February 1, 2019 Critical Thinking

Wild (1995: 7) defines operations management in the following terms: “Operations Management is concerned with the design and the operation of systems for manufacture, transport, supply or service”. Stevenson (1999: 4) defines operations management as: “the management of systems or processes that create goods and/or provide services”. A transformation process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients. Where the inputs are raw materials, it is relatively easy to identify the transformation involved, as when milk is transformed into cheese and butter. Where the inputs are information or people, the nature of the transformation may be less obvious. For example, a hospital transforms ill patients (the input) into healthy patients (the output).