The segregation of business processes into departmental levels is done by means of Value Chain. It is a conventional practice of segregating business process into various stages. The significance of the presence of an operational manager right from the purchasing of raw materials to the sale of finished goods to customers is realized due to the value chain. Functional boundaries are not given importance in the value chain approach. Due to value chain approach, a lot of firms have now realized and accepted the significance of the presence of an operation manager.