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Is there a framework to analyze value chain of a manufacturing company?

Anonymous A

Hi,

Is there a framework to analyze value chain of a manufacturing company?

Thanks.

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Vlad replied on 05/09/2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi,

Think about it in the following way - every production process has

  • Something going in
  • Something being processed
  • Something going out

You can use this logic to build basically any value chain.

I would also use the following buckets in production value chain (the exact order may be different depending on the product and industry):

  • Supply
  • Transportation of supply
  • Production
  • Transportation of finished goods
  • Warehousing

Best!

Francesco replied on 05/11/2018
Ex BCG | MBB Specialist | #1 Expert for coaching sessions (1400+) and recommendation rate (100%)

Hi Anonymous,

I agree with Vlad. As additional points, I would add marketing and sales and customer service to the buckets of the value chain.

Best,

Francesco

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