Value chain managementIntroduction Value chain management (VCM) is delineated as the incorporation of all resources beginning with the vendor’s vendor. Value chain management incorporates materials, information, facilities, labour and logistics amongst others into a capacity managed and time responsive solution which minimizes wastes and maximizes financial resources (McGuffog, 2009). This means that effective and efficient value chain management maximizes the customer’s value. Value chain management developed after managers came to the realization that time responsiveness was not merely the major ingredient in the satisfaction of clients. The supply chain connects the links amongst upstream suppliers, manufacturers and downstream distributors had also a resource-efficiency component and cost element associated with them (Hai, 2010).
This awareness created the requirement and importance of value chain management and it includes the management of the entire connections of supply chain in the most effective manner. In some cases, it encompasses the elimination of components of the supply chain; for instance, the emergence of Web marketing has eliminated the requirement for retail outlets. A good example is Amazon. com which has eliminated the requirement of physical ‘mortar and bricks’ retail locations (McGuffog, 2009).
Atomic Dog Publishing is another example which has assisted in cutting out the components of supply chain. This is a text book company that offers textbooks for students online every semester. This has helped in eliminating intermediaries between customers and text development; meaning that Atomic Dog has been able to manage its value chain via disintermediation by cutting out the requirement for college bookstores. Value chain management incorporates various aspects among them quality management (Pfeifer, 2002). In this paper we will focus on quality management and explain how the aspect is influenced by a customer and a business process perspective.
Furthermore, the paper will show where in a standard value chain quality management is expected to be seen. Customer and business process perspective on Quality management A business process is a collection of linked structured activities that produces a particular product or service for specific customers (Bounds et al. , 1995). A business process perspective on the other hand encompasses the identification of processes by the managers which are most essential for attaining the objectives of the shareholders, customers and the organization as a whole (Bounds et al. , 1995).
Typically, organizations develop their goals and objectives for this perspective after the measures and objectives for the customer and financial perspectives have been formulated. Customer process perspective on the other hand entails how the customers view the firm and it involves various aspects encompassing customer satisfaction, customer service, customer retention, and availability of new markets and new products (Kaplan and Norton, 1996). It is apparent that customer and business process perspectives have great influence on quality management.
In other words, the activities carried out by the businesses and the customers determine greatly the level of quality management. Within most business sectors, the notion quality management has particular definition. This specific meaning does not intend to guarantee good quality but rather to make certain that products or services are consistent. Quality management encompasses four key elements including quality control, control planning, quality improvement and quality assurance (Kenneth, 2005). Quality management focuses both on service or product quality and the means in which this is attained. Thus, it is true saying that quality management makes use of quality control and assurance procedures together with products and services to attain more reliable quality.
Quality management is defined as the integration of quality in all the phases of the organization (Pfeifer, 2002).