This article will address the fundamental activities that make up the value chain. These activities involve the supply of raw materials to a firm, the production and sale of these materials, and the management of employees. Each of these activities is important for any business. Each activity will be discussed in detail in the following sections. Each activity is described below to help you understand it better. Procurement, in the value chain, is the acquisition or use of raw materials like oil, metal, and timber for a business.
Operation
Operations is the transformation of inputs into finished goods. This is usually associated with production, particularly in industries that make physical goods. But it can also be applied to services. For example, an activity in the operations phase may require the use of raw materials or labor to manufacture a finished product. In a service-based business, operations may include providing administrative services or maintaining inventory. This phase's primary goal is to create value.
Sales
A value chain includes sales as one of its primary activities. This involves selling and buying a product. The company develops a product, markets it, and closes sales. The value chain includes all of these activities. A company's success depends on its sales and marketing activities. They are critical for a company to grow its market, revenue, profits, and market value. For assessing the value of the chain, it is vital to identify each activity along with its raw materials.
Marketing
After-sales is the most important aspect of a company's promotion and marketing. Customers have the ability to express their dissatisfaction online. It is important that companies have proper after-sales support practices. These activities include product adjustments and repair, as well as training and parts supply.
Distribution
Distribution of goods and services are one of the main activities of a value chain. Many factors influence the value of a good/service. One of these is the price. Consumers are willing to pay a higher price for the finished goods than they do for the raw materials. A company can increase its perceived value by creating unique products or using innovative ingredients. This perception has a large impact on the margins of a product.
Infrastructure
Infrastructure is the core of a value-chain. It supports top-level business decisions like finance, compliance, quality control, and compliance. An effective strategic infrastructure combines these activities and provides the necessary coordination to effectively manage all aspects of the value chain. These are just a few examples of strategic infrastructure. It can help you gain competitive advantage by investing in it. In addition to financial management, strategic infrastructure can also help a business reduce costs of technology.
Customer service
Customer service is just like the marketing activities you use to promote your products in the world of customer services. Customer dissatisfaction with products or services can spread quickly, and it can lead to severe consequences. Companies must have the right customer service policies. After-sales activities include product adjustments, training, and repairs.
FAQ
What are the 3 main management styles?
The three major management styles are authoritarian (left-faire), participative and laissez -faire. Each style has its strengths and weaknesses. Which style do YOU prefer? Why?
Authoritarian – The leader sets a direction and expects everyone follows it. This style works well if an organization is large and stable.
Laissez-faire: The leader lets each person decide for themselves. This style is most effective when the organization's size and dynamics are small.
Participative - Leaders listen to all ideas and suggestions. This is a great style for smaller organizations that value everyone.
What is TQM?
When manufacturing companies realized that price was not enough to compete, the industrial revolution brought about the quality movement. To remain competitive, they had to improve quality as well as efficiency.
Management responded to the need to improve, and developed Total Quality Management (TQM). This focused on improving every aspect of an organization’s performance. It included continual improvement processes, employee involvement, customer satisfaction, and customer satisfaction.
Which kind of people use Six Sigma
Six sigma is a common concept for people who have worked in statistics or operations research. Anybody involved in any aspect or business can benefit.
Because it requires a high level of commitment, only those with strong leadership skills will make an effort necessary to implement it successfully.
What are the most important management skills?
Any business owner needs to be able to manage people, finances, resources and time. They are the ability to manage people and finances, space, money, and other factors.
Managerial skills are required when setting goals and objectives and planning strategies, leading employees, motivating them, solving problems, creating policies, procedures, or managing change.
You can see that there are many managerial duties.
What is a management tool to help with decision-making?
A decision matrix can be a simple, but effective tool to assist managers in making decisions. It helps them think systematically about all the options available to them.
A decision matrix is a way of representing alternatives as rows and columns. This makes it easy for you to see how each option affects other options.
The boxes on the left hand side of this matrix represent four possible choices. Each box represents a different option. The status quo (the current condition) is shown in the top row, and what would happen if there was no change?
The middle column shows the effect of choosing Option 1. It would increase sales by $2 million to 3 million in this instance.
These are the results of selecting Options 2 or 3. These positive changes can increase sales by $1 million or $500,000. But, they also have some negative consequences. For instance, Option 2 increases cost by $100 thousand while Option 3 reduces profits by $200 thousand.
The last column displays the results of selecting Option 4. This involves decreasing sales by $1 million.
The best thing about a decision matrix is the fact that you don't have to remember which numbers go with what. It's easy to see the cells and instantly know if any one of them is better than another.
The matrix has already done all of the work. It is as simple a matter of comparing all the numbers in each cell.
Here is an example how you might use the decision matrix in your company.
It is up to you to decide whether to spend more money on advertising. If you do, you'll be able to increase your revenue by $5 thousand per month. However, additional expenses of $10 000 per month will be incurred.
Look at the cell immediately below the one that states "Advertising" to calculate the net investment in advertising. It's $15,000. Advertising is a worthwhile investment because it has a higher return than the costs.
Statistics
- 100% of the courses are offered online, and no campus visits are required — a big time-saver for you. (online.uc.edu)
- UpCounsel accepts only the top 5 percent of lawyers on its site. (upcounsel.com)
- This field is expected to grow about 7% by 2028, a bit faster than the national average for job growth. (wgu.edu)
- The profession is expected to grow 7% by 2028, a bit faster than the national average. (wgu.edu)
- As of 2020, personal bankers or tellers make an average of $32,620 per year, according to the BLS. (wgu.edu)
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How To
How does Lean Manufacturing work?
Lean Manufacturing is a method to reduce waste and increase efficiency using structured methods. They were created by Toyota Motor Corporation in Japan in the 1980s. The main goal was to produce products at lower costs while maintaining quality. Lean manufacturing is about eliminating redundant steps and activities from the manufacturing process. It is made up of five elements: continuous improvement, continuous improvement, just in-time, continuous change, and 5S. The production of only what the customer needs without extra work is called pull systems. Continuous improvement refers to continuously improving existing processes. Just-in-time refers to when components and materials are delivered directly to the point where they are needed. Kaizen means continuous improvement, which is achieved by implementing small changes continuously. The 5S acronym stands for sort in order, shine standardize and maintain. These five elements are combined to give you the best possible results.
Lean Production System
Six key concepts are the basis of lean production:
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Flow - focuses on moving information and materials as close to customers as possible.
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Value stream mapping - break down each stage of a process into discrete tasks and create a flowchart of the entire process;
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Five S's – Sort, Put In Order Shine, Standardize and Sustain
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Kanban is a visual system that uses visual cues like stickers, colored tape or stickers to keep track and monitor inventory.
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Theory of constraints: identify bottlenecks in your process and eliminate them using lean tools, such as kanban board.
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Just-in Time - Send components and material directly to the point-of-use;
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Continuous improvement: Make incremental improvements to the process instead of overhauling it completely.