Question

What is the relationship between processes and value?

Also, how does operations and supply chain management balance supply and demand to exceed customer expectations?

Answer 1

Processes are the steps that are taken or put in place so as to achieve a particular outcome. On the other hand, value is the standard of something that is measured based on the monetary estimates. Therefore, process will influence on the nature of value that shall be derived. When processes are detailed and contains value addition steps, then the end outcome is strong value.

Take for example, a production process in the organization. This is a process with detailed steps. When the production process is effective and free from defects, then the value of the final products is very high. Moreover, when the processes are channeled towards meeting a particular value, then then the firm will finally realize it.

Explanation:

This is to mean that value is influenced by the processes that are put in place. Value is generated from a strong competitive process which then increases the quality and subsequently high value products. Whenever a firm puts in effective processes, then it means that the firm is able to meet the standards that are required by the clients. Normally, clients are buying value in a product and not the product itself. That is why goods with high value attract high prices and clients are willing to buy it.

The operations and supply chain management ensures that there is a balance supply and demand to exceed customer expectations by adopting the following strategies:

1. Market research: This is one of the areas in the operations management conduct market analysis and seek information so as to ensure that the firm is able to determine the changing needs of the clients in the market. Market research will ensure that the firm is able to offer services that matches the needs of the customers.
2. Forecasting: This is a technique in which operations and supply chain management will forecast the customer demands in the market. Then the firm will seek to match these needs with the company's products and services. This is key in providing a successful integration of customer demands and the company's products.
3. Using JIT: This is a production technique that the operations and supply chain management whereby production and orders are produced when needed. This is critical in producing a high quality products in the organization.
4. Adopting sigma: This is a technique of eliminating waste while improving the process. This is going to improve the products and the services that are delivered to the clients.
5. Total quality management: The quality of the products that are supplied and used in production is also checked. The operations and supply chain management seeks to ensure that there is full quality of the products delivered and sold to the consumers meet high quality standards.

Explanation:

The operations and supply chain management needs to ensure that there is a balance between the client's demands and the company's operations. This is going to ensure that the firm creates customer loyalty. This is important in ensuring that the demands of the clients are met and even exceeded. When the operations and supply chain management guarantees high quality products, then the customer's expectations will be exceeded. There is need to apply one of these approaches or all of them. This is going to improve the service delivery to the clients.