Complete 200-Question Study/Practice Exam
Quality Management & Performance Measurement (Questions 1-10)
Question 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
Rationale: Effectiveness is about achieving organizational goals. While
efficiency measures input-to-output ratios, effectiveness ensures the
organization is pursuing the right strategic objectives.
Question 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
,Rationale: KPIs must directly support strategic goals to guide performance
and connect daily operations to long-term mission and vision.
Question 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
Rationale: Training completion predicts future performance improvements.
Leading indicators are proactive measures that forecast future results,
allowing organizations to take corrective action before problems occur.
Question 4. Lagging indicators primarily measure:
A. Future performance
B. Past results
C. Employee morale
D. Process inputs
Correct Answer: B
Rationale: 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.
Question 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
Rationale: 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.
Question 6. What is benchmarking?
A. Reducing operational costs
B. Comparing performance to industry standards
C. Conducting employee reviews
D. Forecasting revenue
Correct Answer: B
Rationale: Benchmarking compares performance against best practices or
peers in the industry to identify improvement opportunities and establish
performance targets.
, Question 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
Rationale: SMART is a mnemonic for goal-setting criteria that ensure
objectives are clear and actionable: Specific, Measurable, Achievable,
Relevant, and Time-bound.
Question 8. Which of the following is considered an 8th waste in Lean?
A. Inventory
B. Waiting
C. Underutilized talent
D. Motion
Correct Answer: C
Rationale: 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.