Operations & Process Management

Chapter 15
Sustainable, Ethical and Resilient Operations

Advance Diploma in Total Quality Management
Operations & Process Management   •   Advance Diploma

Sustainable, Ethical and Resilient Operations

Introduction

Operations create value by transforming inputs into products and services. They also consume energy and materials, affect workers and communities, generate waste and emissions, and expose organisations to disruption. Consequently, operational excellence can no longer be defined only by cost, quality, speed and flexibility. A strategically capable operation must also be environmentally sustainable, socially responsible, ethically governed and resilient under stress.

Sustainable, ethical and resilient operations integrate three closely related concerns:

  • Sustainability: meeting present needs without undermining future environmental, economic or social capacity.
  • Ethical operations: making decisions that respect rights, fairness, transparency, dignity and legal obligations.
  • Resilience: anticipating disruption, absorbing its effects, recovering effectively and adapting to new conditions.

These concerns are interdependent. A low-cost supplier that relies on unsafe labour may create reputational and continuity risks. A highly efficient plant with no capacity buffer may be vulnerable to disruption. A recycling initiative may fail if reverse logistics consume more resources than they save. The operations manager therefore has to evaluate performance across multiple dimensions rather than optimise a single indicator.

Learning Objectives

By the end of this chapter, the learner should be able to:

  1. Explain the relationship between sustainability, ethics and operational resilience.
  2. Apply circular-economy principles to process and supply-chain decisions.
  3. Evaluate environmental and social performance using appropriate indicators.
  4. Design responsible-sourcing and occupational-safety controls.
  5. Analyse business-continuity, operational-risk and scenario-planning approaches.
  6. Explain the role of governance, compliance, assurance and stakeholder accountability.
  7. Evaluate the opportunities and risks of autonomous and human-centred operations.
  8. Recommend an integrated improvement programme for a real or simulated organisation.

1. From Efficient Operations to Responsible Operations

Traditional operations management often seeks to minimise cost while satisfying quality and delivery requirements. This remains important, but narrow cost optimisation can transfer costs to society or to the future. For example, reducing maintenance expenditure may increase accident risk; choosing the cheapest transport mode may increase emissions; and minimising inventory may make a business unable to serve customers during a supply interruption.

A responsible operation uses a triple-bottom-line perspective:

  • Economic performance: profitability, productivity, cash flow, service and long-term viability.
  • Environmental performance: energy, emissions, water, materials, waste, biodiversity and pollution.
  • Social performance: health and safety, labour rights, inclusion, community impact and customer welfare.

A fourth dimension is increasingly necessary: governance. Governance determines who is accountable, how decisions are controlled, how conflicts of interest are managed, and whether information is reliable. A sustainability claim without governance, evidence and assurance may become greenwashing.

The central managerial challenge is not to treat these dimensions as separate projects. Instead, they should be incorporated into process design, purchasing, performance management, capital investment, risk management and daily problem solving.

2. Circular-Economy Principles

2.1 Linear and circular systems

A linear system follows the pattern “take, make, use and dispose”. It assumes that natural resources are abundant and that waste can be externalised. A circular system seeks to retain the value of products, components and materials for as long as possible while restoring natural systems.

Circularity can be pursued through several strategies:

  1. Refuse and rethink: avoid unnecessary products, packaging or resource use.
  2. Reduce: use fewer materials, energy and process steps.
  3. Reuse: use a product again without substantial transformation.
  4. Repair and maintain: extend useful life.
  5. Refurbish and remanufacture: restore products or components to a specified condition.
  6. Repurpose: use an item for a different function.
  7. Recycle: recover material for use in another production cycle.
  8. Recover energy: extract energy from residual waste where higher-value options are not feasible.

These options are not equivalent. In general, preserving the function of a product is preferable to merely recovering its material because more of the original value is retained. Recycling is useful, but it often requires energy and may reduce material quality.

2.2 Circular operations design

Circularity begins at design rather than at the waste-disposal stage. Designers can specify modular products, standard fasteners, durable materials, repair access, upgradeable software, traceable components and safe disassembly. Operations managers can support these decisions by providing information on failure rates, maintenance time, material yields and reverse-logistics costs.

