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Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
Edition 8ISBN: 978-0134156323Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
Edition 8ISBN: 978-0134156323 Exercise 2
What is value added, and how is it achieved?
Explanation
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Value added:
Manufacturing companies convert raw materials into finished goods. Raw materials could be in crude form. When companies convert them into finished products they add value to each product. This is how value is added.
Explanation:
Value addition is one of the major functions for any company. Manufacturing companies add product features, functions and benefits so that value addition is achieved. Value addition enhances the utility of the product and generates more revenue for the company. Companies spend a large amount of money towards research and development activities so that they add more and more value to the product.
Value added can be achieved through the following ways:
1. Converting natural resources into finished and refined products. For example conversion of wood into beautifully crafted furniture.
2. Add necessary features to the product as per the customer expectations. For example mobile manufacturing companies bring different product innovations to make the product marketable and attractive.
Manufacturing companies convert raw materials into finished goods. Raw materials could be in crude form. When companies convert them into finished products they add value to each product. This is how value is added.
Explanation:
Value addition is one of the major functions for any company. Manufacturing companies add product features, functions and benefits so that value addition is achieved. Value addition enhances the utility of the product and generates more revenue for the company. Companies spend a large amount of money towards research and development activities so that they add more and more value to the product.
Value added can be achieved through the following ways:
1. Converting natural resources into finished and refined products. For example conversion of wood into beautifully crafted furniture.
2. Add necessary features to the product as per the customer expectations. For example mobile manufacturing companies bring different product innovations to make the product marketable and attractive.
Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
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