● Inbound logistics are activities concerned with receiving, storing and distributing inputs to the product or service including materials handling, stock control, transport, etc.
● Operations transform these inputs into the final product or service: machining, packaging, assembly, testing, etc.
● Outbound logistics collect, store and distribute the product to customers, for example warehousing, materials handling, distribution, etc.
● Marketing and sales provide the means whereby consumers/users are made aware of the product or service and are able to purchase it. This includes sales administration, advertising and selling.
● Service includes those activities that enhance or maintain the value of a product or service, such as installation, repair, training and spares.
● Procurement. The processes that occur in many parts of the organisation for
acquiring the various resource inputs to the primary activities.
● Technology development. All value activities have a ‘technology’, even if it is just know-how. Technologies may be concerned directly with a product (for example, R&D, product design) or with processes (for example, process development) or with a particular resource (for example, raw materials improvements).
● Human resource management. This transcends all primary activities. It is concerned with those activities involved in recruiting, managing, training, developing and rewarding people within the organisation.
● Infrastructure. The formal systems of planning, finance, quality control, information management, and the structures...