Value Chain Sequence of activities in a business that transforms resources into goods and services that customers want Value is added as the product progresses.

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Presentation transcript:

Value Chain Sequence of activities in a business that transforms resources into goods and services that customers want Value is added as the product progresses through the company Primary value chain functions directly create or provide good or service Secondary value chain functions exist to support primary functions

Primary Functions Marketing – discover customer needs Product development – design products to meet customer needs Operations (Production) – make quality products efficiently Sales – convince customers to buy Distribution – get product to customers Customer relationship management – make sure customers are satisfied

Secondary Functions Human resources management – recruitment and selection, training and development, performance appraisal and feedback, pay and benefits, labor relations Accounting – 6 step accounting cycle Finance – raising capital to invest in assets Information technology (IT) – hardware and software used to support all other primary and secondary functions in firm

Chapter 9: Operations Management Build and deliver products/services in response to customer demands at a scheduled delivery time Provide an acceptable level of quality Produce goods/services at lowest cost possible

Components of Operations Management Facility Location Facility Layout Materials Requirement Planning Purchasing Inventory Control Quality Control

Changes in Operations Management Computers Computer-aided design (3D) Computer-aided manufacturing Computer-integrated manufacturing Flexible manufacturing Ford Plant in Brazil Lean Manufacturing Mass Customization Dell Factory Tour

Is Manufacturing Dead in U.S.? Globalization has led to outsourcing of many manufacturing jobs Political ads currently running feature loss of U.S. manufacturing jobs Video on Ball Metal Beverage Container Video link on my homepage Write-up pages text