...Summary The concept of value chain has attracted considerable attention of managers and researchers. This report briefly presents the value chain in manufacturing industry and then explores the leadership roles of the engineer in the management of the value chain. Furthermore, this report analyzes the benefits of using an engineer in the value chain management and points out that the engineer is best suited to perform the value chain management role. Table of Contents Introduction 2 The Value Chain in manufacturing industry 2 Role of the Engineer in Value Chain 4 Main Management Actions of Value Chain 4 Leadership Role in the Value Chain Management 4 Benefits of Using an Engineer in Value Chain Management 5 Conclusion 6 References 7 Introduction The demands of the new economy caused by globalization have changed the focus of companies from internal efficiency to the creation of value in the extended enterprise, including their suppliers, alliance partners, distributors and customers. The concept of value chain has attracted a great deal of attention from managers and researchers. Porter (1985) described the value chain as a complex series of activities through which a product or service is designed, produced, marketed, delivered and supported and these activities coordinate the nexus between supply and demand. This report explains the leadership roles of the engineer in the value chain management and argues...
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...Engineer in the Value Chain 49680: Value Chain Engineering Systems Assignment 1 LE Ngoc Thang 11187604 Table of Contents 1. Summary 5 2. Introduction 6 3. Value Chain 7 4. Engineering in Value Chain 9 4.1 Inbound Criterions 10 4.2 Warehouse management Criterions 11 4.3 Logistics Operation Specifications Criterions 11 5. Conclusion 14 6. Reference 15 Table of Figures Figure 1 Supply chain of a Router 7 Figure 2 Engineering Value Chain model 9 Summary This report focuses on the key component of a business, which is Value Chain. Value Chain, as Michael Porter's definition is those activities that add value to the products and/or service provided by the company. Additionally, to achieve advantages over competitors, those activities should be run at an optimized level with careful research and strict supervision. In the first part, Supply Chain and Demand Chain are researched and in the second part, a particular industry sector will be taken into consideration to shed light on the role of engineering and by that reveal the importance of engineering in the management of Value Chain. (Porter 1985) Introduction Nowadays enterprises are facing a number of issues to maintain and expand their business. With those that manufacture goods or provide services should be aware of the importance of Value Chain in order to deeply know the flow of raw material from suppliers to end-users for example. This report gives a brief view over Value Chain system and Engineering roles. Value...
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...The Role of the Engineer in the Value Chain Executive Summary In the recent past, value chain management has undergone radical transformation through various stages of automation, optimization and integration. This is based on a variety of reasons such as shortened technology and product development lifecycles, globalization, and pressures of competitive forces. This has forced organizations to review their value chain systems in order to survive and grow in such dynamic economic environments. In the field of engineering, value chains have become vital aspects of operations management when it comes to the application of engineering systems to the industrial and commercial processes. The main purpose of this paper is to disentangle the role of the engineer in the value chain. In this context, it will go further in analyzing the key elements of value chain and any accrued benefits that come with use of engineers in the value chain management. Value Chain Analysis The inception of Value Chain is associated with Michael Porter. He gives his understanding to this concept using a model he referred to as; “Porter’s value chain model” (Sekhar, 2009: 115). This model evaluates the strategically vital activities in a firm that boost its competitive advantage. Such competitive advantage is usually achieved through the core competencies of the firm. According to Porter, a firm is defined by a set of processes and functions which he classified into five main activities; the inbound...
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...strategic alliances – both with traditional supply chain partners as well as with long-time competitors. As well, it has proved its worth at companies far removed from the relatively slow-clockspeed, manufacturing-intensive automotive industry. This paper describes the analysis process, the decision model, and the resulting improved process for value chain strategy at GMPT. The value analysis process emphasizes the need to balance quantitative financial considerations with less-easily quantifiable strategic issues. This model not only provided key decision support for value chain strategy, but also formed the foundation of a fast-response capability to emergent and disruptive strategic challenges. We describe why such a capability is of critical importance not only to companies such as General Motors, buy also to companies in very fast clockspeed industries such as on-line music and entertainment. Arvin Mueller, Group Vice-President of GM Powertrain from 1997 through 2001, comments on the Value Chain Strategy and its role in the strategic governance of GM’s global powertrain operations: Without a structured process for value chain strategy and formation, dealing with a rapidly changing business model in a huge, complex, and global industry provides only a hit-or-miss destiny. A systems approach to value chain strategy led to a partitioning of “Knowledge Assets” and “Supply Capabilities” within the vast business of engineering and manufacturing engines, transmissions, and...
