OM's transformation role is to add value. Value added is
A) performing activities well for the least possible cost
B) the net decrease between output product value and input material value
C) increasing product value in the first stage
D) the net increase between output product value and input material value
E) customizing a product, regardless of expense, to satisfy customer needs

Question

Quizplus · Accepted Answer

OM's transformation role is to add value, which means increasing the value of the output product beyond the value of the input materials. This is done through various activities such as improving quality, increasing efficiency, reducing waste, and enhancing customer satisfaction. Therefore, the correct answer is option D, which states that the value added is the net increase between output product value and input material value.

OM's Transformation Role Is to Add Value