Certified Production & Operations Manager (POM) Practice Exam

Which of the following is one of the 10 strategic operations management decisions?

1. Accounting strategies

2. Marketing strategies

3. Process and capacity strategies

4. Human resource strategies

The correct answer is: Process and capacity strategies

The inclusion of process and capacity strategies among the 10 strategic operations management decisions is vital because it directly influences how an organization manages its production processes and responds to customer demand. This area focuses on determining the most efficient and effective ways to utilize resources and capacity to meet production goals. By developing clear process and capacity strategies, organizations can streamline operations, reduce costs, and improve quality. These strategies guide decisions related to the layout of facilities, selection of technology, and the optimization of workflows, ensuring that production capabilities align with business objectives while accommodating fluctuations in demand. In contrast, while accounting, marketing, and human resource strategies are essential to overall business operations, they do not specifically fall under the strategic umbrella of operations management as defined in this context. Instead, these domains focus on financial management, market positioning, and workforce management, respectively, rather than the core operational processes that drive production and service delivery. Thus, process and capacity strategies stand out as a critical component of strategic operations management.