2 The input–process–output model

The reading (Walley, 2017) introduced you to the operations input–process–output model.

Figure 1: Operations input–process–output model

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Figure 1 shows the input–process-output model. The left-hand arrow, labelled ‘Input’, points to a rectangular box labelled ‘Process’. The right-hand arrow is labelled ‘Output’. Underneath the Input arrow there is a list entitled ‘Managing Input Resources’: facilities, equipment, staff, customers, suppliers, transport, materials, energy and information. Underneath the process box there is a list entitled ‘Managing Processes’: process flow, work-in-progress, process design, planning and scheduling, progressing and control and system improvement. Underneath the output box there is a list entitled ‘Managing Outputs’: Products and services, customer satisfaction, unit costs and environmental impact.

Figure 1: Operations input–process–output model

This framework shows that the operations management role is divided into three areas:

• Managing input resources – Operations managers must ensure that the right resources, such as people, equipment and materials, are available in the right quantity at the right time for the operation’s needs.
• Managing processes – All operations managers are responsible for processes. Processes are defined as a series of interlinked activities or steps that consume resources to meet a goal or output.
• Managing outputs – The operations function is responsible for meeting customers’ needs by delivering required products or services. The effectiveness and efficiency of the operation dictates how much resource is needed and this feeds straight through to unit cost and (where relevant) profitability.