A circular supply chain may include forward flows from suppliers to customers and reverse flows from customers to collection, inspection, repair, remanufacturing or recycling facilities. Reverse logistics must be designed deliberately. Collection points, product identification, customer incentives, inspection standards and disposition rules determine whether returned goods create value or become an additional waste stream.

A useful material-balance relationship is:

Inputs = Outputs + Change in inventory

Here, inputs and outputs must be measured over the same period and in consistent units. Outputs may include saleable products, by-products, emissions, wastewater and solid waste. A material balance does not by itself prove sustainability; it simply provides a disciplined basis for identifying losses and opportunities.

2.3 Circularity evaluation

Managers should evaluate circular initiatives through life-cycle thinking. A decision that reduces factory waste may increase transport, cleaning or customer-return impacts. Life-cycle assessment considers impacts from raw-material extraction through production, distribution, use and end-of-life. The assessment may be conducted as a screening study or as a detailed, independently reviewed analysis.

Economic viability is also essential. A circular model should examine acquisition, sorting, inspection, repair, remanufacturing, inventory, information systems and customer-service costs. Circularity is not automatically profitable, and a circular claim should identify system boundaries and assumptions.

3. Environmental Performance and Carbon Accounting

3.1 Environmental performance indicators

Common operational indicators include:

DimensionExample indicatorManagement question
EnergyEnergy per unit producedIs process efficiency improving?
ClimateGreenhouse-gas emissions per unit or revenueAre emissions falling in absolute and intensity terms?
WaterWater withdrawal or consumption per unitIs water use sustainable in the local context?
MaterialsVirgin material share; recycled contentCan material dependence be reduced?
WasteWaste to landfill; recovery rateAre prevention and reuse prioritised?
PollutionConcentration and volume of releasesAre legal limits and ecological risks controlled?

Intensity measures are useful for comparing operations of different sizes, but they can be misleading. An organisation may reduce emissions per product while total emissions increase because output expands. Therefore, both absolute and intensity indicators should be reported.

3.2 Carbon intensity

A basic operational carbon-intensity measure is:

Carbon intensity = Total greenhouse-gas emissions ÷ Functional output

If emissions are measured in kilograms of CO₂-equivalent and output is measured in tonnes of product, the result is kg CO₂e/t product. “Functional output” must be defined clearly; it could be units delivered, passenger-kilometres, service transactions or revenue. The measure is meaningful only when boundaries, emission factors, period and output definition are consistent.

Greenhouse-gas inventories commonly distinguish direct emissions from owned or controlled sources, indirect emissions from purchased energy, and other value-chain emissions. Value-chain estimates are often uncertain because they depend on supplier data and assumptions. Good practice records data quality, estimation methods and changes in reporting boundaries.

3.3 Environmental improvement hierarchy

A robust improvement sequence is:

  1. Prevent unnecessary demand and resource consumption.
  2. Improve process efficiency and eliminate losses.
  3. Substitute lower-impact energy and materials.
  4. Reuse, repair and recover value.
  5. Treat unavoidable residuals.
  6. Use offsets only for appropriately defined residual emissions and never as a substitute for direct reduction.

Operational teams should use standard problem-solving methods such as process mapping, energy audits, maintenance analysis, root-cause analysis and controlled experiments. Environmental objectives should be connected to process owners and reviewed through the same management system as quality and productivity objectives.

4. Social Sustainability and Ethical Operations

4.1 Social performance

Social sustainability concerns the effects of operations on employees, contractors, suppliers, customers and communities. Important issues include fair pay, working hours, freedom from forced and child labour, freedom of association, non-discrimination, privacy, product safety and access to remedy.

A code of conduct is useful but insufficient. Effective systems combine standards with supplier selection, contractual requirements, worker voice, training, audits, grievance channels, corrective action and escalation. Audits can miss concealed practices, particularly when workers fear retaliation. Responsible organisations therefore use multiple evidence sources, including confidential interviews, worker surveys, payroll records, accident data and community engagement.

