We have identified four techniques commonly used by organizations to manage costs over their value chain. The underlying objective of these four techniques-activity-based management, the target costing process, just-in-time procedures, and total quality management is to eliminate non-value-added activities from the value chain.

This objective is achieved by assigning employees the responsibility for managing these.non-value added activities, providing information about the cost of these activities, and rewarding managers who eliminate these activities. The customer ultimately defines non-value added activities. It is true that in determining the shape and structure of the value chain, ,the customer is king.