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 ... Define the process to achieve the desired result. Identify and measure the inputs and outputs of the process. Identify the interfaces of the process with the functions of the organisation. Evaluate possible risks, consequences and impacts of processes on customers, suppliers and other stake holders of the process. Establish clear responsibility, authority, and accountability for managing the process. Identify internal and external customers, suppliers and other stake holders of the process, and 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.