The Transformation Model

Organisations produce goods and services by converting input into outputs via a process known as the transformation process.

Some inputs are used up in the process of creating goods and services. Others plays a part in the creation process but are not used up.

Type of inputs:

1. Materials
2. Information (e.g. Consultancy firms and accountancy firms)
3. Customers (e.g. Hairdressing, Hospitals)

Transformation process is any activity or group of activities that takes one or more inputs, transform and adds value to them and provides output for customers.

Transformation process includes:

1. Changes in the physical characteristics of materials or customers
2. Changes in the location of materials, information or customers
3. Changes in the ownership of materials or information
4. Storage or accommodation of materials, information or customers
5. Changes in the purpose or form of information
6. Changes in the physiological or psychological state of customers.

Type of transformation:

1. Manufacture – the physical creation of products (for example cars)
2. Transport – the movement of materials or customers (for example a taxi service)
3. Supply – change in ownership of goods (for example in retailing)
4. Service – the treatment of customers or the storage of materials (for example hospital wards, warehouses).

Nature of outputs:

1. Tangibility
2. Transportability
3. Storability (can be stored) 
4. Customer contact
5. Simultaneity
6. Quality

Feedback 

This used to control the operation system by adjusting the input and transformation process that are used to achieve desired output.

University of Mauritius past papers Question and Answer:

May 2013 Q1. a/May 2008 Q1. a
Q: Chase et al (2004) describe operations management as a transformation process. With this in mind, explain the importance of operations management. (5)

A: Operation management is about the way an organisation manage to provide goods and services to the customers thus "chase et al 2004" describe this as the transformation process which have similar meaning to transformation process which on the other hand is described as any activity or group of activities that takes one/more inputs, transform and adds value to them and product outputs to customers.

The operation management importance:

1. Provide quality goods and services for the customers.
2. Reduce cost when producing those goods and services by being effective.
3. Make innovative products/services to increase sales/revenues.
4. Reduce investment(capital employed) to produce goods and services by being effectivr and innovative.
5. Reduce wastage and will lead to higher effectiveness.
6. Increase speed in production.

May 2013 Q1. c

Q: Discuss how organizations can achieve competitive advantage through the operations function. (10)

A: Operation management are expected to produce desired goods and services of the right standard in the right quantity at the right time and at minimum cost.

Improve quality of goods and services. The operation manager always need to check whether or not the machinery and equipment is up to date or is providing goods/services that satisfy the needs of customers. With this regular checks, Quality will improve and will lead to competitive advantage to the firm.

 With the operation functions, firms can benefit from increase in production/productivity. This is because it is the operation manager to find new innovative methods to boost up production. Thus leading to higher competitiveness.

Another function of the operation management is to reduce cost. Operation manager can reduce wastage, search cheaper suppliers, etc. Therefore will lead to lower prices, thus increase in demand/sales/revenue.

More flexible.

Bring everyone closer due to communication with many departments. Thus operation managers will make everyone work together to achieve a common goal and this will lead to competitive advantage.