Which of the following would not generally be classified under the headline of transformation?

3.2 Inputs

Some inputs are used up in the process of creating goods or services; others play a part in the creation process but are not used up. To distinguish between these, input resources are usually classified as:

• transformed resources – those that are transformed in some way by the operation to produce the goods or services that are its outputs

• transforming resources – those that are used to perform the transformation process.

Inputs include different types of both transformed and transforming resources.

Three types of resource that may be transformed in operations are:

• materials – the physical inputs to the process

• information that is being processed or used in the process

• customers – the people who are transformed in some way.

Many people think of operations as being mainly about the transformation of materials or components into finished products, as when limestone and sand are transformed into glass or an automobile is assembled from its various parts. But all organisations that produce goods or services transform resources: many are concerned mainly with the transformation of information (for example, consultancy firms or accountants) or the transformation of customers (for example, hairdressing or hospitals).

Galloway (1998) defines operations as all the activities concerned with the transformation of materials, information or customers.

The two types of transforming resource are:

• staff – the people involved directly in the transformation process or supporting it

• facilities – land, buildings, machines and equipment.

The staff involved in the transformation process may include both people who are directly employed by the organisation and those contracted to supply services to it. They are sometimes described as ‘labour’. The facilities of an organisation – including buildings, machinery and equipment – are sometimes referred to as ‘capital’. Operations vary greatly in the mix of labour and capital that make up their inputs. Highly automated operations depend largely on capital; others rely mainly on labour.

Activity 4

Identify the principal inputs (both transformed and transforming resources) used by each of the following organisations, and their principal outputs.

Discussion

The transformed resources of a restaurant include food and drink, and its transforming resources include equipment such as cookers, refrigerators, tables and chairs, and the chefs and waiters. In a university, the transformed resources include students and knowledge and the transforming resources include lecturers, tutors and support staff, as well as classrooms, books and instructional materials.

Introduction to Operations Management

True / False Questions

1. Operations managers are responsible for assessing consumer wants and needs and selling

and promoting the organization's goods or services.

True False

2. Often, the collective success or failure of companies' operations functions will impact the

ability of a nation to compete with other nations.

True False

3. Companies are either producing goods or delivering services. This means that only one of

the two types of operations management strategies are used.

True False

4. Operations, marketing, and finance function independently of each other in most

organizations.

True False

5. The greater the degree of customer involvement, the more challenging the design and

management of operations.

True False

6. Goods producing organizations are not involved in service activities.

True False

7. Service operations require additional inventory because of the unpredictability of consumer

demand.

True False

8. The value of outputs is measured by the prices customers are willing to pay for goods or

services.

True False

9. The use of models will guarantee the best possible decisions.

True False

10. People who work in the field of operations should have skills that include both knowledge

and people skills.

True False

11. Assembly lines achieved productivity but at the expense of standard of living.

True False

12. The operations manager has primary responsibility for making operations system design

decisions, such as system capacity and location of facilities.

True False

13. The word "technology" is used only to refer to "information technology".

True False

14. ‘Value added' by definition is always a positive number since 'added' implies increases.

True False

Which of the following would not generally be classified under heading of transformation?

What is staffing?