In the world of business administration, what is the difference between: 1- Value Chain 2- Value Stream?

The concept of a value stream differs from that of a value chain, which is described by Michael Porter in his book, Competitive Advantage: "The value chain disaggregates a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of (competitive) differentiation." This analysis focuses on activity costs and margins as a strategic-analysis activity. A value stream is much simpler than Porter's value chain. Porter's value chain relates to the enterprise as a whole, whereas value streams relate to a set of activities that satisfy a particular type of customer (internal or external). The value chain perspective is driven by a functional business view, evaluating costs and margins as a basis for competitive comparisons

Both are models for performing bunisess but the value chain one is much more higher in terms of efficiency !

 

Value chain 

The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources - money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.

The value chain concept is nearly same same as that of the fourth principle (Process approach) of the eight total principles of quality management.

Principle4 - Process Approach : "A desired result is achieved more efficiently when related resources and activities are managed as a process."

Steps in application of this principle are ...

1. Define the process to achieve the desired result.
2. Identify and measure the inputs and outputs of the process.
3. Identify the interfaces of the process with the functions of the organisation.
4. Evaluate possible risks, consequences and impacts of processes on customers, suppliers and other stake holders of the process.
5. Establish clear responsibility, authority, and accountability for managing the process.
6. Identify internal and external customers, suppliers and other stake holders of the process, and
7. When designing processes, consider process steps, activities, flows, control measures, training needs, equipment, methods, information, materials and other resources to achieve the desired result

Value stream

Sequence of activities required to design, produce, and provide a specific good or service, and along which information, materials, and worth flows.

I agree with all.

Value chain is a high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers. The value chain categorizes the generic value-adding activities of an organization

A value stream is an end-to-end collection of activities that creates a result for a "customer," who may be the ultimate customer or an internal "end user" of the value stream. The value stream has a clear goal: to satisfy (or, better, to delight) the customer. 

The value chain means how to satisfy your customers and deliver maximum value to them for the least possible total coast but The value stream means systemically analytical business seeks to achieve small incremental changes in processes in order to improve efficiency and quality to bring a product to market

I agree with Mr Vinod

Value Chain is a chain of activities performed by a company in a specific industry to deliver a valuable product or services to the market.

Value Stream is a sequence of activities required to design, produce and provide a specific product or service along with information, materials & work flow.