A key performance indicator (or KPI) is a metric that is one of the most important indicators of the current performance level of an individual, department and/or company in achieving goals.

KPI must be a quantifiable measure.

Solved Example: 9004-01

What does the acronym KPI stand for?

A. Key Predictive Indicator

B. Key Predictor Index

C. Key Performance Indicator

D. Kaplan Penalty for Inflation

Correct Answer: C

• Productivity is a measure of how well resources are utilized to produce output.
• It relates output to input in any system, where some value addition is performed on the input resources.
• Productivity is the ratio of output obtained to input expended.
• Total productivity considers all resources at a time.
• Partial productivity compares one input factor with one output factor.

Solved Example: 9002-01

Productivity can be improved by:

A. Increasing inputs for constant outputs

B. Decreasing outputs for constant inputs

C. Increasing inputs and outputs both in same proportion

D. Decreasing inputs for constant outputs

Correct Answer: D

Solved Example: 9002-02

Labor productivity is equal to:

A. Result/material costs

B. Result/labor costs

C. Result/capital costs

D. Revenue growth

Correct Answer: B

Solved Example: 9002-03

Which one of the following is not a functional element considered during the performance measure of an organization?

A. Customers

B. Poka-yoke

C. Production

D. Suppliers

Correct Answer: B

Solved Example: 9016-01

Which of the following is not a performance measure aspect of the Balanced Scorecard Incentive Concept?

A. Financial

B. Customer

C. Learning and Growth

D. External

Correct Answer: D

Solved Example: 9016-02

Consensus gaining while strategy management in balanced scorecard is made at the stage of:

A. Feedback and learning

B. Translating the vision

C. Business planning

D. Learning

Correct Answer: B

Solved Example: 9003-01

A good customer service should focus on:

A. Building a dynamic relationship with the customer

B. Creating compulsive situation to make a sale

C. Profit making

D. Aggressive marketing

Correct Answer: A

Solved Example: 9003-02

Which of the following is NOT an element of customer services?

A. Handling customer's grievances smoothly

B. Effective online communication

C. The art of listening to customers

D. Monitoring and measuring effectiveness

Correct Answer: B

Solved Example: 9003-03

The essence of the law of diminishing returns is:

A. Inelastic production

B. Negative marginal production

C. Declining total production

D. Declining average production

Correct Answer: B