Chapter 15, Problem 5DQ

Summary Introduction

To determine:

What is a value chain, value chain management and the goal of value chain management?

Introduction:

Value chain is the chain of processes in the production system that increases the worth of an end product. It includes processes which will add value and improve the results or usefulness of the product. It was developed by Michael Porter in 1985.

Value chain management involves examining every step in the manufacturing process so that best products can be developed at lowest costs. It is an analysis tool which is used for integration and collaboration of value chain components and resources.

The goal of value chain management is to give customers the products required or needed by them at the lowest prices. Also, that everyone on the chain benefits from value chain management.