Academic literature on the topic 'Value Chain and Analysis Methodology'

The reason for the existence of any company is to make a profit, which means increasing turnover and keeping costs as low as possible. Optimisation of the Value Chain and Procurement were identified as the two largest contributors when one needs to improve the bottom line of any company. The purpose of this research was to develop an integrated Value Chain and Procurement cost reduction methodology and system specifications for a software solution which captures, tracks and accurately reports the impact of the improvement initiatives. The main research question was structured as follows: What should the specifications of a software solution be that will integrate the cost reduction processes of the Value Chain and of Procurement, in a manner that will ensure maximum sustainable bottom-line savings for companies in the manufacturing or service industries? The objective was to define the key phases in the Value Chain and Procurement cost reduction process and to determine how and where they integrate. It is important to note that according the literature review and the survey, both the Value Chain and Procurement cost reduction processes consist of seven phases. The phases of the Value Chain cost reduction process were: Phase 1: Budget/ABC costing and data analysis; Phase 2: Generate ideas; Phase 3: Evaluate and approve ideas; Phase 4: Implementation planning and approval; Phase 5: Development of project (idea) specific KPI's; Phase 6: Implementation of ideas; Phase 7: Track and report savings. The phases of the Procurement (Strategic Sourcing) cost reduction process were: Phase 1: Team selection/data collection/spend analysis/work plan development Phase 2: Access requirements/internal and external analysis; Phase 3: Develop strategy/shape value proposition; Phase 4: Screen suppliers, issue RFI/P/Q, implementation planning; Phase 5: Conduct commercial event/negotiate/finalise contract; Phase 6: Implement contract; Phase 7: Contract management/track and reporting. The above two cost reduction processes integrate at each phase of the respective processes and should thus be implemented at the same time due to their interdependencies. Based on the findings of the research it was clear that an integrated Value Chain and Procurement cost reduction process alone is not going to solve the cost reduction problems of companies. It is essential for the successful implementation of the integrated cost reduction process to develop skills and knowledgeable resources to implement the integrated cost reduction process, improve collaboration between the Value Chain and Procurement, and to implement a system to track and report performance during implementation. Further research should include how to adapt the current company processes, structures, procedures and systems in order to gain maximum benefit from the implementation of an integrated cost reduction process. The integrated Value Chain and Procurement cost reduction process, supported by a software system, should improve the success of cost reduction projects in companies. It is, however, important to note that the application of the methodology will vary between industries and that service-related industries might put more emphasis on Procurement cost reduction, while the manufacturing industries might place a bigger emphasis on cost reduction in operations. In conclusion, irrespective of the industries, it is evident that this methodology will enhance the cost reduction results previously obtained from similar efforts.

Includes abstract.<br>Includes bibliographical references (leaves 86-91).<br>The wide range of the petroleum industry's products as well as the varied value of these products coupled with the global nature of the petroleum industry presents both challenges and opportunities within the petroleum supply chain. It is along this supply chain that challenges for creating value for the customer exist as well the opportunities for reaching this goal. Value chain analysis methodology has been hailed as being capable to lend itself to process improvement challenges faced along supply chains. To achieve this objective, a case study method was used to collect and analyse data. This dissertation identifies and follows one of the supply chains of a petroleum company operating in South Africa to investigate how value chain analysis can be implemented along its supply chain.

Lean production and Lean philosophy have been developed, studied and implemented over the world since it was know from Toyota Production System. International manufacturers/OEMs have more or less developed their own Lean production systems. Over the years, arising challenges from new technology and internationalization have force the OEMs to understand and evaluate the design of supply chain to support their lean production system, and to manage the SC and compete as a whole against other supply chains. When apply Lean principles to the level of Supply Chain, coordination is an essential element to success. Today, researches have been done on joint efforts on decision making among supply chain actors, and applying Lean tools such as VSM on an extended level, namely a supply chain. Whereas the methods to improve SC coordination when implementing Lean through SC remain undeveloped. By interviewing Lean supply chain experts, experienced personnel in Supply Chain Management, and Lean experts from various organizations, a methodology to identify and visualize the improvement areas in supply chain coordination was designed. The methodology was then tested in a European OEM’s supply chain. Value Stream Mapping, as the base, was adapted to support identification and visualization of improvement areas in supply chain coordination. Several misalignments in the SC coordination were found in the current state, then visualized in current state map and approved by various SC actors. The methodology was then improved according to the process of testing. The purpose of this thesis is to develop a methodology to identify and visualize the improvement areas in (manufacturing) supply chain coordination within a Lean perspective.

