Competitive advantage is important for the success of a company and this depends on the competences possessed by the company. Key competences are the minimum competences that a company needs to have to compete in its industry and core competences are these competences that the company is good at doing. The core competences of a company are what make it different from its rivals and thus gain competitive advantage. Let’s take the car industry, their product is the same but the difference lies in their operation. “however important production design and performance may be, highly efficient operations are the key to keeping costs down and achieving high levels of quality”. (Pilkington, 2007). Actually the competences which are present in the operations are determinant for the success of a strategy. An example in the manufacturing sector is Toyota, which created the Just in Time system, to face uncertain supply of materials, thus saving cost on inventory and created a high-quality production system. QUALITY
Quality is a measurable feature to show reliability, consistency, fitness, conformity to standards. Juran (1988) defined quality as ‘fitness for purpose or use’, which is meets specific objectives that needs to be achieved. Quality is important to sustain business activities as an unsatisfactory product is equal to Bad reputation for the firm. There are many management approaches to quality; all having different philosophies and one of them is TQM. TQM – Total quality management is a collection of approaches from Japanese firms and different quality gurus to make a quality strategy. TQM is the creation of quality culture within the firm, having as main goal performance improvement.
It has a Management led approach, aiming at getting things right at the first time by eliminating variations. Quality control is a very important process for products where specifications are important. The traditional approach to quality control was to produce, then check and then sell products meeting specifications and rejects those not meeting the specifications. The TQM approach to quality control aim for zero defects, this by reducing variation from the production process. To maximize quality, variation should be minimized. Variation is sometimes called the fundamental cause of poor quality (Evans, 1989). By minimizing variations, quality is thus being increase and production cost is also optimize as there are less rejects, thus helping essentially for the...