Value Chain in Operations Management

This document discusses the importance of value chain in operations management and its role in improving overall performance of the organization. It explores different theories and techniques used in managing processes and people. The document also highlights the challenges faced by operations managers and provides insights into the role of value chain in ensuring effective communication and system design.

VALUE CHAIN

Value chain in any business Are the important personnel in higher level of management which
have basic responsibility to ensure that company is performing with efficiency. The control
multiple areas which are sure that the company is working with productivity and efficiency along
with reducing cost. There are also responsible to manage other leaders and departments of the
organisation and guide teams to achieve goals and objectives. In Amazon advertisement from the
online it can be clearly seen that they will be Responsible for operations management. It in walls
processes like controlling, planning, managing and supervising the production processes of the
organisation. In this context the major rule of value chain is to control conversion of raw
materials into finished products and insure time delivery to the customer. There are many
benefits of operations management in an organisation, some of them are as follows:
 Value chain is required in every business irrespective of the industry in which they are
operating. It manages daily processes and activities with deficiency so that resources can
be utilised effectively.
 It is also beneficial to improve overall performance of the organisation While controlling
raw material, employees and other resources of the organisation.
 Value chain is the process by which different business activities takes place and
indirectly contributes in adding value to the product so that customer experience can be
improved.
 Value chain else and optimum utilisation and of materials and resources which leads to
profitability. It helps in converting raw material and efforts of employs into products and
services so that customer expectations can be met.
 Operations management is said to be core of the organisation as it controls the
manufacturing process which is one of the major processes of the organisation to meet
the customer demand.
Operations management involve different responsibilities and one off it is to ensure that business
operates effectively and officially so that less resources are used in meeting customer demand.
Thus there are different Theories and techniques so that it can be successful in managing
processes and people in an organisation. Some of them are as follows:
Business process redesign: it is also known as business process we engineering with the main
object is of achieving a increase in performance like return on investment, Quality of product and
1

services and cost reduction. According to this theory business processes can be redesigned in
context of critical procedure, manufacturing and process production and customer services. In
order to remain competitive in the industry businesses changes their process so that they can
have competitive advantage in sustainability.
Lean manufacturing theory: this Theory helps organisation to deal with one of the major
challenges which is waste. This helps in improving efficiencies and effectiveness so that
competitive advantage can be taken in the market. There are different principles of this lean
manufacturing theory that can be used to eliminate waste from the manufacturing processes.
What is continuous improvement which implies that value chains should always see for
perfection in the processes so that it didn't fissions he can be improved daily. For this employees
can also be motivated to bring creative and innovative ideas to solve the daily issues and
improvement can be done on daily basis. It is company to improve quality, eliminate waste,
reduce time for all the processes and reduce overall cost of the production function.
Six Sigma: it is set of management tools and techniques which is design in order to improve
business Errors and mistakes. This is one of the starters little method of eliminating to fix from
the production processes. There are different principles of six Sigma but our focus on customer
in which it is based on the principle that company should have primary goal of giving maximum
benefit to the consumer. Next is measure the value stream which implies that activities that add
value to the production function and to the product should remain in the process and other should
be eliminated so that cost can be reduced. Another is to get rid of those activities which doesn't
add value to the product so that quality can be improved and cost can be minimised. Next is to
keep all the activities on the floor so that hero stoppage in the world and quality can we meet it
according to the standard of the organisation. Last so ensure that there is frequent and constant
improvement in this process is so that then effective activities can be eliminated and quality can
be controlled.
there are many challenges that any operations manager face on daily basis and which also affects
their efficiency while working in an organisation. Some of them are as follows:
2

Globalisation: this can be defined as the process of interaction among the people, government
and companies of different countries. This process is driven by eliminating trade barriers,
improving information technology and transportation facilities. Operations manager sees
competition in the context of globalisation in the country and across the world which needs to be
managed properly to have sustainability in the industry. As there is requirement that planning,
organising, controlling and directing should be done effectively so that product and services of
the company remains competitive and meet customer demand. There is a need that personal
engage their creative and innovative skills which can be helpful as a factor in managing
operations. As Amazon is the international company which deals at different locations across the
globe and does it is important that it remains competitive enough so that it can meet competition
in the market.
Sustainability: it is the process by which a company can evaluate that their business practises
should be maintained or not in context of future risk. There are three pillars of sustainability
which are economic, environmental and social. Operations manager should include their Efforts
and rules to ensure that each and every pillar is included like safety, and optimum utilisation of
natural resources, welfare practises and economic stability. There is an Amazon on the value
chain must execute their practises in context of all the three pillars of sustainability and also
initiate corrective actions in case of any deviations.
Ethical conduct: this is the process by which value chain ensure that the production function and
activities are not damaging the society and are not harmful for customer. This leads to
controlling of technologies, animal testing, defective services I'm safety of environment so that
their ethical conduct can be fulfilled. Any type of unethical behaviour of value chain can
contribute to negative image of the company and eventually leads to closure of the business.
Amazon is one of the most reputed to have industry in the organisation and this value chain
should also compile all its procedures and responsibilities according to enhance its goodwill in
the market.
Effective communication: being constant and effective while communicating can be difficult for
any personal in an organisation. One of the major challenges for the value chain is to
communicate properly with internal and external parties. In this context they must be able to
communicate their policies and procedures to the managers of different department. This will
include oral, written and other type of communication skills so that daily operations can be
3

carried out smoothly. Process of communication is also effective in building and maintaining
relations with the employees so that they can be motivated to work effectively. Value chain need
to possess good communication skills so that it can be productive and essential for the
organisation. In the Amazon it should be frequently you so that upper-level management can rely
on the personnel to manage and control mid and lower level employees to meet organisation
objectives.
System design: this is one of the major challenge that any value chain says in an organisation.
The main objective of the organisation is to develop such a system which is capable of producing
qualitative goods and services which can meet demand of customers. It is one of the
responsibility of value chain to design the system with the help of planning and managing which
is one of the major challenges in today's scenario. In order to work in different environment they
must be able to effectively respond to the challenges an ever-changing demand of customer.
CONCLUSION
From the above SA it can be concluded that value chain is the key personnel which is a link
between upper management and middle level managers. They are responsible for operations
management which in walls different processes and duties to enhance overall productivity of the
organisation. There are different roles in one of the major is value chain which have different
challenges like globalisation, effective communication, ethical conduct and sustainability which
needs to be mitigated so that company can be effective in overall operations. There are different
duties like business process redesign which make changes in the existing systems so that
customer demands can be made. Nexus six Sigma which lays out different principles so that
continuous improvement can be done in the processes. Last is lean production which involves
methods and tools is to eliminate waste activities from the overall production process and helps
in reducing cost.
4

5