Basics
What does KPI stand for?
Key Performance Indicator
What KPI measures the % of products passing without rework?
First Pass Yield (FPY)
What does OEE stand for?
Overall Equipment Effectiveness.
Which KPI measures employee exits per year?
Turnover Rate.
Formula for Scrap Rate.
Scrap Units ÷ Total Units × 100.
True or False: All metrics are KPIs.
False (only some metrics are KPIs).
What does COPQ stand for?
Cost of Poor Quality
Which KPI shows if suppliers deliver on time?
Supplier On-Time Delivery %.
What does NPS stand for in Customer Service?
Net Promoter Score.
Formula for On-Time Delivery.
Orders on Time ÷ Total Orders × 100.
Give 1 example of a metric and 1 example of a KPI in manufacturing
Metric = units per shift, KPI = OEE
If 980 units out of 1000 pass the first time, what is FPY?
98%
If a machine runs 480 min/day but stops 60 min for breakdowns, what’s Availability?
420/480 = 87.5%.
Which IT KPI measures downtime vs uptime?
System Uptime %.
If 20 out of 100 orders are backordered, what’s the Backorder Rate?
20%.
In a company dashboard, which do managers prioritize more: metrics or KPIs?
KPIs
Which KPI measures defects per 1 million opportunities?
DPMO
Inventory Turns formula?
Cost of Goods Sold (COGS)÷ Average Inventory Value.
Time-to-Fill is an HR KPI. What does it measure?
Days to hire someone.
Formula for Cost Variance (CV).
CV = Earned Value – Actual Cost.
What makes a KPI "key"?
It directly ties to business goals or strategy.
True or False: Customer complaints per month is a KPI.
True (if tied to customer satisfaction goals)
True or False: Cycle time is always a KPI.
False (it’s a metric unless tied to a target).
In project management, what does SV (Schedule Variance) measure?
Difference between Earned Value and Planned Value.
If 50 defects occur in 500 units with 5 opportunities/unit, what’s DPMO?
(50 ÷ (500 × 5)) × 1,000,000 = 20,000.