The Impact of the Integration of Value Analysis and Value Chain to Reduce Costs Empirical Study of the Iraqi Light Industries

Abstract

Administration seeks in economic units to achieve its strategic goals through the preparation and implementation of plans to meet the competitors markets - domestic and foreign and to meet the needs of customers of products and services at competitive prices and specifications, as well as to achieve added value for stakeholders. So, some of these economic units resort to follow a variety of methods to cope with the pressures they face, and led to reduce some of the activities or reduce costs or change prices and expansion in the provision of after-sales services; however, those methods alone may not solve all problems.A business organizations achieve competitive advantage - whether to introduce new products or reduce the costs of existing products - using value analysis methods and the value chain to reach the target cost and selling at bargain prices, and that a strategic objective. But achieving this goal may face the occurrence of some practical problems related to take some decisions, Exclude of some activities that do not add value - of the product or economic unit or reduce some of the costs, to be studied and analyzed their effects on products and activities of the organization, so was the drafting of the research problem follows by asking:Is that the use of value analysis and value chain improves the value of the product and reduces costs which improves the competitive position of economic unity?The most important results is the style of value analysis and value chain as a foundation stone to gain a competitive advantage and maintain, where the style of value analysis works to improve or abolish the functions of the product while the value chain works to reassemble the economic activities of the unit in a manner that supports activities that add value and excludes activities that do not add value in accordance with the method allows an understanding of the causes of the costs, and sources of discrimination