4.2 Ethical decision-making

An operational decision can be analysed through four questions:

  1. Legality: Does it comply with applicable law and binding requirements?
  2. Rights and dignity: Does it respect affected people and avoid coercion or discrimination?
  3. Consequences: What benefits, harms and risks are likely for each stakeholder?
  4. Fairness and accountability: Are burdens distributed fairly, and can the decision be explained and challenged?

Legal compliance is the minimum standard, not the complete definition of ethical conduct. A practice can be legal yet irresponsible if it exploits information asymmetry, transfers unreasonable risk to vulnerable workers or conceals material impacts.

4.3 Stakeholder analysis

Stakeholder analysis identifies parties affected by an operational decision, their interests, influence, vulnerability and legitimate claims. Stakeholder mapping should not be reduced to a public-relations exercise. Communities with little formal power may experience severe impacts and therefore deserve meaningful consideration.

When stakeholder interests conflict, managers should document the decision criteria, evidence, alternatives considered, mitigation measures and approval authority. This creates an auditable reasoning trail.

5. Responsible Sourcing and Supply-Chain Due Diligence

Responsible sourcing extends operational control beyond the organisation’s immediate facilities. A structured due-diligence cycle includes:

  1. Establish policy, responsibilities and minimum standards.
  2. Map suppliers, sites, materials and significant risks.
  3. Assess inherent risk using geography, industry, material and supplier characteristics.
  4. Prioritise high-risk relationships for deeper assessment.
  5. Prevent, mitigate or remedy adverse impacts.
  6. Monitor outcomes using meaningful evidence.
  7. Communicate performance accurately.
  8. Provide or cooperate with remedy when harm occurs.

Supplier risk assessment should distinguish inherent risk from residual risk. Inherent risk exists before controls; residual risk remains after controls. A supplier with a low audit score may not be the highest priority if its operations are inherently low-risk, while a compliant-looking supplier in a high-risk mineral or labour context may require deeper investigation.

Purchasing practices themselves influence ethics. Unrealistic lead times, last-minute specification changes and severe price pressure can encourage excessive overtime, subcontracting or unsafe shortcuts. Responsible procurement therefore includes feasible schedules, fair contract terms, prompt payment, supplier development and transparent escalation.

6. Occupational Health and Safety

Safety is both an ethical obligation and an operational capability. Injuries cause human suffering and may also interrupt production, reduce morale, increase costs and damage trust.

A hierarchy of controls prioritises:

  1. Elimination of the hazard.
  2. Substitution with a less hazardous alternative.
  3. Engineering controls that isolate people from danger.
  4. Administrative controls such as procedures, training and scheduling.
  5. Personal protective equipment.

The hierarchy is important because personal protective equipment depends heavily on individual behaviour and does not remove the hazard. Risk assessment should identify hazards, exposed persons, possible consequences, likelihood, existing controls and further actions. Risk ratings are prioritisation tools, not precise probabilities, and should not justify accepting intolerable risks merely because a numerical score appears moderate.

A common safety indicator is total recordable incident rate:

TRIR = (Number of recordable incidents × K) ÷ Total hours worked

Here, K is a reporting constant selected by the applicable reporting convention, often 200,000 hours for a workforce equivalent to 100 full-time workers working 40 hours per week for 50 weeks. The constant must be stated because different jurisdictions and organisations use different conventions. TRIR is a lagging indicator; it should be supplemented by leading indicators such as completed hazard corrections, preventive-maintenance compliance, safety observations and worker participation.

7. Operational Risk, Business Continuity and Resilience

7.1 Risk concepts

Operational risk is the possibility that internal processes, people, systems or external events will cause adverse outcomes. Examples include equipment failure, cyberattack, supplier insolvency, extreme weather, contamination, industrial action and regulatory change.

A simple expected-loss model is:

Expected loss = ∑ pᵢ × cᵢ

where pᵢ is the probability of scenario i and cᵢ is its consequence, expressed in a consistent monetary or other decision unit. This model assumes that scenarios are defined adequately and that probability and consequence estimates are decision-useful. It is not sufficient for low-probability catastrophic events, interdependent risks or situations where probabilities are highly uncertain.

