CLL Performance Metrics & Continuous Improvement 3 — Questions and Answers
Question 1: In lean, what does 'First Pass Yield' (FPY) measure?
- Percentage of units completing a process correctly without rework (Correct answer)
- Total units produced per shift
- Cost of raw materials per unit
- Number of operators per production line
Correct answer: Percentage of units completing a process correctly without rework
FPY reveals how many units flow through the entire process defect-free the first time, exposing hidden rework and waste.
Question 2: What is the key difference between leading indicators and lagging indicators in lean performance management?
- Leading indicators predict future performance; lagging indicators reflect past results (Correct answer)
- Lagging indicators are more accurate than leading indicators
- Leading indicators only apply to financial metrics
- Lagging indicators are used exclusively in service industries
Correct answer: Leading indicators predict future performance; lagging indicators reflect past results
Leading indicators (e.g., number of improvement events) allow proactive intervention, while lagging indicators (e.g., defect rate) confirm what already happened.
Question 3: A PDCA cycle is completed, results are verified, and the improvement holds. What is the correct next step?
- Standardize the improvement and apply it to similar processes (Correct answer)
- Discard the cycle documentation
- Begin the same PDCA cycle again without changes
- Return all processes to their original state for comparison
Correct answer: Standardize the improvement and apply it to similar processes
After confirming results in the Check phase, the Act phase standardizes the change to sustain gains and share learnings across similar areas.
Question 4: Which lean metric directly reflects how well a company converts raw material to finished goods without generating scrap?
- Material yield rate (Correct answer)
- Customer satisfaction score
- Employee turnover rate
- Return on assets
Correct answer: Material yield rate
Material yield rate measures the percentage of input material that becomes good output, directly quantifying the waste of defects and overprocessing.
Question 5: In a lean value stream, 'dock-to-dock time' is a measure of what?
- Total time from receiving raw material to shipping finished goods (Correct answer)
- Time a truck spends at the loading dock
- Time between consecutive customer orders
- Time to complete one kaizen event
Correct answer: Total time from receiving raw material to shipping finished goods
Dock-to-dock time captures end-to-end throughput time across the entire value stream, revealing total lead time including all wait and process time.
Question 6: When should a process be considered 'in control' on a statistical process control (SPC) chart?
- All data points fall within control limits with no non-random patterns (Correct answer)
- All data points hit exactly the centerline
- At least 50% of data points exceed the upper control limit
- The chart shows a consistent downward trend
Correct answer: All data points fall within control limits with no non-random patterns
A process is in statistical control when variation is only from common causes — all points within limits and no special-cause patterns like runs or trends.
Question 7: What is the purpose of benchmarking in a lean continuous improvement program?
- To compare performance against best-in-class standards and identify improvement gaps (Correct answer)
- To set minimum acceptable quality thresholds only
- To replace internal metrics with external ones permanently
- To justify current performance levels to leadership
Correct answer: To compare performance against best-in-class standards and identify improvement gaps
Benchmarking identifies performance gaps by comparing your process outcomes to industry leaders, creating targets for improvement efforts.
CLL Performance Metrics & Continuous Improvement 3
In lean, what does 'First Pass Yield' (FPY) measure?