Question 1

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

When performing a Voice of the Customer Analysis, complaints or comment cards would be a form of "reactive data." Reactive data is data which provides instant feedback, as complaints or comments are received instantaneously after a product sale, whereas a survey, interview, or focus group would have a delayed effect.

Question 2

Measuring goals and objectives for service industries may require developing metrics for service. Which of the following would be considered a service metric?

Accepted Answer

A wait time on the phone of less than 15 seconds would be considered a service metric because it minimizes the variation or the standard deviation so the customer can expect service that does not vary from operator to operator, thus ensuring a more positive experience. The copy job, cereal processing, and frozen dinner cook time are examples of product metrics.

Question 3

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

Accepted Answer

Under SMART, you know when a goal is achieved because you have a way to measure completion. SMART goals are specific, measurable, attainable, realistic, and timely.

Question 4

Measurements should be tied to the customer and their desires. The desires of the customer impacts whether your product meets their needs. Which of the following questions would you NOT consider to be an interview question for a Voice of the Customer Analysis?

Accepted Answer

"Why should we continue to do business with you?" would not be considered to be an interview question for a Voice of the Customer Analysis. The wording seems condescending and does not imply that the interviewer is focused on the needs of the customer.

Question 5

Measurements should be analyzed to determine their precision. The precision of measurements is affected by confidence intervals. Using the statistical definition of the 95 percent confidence interval, if a poll of 100 people were taken _________________?

Accepted Answer

Using the statistical definition of the 95 percent confidence interval, if a poll of 100 people were taken, 95 percent of respondents would be within the calculated confidence intervals and five percent would be either higher or lower than the range of the confidence intervals.

Question 6

Reporting of measurements helps to speed improvements. The most effective measurement factors would include which of the following?

Accepted Answer

The most effective measurement factors would include reliability. Reliability helps establish the baseline and provide a comparison of how reliable subsequent measures are. Effective measurements are useful, reliable, timely, and come from reliable sources with adequate level of detail.

Question 7

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

Visual feedback provides information in real time and includes the key metrics being measured, the target value of the measures, the data source, the data collector, collection method, and frequency. Visual feedback for performance does not include possible process improvement initiatives.

Question 8

Which of the following key lean measures for quality includes the measure of potential process capability?

Accepted Answer

Cp is the measure of potential process capability. It shows the six sigma spread of a process distribution to the tolerance of the distribution. Cpk is a measure of the actual process capability. First Pass Yield is the percentage of units that meet specifications without rework. Defects Per Million Opportunities (DPMO) compares processes by comparing the capability of each process.

Question 9

Rework measures are critical to operationally monitoring the level of waste caused by having to redo or rework a product. What does a First-Time-Through (FTT) rework measure?

Accepted Answer

A First-Time-Through (FTT) rework measures both the effectiveness of the cell's standardized work and the percentage of product made without any need for rework or scrap. FTT is calculated by taking the total units processed minus rejected or reworked products and dividing the result by the total units processed.

Question 10

Overall Equipment Effectiveness is a composite metric for first pass yield. If 100 units of product are processed and 97 are completed to the required specifications with 4 requiring rework, calculate the first pass yield.

Accepted Answer

If 100 units of product are processed and 97 are completed to the required specifications with 4 requiring rework, the first pass yield is 93%. This is calculated as(97-4) / 100 = .93 = 93%.

Question 11

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

Accepted Answer

Total lead time is the time from the customer order until they receive the product. On time delivery, total lead time, schedule attainment, customer satisfaction, and processing cycle time are the most recommended delivery measures for business results.

Question 12

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

Calculation of the delivery time is NOT included in the calculation of Takt time. Takt time calculates the longest period of time that can be spent processing a unit of product while still meeting the level of demand. It is determined by calculating demand, available time, the Takt time, and then used to value stream map Takt time at each activity step.

Question 13

Cycle time is a key lean measurement in supply chain management and in lean enterprise planning. Which of the following is a measure of production cycle time?

Accepted Answer

Production cycle time begins when an order is released on the production floor and ends when the product is available for shipment to the customer. Each individual process may have a cycle time, but the production cycle begins with an order release and ends when the order is ready for shipment.

Question 14

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

Once a product is placed in inventory, the number of times that inventory cycles per year is the inventory turn. Inventory turn is one of the four key lean measures for lead time, along with cycle time, manufacturing lead time, and TAKT Time.

Question 15

Which of the following lean cost metrics would a process team be reviewing if they were comparing spending and wanted to know the current assets divided by the current liabilities?

Accepted Answer

If a process team were reviewing spending and wanted to know the current assets divided by the current liabilities, they would be looking at the working capital lean costs metric. Lean cost metrics include the amount of working capital, team productivity and efficiency, cash flow, space requirements, and ROI calculations.

Question 16

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

Cost of Goods Sold is the inventory turn measure calculated by adding beginning inventory and inventory purchases then subtracting the ending inventory. Key lean measures for inventory turns include Calculation of Inventory Turnover Ratio, Average Inventory, Inventory Turnover Ratio, and Cost of Goods Sold.

Question 17

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

In queue times, the only value-added time is run time.

Question 18

A hospital is trying to improve patient flow through a chartered process team. Which of these will NOT improve the flow?

Accepted Answer

Limiting the hours of operation will not improve the flow. Expansion of hours will improve the flow, but will increase economic costs proportionally.

Question 19

Which key lean measure for "delays" would be affected if special packaging or pallets were required to ship a good?

Accepted Answer

If special packaging or pallets were required to ship a good it would affect the "Shipping Transit Time to Customer." These are avoidable delays in logistical or transportation methods. Other lean delay measures include Material Lead Time, Outside Processing Times, and Process Time for Individual Step.

Question 20

The performance factor for Overall Equipment Effectiveness (OEE) is the speed with which the machine or process produces products compared to the design speed or normal operating cycle. Which of the following correctly shows the formula for OEE?

Accepted Answer

Availability x Performance x Quality is the formula for Overall Equipment Effectiveness (OEE). OEE uses the three sources of manufacturing productivity loss(availability, performance and quality), and creates metrics that show the effectiveness of a machine or process.

Quiz 1: Business Results