This set of Total Quality Management written test Questions & Answers focuses on “Performance Indicators – 3”.
1. Which of the following is not a determinant of the ‘human resources’ functional element while measuring the performance of an organization?
a) Percentage of personnel turnover
b) Percentage of absence due to illness
c) Employee satisfaction index
d) Average lead time
View Answer
Explanation: The percentage of personnel turnover, the percentage of absence due to illness, and employee satisfaction index are some of the determinants of the ‘human resources’ functional element while measuring the performance of an organization. ‘Average lead time’ is an indicator of the ‘suppliers’ functional element while measuring the performance of an organization.
2. Which of the following is not an indicator of ‘human resources’ functional element while measuring the performance of an organization?
a) Number of training hours per employee
b) Number of active teams
c) Number of suggestions/grievances
d) Material productivity
View Answer
Explanation: The number of training hours per employee, the number of active teams, and the number of suggestions/grievances are some of the indicators of the ‘human resources’ functional element while measuring the performance of an organization. ‘Material productivity’ is an indicator of the ‘production’ functional element while measuring the performance of an organization.
3. The percentage of safety incidents and the percentage of environmental incidents are indicators 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: The percentage of safety incidents and the percentage of environmental incidents are indicators of the ‘human resources’ functional element while measuring the performance of an organization. The other functional elements are customers, production, research and development, suppliers, marketing/sales, and administration.
4. Which of the following is not an indicator of ‘marketing/sales’ functional element while measuring the performance of an organization?
a) Sales growth
b) Failure rate
c) Market growth
d) The percentage of delivery completed
View Answer
Explanation: Sales growth, market growth, and the percentage of delivery completed are indicators of the ‘marketing/sales’ functional element while measuring the performance of an organization. ‘Failure rate’ is an indicator of the ‘production’ functional element while measuring the performance of an organization.
5. Which of the following is not a determinant of the ‘marketing/sales’ functional element while measuring the performance of an organization?
a) Sales expense to revenue
b) New customers
c) Order accuracy
d) Quality grade
View Answer
Explanation: Sales expense to revenue, new customers, and order accuracy are some of the determinants of the ‘marketing/sales’ functional element while measuring the performance of an organization. ‘Quality grade’ is an indicator of the ‘production’ functional element while measuring the performance of an organization.
6. Which of the following is not a determinant of the ‘administration’ functional element while measuring the performance of an organization?
a) Revenue growth
b) Throughput time
c) Revenue per employee
d) Expense to revenue
View Answer
Explanation: Revenue growth, revenue per employee, and expense to revenue are some of the determinants of the ‘administration’ functional element while measuring the performance of an organization. ‘Throughput time’ 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 ‘administration’ functional element while measuring the performance of an organization?
a) Number of breakdowns
b) Cost of poor quality
c) Percentage of payroll distribution on time
d) Office equipment up-time
View Answer
Explanation: Cost of poor quality, percentage of payroll distribution on time, and office equipment up-time are some of the determinants of the ‘administration’ functional element while measuring the performance of an organization. ‘Number of breakdowns’ is an indicator of the ‘production’ functional element while measuring the performance of an organization.
8. Billing accuracy and invoicing speed are indicators of which functional element while measuring the performance of an organization?
a) Administration
b) Suppliers
c) Human resources
d) Customers
View Answer
Explanation: Billing accuracy and invoicing speed are indicators of the ‘administration’ functional element while measuring the performance of an organization. The other functional elements are customers, production, research and development, suppliers, marketing/sales, and human resources.
9. Which of the following is not a criterion of the performance measures?
a) Simple
b) Few in number
c) Developed by users
d) Irrelevance to customers
View Answer
Explanation: The performance measures must be simple and should focus on having a few numbers of key measures. They must be developed by users and must be relevant to customers.
10. Which of the following is not a performance measure criterion?
a) Continuous improvement
b) Cost
c) Transparency
d) Misaligned
View Answer
Explanation: The performance measures must focus on continuous improvement. It must have transparency with proper cost consideration. They must be perfectly aligned with the organization’s goals.
11. The performance measures must be time-based.
a) True
b) False
View Answer
Explanation: The performance measures must be time-based. They can be hourly, daily, weekly, monthly, or quarterly.
12. The performance measure results must align with the interest of all stakeholders.
a) True
b) False
View Answer
Explanation: The performance measure results must align with the interest of all stakeholders. The various stakeholders are customers, employees, stockholders, suppliers, and the community.
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