Operations: The business processes that involve transformation or production. In manufacturing, operations refers to the process involved in turning raw materials and resources into outputs of finished goods or products. E.g a vehicle manufacturer, or an oil refiner converting crude oil into petrol In the services sector, operations refers to the processes involved in actually carrying out the service e.g professional advice by a solicitor Transformation: The conversion of inputs into outputs. Value Adding: The creation of extra or added value as inputs are transformed into outputs. The Scope of Operations: Production of goods and services Quality management - production controls and associated quality controls Inventory controls Supply chain management Logistics and distribution Management decision making in terms of operational processes Logistics: The detailed organisation and implementation of a complex operation.