In: Operations Management
Please provide a rebuttal for the below , position is against.
We stand to support the proposition that “where the inputs are raw materials, it is relatively easy to identify the transformation involved, but where the inputs are information or people, the nature of the transformation may be less obvious”.
At the very heart of business operations is the production of products or services. This is conducted through the operations function which is considered to be the most important functional area of the business. The operations function is where actual work is done and is responsible for the production of goods and services that are ready for sale to customers, in order for the business to make a profit. For a business to be successful, its operations function must involve taking inputs (raw material, human resources, information), a transformation process, and outputs - the actual product or service (Introduction to Operations Management, n.d.). The creation of goods or services, therefore, involves transforming or converting inputs which are not readily useful, into outputs that are useful to customers (MGMT2026 Unit 1: Introduction to Production and Operations Management, 2018).
According to The Open University (2011), the 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. Inputs would include raw materials (such as water, metals or wood), human resources (such as employees), or information (such as pricing). To better understand the transformation process, The Open University (2011) states that transformation may be categorized into different types:
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).
It is believed that various types of transformations are vital in the production of a good product or service. Raw materials as inputs play an integral role in the manufacturing transformation process. “The importance of the raw material to the efficient operation of a manufacturing organization cannot be overemphasized; in that, the availability of the raw material in the right quality and quantity will determine to a reasonable extent; the availability, quality and quantity of the resultant output” (Akindipe, 2014).
The Oxford dictionary defines transformation as a marked change in form, nature, or appearance. A process by which one figure, expression, or function is converted into another (Oxford Dictionaries, 2018). Based on this definition it is compelling to agree that where inputs are raw materials, they are easily identified. According to The Open University (2011), it is relatively easier to identify the transformation involved when the inputs are raw materials than when it is information or people. Tangible resources or raw materials that are transformed into outputs are more easily detected by feel, touch and sight than those outputs that are intangible such as information or people. For example, when milk is transformed into cheese and butter, the resultant product is obvious to the customer who can determine the essential value that has been added by looking at and using the cheese or butter. The transformation of metals and other parts into a car gives obvious value to the customer who can now use the car for the purpose of transportation. On the other hand, where the input is human, for example, a teacher at a school, the output is not that obvious. It may take months or years to determine whether the process was successful, such as after external exams. A student may not automatically see the value of the information received from the teacher until he or she has gained passes in the exams.
To ensure that the desired outputs are obtained, an organization utilize measurements in the transformation process. The output from raw materials are tangible products and can be easily measured, as against the outputs from human resources or information input which may be assumed (for example when a mechanic services a car), or the customer will have to wait for a period of time to really experience the value (for example treatment of a patient with a particular drug by a doctor). A car assembly plant and a hospital might look very similar, but a closer look will show clear differences. One is a manufacturing operation which produces ‘products’, and the other is a service operation that produces ‘services’ which changes the physiological or psychological condition of patients. The inputs for the car plant are raw materials and the transformation results in a car being formed. In the case of the hospital, the inputs are people (sick patients) and information about these patients, which are transformed into persons who are no longer ill. It is clear therefore that it is always easier to identify the car having been transformed from raw materials such as steel, plastic, tyres, spare parts and other materials than to determine whether the sick patient has been transformed into a well person. Other processes will have to be performed to determine whether the transformation has really happened in the case of the hospital, which means that knowing if the person became well may not readily be known.
It is important to explore the practicality of inputs being placed in a product that is merely information or the skill of an employee. It would be incorrect if we were to state that inputs are only parts or material. Inputs are categorized differently, they can be seen sometimes as anything involved in the process of preparing a product or as only the components of the product itself. This is not what we are validating; it is the point that inputs such as information and individuals’ skills are less obvious. When a product has gone through its transformation we can look and say, yes, this product was changed through the efficiency of a person or them having some knowledge to adequately address issues with a product that would help it to function better. MGMT2026 Unit 1, expresses that human inputs in the transformation process are the muscle power or brain power that aids in getting the product to the final showing. We are posing the question to you, can you see a product and say specifically, “this addition of brain or muscle has really improved the look, feel of the product or its general use?” We think not, as it is not practical to see human input or easily ascertain which information specifically made the final product better.
In conclusion, we reiterate that where the inputs are raw materials, it is relatively easy to identify the transformation involved, but where the inputs are information or people, the nature of the transformation may be less obvious. Transformation from inputs of raw materials are easily seen, tangible, and are experienced almost immediately. Transformation from inputs of people and information sometimes have to be assumed, not always tangible, and may only be experienced after a period of time, sometimes months or years.
Inputs as raw materials can be easily transformed and converted to any desired output depending on the requirement and the transformation process significantly evident and faster but i totally disagree with when information or people are used as inputs. Now a days information is the key for the functioning of the companies as well as the in the case of people also. Information is the best input that can be converted and analysed (ie trnasformation process) to ultimate output. SO it evident that the transformation is taken place and we cannot say that trnsformation process is minimal. As in the case of human resource, the transformation process is can visblie only after some period of time. ie When a huma resource is hired for an organisation they we undergo some certain rigourous training, its effects can be visible after some period of work experience. When they become experts at their work.