An example of a suitable key performance indicator (KPI)for the objective of ensuring that production runs are efficiently conducted is:
A)Inventory costs per product
B)Production cycle times
C)Level of inspection and testing costs incurred
D)Number of quality complaints

Question

Quizplus · Accepted Answer

Production cycle times is a suitable KPI for the objective of ensuring that production runs are efficiently conducted, as it measures the time taken for a product to be produced from start to finish. A shorter production cycle time indicates that production runs are being efficiently conducted, as less time is being wasted and production output can be increased. Alternatively, longer production cycle times can indicate inefficiencies in the production process that may need to be addressed.

An Example of a Suitable Key Performance Indicator (KPI)for the Objective