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Value Chain In Engineering Essay

1261 words - 6 pages

Executive Summary
The concept of value chain has attracted considerable attention of managers and researchers. This report briefly presents the value chain in manufacturing industry and then explores the leadership roles of the engineer in the management of the value chain. Furthermore, this report analyzes the benefits of using an engineer in the value chain management and points out that the engineer is best suited to perform the value chain management role.

Table of Contents
Introduction 2
The Value Chain in manufacturing industry 2
Role of the Engineer in Value Chain 4
Main Management Actions of Value Chain 4
Leadership Role in the Value Chain Management 4
...view middle of the document...

These activities include distribution, manufacturing and purchasing. In supply chain of manufacturing industry, the customers browse products and offers from multiple suppliers and then select the desired offers or request quotes from multiple suppliers.

Demand chain comprises the enterprises selling services and goods of a business, which including activities of marketing, sales and service (Christopher, 2005). For example, in manufacturing industry, demand chain may consist of the manufacturer who produces the goods, the retailers who sell goods the manufacturer created and the customers who initiate the transaction. Customers purchase goods from a manufacturer's retailers. Retailers in turn obtain the goods from the manufacturer.

Operations is the process of transforming inputs into the final product, which includes many activities, such as assembly, machining, equipment maintenance, packaging and testing (Porter, 1985). Service refers to the support of customers after sale. Furthermore, the objective leading all efforts within a value chain is viewed as improving competitiveness. In manufacturing industry, it traditionally desires lowest costs and long production runs.

Role of the Engineer in Value Chain

Main Management Actions of Value Chain

Supply Chain Management (SCM) is introduced to sustain the value chain, which is defined as the task to integrate organizational units within a supply chain and coordinate information, financial and material flows for the purpose of satisfying customer needs to increase the competitiveness as a whole (Stadtler and Kilger, 2008). SCM is the act of optimizing activities across the supply chain. Ayers (2001) reported that SCM is the planning, maintenance, responding to external changes and supply chain processes activities to fulfill consumer’s needs. One main component of SCM is integrating a network of organizations, which including inter-organizational collaboration, network organization, choice of suitable partners and leadership (Stadtler and Kilger, 2008). Another component of SCM is coordinating flows along the supply chain, which is composed of advanced planning, communication and information technology and process orientation (Stadtler and Kilger, 2008).

Leadership Role in the Value Chain Management

Engineer participates in these management actions and plays a significant leadership role in the management of the value chain. Leadership is the ability to motivate and enable other people involved to make contribution to the success of the organizations (Northouse, 2007). Engineer plays this leadership role to enable all the people to contribute to creating value, maintaining value, and ensuring effectiveness and efficiency (Simchi-Levi et al. 2008). In the operation, some decisions should be made for the value chain as a whole, such as integrating a new partner or cancelling a partnership. Engineer with the best know of products and processes could work out appropriate value...

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