Value Chain Management Methods

In the following integrated value chain management is defined and a framework is developed as synthesis of management concepts presented in subchapter 2.2. Key methods used in value chain management such as optimization or simulation are presented at the end of the chapter. 

Kaeseler provides a more comprehensive definition of value chain management from a consumer goods industry perspective (Kaeseler 2004, pp. 228-229). Value Chain Management is an essence of Supply Chain Man- 

Concluding, existing definitions use value chain management as alternative term for supply chain management focusing on supply volume decisions to fulfil a given demand and minimize costs. Especially, value and sales decisions are not covered in an integrated framework. 

To continue, an appropriate definition of integrated value chain management has to combine the characteristics of simultaneously managing volumes and values throughout the entire value chain in order to ensure companies profitability. Therefore, value chain management has to be defined in this work. 

Value chain management is the integration of demand, supply and value decisions from sales to procurement using strategy, planning and operational processes. 

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Different methods are applied in the value chain management processes for decision support. Reference, optimization, simulation and analysis and visualization methods are distinguished as further detailed in section 2.3.3. 

Different methods exist to support value chain management decisions in strategy, planning and operations that are applied in respective decision support models. A basic definition of method and model can be found in a review by Teich (2002), pp. 219-220. 

In addition to the basic methods such as SIMPLEX, other key methods for value chain management are the response surface methodology (RSM) to find a global optimum in a multi-dimensional simulation result surface (Merkuryeva 2005) or simulated annealing applied in the chemical production to find optima e.g. for reaction temperatures (Faber et al. 2005). 

Value chain management is based on models using appropriate methods like reference, simulation, optimization and/or analysis and visualization. 

Beech s (1998) demand-supply chain model, along with Comergent s (2003) demand chain model, have each progressed towards a value chain management model (Mudimigha, Zairi, Ahmed, 2004). Sampson (2000) demonstrated that service supply chains were bi-directional, and that communication between customers and suppliers, and vice versa, must occur. Thus, a partnering between participants occurred (Vokurka, 1998). Sampson also indicated bi-directional supply chains were typically short lived, but had just-in-time implications with inherent value-added expectations. To measure such information, new metrics tools have been devised. New methods to capture online measurement data (or Web... 

The framework is mainly based on the supply chain management framework of Rohde et al. (2000). Rohde s work is gradually enhanced to address the aspects of synchronized decision making within the value chain and the integration of supply, demand and value management concepts as shown in fig. 17. The framework is structured into the areas value chain, processes and methods. 

Value Stream Identification The target of this principle is the identification of all value-adding processes and their relations and sequential arrangements throughout the whole value chain to describe all activities that are necessary to produce the considered goods. The Value Stream Management is the corresponding discipline and offers methods to analyze the value chain. A common method is the Value Stream... 

Product stewardship means "responsibly managing the health, safety, and environmental aspects of raw materials, intermediate, and consumer products throughout their life cycle and across the value chain in order to prevent or minimize negative impacts and maximize value" [7], Chapter 2 of this book discusses the technical tools that a product steward uses to achieve this goal. These tools include the techniques to characterize and predict the fate and transport of chemicals in the environment upon their manufacture and use. The tools also include the methods used to calculate the possible risks to human health and the environment that may result. Chapter 2 also describes the formal process of life cycle assessment, which uses these tools to evaluate the potential effects on the environment as a result of the production, use, and disposal or recycling of a product. 

Methods and tools of supply chain management (SCM) provide the basic principles and means to analyze logistical issues related to the value added chain and the organization of the biomass supply chain. These tools raise companies awareness of the overall operation and thus increase cross-company... 

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