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Value Chain in Engineering


Submitted By Jady
Words 1261
Pages 6
Executive 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


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 that the engineer is best suitable for performing the value chain management role.

The Value Chain in manufacturing industry

Value chain consists of supply chain and demand chain. Figure 1 illustrates the of a value chain configuration in manufacturing industry.
Figure 1: Value Chain Configuration in Manufacturing Industry (O’Brien, 1995)
Supply chain defines

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