Assessing the Primary

and Support Activities

in the Value Chain
Approach
Dr.Kedar Karki
 INBOUND LOGISTICS

• Is there a materials control system? How

well does it work?
• What type of inventory control system is
there? How well does it work?
• How are raw materials handled and
warehoused?
• How efficiently are raw materials
handled and warehoused?
 OPERATIONS

• How productive is our equipment as compared

to our competitors?
• What type of plant layout is used? How efficient
is it?
• Are production control systems in place to
control quality and reduce cost? How efficient
and effective are they in doing so?
• Are we using the appropriate level of
automation in our production processes?
 OUTBOUND LOGISTICS

• Are finished products delivered in a

timely fashion to customers?
• Are finished products efficiently
delivered to customer?
• Are finished products warehoused
efficiently?
 MARKETING AND SALES

• Is marketing research effectively used to

identify customer segments and needs?
• Are sales promotions and advertising
innovative?
• Have alternative distribution channels
been evaluated?
• How competent is the sales force? Is their
level of motivation as high as it can be?
 MARKETING AND SALES

• Does our organization present an image

of quality to our customers?
• Does our organization have a favorable
reputation?
• How brand loyal are our customers? Does
our brand loyalty need improvement?
• Do we dominate the various market
segments we are in?
 CUSTOMER SERVICE

• How well do we solicit customer input for

product improvement?
• How promptly and effectively are customer
complaints handled?
• Are our product warranty and guarantee
policies appropriate?
• How effectively do we train employees in
customer educations and service issues?
• How well do we provide replacement parts and
repair services?
 THE SUPPORT ACTIVITIES IN
THE VALUE CHAIN
• PROCUREMENT
• Have we developed alternate source for
obtaining needed resources?
• Are resources procured in a timely
fashion? At lowest possible cost? At
acceptable quality level?
 PROCUREMENT

• How efficient and effective are our

procedures for procuring large capital
expenditures resources such as
plant, machinery, and buildings?
• Are criteria in place for deciding n
lease-versus-purchase decisions?
• Have we established sound long-
term relationship with reliable
suppliers?
 TECHNOLOGY DEVELOPMENT
• How successful have our R&D activities
been in product and process innovations?
• Is the relationship between R&D
employees and other departments strong
and reliable?
• Have technology development activities
been able to meet critical deadlines?
 TECHNOLOGY DEVELOPMENT

• What is the quality of our organization’s

laboratories and other research facilities?
• How qualified and trained are our
laboratory technicians and scientists?
• Does our organizational culture
encourage creativity and innovation?
 HUMAN RESOURCES
MANAGEMENT

• How effective are our procedures for

recruiting, selecting, orienting, and
training employees?
• Are there appropriate employee
promotion policies in place and are they
used effectively?
• How appropriate are reward systems for
motivating and challenging employees?
 HUMAN RESOURCES
MANAGEMENT
• Do we have a work environment that minimizes
absenteeism and keeps turnover at reliable
levels?
• Are union-organization relations acceptable?
• Do managers and technical personnel actively
participate in professional organization?
• Are levels of employee motivation, job
commitment, and job satisfaction acceptable?
 FIRM INFRASTRUCTURE

• Is our organization able to identify potential

external opportunities and threats?
• Does our strategic planning facilitate and
enhance the accomplishment of organizational
goals?
• Are value chain activities coordinated and
integrated throughout the organization?
• Can we obtain relatively low-cost funds for
capital expenditures and working capital?
 FIRM INFRASTRUCTURE
• Does our information system support strategic
and operational decision making?
• Does our information system provide timely and
accurate information on general environmental
trends and competitive conditions?
• Do we have good relationships with our
stakeholders including public policy makers and
interest groups?
• Do we have a good public image of being a
responsible corporate citizen?
Value Chain Transformation Three
Phase Approach
• Phase 1: Framing and Scoping
This 1-2 week effort is designed to
define the vision, goals, and scope
of the effort, and build the team
structure, roles, and governance for
the Analysis and Design phase
 Phase 2:
Analysis and Design

• This 7-8 week process rapidly engages the

organization to develop detailed understanding
of the current value chain and the improvement
opportunities that exist. Conceptual to-be
processes and operating modules are developed
and supported by a process simplification
roadmap, deployment plan, and business case.
A time-phased implementation program is then
developed summarizing the work streams
required to most aggressively transform the
value chain.
 Phase 3: Pilot & Implementation

• The implementation process is typically a time-

phased effort involving multiple streams of
work, multiple teams, and many project
activities that require lean, Dfss, six sigma,
Innovation, and supply Chain skill sets. Detailed
solutions are planned, piloted, and
implemented. The required policy, process,
people, and technology changes are executed,
measured for success, and made sustainable
with proper controls so that improvement
benefits are permanent.
 Why is our approach so
successful?
• We work hand-in-hand with our clients to:
Jointly develop a strategic path forward to
achieve a quantified, validated business case
focus efforts on the highest impact, strategically
aligned, opportunities .Mobilize your company
for change by involvement at all levels within
the organization Address the rational, political,
and emotional change levers in the organization
.Assess the impact of technology … today and in
the future
 To ensure success
• Involve a multi-function group of people
to ensure success :
• Executive Sponsor
• Value Chain Steering Committee
• Functional Area and Site Leads
• Functional Area and Site Support Team
• Subject Matter Experts
The institutional learning process and
Effect of Disease Outbreak on
Lively hood
Sustainable livelihood
Sustainable livelihood