1. Chapter 9 Value Chain Management

2. MGMT 321 – Chapter 9 Four Ways to Create a Competitive Advantage

3. MGMT 321 – Chapter 9 Functional Activities and the Value Chain

4. MGMT 321 – Chapter 9 Impact of Increased Quality on Organizational Performance

5. MGMT 321 – Chapter 9 Improving Quality An organization able to provide a product of higher quality than a competitor’s Higher product quality can increase efficiency Total quality management (TQM) –Improving quality by focusing on the entire value-chain of an organization

6. MGMT 321 – Chapter 9 Implementing TQM 1. Build organizational commitment to quality 2. Focus on the customer 3. Find ways to measure quality 4. Set goals and create incentives 5. Solicit input from employees

7. MGMT 321 – Chapter 9 Implementing TQM (cont.) 6. Identify defects and trace to source 7. Introduce just-in-time (JIT) inventory systems 8. Work closely with suppliers 9. Design for ease of production 10. Break down barriers between functions

8. MGMT 321 – Chapter 9 Facilities Layout, Flexible Manufacturing, and Efficiency Facilities Layout –Designing the machine-worker interface to increase production system efficiency Flexible Manufacturing –Use of IT to reduce the setup costs associated with a product assembly process

9. MGMT 321 – Chapter 9 Facilities Layouts

10. MGMT 321 – Chapter 9 Improving Efficiency Just-in-time (JIT) inventory system –Gets components to the assembly line just as they are needed –Major cost savings can from increasing inventory turnover Self-Managed Work Teams –Produce an entire product instead of just parts of it –Team members learn all tasks Process Reengineering

11. MGMT 321 – Chapter 9 Two Kinds of Innovation Quantum product innovation –Radically different kinds of goods and services –Fundamental shifts in technology Incremental product innovation –Gradual improvements and refinements to existing products over time –Existing technologies are perfected –Functional managers learn how to perform value- chain activities in better ways

12. MGMT 321 – Chapter 9 Strategies to Promote Innovation and Speed Product Development Involve both customers and suppliers Establish a stage-gate development funnel Establish cross-functional teams Stage-Gate Development Funnel –Forces managers to make choices among competing projects

13. MGMT 321 – Chapter 9 A Stage-Gate Development Funnel Figure 9.7

14. MGMT 321 – Chapter 9 Boundary-Spanning Roles