Difference

  • This topic has 5 replies, 2 voices, and was last updated 3 days ago by Lynn Roden.
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  • #247186

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    This forum is restricted to members of the associated course(s).

    shravan ravi
    Participant

    Hello

    What is difference between value stream, value chain and supply chain?

    Regards

    Shravan Ravi

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  • #247188

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    Lynn Roden
    HOCK international

    Hello shravan ravi,

    All of these terms are defined and explained in your HOCK CMA Part 1, Vol. 2 textbook in Section D.

    The supply chain and the value stream are lean resource management terms, and they are defined and explained in Study Unit 16, beginning on page 108. The supply chain is discussed on page 108, and the value stream is discussed on pages 110 through 113 of the current edition.

    The value chain is a business process term, and it is defined and explained in Study Unit 19, on page 134 of the current edition.

    If you still have questions after you have read that, please let me know.

    Lynn

    #247197

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    shravan ravi
    Participant

    Hello Miss Lynn

    Yes I read them. But i am confused on their differences. Can you explain what is the difference between value chain, supply chain and value stream? 

    Regards

    Shravan Ravi

    #247203

    This forum is restricted to members of the associated course(s).

    Lynn Roden
    HOCK international

    Hello shravan ravi,

    Value chain: The “value chain” describes a business unit’s chain of activities for transforming inputs into the outputs that customers will value, in other words, the production process, where each step in the production process adds value.

    • The value chain is limited to the activities in the production process performed by only the company itself.

    Value stream: The “value stream” is all the specific actions needed to provide a good or service. It involves problem-solving—developing a concept and designing and producing the product or service; information management—including order-taking, scheduling, and delivery; and the physical transformation process—converting raw materials to a finished product. The value stream includes all the upstream and downstream participants in the process, as well, not just a single company.

    • The value stream includes the activities in the production process plus other activities related to the good (or service) such as developing the concept, designing the product, order-taking, scheduling, delivery, and problem-solving whenever and wherever that is necessary.
    • It includes not only activities of the company that produces the product or service, but also activities of the company’s suppliers (upstream participants) and distributors, wholesalers, and retailers (downstream participants).

    Supply chain: All the organizations involved in moving a product or service from suppliers to the end-user, the customer, are referred to collectively as the “supply chain.”

    • The supply chain is the organizations that perform the activities in the value stream.
    • They include the company itself and any other organization that may be involved in product development, sourcing, production, logistics, and the information systems needed to coordinate the supply chain activities.
    • For example, if a company outsources its product development or its IT, the companies it outsources to are part of its supply chain.

    Lynn

    #247212

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    shravan ravi
    Participant

    Hello

    Thank you very much for your reply. So if I am to understand it correctly value stream and supply chain is more or less the same? Supply chain refers to the participants whereas value stream refers to the activities by the participants in the supply chain. So then would supply chain management and value stream be the same?

    Regards

    Shravan Ravi

    #247221

    This forum is restricted to members of the associated course(s).

    Lynn Roden
    HOCK international

    Hello Shravan Ravi,

    The supply chain consists of the organizations that perform the activities in the value stream.

    The organizations that perform the activities are not the same as the management of those organizations. The organizations themselves are legal entities. So I would not say that supply chain management and value stream are the same thing.

    Lynn

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