This set of Total Quality Management Multiple Choice Questions & Answers (MCQs) focuses on “Performance Indicators – 2”.
1. Throughput time is equal to ______
a) Processing time+Inspection time
b) Processing time+Inspection time+Movement time
c) Processing time+Inspection time+Movement time+Waiting time
d) Processing time+Inspection time+Waiting time
View Answer
Explanation: Throughput time is equal to Processing time+Inspection time+Movement time+Waiting time. It is an important determinant in the ‘production’ functional element while measuring the performance of an organization.
2. % rejects and % scrap are important determinants in the ‘production’ functional element while measuring the performance of an organization.
a) True
b) False
View Answer
Explanation: % rejects and % scrap are important determinants in the ‘production’ functional element while measuring the performance of an organization. The other functional elements are customers, suppliers, research and development, human resources, marketing/sales, and administration.
3. Manufacturing cycle effectiveness is equal to ______
a) Number of failures
b) Processing time/Throughput time
c) Processing time
d) Throughput time
View Answer
Explanation: Manufacturing cycle effectiveness is equal to processing time/throughput time. It is an important determinant in the ‘production’ functional element while measuring the performance of an organization.
4. Failure rate is equal to ______
a) (Number of failures/Total number of products tested)*100
b) Number of failures
c) Total number of products tested
d) Number of breakdowns
View Answer
Explanation: Failure rate is equal to (Number of failures/Total number of products tested)*100. The failure rate is an important determinant in the ‘production’ functional element while measuring the performance of an organization.
5. Quality grade is equal to ___________
a) Production quantity
b) Number of defects
c) ((Production quantity – Number of defects)/Production quantity)*100
d) Customer satisfaction index/number of defects
View Answer
Explanation: Quality grade is equal to ((Production quantity-Number of defects)/Production quantity)*100. Quality grade is an important determinant in the ‘production’ functional element while measuring the performance of an organization.
6. Which of the following is not a determinant of the ‘suppliers’ functional element while measuring the performance of an organization?
a) Service rating
b) On-time delivery
c) Quality performance
d) Number of breakdowns
View Answer
Explanation: Service rating, on-time delivery, and quality performance are few of the determinants of the ‘suppliers’ functional element while measuring the performance of an organization. The number of breakdowns is an indicator of the ‘production’ functional element while measuring the performance of an organization.
7. Which of the following is not an indicator of the ‘suppliers’ functional element while measuring the performance of an organization?
a) SPC charts
b) Billing accuracy
c) Average lead time
d) Lead time for product development
View Answer
Explanation: SPC charts, billing accuracy, and average lead time are few of the determinants of the ‘suppliers’ functional element while measuring the performance of an organization. Lead time for product development is an indicator of the ‘production’ functional element while measuring the performance of an organization.
8. ‘Just-in-time delivery target’ is an indicator of which functional element while measuring the performance of an organization?
a) Research and development
b) Suppliers
c) Human resources
d) Customers
View Answer
Explanation: ‘Just-in-time delivery target’ is an indicator of the ‘suppliers’ functional element while measuring the performance of an organization. The other functional elements are customers, production, research and development, human resources, marketing/sales, and administration.
9. Which of the following is not an indicator of the ‘research and development’ functional element while measuring the performance of an organization?
a) New product time to market
b) The time needed to launch a new product
c) Design change orders
d) Revenue growth
View Answer
Explanation: New product time to market, the time needed to launch a new product, and design change orders are few of the determinants of the ‘research and development’ functional element while measuring the performance of an organization. Revenue growth is an indicator of the ‘production’ functional element while measuring the performance of an organization.
10. ‘Cost estimating errors’ is an indicator of which functional element while measuring the performance of an organization?
a) Research and development
b) Production
c) Human resources
d) Customers
View Answer
Explanation: ‘Cost estimating errors’ is an indicator of ‘research and development’ functional element while measuring the performance of an organization. The percentage of sales from new products is another important indicator of the ‘research and development’ functional element while measuring the performance of an organization.
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