Certified Production & Operations Manager (POM) Practice Exam

In the context of operational strategies, what does operational agility allow an organization to do?

1. Quickly respond to market changes

2. Increase production costs

3. Maintain a stable workforce

4. Decrease product quality

The correct answer is: Quickly respond to market changes

Operational agility is a critical aspect of effective operational strategies that enables organizations to quickly respond to market changes. This capability allows companies to adapt their processes, resources, and offerings in response to variations in customer demand, competitive pressures, and other external factors. When an organization possesses operational agility, it can swiftly alter its production schedules, modify product specifications, or shift resources to meet changing requirements. This responsiveness is essential in today’s fast-paced business environment, where consumer preferences and market dynamics can change rapidly. By being agile, an organization can seize new opportunities, mitigate risks associated with market fluctuations, and enhance customer satisfaction by delivering timely and relevant products or services. The other options do not embody the concept of operational agility. Increasing production costs would typically be a sign of inefficiency rather than agility. Maintaining a stable workforce suggests rigidity, which contrasts with the adaptive nature of agility. Lastly, decreasing product quality would compromise the organization’s competitive position, while agility focuses on maintaining or enhancing quality in line with market demands.