Value Chain Management - Term Paper Example

Value Chain Management Table of Contents Introduction 2 Areas of Improvement 3 Involved in the VM study and Contribution to the Process 5 Information the Client Needs to Make Available to Workshop Participants Prior to the Study 7 Proposed Agenda for the Study 9 VM Tools and Techniques for the Study 10 Conclusion 11 References 12 Bibliography 14 Introduction Value Chain management is a creative challenge that requires skillful techniques for solving the problem using several corrective team leaning approach to make the client system valuable at the projected stages in the course of the progress of a project, with the aid of group decision support as well as diverse methods to aid the clients to enhanced achievement of their goals. The value management provides in setting up of the goal process that aim for the satisfactory level of the project requirement of the client as well as it is rigorous on improving the relation between the value and the client (Jaapar & Et, Al, 2005). Areas of Improvement The main focus where value management is possible for value addition is the mixture of methods that will enhance the better values of the project, product and service. As Tech Watt VM Consultant the suggested area that needs to be focused for the improvement in the value is the primary activities and the support activities. The primary activities are primarily logistics (inbound and outbound), operations, marketing, sales and service. The activities that will support this primary logistics are human resource management, technological development, and procurement of all for combining for value enhancement for client’s achievement and improvement in relationship (Male, 1998). Tech Watt is expanding its business operation and as a VM consultant, I would suggest that a diversified plan of action is required which will provide the information about the cost advantage of the area or market and the competitive scope in that area. The strategy of differentiation needs to be developed regarding the price, image, support, quality and design. This will serve the strategy for the new market. This will depend upon the business strategy or objective in using penetration strategy, market development strategy, geographic expansion strategy and product development strategy. I suggest that each one should be compared and maximum advantage should be extracted. As Tech Watt VM Consultant, I would suggest to develop the primary activity of logistics. The routing is very important as it is the cost to the company. As a VM consultant I need to see that it provide cost benefit to the company. The inbound logistics need to be properly controlled and managed by the professional trusted by me for maintaining the quality of the product. The supply of the materials from the head quarter needs a cheap routing for making the cost minimum. At the same time, storing of it needs superior built up facilities as the computer hardware requires good maintenance are of prime importance. The outbound logistics require following the same strategy for the cost advantage benefit and making the product available to different areas at minimum cost and in the required period. As a consultant, I need to appoint the right personnel for these challenges (Male, 1998). The support activities from the personnel like HRM, technological support for making the overall process run smoothly which will be properly managed by experts in different areas of operation. Procurement of these personnel needs to be detailed in report for finding the right number of persons for different kind of jobs. The strategies for the new market need to be prepared in the way for achievement of the goal of the project with maintaining the relationship with the clients. The service needs to be given more focus which maintains the relation in a stronger way. I have to make a step by step approach for the free flow of the operation (McQueen & Et, Al, 2007). Involved in the VM study and Contribution to the Process Tech Watt need value manager to be appointed either externally or from internal ranks. The value manager contributes in obtaining maximum benefit from a value management approach. In general, the importance is given in appointment of value manager within the organization. Mostly the project manager is appointed or a representative from the project team who is trusted with the responsibilities in the development. I as the Tech Watt value manager will ascertain a common consideration of the techniques and processes concerned to permit management of the overall process. This involves the development of the workshop and reviews at suitable points in the project progression (Constructing Excellence, 2004). As VM Consultant I suggest appointment of a facilitator. The engagement of an experienced facilitator within the organization will provide the guidance of success in the value management process. The facilitator needs to be well equipped with the knowledge of value management techniques and methods and qualified in applying them. Precise relevance of value management techniques requires aptitude in a variety of skills for supervision and organizing of workshops, communicating with both lay project participants and technical participants (Constructing Excellence, 2004). As the value manager, I will aid in providing circumstances to challenge project in developing assumptions about approaches and requirements. Finding the motivation factor and motivating the project participants towards achievement of the objectives is the key focus area. I will make use of different tools to analyze various multifarious problems and possess the skills in developing the conditions to search for innovative solution as per the project requirements. I will tease out issue from the project background as it is my job to do so. With a proper authority I can act quickly in making the whole process run successfully (Constructing Excellence, 2004). As Tech Watt VM, I will develop enhanced solutions to various issues and look forward for maintaining the relationship with the client. An internal facilitator well acquaintance with the project can assist the team accomplish with a deeper understanding of the project to contribute towards successful team building, who will constantly give information to me for better results. As Tech Watt VM Consultant I will provide fresh ideas for the design that can be significantly appraised without having to defend existing ideas or approaches in bringing experience from other highly diversified projects and organizations (Constructing Excellence, 2004). Information the Client Needs to Make Available to Workshop Participants Prior to the Study A careful examination of requirement involves much more than compiling an aspiration list of all probable necessities. It requires an agreement from all the stakeholders about the requirements and objectives of the project, giving due influence to their relative significance and value. Value management is a prearranged approach to establishing what worth means to a client