Understanding operations management (2024)

Table of Contents
Activity 5 Discussion

A transformation process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients. Where the inputs are raw materials, it is relatively easy to identify the transformation involved, as when milk is transformed into cheese and butter. Where the inputs are information or people, the nature of the transformation may be less obvious. For example, a hospital transforms ill patients (the input) into healthy patients (the output).

Transformation processes include:

  • changes in the physical characteristics of materials or customers

  • changes in the location of materials, information or customers

  • changes in the ownership of materials or information

  • storage or accommodation of materials, information or customers

  • changes in the purpose or form of information

  • changes in the physiological or psychological state of customers.

Often all three types of input – materials, information and customers – are transformed by the same organisation. For example, withdrawing money from a bank account involves information about the customer's account, materials such as cheques and currency, and the customer. Treating a patient in hospital involves not only the ‘customer's’ state of health, but also any materials used in treatment and information about the patient.

One useful way of categorising different types of transformation is into:

Several different transformations are usually required to produce a good or service. The overall transformation can be described as the macro operation, and the more detailed transformations within this macro operation as micro operations. For example, the macro operation in a brewery is making beer (Figure 2). The micro operations include:

  • milling the malted barley into grist

  • mixing the grist with hot water to form wort

  • cooling the wort and transferring it to the fermentation vessel

  • adding yeast to the wort and fermenting the liquid into beer

  • filtering the beer to remove the spent yeast

  • decanting the beer into casks or bottles.

Maximise

Figure 2 Macro and micro operations

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This mapping diagram builds on the one shown in Figure 1. There are two rows of objects. The first row begins with a large white box, in which is written Malt, Water, Hops, Yeast. The ‘Inputs’ arrow points from this to the ‘Transformation Process’ box, which now also has the label ‘Macro operation’ written beneath it. The ‘Outputs’ arrow leads from this box to another large white box in which is written Beer. There is a narrow black dotted line above the arrows, linking them. It leads from ‘Outputs’, with an arrow head pointing to ‘Inputs’. This dotted line is labelled ‘Feedback’. Bold white lines lead from the bottom left and right edges of the ‘Transformation Process’ box to the mid bottom left and right sides of the diagram. Below this, is another row of objects. The heading for this states ‘Can be broken into’. The row consists of three identical rectangular white boxes. Inside each of the three boxes is a miniature representation of the arrow, rectangular box, arrow mapping presented in Figure 1, the difference being that each of the objects contains no writing or labelling. Beneath the first rectangular box is the label ‘ Micro operation 1’. Beneath the second is the label ‘Micro operation 2’. Beneath the third is the label ‘Micro operation 3’.

Figure 2 Macro and micro operations

Activity 5

Identify the principal resources (inputs), the type of transformation process and the principal outputs (goods or services) in each of the following operations.

InputsType of transformationOutputs
Refining steel
Assembling cars
Delivering cars to dealers
Repairing cars
Designing cars

Discussion

You may have identified various inputs such as materials, energy, machines, equipment, buildings and people. For example, the inputs used by a car assembly plant include components, equipment, buildings, labour and energy. You may also have included less tangible inputs to the transformation process, such as information and skills.

You might have noticed that, midway down the list, the activities changed from primarily the production of goods to the provision of services. In the case of car designing, the principal inputs are ideas and the outputs are materials used to communicate the finished idea, such as blueprints or computer models.

Understanding operations management (2024)
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