value chain analysis 111

8/2/2019 Value Chain Analysis 111

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Value Chain Analysis

Dr. Haribandhu Panda, Ph.D.

Professor


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Purpose of Value Chain Analysis To Comprehensively Identify the Activities

Undertaken by a Firm

For Undertaking Make/Buy Decision

For Understanding and Enhancing

Competitive Advantage

For Resource Planning


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Definit ions Value What the customer pays for the offerings of the firm

Value Addition (Price of the output) (Cost of input)

Value Addition Activity Physically and technologically distinct activities that

a firm undertakes

OutputInput

Value addition

activity


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Definit ions Value Addition Stage A set of sequential value addition activities in a given

function

Transportation

of Milk fromDCS

Testing of

Milk at theDairy dock

Storage of

Milk in

Sailos

Inbound Logistics for Union


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Definit ionsValue Chain A set of vale addition stages undertaken by a

manufacturing firm

Inbound

LogisticsProcessing Outbound

Logistics

Value Chain

Marketing

and

Selling

Services


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Value System of a CooperativeDairySupplier

(DCS/Farmer)

value chains

Channel

(Federation)

value chains

Customer

(Defense)

value chains

Organisations value

chain (Union)


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Value Constellation of a CooperativeDairy

Dairy Union

Equipt. Supplier

R&D Orgn.


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Margin

Firm infrastructure

Human resource management

Technology development

Procurement

Inbound

logisticsOperations

Outbound

logistics

Marketing

and salesService

Marg

in

Primary activities

Value Chain


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Margin

Firm infrastructure



Procurement

Feed,

Fodder,

Medicine

Rearing

cattle, AI,

Milking

Storing,

Transportingmilk,

Cleaning the

vessel

Marg

in

Primary activities

Farmers Value Chain

Marketing

and selling

(Little)

Services

(Little)


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Margin

Firm infrastructure



Procurement

Measuring

weight, fat,

quality,

Storage

Chilling

Storing,

Testing,

Loading

Marketing

and sales

Service Marg

in

Primary activities

DCS Value Chain


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Margin

Firm infrastructure



ProcurementTransportati

on,

unloading,

testing,

storage,cleaning

Processing

Storage,

Testing,

Loading

Marketing

and salesService

Marg

in

Primary activities

Union Value Chain


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Margin

Firm infrastructure



ProcurementTransportati

on,

unloading,

testing,

storage,cleaning

Production

(Little)

Storage,

Testing,

Loading

Marketing

and salesService

Marg

in

Primary activities

Federation Value Chain


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Value Management Options

Linkages

Make vs Buy decision

Analyse Negative Value Addition Activities

value chain analysis 111

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