By Bernard Arogyaswamy, Ron P. Simmons
Arogyaswamy and Simmons combine the technique of value analysis and the concept of the value chain to build a perspective on value that is at once comprehensive and practical. They provide a methodology for formulating value-based strategy as well as a system for managing the value-directed organization. The management system proposed is based upon the high value Just-in-Time (JIT) and Total Quality Control (TQC) principles successfully deployed by numerous Japanese (and more recently American) firms. In a sense, this book brings together the American and Japanese streams of value creation. Essentially, the authors argue that accepting and, indeed, increasing inter-dependencies within activities (design, operations, marketing) is imperative in order not only to create value but also to build the value-creating organization. Effective integration among activities is the second key ingredient, while involvement by deemphasizing power-based relationships - by providing knowledge and information, as well as the,opportunity and the desire to use both - is the third requirement, and one that makes the process of value creation self-sustaining. The authors discuss the cultural traits most conducive to value enhancement and specifically tackle the ingraining process. The measurement of improvements both in value - as received and in the process of value delivery itself is extensively discussed. Numerous practical value indicators to assess progress in value creation are proposed. Being a judicious how-to, why-to amalgam, the book will appeal equally to executives and managers seeking to install value as a guide to action, as well as to graduate and advanced undergraduate students seeking therationale underlying value management.