Transformation Process

Transformation Process

Operations is a transformation process, which converts inputs into outputs.

Inputs        :               labor, capital, equipment, land, buildings, materials and information
Outputs     :               Good and Services from company/firm

To make sure that the desired outputs to achieve, feedback's are sent at various points in the transforming process.

Internal feedback – output performance evaluation at each step

External feedback – customer feedback

In nonprofit organizations, the value of outputs is their value to society where as in profit organizations, the value of output is measured by the prices that customers are willing to pay. The more the value added, the more the profit.

Example:

Transformation process in 3M Company is a good example of the transfer inputs into outputs that offer competitive advantage in the marketplace. It  manufactures adhesive tape called "Magic Tape". It can be used for everyday applications, one of the best features it have is smooth removal from the tape roll, an adhesive that is sticky enough to hold items and a non-reflective surface. For several decades, it enjoys an ample profit margin on its product called Magic Tape. Company enjoys competitive gain by controlling the transformation processes that turn raw material inputs into the high value-added output product as Magic Tape. Controlling the transformation process makes it extremely difficult for competitors to produce tape of the similar quality as afford from 3M Company, allowing company to gain significant profits.