A qualitative risk matrix can support prioritisation, but colour categories should not replace analysis. Managers should consider speed of onset, detectability, duration, reversibility, interdependence and vulnerable stakeholders.

7.2 Business continuity management

Business continuity management identifies critical products and services, determines acceptable disruption, develops response strategies and tests recovery arrangements. A business-impact analysis typically examines:

  • critical activities and dependencies;
  • maximum tolerable period of disruption;
  • recovery time objective;
  • recovery point objective for data;
  • minimum staffing, technology, facilities and supplier requirements;
  • internal and external communications;
  • legal, safety and customer obligations.

A continuity plan is credible only if it is resourced and exercised. Tabletop exercises, simulations and technical recovery tests reveal problems that documents conceal. After-action reviews should assign owners and deadlines for corrective actions.

7.3 Resilience capabilities

Resilience is not simply holding excess inventory. It can be strengthened through visibility, redundancy, flexibility, modularity, substitution, collaboration, financial capacity, cross-training, safe capacity buffers and rapid learning. Each capability has a cost and may create trade-offs. For example, dual sourcing can improve continuity but reduce volume discounts; local sourcing may reduce transport exposure but increase unit cost; inventory can absorb supply variation but increases capital and obsolescence risk.

8. Governance, Compliance and Assurance

Governance translates values into decisions and controls. A mature governance system includes:

  • board or senior-management oversight;
  • clear operational accountability;
  • policies linked to measurable objectives;
  • segregation of incompatible duties;
  • documented authority levels;
  • reliable data ownership;
  • incident escalation and investigation;
  • whistleblowing and non-retaliation mechanisms;
  • internal audit and independent assurance;
  • corrective-action tracking.

Compliance registers should identify applicable laws, permits, licences, customer requirements and voluntary commitments. Each requirement needs an owner, evidence source, review frequency and escalation path. Compliance should be integrated with change management: a new material, machine, software system, supplier or process may change legal and ethical obligations.

Assurance has levels. First-line operational controls are performed by process owners. Second-line functions such as risk, compliance and environmental management provide oversight. Independent internal or external assurance tests whether controls are designed and operating effectively. Certification can support discipline, but it does not guarantee excellent performance; the scope, evidence and treatment of nonconformities matter.

9. Scenario Planning and Strategic Decision-Making

Forecasts extrapolate expected trends; scenarios explore plausible alternative futures. Scenario planning is appropriate where uncertainty is high, drivers interact and decisions have long-term consequences.

A practical process is:

  1. Define the decision and time horizon.
  2. Identify external forces such as climate, technology, regulation, demographics, geopolitics and markets.
  3. Separate relatively predictable trends from critical uncertainties.
  4. Develop a small number of internally consistent scenarios.
  5. Test strategies against each scenario.
  6. Identify robust actions, contingent actions and early-warning indicators.
  7. Review scenarios as evidence changes.

Scenarios are not predictions. Their value lies in challenging assumptions and revealing actions that remain useful across different futures. For example, energy efficiency, workforce capability and data quality may be beneficial under many scenarios even when the exact future energy price or technology is unknown.

10. Autonomous and Human-Centred Operations

Automation, robotics, industrial analytics and artificial intelligence can improve safety, quality, resource efficiency and continuity. Autonomous inspection may detect defects consistently; predictive maintenance may identify emerging failures; optimisation systems may reduce energy use; and robots may perform hazardous tasks.

However, autonomy introduces risks:

  • biased or poor-quality training data;
  • opaque decisions;
  • unsafe system behaviour outside design conditions;
  • cyberattack and unauthorised access;
  • deskilling and loss of human situational awareness;
  • intrusive worker monitoring;
  • unclear liability when humans and machines interact;
  • exclusion of workers with disabilities or limited digital access.

A human-centred operation designs technology around human capability, dignity and meaningful control. Important controls include role-based access, human override, fail-safe states, validation before deployment, model monitoring, incident logging, cybersecurity, privacy protection and worker consultation. Automation should remove dangerous work where feasible, but it should not remove human accountability.

