Syllabus Topic
HSC topic: Operations
operations processes
inputs
- transformed resources (materials, information, customers)
- transforming resources (human resources, facilities)
The operations process is the heart of every business, converting inputs into valuable outputs—products or services—that satisfy customer needs. This process consists of three key components: inputs, the transformation process, and outputs. Inputs can be divided into two categories: transformed resources and transforming resources.
Transformed Resources: From Raw Materials to Finished Products
Transformed resources are those that undergo change during the operation to produce goods or services. These include materials, information, and customers. Materials are crucial in manufacturing industries. For example, Tesla uses raw materials such as lithium, cobalt, and nickel to produce batteries for electric vehicles (EVs). In 2024, Tesla continues to increase its battery production and network of gigafactories to meet rising demand driven by the global shift towards sustainable transportation. This transformation process takes raw materials and turns them into high-performance, environmentally friendly products, contributing to both technological innovation and sustainability.
Information is another vital transformed resource, especially in digital services. Amazon excels at collecting data from customer interactions and using it to enhance operations. In 2024, Amazon’s advanced AI systems transformed vast amounts of raw data into personalized shopping experiences, inventory optimization, and improved services. This transformation process has helped Amazon maintain its competitive advantage. By September 30 2024, Amazon's revenue reached over $620 billion, demonstrating the value of information in driving both growth and customer satisfaction
In service industries, customers themselves can be transformed during the operation. For instance, Qantas continues to offer services like personalized travel experiences, tailored loyalty rewards, and targeted marketing based on customers’ travel behaviour. The airline collects extensive data on customer preferences, travel patterns, and spending habits, which are then used to enhance and personalize the customer experience, highlighting the role of customers as transformed resources.
Transforming Resources: People and Facilities
Transforming resources are those that facilitate the transformation of other inputs into final outputs. These include human resources and physical assets such as facilities.
Human resources play an essential role in the transformation process. For example, Qantas depends on its skilled workforce—flight attendants, pilots, and ground crew—to ensure smooth operations. According to the 2024 Annual Report, the airline invested in extensive training programs for its staff to enhance customer service and operational efficiency. This focus on human capital is crucial for managing rising passenger volumes and maintaining high safety standards in an increasingly competitive aviation market.
Facilities are also integral to transforming resources. Apple relies on its manufacturing facilities to produce products like iPhones and MacBooks. In 2024, Apple significantly expanded its operations across the globe, including Vietnam. Automation in its factories has allowed Apple to enhance production efficiency while maintaining high standards of quality control. Additionally, Apple’s commitment to sustainability has driven its initiatives to minimize its environmental footprint, from sourcing raw materials responsibly to using renewable energy in its manufacturing plants.
Conclusion
A comprehensive understanding of transformed and transforming resources is essential for efficient operations management. Companies like Tesla, Amazon, Qantas, and Apple demonstrate how these resources are strategically deployed to create value. By optimizing the use of both transformed and transforming resources, these businesses drive innovation, improve efficiency, and meet evolving customer demands, ensuring long-term success.
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