Operations management is crucial for businesses in both the industrial and service sectors. The reason is that productivity is a significant challenge in businesses in both manufacturing and services. Many ideas and methods that have been proven effective in the industrial sector are now being used in service firms. Productive and effective management is a significant difficulty for service companies since service is frequently provided by a firm and acquired by its consumer almost simultaneously. Therefore, manufacturing and service organizations have a greater need for operations management as it contributes to profit growth and minimizes or deletes incompletely utilized assets.
Next, the value chain is the flow of organizational business operations from crude materials to the final product that adds utility at each stage. Value chain management controls the flow of information and activities along the supply chain. It aims to develop a value chain strategy that fully and seamlessly integrates all chain participants while meeting and exceeding customers’ demands and wishes. Coordination and collaboration, technological investment, organizational procedures, leadership, people or human capital, and corporate culture and attitudes are the six critical components of effective value chain management. Since each of them brings about an added value in terms of greater profitability, they are required to succeed for any organization. Organizational impediments (such as a refusal to share information or security concerns), unsupportive cultural attitudes, a lack of necessary competencies, and individuals who are reluctant to perform it are all barriers to value chain management. For instance, if the organization’s employees lack competencies, they will require more resources to achieve an outcome that could be achieved with minimal resources by an average qualified employee.
Value is characterized as the performance traits, attributes, and other characteristics of products and services on which one is prepared to expend resources, including money. For instance, people swap money when they buy a new CD, a new pair of Levi’s trousers, a Dell computer, or a hot foamy coffee to satisfy their value and need from all of these. These values are available to convert uncooked materials and other resources into products or services. Further, both continuous improvement and quality control are crucial to an organization’s performance, primarily because both focus on the standard of services offered to clients. The only difference between them is that they stem from various management philosophies.