When we learn about operations management we are considering how businesses actually make their product or supply their service and the processes they use to optimise production.

DEFINE

Operations refers to the business processes that involve transformation or, more generally, ‘production’. Operations is about adding value to inputs in the transformation process.

Transformation is the conversion of inputs (resources) into outputs (goods and services).

Value adding is the creation of extra or added value as inputs are transformed into outputs.