How are inputs converted into outputs?

"Production involves converting inputs (natural resources, raw materials, human resources, capital) into outputs (products or services). In a manufacturing company, the inputs, the production process, and the final outputs are usually obvious. Harley-Davidson, for instance, converts steel, rubber, paint, and other inputs into motorcycles. But the production process in a service company involves a less obvious conversion. For example, a hospital converts the knowledge and skills of its medical personnel, along with equipment and supplies from a variety of sources, into health care services for patients.\n\nThere are two basic processes for converting inputs into outputs. In process manufacturing, the basic inputs (natural resources, raw materials) are broken down into one or more outputs (products). For instance, bauxite (the input) is processed to extract aluminum (the output). The assembly process is just the opposite. The basic inputs, like natural resources, raw materials, or human resources, are either combined to create the output or transformed into the output. An airplane, for example, is created by assembling thousands of parts, which are its raw material inputs. Steel manufacturers use heat to transform iron and other materials into steel. In services, customers may play a role in the transformation process. For example, a tax preparation service combines the knowledge of the tax preparer with the client’s information about personal finances in order to complete the tax return.\n\nExamples of inputs and outputs used by various businesses include: Airline—inputs include pilots, flight attendants, a reservations system, ticketing agents, customers, airplanes, maintenance crews, and ground facilities; output is movement of customers and freight. Grocery store—inputs include merchandise, building, clerks, supervisors, store fixtures, shopping carts, and customers; output is groceries for customers. High school—inputs include faculty, curriculum, buildings, classrooms, library, auditorium, gymnasium, students, staff, and supplies; outputs are graduates and public service. Manufacturer—inputs include machinery, raw materials, plant, workers, and managers; output is finished products for consumers and other firms. Restaurant—inputs include food, cooking equipment, servers, chefs, dishwashers, host, patrons, furniture, and fixtures; output is meals for patrons."