TO REFRESH YOUR KNOWLEDGEWHAT IS VALUE CHAIN?A value chain is a chain of activities.

The goal is to analyze the activities through which firms can create a competitive advantage, it is useful to model the firm as a chain of value-creating activities.

VALUE CHAIN ANALYSIS

VALUE CHAIN ANALYSIS

The operations manager have to know how theoperations activities fare under this calculation.

The way in which the inbound logistics effect thevalue structure of operations have to be analysed.

VALUE CHAIN ANALYSISThe effects of the supporting activities of thecompany structure, human resource management,technology development and purchasing have to beassessed.

The effect of operational activities on the valuecalculations of the downstream functions ofoutbound logistics, marketing and sales andcustomer service have to be evaluated.

What does the value mean in the education process.

FIVE PERFORMANCE OBJECTIVES

PERFORMANCE OBJECTIVESQualitySpeedDependabilityFlexibilityCost

QUALITYPerforming the task to the required standards within the resources available.Quality means doing things right; striving to satisfy customers by providing goods and services which are fit for their purpose.

*improving quality can be key in improving performance

SPEED

Time taken by operation to deliver what is required of it.Speed can be achieved through spare capacity, rapid suppliers, effective control of workflow etc.

DEPENDABILITY

Dependability means doing things on time. Thismeans keeping to the delivery schedule that has been promised to the customer for example in a car plant, dependability means, on time delivery of cars and spare parts to dealers and part centres.

This objective covers how reliable the organization must be in keeping its promises to its customers.In stock products

FLEXIBILITY

How quickly the operation can change to meet newdemands.

Change in:Amount of, range of and type of services or productdelivered.

Flexibility can be achieved through dependable suppliers, mobility of multi-skilled labour, and versatile equipment etc.

COSTCost means doing things cheaply. Cost efficiency can be achieved through increased capacity utilization, reduced overheads, multi-purpose equipment and facilities and high productivity.

Level of finance consumed by the operation