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Value Chains & Performance Measurement

This Prezi is meant to highlight a subset of the material from chapters 2 and 3.

Jennifer Edmonds, PhD

on 10 January 2017

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Transcript of Value Chains & Performance Measurement

Vertical integration is developing the ability to produce goods or services previously purchased.


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
Perceived benefits
Value =
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.
value chain
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
Support 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.
Performance Measurement
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.
Full transcript