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

Framework Value Chain
Recent activity on May 11, 2018
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Anonymous A asked on May 09, 2018

Hi,

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

Thanks.

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Vlad
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replied on May 09, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / 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!

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Francesco
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replied on May 11, 2018
#1 Expert for Coaching Sessions (3.700+) | 1.300+ Reviews with 100% Recommendation Rate | Ex BCG | 8+ Years of Coaching

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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Vlad gave the best answer

Vlad

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