LMC Performance Measurement and Lean Metrics 2

Question 1

Which metric best captures how effectively a process converts available time into value-added output?

Accepted Answer

Overall Equipment Effectiveness (OEE)

Answer

OEE combines availability, performance, and quality into a single metric reflecting how well equipment time is used for value-added production.

Question 2

A Lean team notices their cycle time is consistently shorter than takt time. What does this indicate?

Accepted Answer

The process has excess capacity relative to customer demand

Answer

When cycle time is less than takt time, the process can produce faster than customers demand, indicating spare capacity.

Question 3

What does a high Process Cycle Efficiency (PCE) score indicate about a value stream?

Accepted Answer

Most of the total lead time consists of value-added activity

Answer

PCE = value-added time / total lead time; a high ratio means little time is wasted on non-value-added steps.

Question 4

In a pull system, which metric is most directly used to set the number of kanban cards in circulation?

Accepted Answer

Replenishment lead time and average daily demand

Answer

The kanban formula uses average demand during replenishment lead time plus a safety factor to determine card quantity.

Question 5

Which of the following is a lagging indicator in Lean performance measurement?

Accepted Answer

Customer defect returns reported quarterly

Answer

Lagging indicators reflect outcomes after the fact, such as customer returns, rather than in-process conditions.

(LMC) Lean Management Certification Practice Test