Value Chain Analysis and Its Importance in Reducing Cost and Improvement of the Processes’ Performance : Applied Study

Abstract

The research aims to analyze the value chain of the economic unit and indicate the importance of this in reducing the cost of non-value added activities to both the economic unit and the customer, in addition to improving the processes’ performance in order to achieve competitive advantages in terms of improving indicators of cost, quality and time in a manner that is commensurate with the requirements of the modern manufacturing environment and the accompanying rapid and successive changes and developments. The research dealt with the knowledge bases of the value chain and the importance of analyzing them in economic units, as the focus was on reducing the unnecessary costs associated with non-value added activities in addition to improving the performance of processes by eliminating defective and unjustified stops while carrying out various production processes in the economic unit, and the research was applied in Al-Mothanna Cement Factory for the financial years 2015, 2016 and 2017. The research reached a set of conclusions, the most important of which was that there is a possibility to analyze the value chain of the plant, the research sample, with the possibility of using this analysis to reduce cost in addition to improving the process’s performance.