Nowadays, the creation of the value chain is an essential part of strategic management (Bitichi & Carrie, 2013). In turn, various technological innovations are used to advance the value chain in the modern business world (Kuglin & Hood, 2008). In turn, the quality of the operations is an essential attribute of the total quality management in the value chain (Kanji, 2012). In the end, paying attention to the quality of the processes in the supply chain forms the clear perception of the total quality management in the organization (Mukherjee, 2006). Nevertheless, the primary goal of this paper is to determine whether the findings from the article Value Chain Analysis in Quality Management Context by Popescu and Dascalu can be easily applied in the context of functioning of any business entities and companies, which actively emphasize the significance of the total quality management on the organizational level.
Nonetheless, the critical findings of the article Value Chain Analysis in Quality Management Context by Popescu and Dascalu including the analysis of the KPIs to enhance the delivery, complexity of the improvement, and the flow of the processes in the value chain management (Popescu & Dascalu, 2011). In turn, high attention has to the be paid to the existence of the primary and supporting processes such as procurement, technology development, and human resource management to support the flow of the critical operations within the organization (Popescu & Dascalu, 2011). The interdependence of these aspects and complexity of the value creation will be highlighted in the context of BMW, which is chosen as the primary company for the evaluation of the application of these findings. It remains evident that the company actively supports the total quality management and makes it an essential element of its car manufacturing.
Nonetheless, the first tactic refers to the understanding the importance of KPIs while creating the value (Popescu & Dascalu, 2011). In turn, the establishment of the KPIs help control the supporting processes, as they tend to set the organizational goals. BMW actively employs this strategy, as the flow of the processes remains unchanged. In turn, it devotes significant attention to the HRM and technology improvement, as they are the definers of the success in the car manufacturing. In this instance, setting the intermediate goals, defining the essence of the quality of the processes, and applying the KPIs into the operations process assists BMW in staying one of the trusting car manufacturers with the reputation for the high-quality products.
In turn, the article also underlines the interdependence and complexity of the processes while creating the value (Popescu & Dascalu, 2011). As for BMW, the company supports it on the international level by involving various suppliers in the product development (Handfield & Nichols, 2002). It could be said that application of this approach on the international level creates challenges, as the supporting and key processes might be located in the different parts of the world. Maintaining the sufficient informational system and applying innovation communication methods helps BMW create the value in the global context. In this case, the company advanced the strategy and used it at the global level to improve the company’s recognition by delivering only the best and high-quality products to the customers.
In the end, the value analysis helps determine the potential and most relevant approaches to the value formation in the organization. It remains apparent that the strategy is highly dependent on the value chain, and its role cannot be underestimated in the context of the given example. It remains evident that the tactics, which were described in the article, are actively supported in the functioning and processes in BMW. The active utilization of the fundamentals of the total quality management principles explains BMW’s ability to deliver high-quality products to its customers and receive valuable positive feedback.
References
Bitichi, U., & Carrie, A. (2013). The strategic management of the manufacturing value chain. New York, NY: Springer Science+Business Media LLC.
Handfield, R., & Nichols, E. (2002). Supply chain redesign: Transforming supply chains into integrated value systems. Upper Saddle River, NJ: Prentice Hall Publishing.
Kanji, G. (2012). Total quality management: Proceedings of the first world congress. London, UK: Springer Science+Business Media LLC.
Kuglin, F., & Hood, R. (2008). Using technology to transform the value chain. London, UK: CRC Press.
Mukherjee, P. (2006). Total quality management. New Delhi, India: Prentice-Hall of India Private Limited.
Popescu, M., & Dascalu, A. (2011). Value chain analysis in quality management context. Bulletin of the Transilvania University of Brasov, 4(53), 121-128.