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Core competencies

Core competencies refer to the factors that business organizations perceive as being significant in its processes, operations and functions. They are normally an outcome of distinctive skills and techniques of production implemented with the main objective of delivering value to the end user of the product. Core competencies are a vital tool that organizations can deploy in order to access diverse markets (Loader, 2007). Core competencies are a strategy for organizational growth, because it results to the production of core products that can be consequently used to produce additional products and services for the end users. Core competencies are vital in the attainment of competitive advantage that is primarily determined by the capabilities of the business enterprise (Naresh, 2007). The onset for carrying out an analysis on the core competencies is the acceptance that competition is a race for the mastery of competence as it is beneficial towards the attainment of market positioning and market power. It is essential to take into account that the business cannot undertake all its business processes and functions effectively, especially if they are not directly related to the achievement of competitive advantage. Therefore, the objective is that the top management has to shift its attention on the competencies that can result to the achievement of competitive advantage (Naresh, 2007).

Operations management

Operations management refers to the field of management that primarily lays emphasis on ensuring that the execution of the business operations are done in a manner that is efficient and utilizes minimal resources in order to ensure that the business goals and objectives are achieved. Typically, it is an example of a management strategy that aims at the conversion of the business resources into profitable outputs with the aim of customer satisfaction. The usage of operations management involves the management of the organizational processes that serve to convert the inputs, such as labour and energy, into outputs, such as goods and services (Wild, 1995). This implies that the usage of operations management plays an integral role in productivity analysis, planning for the usage of materials, controlling the costs of production, development of strategic manufacturing policies, controlling production and management of equipment maintenance. It is essential to note, that effective operations management requires the use of people`s skills, rationality during analysis, creativity and a comprehensive knowledge of technology. Operations management is also a significant requirement in ensuring the effective functioning and management of manufacturing and production systems and plant management. Therefore, operations management should constantly involve supervision, designing and redesigning of the organizational operations (Naresh, 2007).

Key Performance Indicators (KPI)

KPIs refer to performance management variables that an organization can deploy to assess its success towards the achievement of a strategic goal. Success is usually viewed in terms of the progress made towards the attainment of the strategic goals and objectives. The choice of the right KPI depends on having a comprehensive understanding of what is of ultimate importance to the organization. The usage of KPIs plays an integral role in the formulation of strategic goals and objectives, because KPI helps the firm to define and assess the progress towards its goals after the analysis of the mission, identification of the stakeholders and the organizational goals (Wild, 1995). KPIs are also quantifiable factors that can be used to indicate the critical success factors of the enterprise. Additionally, KPIs are core towards the success of the organization, because they lay a framework for limiting the factors that are central towards the attainment of organizational success. Another usage of KPI is that it can function as a performance management tool in the sense that they offer a precise picture of what is significant and what the members of the organizations need for it to become a reality; this framework can be used in the management of performance. KPI can also be used for motivating the employees towards the achievement of the organizational targets (Naresh, 2007).

Statistical Process Control

Statistical Process Control refers to the use of statistical methods to monitor and control a process with the main objective of ensuring that the process operates optimally, so that a conforming product can be produced. When using Statistical Process Control, a process is characterized by its predictability to result to the development of the most conforming product with minimal waste. Statistical Process Control is applied in the context controlling manufacturing lines and any other organizational process that has an output which is measurable. Some of the tools used in the statistical process control, include the use of control charts, laying emphasis on continuous improvement and designed experiments (Naresh, 2007). Apart from waste reduction during production, Statistical Process Control can be used in reducing the time required for producing the finest from end to end. This is mainly because of a diminished probability that there will be a need to rework on the product after it has been finished. Statistical Process Control is also used in the identification of bottlenecks, estimation of wait times and other potential sources of delays during the production process. An important usage of the SPC is its capacity to examine the production process and the sources responsible for variations through the use of tools aimed that focus on objective analysis instead of subjective opinions. The strength of each source is determined empirically (Naresh, 2007). Because SPC puts more focus on early detection and protection, it has a unique advantage, when compared to other quality models.

Supply Chain Movement

Supply Chain Management refers to designing, planning, executing, controlling and monitoring of supply chain activities with the primary aim of establishing sustainable competitive advantage, creating value for the customer, coordinating supply and demand and global performance management (Naresh, 2007). Supply chain management is carried out in all the processes, involving the movement of raw materials, inventory of the work in progress and distribution of finished goods to the customers. The usage of supply chain management is diverse, including the establishment of effective supply chains and competing in a global marketplace. The usage of supply chain management is also an essential element in the establishment of global joint ventures and strategic alliances and partnerships (Wild, 1995). Supply chain management also plays an integral role in the creating of customer satisfaction at the delivery point. Supply chain management is also used in increasing efficiency, elimination of bottlenecks during distributions through the establishing of a chain that responds to the customer needs. Supply chain management is also applied in the integration of core business processes across the supply chain with the main objective of creating value for both customers and stakeholders. Other business operations that can be integrated with supply chain management include sourcing, management of logistics and procurement (Naresh, 2007).


Range is a term used in descriptive statistics to mean the length of the smallest interval that holds all the data that is obtained through subtracting the sample minimum from the sample minimum. Range is mainly used for indicating the statistical dispersion (Naresh, 2007). Range is a crucial aspect of quality control, which is primarily used in studying the variations observed in the quality of the manufactured units, whereby all the units that are manufactured within the range are accepted and those falling outside the range are rejected. Range can also be used in evaluating the safety stock level depending on the current requirements, this implies that range can be deployed for planning purposes. Range charts are used in the observation of variable statistics that are used in assessing the disparity between the observations made in a given time. As a statistical variable, range plays an integral in the creation of quality control charts (Naresh, 2007).

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