Two months of fieldwork was conducted during the summer of 2014 in Nicaragua, through qualitative interviews the aims was to investigate the Value Chain of dried mango and its potential as an alternative income source for livelihood improvements for households in Manzano Uno, Nicaragua. The idea to investigate dried mango in particular originates from a conversation in the spring of 2012 with Ben Orton, co- founder of local NGO Waves of Hope, who considered the idea after witnessing the huge amounts of ripe mango falling to the ground and rutting away during the peak season in Manzano Uno. The research problem in a bigger context is related to the debate on how developing countries, and rural parts in particular, are often excluded from the benefits that come with a globalized market economy, since they often lack the tools to participate or do so on unfavorable terms. The idea of a Value Chain Analysis is to detect where along the production line value is added to a product from raw to finished good. Income Diversification comes in to the investigation and contributes to the conclusion that it would be favorable for livelihood improvements to households in Manzano Uno to diversify income sources, to create more secure and higher quality income. The value chain analysis is mainly based on information provided by Sol Simple, an organic-fruit drying plant in San Ramon, Nicaragua and is one out of two fruit processing enterprises in the country. They have been growing every year and have positive expectations of the future. Dried fruit and mango in particular seems to have good prospects for future demand as export products and one important addition is the sustainable, organic and Fairtrade markets which all enable higher product prices and thereby enable bigger shares to go back to the local producers. The federal incentives in Nicaragua include focus on the foreign investment to the country and quantity secondary education, which is concluded to not always be quality education. The high share of investments and entrepreneurships from foreigners are explained by the high security profile in the country, fertile lands and the lowest minimum wage in the region.

<p><strong>Introduction:</strong> The retail market in the 21^st century will be determined on how quickly and efficiently the retailer can respond to shifts in consumer demands. Due to the physical environment of the store (store value) and the interaction with the consumer (shopping trip value), the local retail store has the advantage of generating this tangible and intangible information. It is then of importance that this information will be transferred towards the retailer, who has the opportunity to use this information and generate it into outputs that can be used as negoitables; this value creation process is an unique success indicator for creating a value network within retail supply chain.</p><p><strong>Purpose:</strong> The aim of this research is to present an understanding on the value creation process in the grocery retail chain.</p><p><strong>Methodology:</strong> Having an inductive nature, this thesis tried to bring a new understanding on value creation in grocery retail business, by using hermeneutics as a methodology approach. For empirical study, the qualitative approach was used. Data was collected through open-ended interviews with representatives in grocery retail chains.</p><p><strong>Conclusion:</strong> The main players in the value network were determined in a grocery retail chain as retailer, local retail store and other stores in the chain; and the suppliers. An intensive value exchange between the retail store and the retailer was found and following that, it was concluded that the retailer converts the value input from the local retail store into tangible and intangible value outputs towards suppliers. Combining the conclusions, the research defines that a value network is existing, but on a very low level. But more to the point, the study shows the importance of value creation by the retail chain, and that creating the possibility to share information about products, in-store experience, consumer knowledge, and consumer requirements is one of the biggest advantage the grocery retail chain has to develop this value network further.</p><p> </p>

Research show that customer patterns in the textile industry are changing and the degree of personalization of products is getting more important to meet personal needs and preferences. Mass customization is a strategy named to create higher customer value by customizing products through a close interaction during the design and production process, high production flexibility and efficient logistics. The lack of research on the implementation of mass customization strategies and an identified gap between customer expectations and perception (customer value) of these types of products, are the incentives to conduct this research. The thesis has the purpose of identifying the drivers of customer value of mass customized garments and assess the value chain of the company Brohall &amp; Son from a perspective of mass customization as a strategy, and from the results draw conclusions of customer value aligned with the implementation mass customization strategies. In order to perform the research a quantitative approach, doing a customer value analysis through a self-completion questionnaire, was conducted. Attributes of price, quality, fit, service and delivery capacity were investigated to get an understanding of what drives value for the customers. In addition a qualitative method was used, doing interviews with the CEO of Brohall &amp; Son to gain a deeper understanding of their operations and value chain. The results show that quality, fit, delivery capacity and service are the most important attributes of customer value. Price is the least important attribute and also the least correlated/dependent variable to the rest of the attributes, showing a high willingness to pay for the garments. The analysis of the value chain indicates some areas of improvements regarding logistics, design process and production process. Solutions are brought up to get the value chain to get more aligned with the strategies of mass customization.

