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.
Read the first 7 Performance Measurement and Lean Metrics flashcards as text
Which scenario best illustrates the 'hidden factory' concept in Lean metrics?
Answer: A process with high first-pass yield but significant undocumented rework before final inspection
The hidden factory refers to rework and correction activities that consume capacity but are invisible to traditional yield metrics.
What is the relationship between lead time reduction and working capital in Lean operations?
Answer: Shorter lead times reduce WIP and finished goods inventory, freeing working capital
Reducing lead time shrinks inventory at all stages, directly lowering the working capital tied up in the production system.
A manager wants to measure how well the maintenance team supports production. Which metric is most appropriate?
Answer: Mean Time Between Failures (MTBF)
MTBF measures equipment reliability between breakdowns, directly reflecting maintenance effectiveness in supporting uninterrupted production.
Which of the following best describes a 'catchball' process in hoshin kanri performance management?
Answer: A back-and-forth dialogue between levels of the organization to align goals and metrics
Catchball is the iterative negotiation between management levels to ensure strategic goals are translated into meaningful, achievable local metrics.
When using a box score in Lean accounting, what three categories of metrics are typically displayed?
Answer: Operational, capacity, and financial
The Lean accounting box score presents operational performance (flow), capacity utilization, and financial results together for holistic decision-making.
A team measures 'schedule attainment' daily. What does a consistently low score most likely indicate?
Answer: Unreliable processes, unplanned downtime, or poor demand leveling (heijunka)
Low schedule attainment signals systemic instability from equipment failures, material shortages, or demand volatility overwhelming the production plan.
Which comparison is most useful when evaluating whether a lean improvement project delivered real financial benefit?
Answer: Comparing pre- and post-project cost per unit using the same volume and product mix
Cost per unit at equivalent volume and mix isolates process improvement impact from volume or mix changes that could distort results.