Transforming Inputs

Definition: 

Inputs that perform the change / conversion allowing value-adding to occur.

• Facilities / Technology: The buildings (plant) and machinery used in a business’ operations to produce output. 

  • Manufacturing firms have far greater emphasis upon capital equipment and technology (plane manufacturer, mining business). 

  • Service firms still require premises and technologies (Doctors need a surgery and surgical equipment, restaurants need a place for people to sit, a kitchen and ovens…)

• Human Resources / Labour:  Jobs and tasks performed by human effort in operations process. 

  • Manufacturing: less labour and (usually) narrower scope of tasks. 

  • Services: more labour and (usually) wider scope of tasks; usually requiring more training, education and qualifications.