Thesis (MBA)--Stellenbosch University, 2014.<br>ENGLISH ABSTRACT: Rapid urbanisation, coupled with growing per capita incomes and a rapid rising middle class, is triggering rapid growth in urban food markets. Despite these opportunities, agriculture in South Africa is confronted with diminishing profit margins due to direct production cost increasing at rates above the revenue generated from agricultural products. This research assignment has aimed to define the attributes of an effective agricultural value chain in South Africa, given the challenges faced. To achieve this goal, the research focus was on the results of an in-depth analysis of the Dutoit Group’s deciduous fruit value chain. To be able to perform a value chain analysis it is of utmost importance to first understand the meaning of the concepts as well as their origin and the evolution of their application. This is achieved through a comprehensive study of literature. Three value chain analysis tools were used for the research. These tools were an industry analysis, value chain maps and benchmarking. Through the literature review the importance and relevance of these three tools were also explored and reasons provided why they can be regarded to be adequate for a proper in-depth analysis. An overview of the Dutoit Group’s history, focusing on the specific key events influencing the evolution of their value chains, is also discussed together with their business philosophy, business model and main accomplishments. This is done to provide context to the environment in which the value chain analysis process was performed. The main focus of the fourth chapter is the application of the three value chain analysis tools on the Dutoit Group’s deciduous fruit value chain, utilising primary and secondary data collected through interviews with specific value chain actors, observations, management information and literature obtained from the public domain. Through the application of the three value chain analysis tools the effectiveness of the Dutoit Group’s deciduous fruit value chain was evaluated, and strengths and weaknesses identified. The research results showed that the Dutoit Group’s internal deciduous fruit value chain has been effective in addressing the risk of diminishing profit margins. In addition the results showed that the key attributes of an effective value chain which are able to address the current challenges are defined as effective integration, strong relationships between value chain actors, high levels of productivity and strong leadership.

