Value Stream Analysis: The Objectives Of Value Stream Analysis

Mapping the value stream | | |Jared Lovelle.  IIE Solutions.  Norcross: Feb 2001.Vol.33, Iss.  2;  pg.  26, 7 pgs | Subjects: Production methods,  Value added,  Efficiency,  Mapping Classification Codes 9190 United States,  5310 Production planning & control Locations: United States,  US Author(s): Jared Lovelle Document types: Cover Story

Customer Value is ‘the performance characteristics, features and attributes, and any other aspects of goods and which customers are willing to give up resources’ (Robbins, Bergman, Stagg and Coulter, 2012). This broad definition highlights the fact that there are multiple aspects that contribute to create a sense of value within the customer.

Value creation is creating value for the customer. Being able to solve or meet the customer requirements. Value is created whenever an action is taken for which the benefit exceeds the cost.

Additionally, we then develop plans to address those patterns and trends that show areas where we could improve our process. And finally, we continuously analyze all future data to identify areas of success and areas for improvement, ensuring that our work environment and outcomes for our stakeholders are of the highest quality.

The planning process begins with a situation analysis of the external and internal forces affecting the organization.  This examination helps identify and diagnose issues and problems and may bring to the surface alternative goals and plans for the firm.  Next, the advantages and disadvantages of these goals and plans should be evaluated against one another.  Once a set of goals and a plan have been selected, implementation involves communicating the plan to employees, allocating resources, and making certain that other systems such as rewards and budgets are supporting the plan.  Finally, planning requires instituting control systems to monitor progress toward the goals.

plan and break down those steps into listed action items which support the overall work. The

We are committed as a company to providing maximum value to our customers, shareholders, and employees. We will accomplish this goal by adhering to the core values of responsible financial management, clear and honest communication, and always keeping performance and customer service in the forefront (Tanglewood Casebook).”

The next step will be to prepare the operation plans. The operation plans should also reflect the scope and goals of the business, and they should consider several elements like competition in the market, infrastructure and many things that can be fundamental in ensuring the business gains a competitive advantage. The last step is to integrate plans. It is important to make sure that the plans have been properly balanced so that they can be able to support one another. The plans should be clearly communicated to the people implementing them. It is also important to review the plans from time to time to make sure that they in line with the trends in the business environment.

Business Model Canvas 1. Customer segments: for whom do we aim to create value? Who are our most important customers? Segments and target. Roxanne Having a healthy lifestyle is becoming more prevalent throughout society.

A value chain is an essential model for businesses that are trying to gain a competitive edge over their respective counterparts. “The purpose of the value chain is to sequentially link interdependent operational activities that create a value that exceeds the cost of producing or providing a product or service; thus creating a profit margin” (Porter, 1998). In order to measure and further develop the implemented value procedure, a value analysis should be conducted on the chain or system in place; solidifying it’s viability and potential profit growth. This methodology is not only recommended for profit-based businesses, but the same principle can be applied to a non-profit company.

This involves putting in place what the I have planned and the controls not forgetting the directive, the preventive, and the response plans.

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)

STRUCTURED LITERATURE REVIEW AND COMPARATIVE ANALYSIS OF SIMILARITIES AND DIFFERENCES OF VALUE STREAM MAPPING IN CONSTRUCTION AND MAFUCTURING INDUSTRY

Calculating value added, could also contribute to determine a strategy of differentiation of products in businesses. Lets take the previous example NIKE. Nike has a low vertical integration but a high value added (thanks to its logo). Since this value added is marketing, value added is in this case an intangible entity. Differentiation is one of the competitive advantages.

Value Chain Analysis describes the activities that take place in a business and related to the business core competencies. It can classify by primary activities and supporting activities.