By Nigel Slack; R Johnston; Alistair Brandon-Jones

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In this way the input–transformation–output model can be used at a number of different ‘levels of analysis’. Here we have used the idea to analyse businesses at three levels, the process, the operation and the supply network. One could define many different ‘levels of analysis’: moving upwards from small to larger processes, right up to the huge supply network that describes a whole industry. 5. It will have inputs of production, technical and administrative staff, cameras, lighting, sound and recording equipment, and so on.

However, the cost per kilometre travelled will be higher for a taxi than for a less customized form of transport such as a bus service. Although both provide the same basic service (transportation), the taxi service has a high variety of routes and times to offer its customers, while the bus service has a few well-defined routes, with a set schedule. If all goes to schedule, little, if any, flexibility is required from the operation. All is standardized and regular, which results in relatively low costs compared with using a taxi for the same journey.

The web-based organization can also centralize its operation on one (physical) site, whereas the ‘bricks and mortar’ shop needs many shops close to centres of demand. Therefore, the low-visibility web-based operation will have lower costs than the shop. Short case Two very different hotels Formule 1 Hotels are high-contact operations – they are staff-intensive and have to cope with a range of customers, each with a variety of needs and expectations. So, how can a highly successful chain of affordable hotels avoid the costs of high customer contact?

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