Value chain is a string of collaborating players who work together to satisfy market

demands for specific products or services. the purpose of value chain is to increase the value
of product or service. value chains integrate a variety of supply chain activities throughout
the product or service lifecycle such as determination of customer needs production
distribution marketing and after sales service.

Value stream is a sequence of activities required to design produce and deliver a good
or service to the market it may be controlled by a single business or by a network of several
businesses for a product value stream encompasses raw material supplier manufacturer and
distribution network for a service, value stream consists of suppliers technology service
producer and distribution channel
value stream mapping is two-step process first you to draw the value stream map or flow of
your current supply chain and then you draw an improved and most effective flow for your
product or service.

Porter’s value-chain focuses on systems and how inputs are changed into the output
using this viewpoint Porter described a chain of activities that are common to all businesses
and he divided them into two types of activities primary activities and support activities it is
illustrated in this figure primary activities they are related to the physical creation sale
maintenance and support of a product or service they consist of inbound logistics operations
outbound logistics marketing and sales and service inbound logistics are the processes related
to receiving, storing, and distributing inputs operations are the activities that change inputs
into outputs here operational systems create value outbound logistics are the activities that
deliver your product or service to your costumer marketing and sales are the processes you
use to persuade clients to purchase from you instead of your competitors service are the
activities related to after sales service support activities they support the primary activities in
your diagram the dotted lines show that each support activity plays a role in each primary
activity for example procurement supports operation with certain activities but it also
supports marketing and sales with other activities support activities are procurement or
purchasing human resource management technologies development and infrastructure.
procurement is what the organization does to get the resources it needs to operate this
includes finding vendors and negotiating best price human resources management is how
well a company recruits trains motivates and rewards its workers technologies development
activities relate to mananging and processing’s information an infrastructure is a companys
support system and the function that that allow it to maintin daily operation gor example
accounting legal administrative and general management.