Explain the “transformation role” of operation management.
Operations management involves the systematic direction and control of the processes that transform resources (inputs) into finished goods or services for customers or clients (outputs). This basic transformation model applies equally in manufacturing and service organizations and in both the private and not for profit sectors.
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.
The principal outputs of a doctor’s surgery are cured patients; the outputs of a nuclear reprocessing plant include reprocessed fuel and nuclear waste. Many transformation processes produce both goods and services. For example, a restaurant provides a service, but also produces goods such as food and drinks. Transformation processes may result in some u ndesirable outputs (such as nuclear waste in the example above) as well as the goods and services they are designed to deliver. An important aspect of operations management in some organizations is minimizing the environmental impact of waste over the enti re life cycle of their products, up to the point of final disposal. Protecting the health and safety of employees and of the local community is thus also the responsibility of operations management. In addition, the operations function may be responsible f or ethical behavior in relation to the social impact of transformation processes, both locally and globally. For example, in the United States, manufacturers of sports footwear have come under fire for employing child labor and paying low wages to worker s employed in their overseas factories.
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 ho spital 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 in put materials, information and customers are transformed by the same organization 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 different types of transformation is into: manufacture the physical creation of products (for example cars) transport the movement of materials or customers (for example a taxi service) supply change in ownership of goods (for example in retailing) service the treatment of customers or the storage of materials (for example hospital wards,warehouses).
