Certified Production & Operations Manager (POM) Practice Exam

Which of the following statements about challenges in operations management is FALSE?

1. Sustainable production is gaining emphasis

2. Low-cost focus is becoming unnecessary

3. Sustainable production is being replaced by a low-cost focus

4. Innovation is key to overcoming challenges

The correct answer is: Sustainable production is being replaced by a low-cost focus

The statement indicating that sustainable production is being replaced by a low-cost focus is incorrect, as it misrepresents the current trends in operations management. In recent years, there has been a significant shift toward sustainable practices in production, driven by consumer demand for environmentally friendly products and the need for businesses to address climate change concerns. This trend emphasizes integrating sustainability into the core strategies of organizations rather than diminishing its importance in favor of low-cost strategies. Sustainable production focuses on balancing economic growth with environmental stewardship and social responsibility, which can coexist with low-cost strategies. Companies are not simply abandoning sustainability for cost-cutting measures; instead, they are finding innovative ways to achieve cost efficiency while maintaining a commitment to sustainability. This reflects a broader recognition that long-term profitability can be built upon sustainable practices. The other statements reflect trends that are consistent with the current challenges in operations management, such as the increasing importance of sustainable production and innovation in driving competitive advantage. Low-cost focus is becoming less of a standalone priority as organizations recognize the value of sustainable practices alongside cost management.