Question

1) Which of the following is not a facility-level activity?

a) Plant management

b) Product design

c) Personnel administration

d) Training

2) Value-added activities

a) should be reduced or eliminated.

b) involve resource usage customers are willing to pay for.

c) add cost to a product without affecting selling price.

d) cannot be differentiated from nonvalue-added activities.

Answer 1

1) Not a facility-level activity:

b) Product design

Product design is not a facility- level activity. It is not an action related with the general operations of a business. All other options here are facility level activities and they are meant for general operations of a business.

2) Value-added activities:

b) Involve resource usage customers are willing to pay for.

Involve resource usage customers are willing to pay for is an example of value-added activities. Value- added activities are those activities which increases the benefit of a product or service to the customers.