
C)  Product focus groups.
D)  Customer surveys.

Question 14

A Six Sigma Greenbelt is calculating key lean measures for inventory turns. Which inventory turn measure is calculated by adding beginning inventory and inventory purchases then subtracting the ending inventory?

Accepted Answer

A)  Cost of Goods Sold.
B)  Inventory Turnover Ratio.
C)  Average Inventory.
D)  Calculation of Inventory Turnover Ratio.

Question 15

Lead time is the total time required to manufacture a product, including the order preparation time, queue time, setup time, process time, movement within factory, inspection time, and placement in inventory. An inventory cycle begins once a product is placed in inventory. The number of times that inventory cycles per year is known as which of the following:

Accepted Answer

A)  Cycle time of the process.
B)  Inventory turn.
C)  Manufacturing lead time.
D)  TAKT Time.

Question 16

Which of the following key lean measures for delivery is the time from the customer order until they receive the product?

Accepted Answer

A)  Total lead time.
B)  On-time delivery.
C)  The processing cycle time.
D)  The reorder rate.

Question 17

The SMART acronym is use by organizations to develop objectives. Under SMART, how do you know when a goal is achieved?

Accepted Answer

A)  You can tell when it has been achieved because you have a way to measure completion.
B)  You have specific aims employees shoot for.
C)  You have a deadline which helps people focus on the tasks required for the goal.
D)  You know resources and time were taken into account to ensure the goals are achievable.

Question 18

Measuring flow requires measuring the time a process or a product takes from start to finish. This involves managing bottlenecks and constraints, as well as which of the following?

Accepted Answer

A)  Aligning similar processes, cross training employees, and sharing employee resources.
B)  Performing incremental tests of change using the plan, do, study, act (PDS
A)   cycle.
C)  Showing humility to employees.
D)  A and B.

Question 19

To drive business results for the organization you must measure what matters to the customer. Which of the following choices would NOT be a form of "voice of the customer" data collection?

Accepted Answer

A)  Customer surveys.
B)  Media advertising.
C)  Product focus groups.
D)  Personal inquiry by employees.

Question 20

Regression analysis is be used to build process models, as well as which of the following ?

Accepted Answer

A)  Prioritize relationships between variables
B)  Determine potential causes
C)  Anticipate potential problems
D)  Indicate the measures of the KPI

Exam 1: Business Results