Project Guide with Explanations and Study Support | 100% Correct
Quality Management & Performance Measurement (1-35)
1. Which metric best measures organizational effectiveness?
A. Number of employees
B. Cost per unit
C. Achievement of strategic objectives
D. Hours worked
Correct Answer: C – Achievement of strategic objectives
> Explanation: Effectiveness is about achieving organizational goals. While efficiency measures input-to-
output ratios, effectiveness ensures the organization is pursuing the right strategic objectives.
2. A Key Performance Indicator (KPI) should be:
A. Broad and general
B. Difficult to measure
C. Directly aligned with strategy
D. Only financial
Correct Answer: C – Directly aligned with strategy
> Explanation: KPIs must directly support strategic goals to guide performance and connect daily
operations to long-term mission and vision.
,3. Which of the following is an example of a leading indicator?
A. Annual profit
B. Customer satisfaction score
C. Equipment downtime hours
D. Employee training completion rate
Correct Answer: D – Employee training completion rate
> Explanation: Training completion predicts future performance improvements. Leading indicators are
proactive measures that forecast future results, allowing organizations to take corrective action before
problems occur.
4. Lagging indicators primarily measure:
A. Future performance
B. Past results
C. Employee morale
D. Process inputs
Correct Answer: B – Past results
> Explanation: Lagging indicators reflect outcomes after actions have occurred, such as annual profit or
customer satisfaction scores. They are useful for evaluating past performance but do not predict future
outcomes.
5. A balanced scorecard includes which perspectives?
A. Financial only
B. Customers and finance only
,C. Financial, customer, internal processes, learning & growth
D. Human resources only
Correct Answer: C – Financial, customer, internal processes, learning & growth
> Explanation: The balanced scorecard integrates four complementary perspectives: Financial,
Customer, Internal Business Processes, and Learning & Growth. This provides a balanced view of
organizational performance beyond just financial metrics.
6. What is benchmarking?
A. Reducing operational costs
B. Comparing performance to industry standards
C. Conducting employee reviews
D. Forecasting revenue
Correct Answer: B – Comparing performance to industry standards
> Explanation: Benchmarking compares performance against best practices or peers in the industry to
identify improvement opportunities and establish performance targets.
7. What are SMART goals?
A. Specific, measurable, achievable, relevant, time-bound
B. Strategic, manageable, attainable, reasonable, timely
C. Systematic, monitored, action-oriented, reviewed, tested
D. Simple, meaningful, accurate, responsive, targeted
Correct Answer: A – Specific, measurable, achievable, relevant, time-bound
, > Explanation: SMART is a mnemonic for goal-setting criteria that ensure objectives are clear and
actionable: Specific, Measurable, Achievable, Relevant, and Time-bound.
8. Which of the following is considered an 8th waste in Lean?
A. Inventory
B. Waiting
C. Underutilized talent
D. Motion
Correct Answer: C – Underutilized talent
> Explanation: The original seven wastes (TIMWOOD) were extended to include underutilized talent as
an eighth waste, recognizing that failing to leverage employee skills and creativity is a significant source
of waste.
9. Who is considered the father of modern quality management?
A. Philip Crosby
B. Joseph Juran
C. W. Edwards Deming
D. Armand Feigenbaum
Correct Answer: C – W. Edwards Deming
> Explanation: Deming's 14 Points and the Plan-Do-Check-Act (PDCA) cycle form the basis of total quality
management (TQM). His work transformed manufacturing and management practices worldwide.
10. What is the main goal of Total Quality Management (TQM)?