M-6 Data-Driven Decision Making

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?

• Understand customer needs and wants

• Verify accounting procedures

• Review of hiring practices

• Expand community relations efforts

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 improving store sales growth?

• Net promoter score

• Big data analysis

• Key performance indicator

• Balanced scorecard

An Online retailer seeks to improve its Amazon customer services rating.  What two key performance indicators should the retailer measure?

• Measure on time delivery

• Measure employee productivity

• Measure customer return rate

• Measure average order size

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?  

• SIPOC Diagram

• Linear Programming

• Balanced Scorecard

• Net Promoter Score

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?

• It could help reduce the cost of schools

• It could enhance the training of town employees

• It could reduce response times

• It could aid funding of road projects

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?  

• Net Promoter Score

• Key Performance Indicator

• Balance Scorecard

• Big Data Analysis

What are two disadvantages of a Balanced Scorecard?

• Sometimes difficult to maintain momentum

• Emphasizes strategy and organizational results

• May not encourage desired behavior changes

• Links company operations with its strategy

What are two advantages of Key Performance Indicators (KPI)?

• Can be expensive and time-consuming to set up and use

• Educate management on company performance

• Results are often only rough guide rather than a concrete measurement

• Data-driven results make it easier to quantify performance

Which two examples exhibit appropriate use of performance measures in business?

• A hospital measure Emergency Room response time for improvement

• Nonprofit tracks expenses to increase efficiency

• 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?

• When more than a single chart, graph or piece of data are integral to making business decisions.

• If used over time, can create an internal benchmarking system

• Needed to emphasize strategy and organizational results

• When visual representation is needed to see if an organization is meeting the goals