Value Chain Analysis - The Strengths and Weaknesses of HP

Value Chain Analysis - The Strengths and Weaknesses of Hewlett Packard

Value Chain Analysis - The Strengths and Weaknesses of Hewlett Packard

Value Chain

"The value analysis is a method of competitive organized and creative to the satisfaction of the needs of the user with a specific approach to design both functional and economic disciplines." The value analysis is a method of group work to design or optimize a product to meet the needs of users at the lowest cost. It provides,

Design at the lowest cost, a product perfectly suited to the needs of users.

Improve product quality without increasing the cost and without reducing the level of services rendered.

To seek creative solutions that responds only to customer needs and can save money.

The value analysis is characterized by the use of participatory methods for translating the customer's need, not a product but useful functions. The product and its value are well defined on the basis of these features that best meet the customer's need. The search for the best "quality / cost" makes possible to meet a dual objective of satisfaction and competitiveness (Connolly & Burnett, 2003).

Design a "product" perfectly adapted to the needs of its user to the lowest cost.

Extract the unnecessary costs of a service, product and improve the quality by focusing on useful functions to perform.

Develop compromise "price / performance".

Streamline administrative procedures and reduce processing times.

Maintain and optimize the service while generating significant savings.

The value analysis of HP differs from other methods by three basic characteristics:

The Functional Analysis

To the extent that the value analysis based on the notion of functions, functional analysis is the heart of the method. The product corresponding to the customer's need is defined in terms of functions. These functions are measured to determine the value that is defined as the relationship between customer satisfaction and cost of the product (Dean & Sharfman, 1996). Functional analysis is the cornerstone of the method of value analysis. From it depends on the final product quality. The objective of this phase is to look for primary and secondary functions that meet the needs and translate them into technical functions. These functions are formalized in the functional specification. Achieving this goal requires to have previously achieved a compromise between two approaches:

Expand the possibilities of the product, meaning it added features: this light meets a need wider, increasing the value of the product but also leads to increased cost.

Reduce the scope of the product that is taking away features: this view leads to reduce the value of the product with no guarantee of diminishing cost.

Group Work

It is a multidisciplinary group of 6 to 8 people which is the real operational structure of the action of value analysis.

The Overall Economic Approach

The value analysis is a process of working with the aim of finding the optimal compromise between cost and features of a product, while ensuring a level of quality necessary and sufficient.

SWOT Analysis

The research provided in the paper will discuss Hewlett Packard's ...