Value Chain and Process Improvement

 

Operations are composed of many different processes to fulfill customer needs and requirements. The value chain is a higher-level view of those processes from a customer view. In order to meet customer requirements like quality and cycle time, organizations need to ​​identify the value chain, subprocesses and measures needed to meet the customer needs.

Consider a process from an organization you are familiar with. In 500-750 words, complete the following:

​Identify the steps in the high-level value chain required to fulfill the customer requirements from beginning to end.
From the high-level value chain steps, identify the operational subprocesses.
Identify those metrics that the organization should monitor at both the value chain level and subprocess level.
​​Based upon the process you described above, if an organization needs to improve a process within the value chain, how would you analyze the process and metrics to know that the process is not working
Explain what steps the organization could take based upon your analysis for value chain improvement.

 

Sample Solution

Centers for Disease Control and Prevention (CDC), which has historically received funding for protection against infectious diseases and for prevention of chronic disease, has seen an approximately 1.2 billion dollar decrease in funding since 2017, whereas the Food and Drug Administration (FDA) saw a 454 million dollar increase in funding, which is approximately the amount of their total budget that is spent on medical product innovation initiatives.5
The allocation of government financing for public health, healthcare delivery, and health-related scientific research is heavily influenced by U.S. politics and who is resident in the oval office, as the majority of public health funding is considered discretionary, making the amount of public health funding wax and wane with the political agendas of the federal administration. Since President Trump was elected, government financing for HRSA, CDC, SAMHSA, and CMS has decreased while FDA and NIH budgets have increased.5 A table depicting the amount in budgetary changes for each agency since Trump’s election is shown below, in billions.
Agency 2017 2019 2017-2019 (+/-)
HRSA 10,458 9,604 -854
CDC 12,100 10,921 -1,179
SAMHSA 4,258 3,548 -710
CMS 6,027 5,729 -298
FDA 2,800 3,254 +454
NIH 34,229 34,767 +538
Source: Enard KR. HMP-5720-04 Government Financing of Health Care: Military Health System, Veterans Health System, Public Health. February 2019.
The Trump administration has been very clear about its intentions for the FDA and has aggressively pressed for a more streamlined process for drug approvals in order to significantly increase the number of generic drug approvals as part of the American Patients First blueprint.6 This blueprint is intended to lower drug prices and reduce out-of-pocket costs for individuals and Medicare Part D beneficiaries and will ultimately have a major impact on the economy and the pharmaceutical industry.7 Overall, the Trump administration is heavily influencing the financing for drug research and approvals through its policies and budget allocations to the FDA.
Most importantly, the CDC has seen a 1.2 billion dollar decrease in funding sinc

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