Performance Measurement & Reporting Flashcards

A line runs at 90% availability, 95% performance, and 98% quality. What is its approximate OEE?

Answer: 83.8%

OEE = 0.90 × 0.95 × 0.98 ≈ 0.838, or 83.8%.

Which statement best describes a lagging indicator?

Answer: It measures outcomes that have already occurred

Lagging indicators record results after the fact, such as failures or costs incurred.

In a balanced scorecard approach to asset management, which perspective set is typically represented?

Answer: Financial, customer/stakeholder, internal process, and learning/growth

The balanced scorecard uses financial, customer, internal process, and learning and growth perspectives.

Which characteristic makes a KPI 'SMART'?

Answer: Specific, Measurable, Achievable, Relevant, Time-bound

SMART means Specific, Measurable, Achievable, Relevant, and Time-bound.

What is the main benefit of trending a KPI over time rather than reviewing a single point-in-time value?

Answer: It reveals direction of change and emerging issues

Trends show whether performance is improving or deteriorating and can flag emerging problems early.

Which input must be considered during an ISO 55001 management review?

Answer: Information on asset management performance, including trends in nonconformities and monitoring results

Management review inputs include performance information, monitoring results, audit results, and nonconformity trends.

An organization's PM compliance is 98%, yet unplanned failures are rising. What is the most likely conclusion?

Answer: PM tasks may not address the actual failure modes, so effectiveness should be reviewed

High compliance with rising failures suggests the PM content is ineffective against real failure modes.