Technology selection should follow a problem definition rather than enthusiasm for a tool. Managers should compare expected benefits with implementation cost, energy consumption, maintenance, data requirements, training needs and failure consequences. A pilot should have explicit safety and performance criteria, a rollback plan and an independent review.

11. Integrated Performance Measurement

A responsible operations scorecard should combine outcomes, drivers and controls. A possible structure is:

PerspectiveOutcome measuresLeading or control measures
EconomicCost, margin, service level, cash conversionProcess capability, maintenance effectiveness
EnvironmentalAbsolute emissions, waste, water impactEnergy audits, leak response, design reviews
SocialInjury severity, turnover, grievance resolutionTraining, worker voice, hazard closure
Supply chainDisruption duration, supplier incidentsMapping, due diligence, continuity exercises
GovernanceConfirmed breaches, audit findingsControl testing, escalation, assurance coverage
ResilienceRecovery time, fulfilled demand during disruptionCross-training, alternatives, scenario tests

Targets should be specific, measurable, time-bound and connected to accountable owners. Yet excessive target pressure can create dysfunctional behaviour, such as hiding incidents, shifting emissions to suppliers or sacrificing maintenance. Balanced measures, independent review and qualitative judgement are therefore necessary.

12. Illustrative Case: Meridian Appliances

Background

Meridian Appliances, a fictional regional manufacturer of commercial refrigeration units, competes on price and rapid delivery. Its factory has experienced rising energy costs, two serious contractor injuries and repeated delays caused by a single overseas compressor supplier. Customers increasingly request evidence of low-carbon production and responsible labour practices.

Problem

Senior management initially proposed three isolated initiatives: purchase renewable-energy certificates, change to a cheaper supplier and install autonomous material-handling equipment. The operations team argued that these actions might improve reported indicators without addressing underlying risks.

Analysis

A cross-functional team mapped the product life cycle and critical processes. It found that:

  • energy intensity was high because compressors and test chambers were poorly maintained;
  • returned units were repaired inconsistently and many usable components were discarded;
  • the single supplier represented a high continuity risk;
  • contractor induction was incomplete and machine guarding was inconsistent;
  • purchasing schedules created frequent expedited orders;
  • the proposed autonomous equipment had no defined human-override or cyber-control requirements.

The team established a baseline for energy per unit, absolute emissions, waste, recordable incidents, supplier concentration, delivery performance and repair yield. It also interviewed workers and reviewed contractor records.

Approach and solution

Meridian implemented a staged programme:

  1. Maintenance teams repaired compressed-air leaks, calibrated test equipment and introduced energy monitoring by production area.
  2. Product engineers redesigned access panels and fasteners to improve repair and disassembly.
  3. A returns centre classified products into reuse, repair, remanufacture and recycling routes.
  4. Procurement qualified a second compressor supplier and changed purchasing practices to provide more realistic lead times.
  5. Supplier due diligence included worker interviews and corrective-action plans rather than relying only on certificates.
  6. A safety review eliminated a manual lifting step, improved guarding and required contractor verification before work began.
  7. The automation pilot proceeded only after hazard analysis, cybersecurity review, worker training and a tested emergency stop and manual recovery process.
  8. A continuity exercise tested compressor shortage, cyber outage and extreme-weather scenarios.

Outcome

After twelve months, energy per unit and waste to landfill declined, repair yield improved, and the organisation had a qualified alternative supplier. Safety controls improved, although management recognised that incident rates alone could not demonstrate safety. The automation system reduced repetitive lifting but required ongoing monitoring of software updates and worker workload. The board received an integrated quarterly report with data limitations and unresolved risks clearly stated.

Learning points

The case demonstrates that sustainability, ethics and resilience are operational disciplines rather than publicity programmes. Improvements were achieved by combining design, maintenance, procurement, worker involvement, governance and technology controls. It also shows that an initiative should be evaluated across its entire system: a new machine or supplier is beneficial only when its wider risks and dependencies are controlled.

