Opportunity Cost and Value Chain for Fabrication of a Screw Retained Implant Supported Crown
Jul 18, 2018
Our Dental Velocity case presentations focus on concepts and procedures that:
- Demonstrate simplicity
- Improve outcomes
- Create efficiency
- Increase revenue
This presentation will introduce the concepts of opportunity cost and the value chain in the context of a case for fabrication of a screw retained implant supported crown
“Time is Money" - Benjamin Franklin
Benjamin Franklin coined the phrase "Time is Money" and highlighted his reasoning about opportunity cost in his “Advice to a Young Tradesman” (1746)
“Remember that Time is Money. He that can earn Ten Shillings a Day by his labor, and sits idle one half of that Day, has really spent or rather thrown away Five Shilling besides"
Every resource can be put to an alternative use. The choice of one may result in the lost opportunity of another, i.e. increase your revenue and profits.
Michael Porter in his book "Competitive Advantage: Creating and Sustaining Superior Performance" (1985) introduced the concept of a value chain.
A value chain is the full range of activities that businesses go through to bring a product or service to their customers. It can drive cost, improve customer value and differentiate from the competition.
While the value chain concept was conceived in the context of large global companies, such as automakers, the concept applies to any company, large or small, that provides a service or product.