Performance Measurement and Lean Metrics Flashcards

Which metric measures the total time from order to delivery?

Answer: Lead time

Lead time in Lean refers to the total time elapsed from the moment a customer places an order until they receive the finished product or service. It encompasses all stages, including order processing, production, and delivery. Reducing lead time is a key objective in Lean, as it directly impacts customer satisfaction, responsiveness, and competitive advantage.

What does Takt time represent in Lean metrics?

Answer: Rate of production needed to meet demand

Takt time is a crucial Lean metric that represents the rate at which products or services must be produced to meet customer demand. It is calculated by dividing the available production time by the customer demand for that period. Takt time helps synchronize production with customer needs, preventing overproduction or underproduction, and ensuring a steady flow of value.

Which tool is used in Lean to visually monitor performance metrics?

Answer: Dashboard

A dashboard in Lean is a visual display that presents key performance indicators (KPIs) and other relevant metrics in an easy-to-understand format. Its purpose is to provide real-time or near real-time visibility into process performance, allowing teams and management to quickly monitor progress, identify deviations, and make informed decisions. This visual management aids in continuous improvement efforts.

What is the main purpose of using Key Performance Indicators (KPIs) in Lean?

Answer: Track and evaluate performance

Key Performance Indicators (KPIs) are vital metrics used in Lean to track, measure, and evaluate the effectiveness of processes and overall organizational performance. They provide objective data on whether Lean initiatives are achieving their desired outcomes, such as reduced waste, improved quality, or increased efficiency. KPIs enable data-driven decision-making and support continuous improvement efforts.

Which of the following best describes 'First Pass Yield' (FPY)?

Answer: Units passing without rework

First Pass Yield (FPY) is a quality metric that measures the percentage of units that successfully pass through a process step or the entire process without requiring any rework, repair, or scrap. A high FPY indicates a robust and efficient process with minimal defects, directly contributing to reduced waste and improved quality in Lean. It highlights the effectiveness of the process in producing good output from the first attempt.

How is Cycle Time best defined in Lean performance measurement?

Answer: Time to complete a single unit

In Lean performance measurement, Cycle Time is specifically defined as the actual time it takes to complete one unit of work or one process step from start to finish. It measures the duration of the value-adding work itself, excluding waiting times. Understanding cycle time is essential for identifying bottlenecks, optimizing process flow, and improving overall efficiency.