How Do Processes Create Value ? [ 1 ] Paul
نویسنده
چکیده
One of the major events in the evolution of modern process thinking was the publication of Michael Porter’s book, Competitive Advantage, in 1985, which introduced the idea of the Value Chain. [2] (See Figure 1.) A value chain is the ultimate process of an organization. A value chain describes all of the activities that an organization undertakes to produce a product. The manager of the company can add all of the costs of producing the product, subtract those costs from the income received from the sale of the product, and determine the profitability of the product line.
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