Thesis (MBA) -- Stellenbosch University, 2007.<br>ENGLISH ABSTRACT: The study was motivated by the widely reported problem of poor financial management within South African local government and, more specifically, the deteriorating status of revenue management, especially in medium to smaller municipalities. The reasons for the alleged poor financial management are complex and involve issues of management capacity, inappropriate systems, and socio-economic circumstances. It is obvious that a holistic approach will be required to address such a multi-ciimensional problem. This research proposes to suggest solutions to the revenue management problems facing South African municipalities. If this issue is not resolved urgently, local government will impede service delivery rather than improve it. Service delivery is key to the integration of South Africa's first economy into a second economy. The specific objectives of the research are; firstly, to develop a revenue management value chain model specific for municipalities; and, secondly, to conduct an analysis of the Lukhanji Local Municipality's financial status against the value chain model. To attain the objectives of this study existing literature and the scope of the problem must first be examined and understood. It is evident that the prevailing revenue management problem experienced, lie with the local government themselves in terms of their inadequate financial management. These problems have placed Significant pressure on municipalities' cash flows and eroded their financial resources. In turn, this has resulted in questionable sustainability and financial via bility, as the problematic cash position of municipalities has impacted negatively on their capital and maintenance expenditure. One of the greatest challenges facing local government is the collection of revenue raised for services rendered to various consumers. Of the various actions taken by government to address the current crisis situation in municipalities in the short to medium term, national grants to sponsor capital projects and services have been key in Stellenbosch University http://scholar.sun.ac.za iv ensuring that the decrease in municipal expenditure has not been greater, preventing the potentially disastrous consequences. The Municipal Finance Management Act, together with the Municipal Structures Act, Municipal Systems Act; and also the Constitution provide a well -defined financial framework within which local government can function. The research also reviewed all four main revenue sources of local government, namely own revenue {utility fees and property tax}; subsidies through intergovernmental transfers; loans; and private-sector equity. Despite the improvement in intergovernmental transfers, it is important that all municipalities maximise their own revenue, while considering those that cannot afford basic services. The research proposes the following revenue management value chain model, specifically for South African municipalities: Revenue Planning Indigent Management Tanff Setling ~ Metering Billing Customer Database Management Revenue Coliection I) Credit Control Loss Management In the analYSis of the Lukhanji Local Municipality's financial status against the value chain model, it became evident that problems existed in all elements of the value chain. General financial and viability assessments supported the above finding and indicated financial difficulties and serious cash-flow problems. The research present several recommendations regarding the improvement of poor financial management in South African municipalities and the Lukhanji Local Municipality. However, in brief, urgent attention is required in terms of the Lukhanji Local Municipality's cash-flow in the short term, while a performance-driven culture needs to be developed in the long term. Lastly, local government in general, and the Lukhanji Local Municipality specifically, will succeed in improving their revenue management if they harness the collective will and skills of all the stakeholders involved in the provision of services.<br>AFRIKAANSE OPSOMMING: Die studie spruit voort uit die negatiewe publisiteit oor die probleem van swak finansi~le bestuur in plaaslike regering en, meer spesifiek, die verslegtende stand van inkomstebestuur, veral in mid del slag- tot klein munisipaliteite. Die redes is ingewikkeld en behels probleme met bestuursvermo~, onvanpaste stelsels, 'n kultuur van nie-hetaling, en sosio-ekonomiese omstandighede. 'n Holistiese benadering is ooglopend nadig om die vee/dimensionele probleem op te los. Die doel van die navorsing is om by te dra tot die vind van oplossings vi r die inkomstebestuursprobleme wat munisipaliteite in die gesig staar. Indien die situasie nie dringend omgekeer word nie, bestaan die gevaar dat ons munisipaliteite in bankrotskap gebring kan word , wat beteken dat hulle nie hul grondwetlike verpligting sal kan nakom nie en dat hulle dienslewering sal belemmer en dit verbeter nie. Goeie dienslewering is die sleutel vir die integrasie van Suid Afrika se eerste ekonomie met die tweede ekonomie. Die doelwitte van die navorsing is; eerstens, om 'n spesifieke inkomstebestuurs-waardekettingmodel vir munisipaliteite te ontwikkel; en meedens, om Lukhanji Plaaslike Munisipaliteit se finansiele status teen die model te meet. Om die doelwitte te bereik moet die probleem vestaan word deur bestaande literatuur te bestudeer . Oit is duidelik dat die heersende inkomstebestuurs probleme h§ by die plaaslike regering in terme van hul onvoldoende finansiele bestuur. Die probleme het geweldige druk op munisipaliteite se kontantvloei gesit en sodoende hul hulpbronne gedreineer. Oit het 'n vraagteken geplaas op die volhoubaarheid en finansiele lewensvatbaarheid van munisipaliteite as gevolg van die kontant probleme se negatiewe impak op die kapitale en instandhouding bestedings. Een van die grootste uitdagings waarvoor plaaslike regering te staan kom, is die invordering van inkomste wat gehef word vir dienste wat aan verskeie verbruikers gelewer word . As dit nie vir die Stellenbosch University http://scholar.sun.ac.za vii nation ale tussenregeringsoordragte, vir beide dienslewering en kapitaal projekte was nie, sou munisipaliteite met baie erger probleme gesit het. Die Wet op die Bestuur van Munisipale Finansies, tesame met die Wet op Munisipale Strukture; die Wet op Munisipale Stelsels; asook die Grondwet verskaf 'n goed omskrewe finansif!le raamwerk binne plaaslike regering. Die studie behandel die vier vernaamste inkomstebronne van plaaslike regering, wat eie inkomste (utiliteitsgelde en eiendomsbelasting), subsidies deur tussenregeringsoordragte, lenings en privaatsektor-ekwiteit insluit. Ten spyte van die verbetering van tussenregeringsoordragte vir sommige jurisdiksies, is dit belangrik dat aile munisipaliteite huJ eie inkomste maksimeer, met die fokus op diegene wat wei basiese dienste kan bekostig. Die navorsing doen die volgende inkomstebestuurs-waardekettingmodel spesifiek vir munisipaliteite aan die hand: Inkomstebeplanning Bestuur van hulpbehoe- Tarief· wendes vasstelling C. Metenesing Fakturering Klante- Databasisbestuur Inkomsteinvordering ~ Kredietbeheer Verliesbestuur By die ontleding van die Lukhanji Plaaslike Munisipaliteit se finansiele status teenoor die waardekettingmodel het dit duidel ik geblyk dat probleme in al die elemente van die waardeketting bestaan. Die algemene finansiele ontleding en finansiele lewensvatbaarheidsmodel ondersteun die bostaande bevindinge en toon dat die Munisipaliteit in ernstige finansiele moeilikheid verkeer. Die navorsing sluit verskeie onderling velWante aanbevelings oor die verbetering van swak finansieJe bestuur in Suid Afrikaanse munisipaliteite en die Lukhanji PlaasJike Munisipaliteit in. Die Munisipaliteit se kontantvloei het veral dringende aandag nodig in die korttermyn, terwyl die Munisipaliteit 'n kultuur van prestasiebestuur in the langtermyn moet ontwikkel. Plaaslike regering oor die algemeen en die Lukhanji Plaaslike Munisipaliteit in die besonder sal net in hul inkomstebestuur slaag as hulle die gesamentlike wil en vermof!ns van al die belanghebbendes wat by die verskaffing van dienste betrokke is, kan aanwend.