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...adoption rates of internal corporate social networks. Currently internal networks are average or below average usually built on outdated technology. Social networks not become the core of collaboration at the companies. Inertia in organization, many do work as they used to do from upper management to employees. Without realization that it would help to do their jobs, employees feel too time pressed to learn a new software tool also lacking incentive to use as necessary tool to complete work. Companies usually lack the analytic capabilities measure the performance and value created by their internal social network. 2. Why the most of the companies described in the case been successful in implementing internal social networks? It did not require big capital investment. CSC: Software allowed the company both to network within the company as well as with suppliers, partners, and customers which stratified a supply chain and customer feedback. Created “champions”, advocates to help in adoption, first tested over 200 groups before widespread implementation. Red Robbin refine recipes and operational procedures in restaurants in the franchise with fast turnaround and quick feedback on recipes change and operational decisions. Den-Mat Switched from 30 y.o. legacy system and paper, from e-mail to Chatter updates. Allowed some workers work from home. 3. Should all companies implement internal enterprise social networks. I would avoid recommending 100% adoption of any technology, including company’s...
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...1(d).Value Chain Analysis: A Way to profit improvement & cost Reduction Learning Objective 1. how to identify the value added activity 2. how to rectify the non –value added activity 3. application in profit planning & cost reduction INTRODUCTION Competitive advantage for a company means not just matching or surpassing their competitors, discovering what the customers want and then profitably satisfying, and even exceeding their expectations. As barriers to inter-regional and international trade are diminishing and as access to goods and services are growing, customers can locate after identification and «the best of what they want, at an acceptable price, wherever it is in the world. Under growing competition and, hence, rising customer expectations, a company's penalty for complacency becomes even greater. A strategic tool to measure the importance of the customer's perceived value is value chain analysis. By enabling companies to determine the strategic advantages and disadvantages of activities and value-creating processes in the market place, value chain analysis becomes essential for assessing competitive advantage. Value analysis or value engineering is one of the most widely used cost reduction techniques. It can be defined as a technique that yields value improvement. It investigates into the economic attributes of value. It attempts to reduce cost through ...
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...------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ZAMBIA CENTRE FOR ACCOUNTANCY STUDIES ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- PROGRAMME: BA BUSINESS PROCUREMENT AND SUPPLY CHAIN. . MANAGEMENT ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- COURSE: BUSI 1482 – MANAGING STRATEGY ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- lectureR: mS. MALANIYA CHANAKIRA ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- GROUP MEMBERS: HUMPHREY NSAMA (BAPSM) ------------------------------------------------- OSCAR HAMANGABA (BAPSM) ------------------------------------------------- LWIZYA M. MWENGWE (BAPSM) ------------------------------------------------- STANLEY NGANGULA (BAPSM) ------------------------------------------------- ...
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...speed and flexibility has enabled the company to eliminate inventory. True False According to the text, Zara's strategy focuses on continual renewal of its clothing lines. True False According to the text, outsourcing is hiring others to do noncore activities. True False According to the text, any activity in the value chain can be outsourced except for strategy and management. True False According to the text, the process of coordinating and integrating the flow of materials, information, finances, and services within and among companies in the value chain is called operations management. True False Supply chains are an integral part of global quality and cost management initiatives, since a typical company's supply chain costs can represent over 80 percent of assets. True False Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory. True False According to the text, shorter and less predictable product life cycles have placed reduced emphasis on supply chains and their performance. True False Effective supply chain management can enhance a company's ability to manage regulatory, social, and other environmental pressures, both within a nation and globally. True False 2. 3. 4. 5. 6. 7. 8. 9. 10. An important consideration in design is the extent to which the international company's products and services will...
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...Value chain analysis Value chain From Wikipedia, the free encyclopedia Jump to: navigation, search Popular Visualization The value chain, also known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.[1] Contents[hide] * 1 Concept * 1.1 Activities * 2 Significance * 3 SCOR * 4 Value Reference Model * 5 References * 6 See also | [edit] Concept A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities. It is important not to mix the concept of the value chain with the costs occurring throughout the activities. A diamond cutter can be used as an example of the difference. The cutting activity may have a low cost, but the activity adds much of the value to the end product, since a rough diamond is significantly less valuable than a cut diamond. Typically, the described value chain and the documentation of processes, assessment and auditing of adherence to the process routines are at the core of the quality certification of the business...
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...27708-0088, USA E-mail: ggere@soc.duke.edu Abstract: This paper lays out the main features of the global automotive industry and identifies several important trends. A boom in developing country sales and production has not yet overshadowed the importance of existing markets in developed regions. Regional integration is very strong at an operational level, yet the industry has recently developed a set of global-scale value chain linkages, and retains national and local elements as well. The paper highlights how global, regional, national and local value chains are nested to create a pattern of global integration that is distinctive to the industry. We use global value chain analysis to help explain the limits of build-to-order in the industry, the role of regional and global suppliers, the shifting geography of production and how the characteristics of value chain linkages in the industry favour tight integration and regional production. We describe how industry concentration focuses power in the hands of a few large lead firms and discuss the implications of this for value chain governance and the geography of production. Keywords: globalisation; automotive industry;...
