VALUE CHAIN ANALYSIS

PRESENTED BY-
Neethu
Nithya
Nimya
Nizam
 The Benefits of Value Chain Analysis
1. Improved bids and proposals
2. Better product planning, research, and development
3. Standardized processes
4. Post-sales service and support
5. Reduced costs
6. Improved profitability
• The benefits of effective VCM include:

• Improved bids and proposals Effective VCM improves your ability to capture,
track and manage customer and marketing requirements to better estimate
design, planning, procurement, production and service activities for more
accurate cost estimates — all with complete traceability.
• Better product planning, research, and development Good VCM includes
developing a cross-functional team approach to planning, developing, delivering
and servicing products focused on program performance, cost reduction and
product quality. This enables you to more effectively plan and implement
simultaneous projects while managing resource allocation, costs, scheduling and
deliverables more efficiently.
• Standardized processes VCM calls for repeatable and measurable business
processes to better manage the product master data to ensure that customer
expectations and commitments are met. Active VCM enables release and change
processes to be better managed from concept to implementation. Standard,
reliable and repeatable processes contribute significantly to reducing overall
operational inefficiencies and waste.
• Improved vendor management Synchronizing design and sourcing teams
with vendors ensures that outsourced components and subsystems are
managed to meet performance, quality, schedule and cost requirements
while avoiding design flaws, excess inventory and waste.
• Post-sales service and support Through VCM, you’re able to better
manage and track in-service product configuration changes coordinated
among field service, customer support and engineering resources.
• Reduced costs Optimizing all the value chain components listed above can
result in substantial end-to-end cost savings from streamlined processes,
reduced inefficiencies and waste, better inventory control and improved
product quality.
• Improved profitability The ultimate result of a comprehensive and robust
VCM program is enhanced revenues and better profit margins, contributing
to greater overall success