Colorado Technical University Operations Management Create Value Chain Discussion

Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

• What did you learn from your classmate’s posting?
• What additional questions do you have after reading the posting?
• What clarification do you need regarding the posting?
• What differences or similarities do you see between your posting and other classmates’ postings?

1st

The role of operations management is to create value chain through a group of sequentially related value-adding activities. The core of value chain management is all about making it possible for products, information, and finances to flow, and creating better value in the relationships, as well as improving the overall efficiency of business. A value chain management brings numerous benefits, including an improved flow of materials and products, the seamless flow of information, and the enhanced flow finances. The time it takes for a product to get to the end-consumer is very important to showing efficiency. When value chain management is correctly employed, product and material flow is improved because of accurate forecasting of sales and demand as well as improved inventory management. As well as, quality of information is evaluated, and solutions are implemented to fill the gaps. Finally, enhanced flow of finances, with the improved speed of material and product flow as well as information increases the flow of cash. To use a simple and lose analogy to the value chain system, it reminds me of when a fifth grade the teacher would ask everyone to write down the steps to make a peanut butter and jelly sandwich. For example, leaving the jars open to get the sandwich to your child faster, and closing them after you have finished. Just streamlining getting the product to the end-consumer.

How does a strong value chain management team help a company? A strong value chain management team helps companies create a strong competitive advantage in any of the “value chain’s five steps” (Tarver, 2020). Value chain management team maximizes the value of each one of the “five interrelated activities: inbound logistics, operations, outbound logistics, marketing, and sales and service” (Tarver, 2020). To improve value chain, its value chain management team must recognize each part of the production process and where there can be improvements to either reduce costs or advance production capacity.

Tarver, E. (2020, October 19). How does a strong value chain management team help a company? Retrieved November 22, 2020, from https://www.investopedia.com/ask/answers/043015/how-does-strong-value-chain-management-team-help-company.asp

Strain, M. (2017, November 21). What Are the Causes of a Lack of Flow in Manufacturing? Retrieved November 22, 2020, from https://smallbusiness.chron.com/causes-lack-flow-manufacturing-36471.html

After watching the video provided a couple things caught my attention, firstly that often companies will outsource their materials to other countries as it can be cheaper to do so. An example of this offered in the video was McDonald’s in Saudi Araba has ingredients from all over the place. The second thing was the hotel in Chicago that not only takes extensive measures for customer satisfaction but uses advance technology to keep track of customer preference. Finally, a company implementing advance technology to keep data log on all the same server to ensure all information easily assessible and together and keep in constant communication.

McGraw-Hill Irwin. (2005). What is operations management? [Video file]. Retrieved from http://www.viddler.com/embed/7042139e/?f=1&player=arpeggio&secret=69515110&make_responsive=0

2nd

• How do you believe value chain management works?

Value chain management follows a set of processes to organize all departments involved in the service or production of the company’s product. The operations manager uses these processes to improve operations, lower production costs throughout the lifecycle of the product and improve value throughout the lifecycle. To improve value, a manager must ensure that there is customer satisfaction from every area including perceived benefits and quality of product at a competitive price.

• How do you think value chain management can help companies be more competitive?

Value chain management can help companies be more competitive in a multitude of ways. VCM can cut cost on production and increase profits compared to a competing company. It can also ensure that the consumers are satisfied with the product or service, which attracts a larger consumer base to achieve a competitive advantage. Achieving customer satisfaction can be achieved in many ways and can be through a lower cost or perceived benefits.

• How do you think value chain management helps companies create and build value?

Value chain management helps companies create and build value by ensuring that processes are running smoothly while continuously trying to improve by lowering costs and the quality of the product or service. This in turn provides customer satisfaction and a competitive advantage that adds value to the company and its product or service. Proper management and a pursuit of continuous improvement will assure added value.

Part 2

During the viewing of the provided video I found the entirety quite fascinating, but there were two main points that really caught my attention above all else. One of the points made during the video was how operations management is a vital part of any business or service, from the largest to smallest business. The second point that caught my attention was that if there is a single weak link in the chain, or process, that all other areas will inevitably fail in response. Therefore it is necessary to make sure that all process are running smoothly and must be continuously improved to ensure success and value.

Resources

McGraw-Hill Irwin. (2005). What is operations management? [Video file]. Retrieved from http://www.viddler.com/embed/7042139e/?f=1&player=…