The production process is always involved with inputs as well as outputs. Inputs are invariably raw materials, while outputs are products that are desired to be sold in the markets. In modern management theories, it is common to encounter words like transformed goods and transforming goods that are very confusing for the students. This article attempts to explain these concepts highlighting their features.
Resources are important, rather vital part of any production process, and perhaps, it is prudent to follow the dichotomy of transformed and transforming resources. As a general rule, transforming resources are items or things that are needed to convert raw materials into products that are in shapes required by the end consumers. Buildings, machinery, hardware, software and all other paraphernalia that is used for this purpose comes into the category of transforming resources. As the name implies, transformed resources are raw materials that undergo transformation to be converted into shapes desired by the markets. Thus, whether it is end products or the raw materials, both classify as transformed products.
A production chain involves a lot of steps, with each stage adding value to the product. This value addition adds to the price of the product, as it becomes more desirable for the end consumers and they are willing to pay more for the product.
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What is the difference between Transformed and Transforming Resources? • Transformation process that involves turning raw materials into end products are vital for the profitability of all companies and for maximizing profits, all resources are classified into two sets called transforming and transformed resources. • Transforming resources are well defined and include all buildings, machinery, hardware and software, and other related items that are used to convert raw materials into end products. • Transformed resources are raw materials that get converted into products liked and demanded by the markets.
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