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Performance Measurement and Lean Metrics Flashcards

7 cards from real LMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. When applying the DMAIC framework, during which phase are baseline metrics first formally established?

    Answer: Measure

    The Measure phase collects current-state data to establish a baseline against which improvements are compared.

  2. A plant tracks 'escaped defects' versus 'internal defects.' Why is this distinction important in Lean metrics?

    Answer: Escaped defects directly impact customer satisfaction and carry higher cost than internally caught defects

    Defects that escape to customers damage relationships and cost far more to resolve than those caught in-process.

  3. What is the primary purpose of a control chart in Lean performance measurement?

    Answer: To distinguish between common-cause and special-cause variation

    Control charts use statistical limits to identify whether variation is inherent to the process or caused by an assignable event.

  4. A company introduces a new metric: 'Lean Savings Rate' measured in dollars saved per improvement project. What weakness does this metric have?

    Answer: It focuses on financial output and may discourage small continuous improvements with low dollar impact

    Emphasizing financial savings can lead teams to ignore low-cost kaizen events that build culture and eliminate small wastes.

  5. Which calculation correctly determines inventory turns?

    Answer: Cost of goods sold divided by average inventory value

    Inventory turns = COGS / average inventory, showing how many times inventory is sold and replaced in a period.

  6. In a Lean metrics hierarchy, what does 'Safety → Quality → Delivery → Cost' as a priority order signify?

    Answer: Improvements should not sacrifice safety or quality in pursuit of faster delivery or lower cost

    This sequence reflects the Lean belief that fixing quality and delivery naturally drives cost reduction without compromising safety.

  7. A value stream produces 500 units/day with 12 defects. After a kaizen, defects drop to 3. What is the improvement in Defects Per Unit (DPU)?

    Answer: DPU improved from 0.024 to 0.006, a 75% reduction

    DPU = defects/units: 12/500=0.024 and 3/500=0.006; the reduction is (0.024-0.006)/0.024 = 75%.