Question

In this assignment, you must show the ability to apply the value chain model TOC in your own organisation. 1. Apply value chain theory to introduce modern technology in your organisation. (40 marks) 2. Describe and draw a flow diagram illustrating how the different activities in your organisation/strategic business unit (SBU) link together in a value chain. (30 Marks) 3. Make a case using of theory of constraints (TOC) to evaluate impact on continuous improvements in your organisation. (please use an example of a law firm that provides corporate business advice to clients all over the world)

Answer 1

Value Chain Model (Theory of Constraints) of a Law firm

Value chain theory to introduce modern technology :

Value chain or supply chain process is different from manufacturing industry to service industry. Here we are discussing about law firm. It is purely corporate advisory service firm. It does not deal with logistics. Here the processes are different. Here the source is information. Information is the material, communication is the logistic, machinery is technology (computers, internet, software, hardware etc.,) employees are labor. Supply chain deals with the synchronization of all these inputs.

Value chain analysis builds linkage between activities, focus on information sources, mapping the destination to reach it’s services. Value chain also supports value system of an organization to build strong reputation of a firm.

Activities / Operations of a firm : (Theory of constraints)

• Profile making
• Service listing
• Pricing of services
• Building networks
• Forming teams
• Communication channel
• Division of services or departments
• Human resource planning
• Innovating new services & existing services
• Knowledge management
• Information center management
• Filing, record keeping
• Client management
• Legal compliance
• Corporate Governance

Application of Model:

• Law firm services are to be properly designed and framed. Based on the services division of departments will take place
• Human resource planning also follows service type
• Every type of service has it’s own information source and required technology
• Identify the type of service, information and also synchronize them in accordance with the client requirement
• Public relationships and client relationship are very important to market legal services
• Technology helps to fasten legal services
• The Investment of a law firm is information and technology
• The Product of legal firm is Prompt service with accurate decisions
• The Customer of a legal firm is Corporate client
• The Expertise of a legal firm is innovative legal service to the corporate world
• The real talent of a legal firm is client education and support

Flow Diagram : Activities and strategic business units linked in Value chain

Organization structure:

Impact of theory of constraints evaluation on continuous improvements :

• Direct supervision on each service provider of law firm through Theory of constraints
• Focus on each and every constraint
• Main constraints are legal updates, information, client requirement, staff performance,
• Identifying the loopholes in the chain
• Grievance management should be effective to remove the blocks in the service process chain
• Re engineer the constraints for better innovating business performance
• Adoption of change takes place when constraint is weaken
• Action planning to adjust the rest of constraints in the chain process in accordance with the change introduced or innovations