Process: Transformed resources Flashcards
What are transformed resources?
Transformed resources are those inputs that are changed or converted in the operations process; they are transformed by the operations processes.
What do transformed resources include?
▪ Materials; basic elements used in the production process. They consist of;
o Raw materials: essential substances in their unprocessed, raw or natural state and come from mines, forests or oceans
o Intermediate goods: goods that are manufactured and used in further manufacturing processing. Materials that are already transformed can still become inputs into an operation process,
▪ Information; the knowledge gained from research, investigation and instruction. Information
acts as a transformed resource when used to inform how inputs are used, where they are drawn from and which suppliers are available. Information can be classified as:
o External: market reports, statistics, media or academic papers
o Internal: from within the business and is gathered from internal sources such as
financial reports, KPIs, data. Internal information acts as a transformed resource when it informs processes and creates process improvements.
▪ Customers; become transformed resources when their choice shapes inputs. Consumer
orientation is essential to business and takes the preferences and interests of consumers as a starting point to production processes. In this way consumers act as an input and their desires and preferences as the transformed resource
