Heat conduction analysis is the problem of solving one partial differential equation for temperature. Heat capacity per unit volume times the rate of change of temperature, the inflow and outflow by conduction, and the heat source: the temperature distribution sought is the one that balances those three across the whole region.
Dividing the region into finite elements and representing temperature by values at mesh nodes turns the continuous problem into algebraic equations in a finite number of unknowns. The finer the elements the more precise the solution, and the greater the cost.
For steady state, the form with the time-derivative term dropped is solved. For transient, time is discretized too, and the time step is adjusted against a tolerance on the local truncation error. In either case the formulation presumes the timescale of interest is much longer than the relaxation time of the material.