Can someone explain this to me.....

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I get the absolute basic of putting input and getting output, I'm just missing the overall explanation of stuff inside the box along with the stuff outside the box.

Any links to get me started/explanations?

Appreciate it.
 
It might help if you explained context or were a bit more explicit about what it is you don't get.

Essentially from that drawing what you've got in the box appears to be a production process although usually I'd suggest that a design stage is normally before you get to the point of inputting the materials i.e. it should be before the box is even formed. However if we go with it then you've got a fairly simple production mechanism with input/tranformation (adding value)/output - what happens from the customer and going up is a sort of feedback loop to enable improvements as well as help define what the company does/will want to progress into.

However having looked at it more, I start to question it further. Without proper context that's just a guess but I'm not convinced by some of the stages there without further explanation.
 
Inside the box is product/service production. The company has a set of objectives which are translated into a strategy which then has an impact on what is produced. This goes through a cycle of improvement based on objectives and customer/market requirements.
 
It's labelled:

A General model of Operations Management.

Thanks for the answers. Simulatorman, your answer does lend itself to the diagram. What would you hazard a guess as "planning and control" to mean in the context of product/service production?
 
It's labelled:

A General model of Operations Management.

Thanks for the answers. Simulatorman, your answer does lend itself to the diagram. What would you hazard a guess as "planning and control" to mean in the context of product/service production?

Planning determines the optimum use of resource (people/material) and leads to the generation of plans so the “manufacture” can take place. The control process is in place to monitor the production activity and to ensure that it keeps to schedule. It also checks to see that quality is maintained. The control process will lead to re-planning if things go wrong and it will also lead to improvements which are then fed back to the design stage.
 
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