Key elements of an operations system

Question 1

Inputs

Answer 1

Inputs are the resources used by a business to produce goods and services 
Inputs include:
•	Human resources (labour), skills/effort
•	Raw materials
•	Component parts
•	Facility/buildings
•	Machinery/equipment
•	Utilities – gas, electricity, water
•	Time
•	Money

Question 2

Processes

Answer 2

Processes is also known as transformation. Refers to the processing of inputs into outputs. 
•	Processes include (usually end in ING):
o	Designing 
o	Mixing 
o	Blending 
o	Constructing
o	Assembling
o	Checking
o	Packaging

Question 3

Outputs

Answer 3

Output refers to the final product presented to the customer either as goods (tangible) or services (intangible).
• Goods/manufacturing:
o Tangible (can be touched)
o Can be stored for later use
o No/minimal customer contact
o Consistent from one customer to the next
o Consumption occur separately from the purchase
• Services:
o Intangible (cannot be touched)
o Cannot be stored
o High level of customer contact
o Individualised for each customer
o Consumption usually occurs with the purchase