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Performance Measurement and Lean Metrics Flashcards

7 cards from real LMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Performance Measurement and Lean Metrics flashcards as text
  1. Which Lean metric is most useful for measuring the responsiveness of a supply chain to customer orders?

    Answer: Order-to-delivery lead time

    Order-to-delivery lead time measures the total elapsed time from customer order receipt to product delivery, capturing supply chain responsiveness.

  2. What does a Rolled Throughput Yield (RTY) of 72% on a 4-step process mean?

    Answer: Only 72% of units complete all four steps without any defect or rework

    RTY multiplies the first-pass yield of each step; a 72% RTY means nearly 28% of units require rework somewhere in the process.

  3. A team's daily management system shows 'green' on cost but 'red' on quality. According to Lean priority hierarchy, what should happen?

    Answer: Quality issues should be addressed first, even if it temporarily impacts cost

    Lean prioritizes Safety → Quality → Delivery → Cost; a quality problem must be resolved before optimizing cost.

  4. Which tool is used to display the distribution and variation of a process output, helping identify if the process is capable?

    Answer: Histogram

    A histogram visualizes the frequency distribution of process data, enabling comparison to specification limits for capability assessment.

  5. What does a Cp value of 1.33 indicate about a process?

    Answer: The process spread fits within the specification limits with a 33% margin of safety

    Cp = 1.33 means the specification width is 1.33 times the process spread, providing good capability with safety margin.

  6. In Lean accounting, which metric replaces traditional labor efficiency variance as a more meaningful operational measure?

    Answer: Units per hour or throughput time

    Lean accounting emphasizes flow metrics like throughput and units per hour rather than variance-based measures that incentivize overproduction.

  7. A team sets a target of reducing changeover time from 60 minutes to 15 minutes using SMED. After the project, changeover takes 20 minutes. What is the actual improvement percentage?

    Answer: 66.7%

    (60-20)/60 = 40/60 = 66.7% reduction in changeover time, though short of the 75% target.