Transformed Inputs

Definition: 

Inputs that undergo change or conversion in the operations process.

• Materials: Raw materials and intermediate goods from suppliers that are fed into an operations process, then changed / combined / converted to create final output. Manufacturers have far greater emphasis upon raw material inputs from suppliers than do service firms (which still need some material inputs; accountant needs paper, physiotherapy needs oils…)

• Customers: Mainly for service firms. Customers physically enter the operations process in a services firm and are themselves transformed (by having their needs met). Eg. Bank customer walks into the bank and obtains loan, or sick person enters the medical clinic and obtains healing to get better.

• Information: Knowledge and feedback from customers and internal research / monitoring of performance is transformed into final output. Eg. A customer’s financial information is converted by an accountant into a tax return.