Value Chain

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Executive Summary

Value chain management has become more and more important in industry in past decades. This report provides an insight view of value chain in automotive industry and then examine leadership role of engineer in value chain management. Furthermore, the report will analyse why engineer is so important in management of value chain.

Analysis of value chain

Automotive industry plays an important pillar role in the economic development of all countries. This is because the development of automotive industry will definitely drive development of new technology, development of relative industry sectors and increasing revenue of the country. In this day and age, value chain management is becoming more and more important in
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Lastly, engineers play vital role in value chain, especially in fulfil constomer’s demand kown as requirements role, they design products based on the requirements of consumers, considering and making sure function of all system. Overall, engineers are significantly contribute to value creation, value mantainence and guarantee of efficiency and effectiveness, which are the characteristics of a leader (Hick et al. 1999).

Benefits of using an engineer in value chain management

Engineers are the core of value chain management, this is because they create and add value to the value chain. Firstly, engineers are creative, which greatly contributes to innovate and invent new products. They have professional skills to deal with complex problem and able to develop the products of what customer’s expect. Secondly, they have responsibilities in restricting cost, making plan and strategy and guiding the process of value chain (Simchi-Levi et al. 2008). They so focus on addding value to value chain that by taking these actions can greatly improve company’s competitiveness and increase profitability of company. Lastly, engineers are required in mantaining the normal operation of value chain process and improving efficiency by coordinate participants.


this report analyzes the value chain in automotive industry and examines the leadership role in management of value chain. Engineers have the characteristic of value creation, value mantainence and guarantee of
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