13. Challenges and Limitations

Implementation commonly encounters several difficulties:

  • Measurement uncertainty: supplier, emissions and social data may be incomplete or inconsistent.
  • Conflicting objectives: shorter lead times, low cost, safety and resilience may require different decisions.
  • Scope displacement: impacts may be shifted from one process, country or life-cycle stage to another.
  • Greenwashing and social-washing: selective claims can obscure poor overall performance.
  • Change fatigue: multiple programmes can overwhelm managers and workers.
  • Small-supplier constraints: demanding systems may exclude suppliers that lack resources rather than improving them.
  • Uncertain future conditions: climate, regulation, technology and geopolitics make long-term optimisation difficult.
  • Automation dependence: excessive reliance on digital systems can create new single points of failure.

These limitations call for transparency, proportionality, stakeholder participation, independent challenge and continuous learning. No scorecard or certification system replaces managerial judgement and moral responsibility.

Best-Practice Implementation Road Map

An organisation beginning this journey should:

  1. Obtain leadership commitment and define non-negotiable ethical and safety principles.
  2. Map processes, life-cycle impacts, stakeholders and critical dependencies.
  3. Establish a verified baseline and document data limitations.
  4. Prioritise material risks using severity, likelihood, vulnerability and strategic importance.
  5. Design controls according to the hierarchy of prevention rather than relying on claims.
  6. Embed requirements in product design, procurement, maintenance and investment decisions.
  7. Set balanced targets with accountable owners and review mechanisms.
  8. Engage workers, suppliers, customers and affected communities.
  9. Test continuity plans and technology failure modes.
  10. Report progress honestly, including adverse results and unresolved risks.
  11. Learn from incidents, near misses, complaints, audits and scenario exercises.

Chapter Summary

Sustainable, ethical and resilient operations extend traditional operations management beyond cost, quality and delivery. Circular-economy principles retain product and material value through prevention, reuse, repair, remanufacture and recycling, with design and reverse logistics playing central roles. Environmental performance requires clear boundaries, consistent units and both absolute and intensity measures. Social sustainability requires worker dignity, safe work, responsible sourcing, remedy and meaningful stakeholder engagement.

Operational resilience depends on risk identification, continuity planning, alternative capabilities, tested recovery arrangements and organisational learning. Governance connects policies to accountability, evidence, compliance, assurance and escalation. Scenario planning helps managers prepare for uncertainty without pretending to predict the future. Autonomous technologies can improve safety and efficiency, but must be governed through human-centred design, cybersecurity, privacy, validation and clear accountability.

The strategic objective is an operation that creates durable value while reducing harm, protecting people and remaining capable under disruption.

Key Terms

Sustainability: Meeting present needs without undermining future environmental, social or economic capacity.

Circular economy: An economic system designed to minimise waste and retain the value of products, components and materials.

Reverse logistics: The movement of products, components or materials from users back into recovery, repair or recycling processes.

Life-cycle assessment: A systematic evaluation of environmental impacts across a product or service life cycle.

Carbon intensity: Greenhouse-gas emissions per defined unit of functional output.

Triple bottom line: Evaluation of economic, environmental and social performance.

Ethical operations: Operational decisions that respect rights, dignity, fairness, transparency and responsibility.

Responsible sourcing: Procurement that identifies and addresses environmental, labour, human-rights and governance risks.

Due diligence: A structured process for identifying, preventing, mitigating and accounting for adverse impacts.

Occupational safety: Protection of workers and others from work-related injury and ill health.

Hierarchy of controls: The priority order of eliminating hazards, substituting, engineering controls, administrative controls and protective equipment.

Operational risk: The possibility of adverse outcomes arising from processes, people, systems or external events.

Business continuity: Capability to continue or recover critical activities after disruption.

Resilience: The ability to anticipate, absorb, recover from and adapt to disruption.

Recovery time objective: The target time within which an activity or system should be restored.

Scenario planning: Exploration of plausible alternative futures to test strategies and identify robust actions.

Governance: Structures and processes through which authority, accountability, control and oversight are exercised.

Greenwashing: Misleading presentation of environmental performance or claims.

Human-centred automation: Technology design that preserves human dignity, capability, safety, participation and accountability.