undoubtedly, defining and in agreement to the project objectives and establishing objectives that can be achieved in most excellent way. Being a Tech Watt Consultant, I will provide the bridge between the information gap so it is interpreted in the way required. The information need to be given to the workshop participants before the program is conducted for the clear understanding and free flow of the operation. The information regarding the objectives of the company needs to be conveyed to the participants. The unclear objective may lead the participants in the wrong direction adding up costs and time consumption making the process more complicated. First I need to get the complete picture and then need to properly communicate it to others. The information about the participants and the individual responsible for value management and responsibility needs a clear understanding for the authority of command. The authority for the decision making needs to be identified for making the process systematic and towards the achievement of goals. This need to be in a reported form an along with me, top management it need to be conveyed to others also. The workshop time tables needs to be briefed. The persons involved in the project and their contribution towards the project in terms of time needs to be defined. The time frame needs to be provided for the complication of the project. The agenda of the value management of the business needs to be provided to the participants. So, they have a clear vision and understanding about the importance of the value management and purpose for its employment for the achievement of success. The agenda gives a view to all the requirements in the process. The financial information is very important in making a logical understanding of the amount allotted for the project and the amount allocated to different resources in the project. It needs to be within the budgeted amount and wastage should be minimized for cost advantage. Every participant should know the importance of the value involved in the project for achievement of the objectives. The amount allotted for the project is £ 5M. The different heads of operational allocation needs to be identified and evaluated for giving maximum benefit. The information phase is crucial to bind the team together and getting them to buy-in to the VM process. I need to get accessed to all the financial information to get a better allocation and find the advantage out of it. Proposed Agenda for the Study The agenda for the study is followed in a systematic manner. VM Approach to Projects: VM job arrangement recognition is to de defined. History and evaluation of VM needs to be evaluated for clear understanding. Ingredients of VM should be successfully created for proper utilization. Workshop prospect need to be identified in the right direction. Information Phase: Project purpose and capacity worksheet, information assembly, principles of Value Analysis (video). As a consultant this phase is important to act as a bridge to flow of communication. Function Analysis Phase: Brainstorm functions, creating a Function Logic Diagram (FAST), Function-Cost-Worth Analysis and Develop Cost - Function relationships are part of the Function Analysis Phase (Advanced Value Group, 2003). I need to sit with different experts in various fields to generate a better plan. Creative Phase: The inspiration process needs to be developed, team dynamics to be increased, creativity techniques to be highlighted and idea generation needs to be in a continuous manner. More involvement of people along me will give enhanced ideas. Evaluation and Development Phase: Elimination of the not required variables, categorization and ranking of ideas, learning and using of T-Charting Learn and Idea Selection Matrix along with extension of proposals is to be carried. Implementation and Follow-up Phases: Strategies for implementation require to be developed as per requirement, confrontation to change, execution and follow-up plan. It is important that information must return back to me for making the process superior. VM Tools and Techniques for the Study The most common tools and techniques used in value management are the risk analysis technique and the financial analysis technique. The risk analysis technique evaluates the elements associated with the study and finds out the parameters, risk involvement with the maximum benefit that it provides. To reduce the risk of the study, the elements that are highly risky are terminated and the maximum advantage is taken from the variables. It shows the relation that the variable has in relation to risk and its return that is going to provide to the study. The financial analysis technique provides the cost-benefit of the project. £ 5M is to be invested and the outcome needs to be greater to justify the cost and the return to the stakeholders. It gives the budgeted amount that need to be invested and where it needs to be invested. Without the proper financial proposal, it is not possible to lead to the achievement of the objective of the study. This provides the tools and techniques for guiding the study in the desired direction. As a Tech Watt Consultant, I will prefer to use this two tools and techniques for achievement of the objectives of the company. Conclusion The value management is very important in guiding the overall study. VM helps in developing and making the organization achieve its objectives in a systematic way by cost advantage with maximum benefit. It enhances the decision making with result oriented towards the objective and maintaining the desired relationship with the clients. This is my job and I need to see to it that Tech Watt succeeds in the plan. References Advanced Value Group, 2003. Workshop Objective. Value Management Workshop. . [Online] Available at: http://www.npd-solutions.com/vamod1ws.html Constructing Excellence, 2004. Value Management. Fact Sheet. [Online] Available at: http://www.constructingexcellence.org.uk/pdf/fact_sheet/value.pdf. [Accessed July 27, 2010]. Jaapar, A. & Et. Al., 2005. Value Management in General. Institute of Value Management Malaysia. [Online] Available at: http://manchester.academia.edu/documents/0010/2927/my_1st_VM_paper.pdf [Accessed July 27, 2010]. McQueen, K. & Et. Al., 2007. Small Business Development Strategies Practices to Promote Success among Low-Income Entrepreneurs. North Carolina State University. [Online] Available at: http://www.ncsu.edu/enitiative/inspiration/documents/small_business_dev_strategies.pdf [Accessed July 27, 2010]. Male, S. The Value Management Benchmark: A Good Practice Framework for Clients and Practitioners. Thomas Telford, 1998. Bibliography Kelly, J. & Et. Al. Value Management of Construction Projects. Wiley-Blackwell, 2004. Venkataraman, R. R. & Et. Al. Cost and Value Management in Projects. John Wiley and Sons, 2008. Woodhead, M. R. & Downs, D. C. Value Management: Improving Capabilities. Thomas Telford, 2001. Young, D. S. & O'Byrne, F. S. EVA and Value Based Management: A Practical Guide to Implementation. McGraw-Hill Professional, 2001. Read More