active me within the operations management function focus on adding value ion- through its transformation process (as illustrated in Exhibit erred to a the technical core especially in manufacturing organza of the different types of transformations are
- physical as in manufacturing
- Excavate as in transportation
- Excavate as in relating
- Excavate as in warehousing
- physical as in healthcare
- physical as in telecommunication
The signal customer an or materials which undergo the transformation Also part are a variety of components supplied by the organization facilities which convert the inputs into outputs Every transformation process is affected by external factors which are outside the control management. External factors include random. unexpected events such as natural dis economic cycle. changes in government policies and laws, as well as changes in consul preferences and taste . These external factors can also include anticipated changes seasonality over which management has little or no control of the transformation process. Thu consists of monitoring the outputs in ouch ways. including quality and quantity. and then using this information as feed make the necessary adjustments that ill improve the process. The e carious transformations that take place. of course. are not mutually excl For example, a department store can (a) allow shoppers to compare prices and q (informational), (b) hold items in inventory until needed (storage), and (c) sell (exchange) Exhibit presents sample input-transformation-output relationships .
The note only the direct components are listed; a more complete no would include managerial and support functions.