Exam Questions and CORRECT Answers
A manufacturer of running shoes is implementing lean operation concepts into their production
process. Which critical success factor would assure a smooth transition into the new program? -
CORRECT ANSWER Understand customer needs and wants
A retail chain seeks to improve store performance by growing sales and improving customer
service. Which tool would specifically meet the chain's objective of specifically improving store
sales growth? - CORRECT ANSWER Key performance indicator
An Online retailer seeks to improve its Amazon customer services rating. What two key
performance indicators should the retailer measure? - CORRECT ANSWER Measure on time
delivery
Measure customer return rate
An Organization seeks to shift its business strategy to development of new products for the
future while still growing sales of its current products. Which tool could help the company focus
on both its financial objective and growth of new products? - CORRECT ANSWER Balanced
Scorecard
A rural town seeks to deploy a new citizen relationship program within its Fire and EMT
department. How could the citizen relationship program help the town service citizen's
emergencies? - CORRECT ANSWER It could reduce response times
A Pizza Chain wishes to improve sales by focusing on product quality, reducing delivery time
and improving productivity. Which tool would best meet the Chain's objective of quantifying
their improvement in product quality only? - CORRECT ANSWER Key Performance
Indicator
What are disadvantages of a Balanced Scorecard? - CORRECT ANSWER Sometimes
difficult to maintain momentum
, May not encourage desired behavior changes
Requires time and effort
Challenges with adoption across the company
What are advantages of Key Performance Indicators (KPI)? - CORRECT ANSWER Educate
management on company performance (internal bench marking)
Data-driven results make it easier to quantify performance
Can be used to track financial, productivity, etc. goals
Which two examples exhibit appropriate use of performance measures in business? - CORRECT
ANSWER A hospital measure Emergency Room response time for improvement
Nonprofit analyze expenses to increase the percent of funds donated
NOT
A Women's retail shop reviews color trends for the next fall season
A school reviews number of extra-curricular activities available to students
Which two statements indicate when it is appropriate to use a KPI Dashboard? - CORRECT
ANSWER When more than a single chart, graph or piece of data are integral to making
business decisions.