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2023 Prentice Hall, Inc. All rights reserved. * Value Chain Management ? Value Chain Management ?The process of managing the entire sequence of integrated activities and information about product flows along the entire value chain. ? Goal of Value Chain Management ?To create a value chain strategy that fully integrates all members into a seamless chain that meets and exceeds customers’ needs and creates the highest value for the customer. 8 Copyright 169。 2023 Prentice Hall, Inc. All rights reserved. * Manufacturing and Services ? Manufacturing Organizations ?Use operations management in the transformation process of turning raw materials into physical goods. ? Service Organizations ?Use operations management in creating nonphysical outputs in the form of services (the activities of employees interacting with customers). 5 Copyright 169。 2023 Prentice Hall, Inc. All rights reserved. * Value Chain Management (cont’d) ? Obstacles to Value Chain Management (cont’d) ?People ?Lacking mitment to do whatever it takes ?Refusing to be flexible in meeting the demands of a changing situation ?Not being motivated to perform at a high level ?Lack of trained managers to lead value chain initiatives 11 Copyright 169。T