Value Chain Mapping

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Did value chain mapping wherein the product and information flow is examined across different departments. My objective was to identify opportunities for improvement of processes. Examined the various processes/activities from the procurement of raw materials to the production of finished goods. Segregated them into value added and non-value added activities (on the basis of the transformation brought about to the product at each stage)

I visited each department and learnt about the processes in it by interacting with the Head of the Department and also the frontline employees. HOD gave me the overview of the department’s functions whereas the frontline employees gave the fine details of the processes.

If, at a stage, some change is made to the product which is essential for making the product into a finished product and without which all subsequent processes cannot be performed, such a change/activity is classified as a value added activity. Those activities which are mainly supporting activities to other primary processes and do not transform the product by themselves and which can be replaced by better processes without changing the quality of the end product are classified as non-value added activities.

List of Value added and non-value added activities:

Value-added activities:

* Determination of demand from branches and customers.
* Despatch of tentative rolling plan to the branches and getting feedback * Informing Traffic department about the requirement of rakes

Non-value added activities:

When a customer buys stock directly from HQ sales, a stock advisory challan is issued to him. He must get the clearance of Logistics department by producing SAC to receive the stock. After getting the clearance at Logistics, the SAC must be produced at the Outgate office for final clearance.

* Capacity of VSP – 3 million tonnes per annum
* Turnover in 2011-12 – 14,457 crore – 26% increase over the previous year * As...
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