Production and Operations Management Systems Chapter 1: Introduction

Generalized Input-Output Transformation Model

• Figure below represents a generalized input–output transformation model.
• Generalized means that it is a standard form that could be applied to any system where conversions are taking place. Inputs are fed into the transformation box—representing the process.
• The ‘‘process’’ often includes many sub-processes.

Transformation Process - Services

• Service conversions have customer utility even if no transfer of goods takes place.
• The conversion may be a change of location or related to the customer’s state of well-being. Transformations are being accomplished when:
• People are served chili at Wendy’s.
• When they give blood to the Red Cross.
• They have their teeth cleaned by the dentist.
• They visit Disney World to be entertained.
• They are being rescued from a disaster area during a hurricane.
• Depositing a check in bank results in the electronic transfer of funds (ETF) from the paying account to the paid account, which is clearly an input–output transformation
• People are being moved from one place to another by an airline.