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t ?It enpasses both services and manufacturing. ?It is important in effectively and efficiently managing productivity. ?It plays a strategic role in an anization’s petitive success. 4 Copyright 169。 2023 Prentice Hall, Inc. All rights reserved. * Managing Productivity ? Productivity ?The overall output of goods or services produced divided by the inputs needed to generate that output. ?A posite of people and operations variables. ? Benefits of Increased Productivity ?Economic growth and development ?Higher wages and profits without inflation ?Increased petitive capability due to lower costs 6 Copyright 169。 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. * Value Chain Management (cont’d) ? Obstacles to Value Chain Management ?Organizational barriers ?Ref