OM Notes
Introduction to Materials and operations management Goods, Services, and
Operations Management
Chapter 2 Value Chains
Value Chains
•
The underlying purpose of every organization is to provide value to its customer and stakeholders.
•
Value is the perception of the benefits associated with a good, service, or bundle of goods and services (i.e., the customer benefit package) in relation to what buyers are willing to pay for them.
•
A value chain is a network of facilities and processes that describes the flow of goods, services, information, and financial transactions from suppliers through the facilities and processes that create goods and services and deliver them to customer.
•
A supply chain is the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes.
Value = Perceived benefits/Price (cost) to the customer
Exhibit 2.1
OM2, Ch. 2 Value Chains
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Value Chain
3
Exhibit 2.2 Examples of Goods-Producing and Service-Providing Value Chains
OM2, Ch. 2 Value Chains
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4
Exhibit 2.3
The Value Chain at Buhrke Industries
Source: Buhrke Industries company web site
OM2, Ch. 2 Value Chains
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
Exhibit 2.4
Pre- and Postservice View of the Value Chain
OM2, Ch. 2 Value Chains
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a
Operations Management
Chapter 2 Value Chains
Value Chains
•
The underlying purpose of every organization is to provide value to its customer and stakeholders.
•
Value is the perception of the benefits associated with a good, service, or bundle of goods and services (i.e., the customer benefit package) in relation to what buyers are willing to pay for them.
•
A value chain is a network of facilities and processes that describes the flow of goods, services, information, and financial transactions from suppliers through the facilities and processes that create goods and services and deliver them to customer.
•
A supply chain is the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes.
Value = Perceived benefits/Price (cost) to the customer
Exhibit 2.1
OM2, Ch. 2 Value Chains
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Value Chain
3
Exhibit 2.2 Examples of Goods-Producing and Service-Providing Value Chains
OM2, Ch. 2 Value Chains
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4
Exhibit 2.3
The Value Chain at Buhrke Industries
Source: Buhrke Industries company web site
OM2, Ch. 2 Value Chains
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
Exhibit 2.4
Pre- and Postservice View of the Value Chain
OM2, Ch. 2 Value Chains
©2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a