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Value Chains & Performance Measurement
Transcript of Value Chains & Performance Measurement
Outsourcing is paying suppliers and distributors to perform processes and provide needed services and materials (that were previously provided internally).
Exhibit 2.6 Things to Consider When Making Offshore Decisions
Price (cost) to the customer
Value is the perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them.
is a network of facilities and processes that describes the flow of goods, services, information, and financial transactions from suppliers to customers.
Even if you aren't one who owns an Apple product, I'm sure you are aware of the Apple experience...
...from product development...
...to retail sales...
Value creation processes
General management processes
...and all the important steps in between...
As Apple devices have become more popular, what other services have become a part of their value chain?
...how can organizations increase this perceived value?
increase perceived benefits while holding price or cost constant
decrease price or cost while holding perceived benefits constant
...or some combination ...
...how do organizations increase this perceived value?
Decisions in Value Chains
What measures do you use to evaluate a company’s goods or services?
Measurement is the act of quantifying the performance criteria (metrics) of organizational units, goods and services, processes, people, and other business activities.
think OPERATIONAL performance
not ORGANIZATIONAL performance
What is Measurement?
Remember how to participate?
...text a code to 37607...
I can confidently provide a definition of Operations Management.
Provide an accurate definition of Operations Management.