Leading indicator: A forward-looking measure of activities or conditions expected to influence future performance.

Review Questions

Short Answer Questions

  1. What is the difference between a linear economy and a circular economy?
  2. Why should environmental performance include both absolute and intensity indicators?
  3. State the main stages of responsible-sourcing due diligence.
  4. What is the purpose of a business-impact analysis?
  5. Why is personal protective equipment placed low in the hierarchy of controls?

Long Answer Questions

  1. Explain how sustainability, ethics, resilience and governance interact in operations management.
  2. Discuss how product design and reverse logistics can support circular operations.
  3. Evaluate the strengths and limitations of quantitative risk matrices and expected-loss analysis.
  4. Explain the requirements of a credible occupational-health-and-safety management approach.
  5. Discuss the opportunities and governance risks associated with autonomous operations.

Analytical / Application Questions

  1. A manufacturer has low waste per unit but rising total waste because output has doubled. Analyse the performance evidence and recommend measures.
  2. A critical supplier is inexpensive but has repeated labour-rights complaints and no tested continuity plan. Develop a responsible-sourcing and resilience response.
  3. Design a scenario-planning exercise for an organisation facing climate disruption, cyber risk and increasing automation. Identify scenarios, early-warning indicators and robust actions.

Multiple Choice Questions with Answers

Question 1

Which action generally preserves the greatest amount of product value in a circular economy?

A. Landfill disposal

B. Material recycling

C. Product repair and reuse

D. Energy recovery

Correct Answer: C. Product repair and reuse

Question 2

Why should carbon intensity be reported alongside absolute emissions?

A. Intensity always measures legal compliance

B. Absolute emissions show whether total impact is increasing or decreasing

C. Intensity cannot use functional output

D. Absolute emissions eliminate the need for emission factors

Correct Answer: B. Absolute emissions show whether total impact is increasing or decreasing

Question 3

Which is the highest-priority control in the hierarchy of controls?

A. Personal protective equipment

B. Administrative instruction

C. Warning signage

D. Elimination of the hazard

Correct Answer: D. Elimination of the hazard

Question 4

In the expected-loss expression, what does pᵢ represent?

A. The consequence of scenario i

B. The probability of scenario i

C. The total number of scenarios

D. The recovery time for scenario i

Correct Answer: B. The probability of scenario i

Question 5

Which activity is most characteristic of business-impact analysis?

A. Selecting a product colour

B. Identifying critical activities and acceptable disruption periods

C. Calculating employee tax

D. Replacing all suppliers automatically

Correct Answer: B. Identifying critical activities and acceptable disruption periods

Question 6

Why can a supplier audit alone be insufficient for social due diligence?

A. Audits never examine documents

B. Workers may conceal problems because of fear of retaliation

C. Audits are always illegal

D. Audits measure only carbon emissions

Correct Answer: B. Workers may conceal problems because of fear of retaliation

Question 7

What is a residual risk?

A. Risk that exists before any controls are applied

B. Risk remaining after controls are applied

C. Risk that has no possible consequence

D. Risk caused only by recycling

Correct Answer: B. Risk remaining after controls are applied

Question 8

Which feature best supports human-centred automation?

A. Removing all human override functions

B. Preventing workers from reporting system problems

C. Providing validated fail-safe states and meaningful human control

D. Maximising surveillance without privacy safeguards

Correct Answer: C. Providing validated fail-safe states and meaningful human control

Question 9

A company reduces emissions per unit by 10% while production increases by 30%. What is the most appropriate initial conclusion?

A. Total emissions must have fallen

B. Total emissions may have increased despite improved intensity

C. The intensity measure is invalid

D. Production volume is irrelevant

Correct Answer: B. Total emissions may have increased despite improved intensity

Question 10

What is the primary purpose of scenario planning?

A. To predict one certain future precisely

B. To replace all operational forecasts

C. To test strategies against plausible alternative futures

D. To eliminate uncertainty from decision-making

Correct Answer: C. To test strategies against plausible alternative futures

Operations & Process Management
Chapter 15 of 15