Total Quality Management Questions and Answers – Performance Indicators – 1

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This set of Total Quality Management Multiple Choice Questions & Answers (MCQs) focuses on “Performance Indicators – 1”.

1. ______ is an indicator of the measurement of success in any organization.
a) Poka-Yoke
b) 5S
c) Performance Measures
d) Benchmarking
View Answer

Answer: c
Explanation: Performance Measures is an indicator of the measurement of success in any organization. It is quantitative data that measures continuous quality improvement activity in any organization.

2. According to Ray F. Boedecker, establishing a baseline measure and revealing trends is one of the objectives of ‘performance measures’.
a) True
b) False
View Answer

Answer: a
Explanation: According to Ray F. Boedecker, establishing a baseline measure and revealing trends is one of the objectives of ‘performance measures’. Performance measures are required in any organization to quantify success.

3. Which of the following is incorrect according to the seven objectives of performance measures identified by Ray F. Boedecker?
a) Determination of processes that need improvement
b) Indicating process gains and losses
c) Comparing goals with actual performance
d) Hiding information for making informed decisions
View Answer

Answer: d
Explanation: Determination of processes that need improvement, indicating process gains and losses, and comparing goals with actual performance are few of the seven objectives of performance measures identified by Ray F. Boedecker. It also includes providing information to make informed decisions.
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4. According to Ray F. Boedecker, providing information for individuals and team evaluation is one of the objectives of ‘performance measures’.
a) True
b) False
View Answer

Answer: a
Explanation: According to Ray F. Boedecker, providing information for individuals and team evaluation is one of the objectives of ‘performance measures’. To determine the overall performance of the organization is also one of the objectives of the performance measure identified by Ray F. Boedecker.

5. Which one of the following is not a functional element considered during the performance measure of an organization?
a) Customers
b) Poka-yoke
c) Production
d) Suppliers
View Answer

Answer: b
Explanation: Customers, production, and suppliers are few of the functional elements considered during the performance measure of an organization. Some of the other functional elements considered during the performance measure of an organization are research and development, human resources, marketing/sales, and administration.

6. Which of the following is not an indicator of the ‘customer’ functional element while measuring the performance of an organization?
a) Number of customers’ complaints
b) Number of warranty claims
c) Number of suggestions per employee
d) Revenue growth
View Answer

Answer: d
Explanation: Number of customers’ complaints, the number of warranty claims, and the number of suggestions per employee are some of the indicators of the ‘customer’ 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.

7. Which of the following is not a determinant of the ‘customer’ functional element while measuring the performance of an organization?
a) Number of suggestions implemented
b) Customer satisfaction index
c) Percentage returns by customers
d) Service rating
View Answer

Answer: d
Explanation: Number of suggestions implemented. Customer satisfaction index and percentage returns by customers are some of the indicators of the ‘customer’ functional element while measuring the performance of an organization. Service rating is an indicator of the ‘suppliers’ functional element while measuring the performance of an organization.
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8. ‘Time to resolve complaints’ is an indicator of which functional element while measuring the performance of an organization?
a) Customers
b) Production
c) Suppliers
d) Research and Development
View Answer

Answer: a
Explanation: ‘Time to resolve complaints’ is an indicator of the ‘customer’ functional element while measuring the performance of an organization. ‘Mean time to repair’ is another example of an indicator of the ‘customer’ functional element while measuring the performance of an organization.

9. Labor productivity is equal to ______
a) Result/material costs
b) Result/labor costs
c) Result/capital costs
d) Revenue growth
View Answer

Answer: b
Explanation: Labor productivity is equal to result/labor costs. It is a key indicator of the ‘production’ functional element while measuring the performance of an organization.
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10. Effectiveness is equal to _______
a) Customer satisfaction index
b) Actual result/expected result
c) Revenue growth
d) Result/labor costs
View Answer

Answer: b
Explanation: Effectiveness is equal to the actual result/expected result. Effectiveness is a key indicator of the ‘production’ functional element while measuring the performance of an organization.

11. Efficiency is equal to _______
a) Expected costs/actual costs
b) Meantime to repair
c) Labor productivity
d) Actual result/expected result
View Answer

Answer: a
Explanation: Efficiency is equal to expected costs/actual costs. Efficiency is a key indicator of the ‘production’ functional element while measuring the performance of an organization.

Sanfoundry Global Education & Learning Series – Total Quality Management.

To practice all areas of Total Quality Management, here is complete set of 1000+ Multiple Choice Questions and Answers.

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Manish Bhojasia - Founder & CTO at Sanfoundry
Manish Bhojasia, a technology veteran with 20+ years @ Cisco & Wipro, is Founder and CTO at Sanfoundry. He lives in Bangalore, and focuses on development of Linux Kernel, SAN Technologies, Advanced C, Data Structures & Alogrithms. Stay connected with him at LinkedIn.

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