This set of Total Quality Management Multiple Choice Questions & Answers (MCQs) focuses on “Strategy for implementing Performance Measures”.
1. Which of the following does not fit in the criteria of ‘added value’ in a typical strategic measurement system?
a) Increase in revenue per employee
b) Increase in gross added value
c) Increase in net added value
d) % reduction of rejects and scraps
View Answer
Explanation: Increase in revenue per employee, increase in gross added value, and an increase in net added value fit in the criteria of ‘added value’ in the typical strategic measurement system. ‘Added value’ along with productivity, throughput time, and quality form important criteria in a typical strategic measurement system of an organization.
2. Which of the following does not fit in the criteria of ‘throughput time’ in a typical strategic measurement system?
a) Reduction in throughput time
b) Increase in manufacturing cycle effectiveness
c) Reduction in the number of breakdowns
d) Increase in revenue per employee
View Answer
Explanation: Reduction in throughput time, increase in manufacturing cycle effectiveness, and reduction in the number of breakdowns fit in the criteria of ‘throughput time’ in a typical strategic measurement system. ‘Increase in revenue per employee’ is an important indicator in the criteria ‘added value’.
3. Which of the following is not an indicator of ‘throughput time’ in a typical strategic measurement system?
a) Increase in availability
b) Increase in invoicing speed
c) Increase in gross added value
d) Reduction in time between order and delivery
View Answer
Explanation: Increase in availability, increase in invoicing speed, and reduction in time between order and delivery are a few of the important indicators of ‘throughput time’ in a typical strategic measurement system. ‘Increase in gross added value’ is an important indicator in the criteria ‘added value’.
4. Which of the following is not an indicator of ‘productivity’ in a typical strategic measurement system?
a) Increase in productivity
b) Reduction in throughput time
c) Increase in the effectiveness
d) Increase in the efficiency
View Answer
Explanation: Increase in productivity, an increase in the effectiveness, and an increase in efficiency are a few of the important indicators of ‘productivity’ in a typical strategic measurement system. ‘Reduction in throughput time’ is an important indicator in the criteria ‘throughput time’.
5. Which of the following is not a measure of ‘productivity’ in a typical strategic measurement system?
a) Increase in availability
b) Increase in revenue growth
c) Increase in sales and market growth
d) % reduction in personnel turnover
View Answer
Explanation: Increase in revenue growth, increase in sales and market growth, and % reduction in personnel turnover are a few of the important indicators of ‘productivity’ in a typical strategic measurement system. ‘Increase in availability’ is an important indicator in the criteria ‘throughput time’.
6. Which of the following is not a measure of ‘quality’ in a typical strategic measurement system?
a) % increase in quality grade
b) % reduction in failure rate
c) % reduction in the cost of poor quality
d) Increase in invoicing speed
View Answer
Explanation: % increase in quality grade, % reduction in failure rate, and % reduction in the cost of poor quality are a few of the important indicators of ‘quality’ in a typical strategic measurement system. ‘Increase in invoicing speed’ is an important indicator in the criteria ‘throughput time’.
7. Which of the following is not an indicator of ‘quality’ in a typical strategic measurement system?
a) Reduction in the number of customer complaints
b) % reduction in rejects and scraps
c) % reduction of safety and environmental incidents
d) Reduction in the number of breakdowns
View Answer
Explanation: Reduction in the number of customer complaints, % reduction in rejects and scraps, and % reduction of safety and environmental incident are a few of the important indicators of ‘quality’ in a typical strategic measurement system. ‘Reduction in the number of breakdowns’ is an important indicator in the criteria ‘throughput time’.
8. ‘Time series trend graphs’ is one of the basic techniques for presenting performance measures.
a) True
b) False
View Answer
Explanation: ‘Time series trend graphs’ is one of the basic techniques for presenting performance measures. The other basic techniques are control charts, capability index, Taguchi’s loss function, Costs of poor quality, and Quality awards.
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