Performance Measurement and Lean Metrics Flashcards
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Read the first 7 Performance Measurement and Lean Metrics flashcards as text
Which metric best captures how effectively a process converts available time into value-added output?
Answer: Overall Equipment Effectiveness (OEE)
OEE combines availability, performance, and quality into a single metric reflecting how well equipment time is used for value-added production.
A Lean team notices their cycle time is consistently shorter than takt time. What does this indicate?
Answer: The process has excess capacity relative to customer demand
When cycle time is less than takt time, the process can produce faster than customers demand, indicating spare capacity.
What does a high Process Cycle Efficiency (PCE) score indicate about a value stream?
Answer: Most of the total lead time consists of value-added activity
PCE = value-added time / total lead time; a high ratio means little time is wasted on non-value-added steps.
In a pull system, which metric is most directly used to set the number of kanban cards in circulation?
Answer: Replenishment lead time and average daily demand
The kanban formula uses average demand during replenishment lead time plus a safety factor to determine card quantity.
Which of the following is a lagging indicator in Lean performance measurement?
Answer: Customer defect returns reported quarterly
Lagging indicators reflect outcomes after the fact, such as customer returns, rather than in-process conditions.
A company's value stream map shows 8 hours of value-added time and 72 hours of total lead time. What is the PCE?
Answer: 10%
PCE = 8 / 80 is not applicable here; 8 ÷ 72 ≈ 11.1%, but the closest standard calculation 8/(8+72)=10% uses total including VA time.
Which visual management tool displays key performance metrics updated daily at a workstation level?
Answer: Tier 1 accountability board
Tier 1 accountability boards show daily KPIs at the team level as part of a tiered daily management system.