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...TITLE Value Chain Analysis for Assessing Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA). IMA appreciates the support of The Society of Management Accountants of Canada (SMAC) in helping create this SMA and extends appreciation to Joseph G. San Miguel, of the Naval Postgraduate School, who drafted the manuscript. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645-1760 www.imanet.org Special thanks are due to Randoif Holst, SMAC Manager, Management Accounting Guidelines, for his continuing project supervision and to the members of the focus group (including MAC members Dennis Daly and Thomas Huff) for contributing to the improvement of the final document. Copyright © 1996 Institute of Management Accountants All rights reserved Statements on Management Accounting PRACTICE OF MANAGEMENT ACCOUNTING Value Chain Analysis for Assessing Competitive Advantage TABLE OF CONTENTS I. II. III. IV. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Value Chain Defined . . . . . . . . . . . . .1 Competitive Advantage and Customer Value . . . . . . . . . . . . . . . . . . .2 V. The Role of the Management Accountant . . . . . . . . . . . . . . . . . . . . . . .4 VI. The Value Chain Approach...
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...27708-0088, USA E-mail: ggere@soc.duke.edu Abstract: This paper lays out the main features of the global automotive industry and identifies several important trends. A boom in developing country sales and production has not yet overshadowed the importance of existing markets in developed regions. Regional integration is very strong at an operational level, yet the industry has recently developed a set of global-scale value chain linkages, and retains national and local elements as well. The paper highlights how global, regional, national and local value chains are nested to create a pattern of global integration that is distinctive to the industry. We use global value chain analysis to help explain the limits of build-to-order in the industry, the role of regional and global suppliers, the shifting geography of production and how the characteristics of value chain linkages in the industry favour tight integration and regional production. We describe how industry concentration focuses power in the hands of a few large lead firms and discuss the implications of this for value chain governance and the geography of production. Keywords: globalisation; automotive industry;...
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...IMPLEMENTATION Chapter Eleven The Strategy of International Business OBJECTIVES • To identify how managers develop strategy • To examine industry structure, firm strategy, and value creation • To profile the features and functions of the value chain framework • To assess how managers configure and coordinate a value chain • To explain global integration and local responsiveness • To profile the types of strategies firms use in international business Chapter Overview Chapter Eleven presents tools and concepts used in analyzing and formulating international business strategy. First, the relationship between industry structure and competition in global industries is examined. Next, value chain analysis is used to identify the internal capabilities of the firm that can be leveraged to create competitive advantage. Effective international strategy depends greatly on the proper configuration and management of a company’s global value chain. The sometimes conflicting demands of global integration versus local responsiveness are examined. Finally, a typology of strategic alternatives including multidomestic, international, global, and transnational strategies is presented. CHAPTER OUTLINE OPENING CASE: Value Creation in the Global Apparel Industry [See Fig 11.1 and Map 11.1.] Zara, a large clothing retailer headquartered in northwest Spain, has used an innovative strategy to power its global expansion. ...
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...Table of Contents The purpose of this report is to analysis how the Value Chain management of McDonald’s contribute to the success of the business and identify the environmental impacts of McDonald’s operations and the ethical issues of McDonald’s supply chain management. 1. Introduction 1.1 McDonald’s History 1.2 McDonald’s Mission 1.3 McDonalds Values 2. Value Chain 2.1Value chain of McDonald’s Restaurants 2.2 Primary Activities 2.2.1 Inbound Logistics-Low Cost 2.2.2 Operations-Fast Service 2.2.3 The Process 2.2.4 Outbound Logistics-Consistent quality 2.2.5 Greater Value than it worths 2.2.6 Marketing and Sales 2.2.7 Services 2.3 Support Activities 2.3.1 Firm Infrastructure 2.3.2 Environment Friendly 2.3.3 Human Resource Management 2.3.4 Technology Development 2.3.5 Procurement 3. Environmental Concern 4. Conclusion 1. Introduction This report is to analysis the value chain management of McDonald’s Restaurants and what are their value chain activities and which activities provide more value to its customer. What environmental impacts and ethical issues contribute to the success of the business. 1.1 McDonald’s History McDonald’s Corporation is well known it is the world’s largest chain of fast food restaurants selling hamburgers in more than 100 countries, with more than 35,000 restaurants serving nearly 70 million people every day according to McDonald’s US (2014) McDonald’s US (2014) mentioned their business began in 1940 as a Bar-B-Q...
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...Defining value chain architectures: Linking strategic value creation to operational supply chain design Matthias Holweg a, Petri Helo b,n a b Judge Business School, University of Cambridge, UK Department of Production, Faculty of Technology, University of Vaasa, Finland art ic l e i nf o Article history: Received 31 May 2012 Accepted 13 June 2013 Available online 28 June 2013 Keywords: Value chain Supply chain management Operations strategy a b s t r a c t Over the past three decades scholars have developed comprehensive insights into the operational and strategic aspect of designing and managing the supply chain. Reviewing this ample body of knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would entail...
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