# Total Quality Management Questions and Answers – Performance Indicators – 2

This set of Total Quality Management Questions and Answers for Aptitude test 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

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

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

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

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

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.
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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

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
d) Lead time for product development

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

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

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

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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