Lean Manufacturing Competitiveness Scheme for MSMEs - Dc Msme
1 National Manufacturing Competitiveness Programme (NMCP) for MSME sector Implemented by Ministry of...
-
Upload
steven-caldwell -
Category
Documents
-
view
222 -
download
2
Transcript of 1 National Manufacturing Competitiveness Programme (NMCP) for MSME sector Implemented by Ministry of...
1
National Manufacturing Competitiveness
Programme (NMCP) for MSME sector
Implemented byMinistry of Micro, Small and Medium Enterprises
Government of IndiaNew Delhi
Micro, Small & Medium Enterprises
Schemes for Exports
All most all the schemes of DC (MSME) are meant to
encourage MSME including export, However ;
• National Manufacturing Competitiveness Programme
(NMCP) for MSME Sector (To Enhance
competitiveness of MSME sector to take-up global
challenges and
• Export Promotion are dedicated schemes
3
National Manufacturing Competitiveness Programme (NMCP) for MSME Sector
Challenges faced by Indian MSMEs
Access to Technology
I.P.R. related issues,
Design as market driver
Wasteful usage of resources / manpower
Energy in-efficiency and associated high cost
Low ICT usage
Low Market penetration
Quality Assurance / certification.
National Manufacturing Competitiveness Programme (NMCP) for MSME Sector
Objectives
Focus on increasing competitiveness of MSME sector
Key initiative for survival of MSMEs in domestic /
international markets
A catalyst approach / create role models
Implementation with Public Private Partnership
Challenges for implementation
Basically a Supply side initiative
Fear of MSMEs in disclosing data.
MSMEs are hesitant in investing their contribution.
6
NMCP - Plan Outlay for 2012-13 (Rs. crore)
S. No.
Name of the Scheme Proposed Outlay
(2012-13)
1. Enabling Implementation of Quality Management Standards and Quality Technology Tools (QMS/QTT) for SMEs
10.00
2. Entrepreneurial & Management development of SMEs through Incubators
12.00
3. National Campaign for awareness in Intellectual Property Rights
5.00
4. Application of Lean Manufacturing 15.00
5. Design Clinic Scheme
14.00
6. Technology & Quality Up gradation support for MSMEs 26.00
7. Marketing Assistance & Technology Up gradation for MSMEs
8.00
8. Promotion of ICT in Manufacturing sector 20.00
Total 136.00
7 7
• Objective: To minimize wastages in manufacturing
• Lean Manufacturing (LM) is Better Production of Goods by
Eliminating Non-value Added Activities / Wastes
Helping to Produce More with Same Resources
• Scheme is under operation on pilot basis for 100 mini clusters
• NPC is working as Monitoring & Implementing Agency
• Evaluation completed for current scheme and further up-
scaling EFC note being processed.
1. Lean Manufacturing Scheme
7
8 8
Implementation approach
Initially cluster units to be made aware regarding
lean techniques
‘Mini Clusters’ of 10 units (appx.) to be created
SPV to be formed by ‘Mini Cluster’.
GOI : Private Share – 80:20
Max. cost of LMC to be Rs. 23.5 lakh
Monitoring of milestones by NMIU.
Lean Manufacturing Scheme
8
9 9
• Total Scheme Budget : Rs. 30.57 cr.
– GoI contribution : Rs. 25.87 cr.
Financial Progress
– Till March 2012 : Rs. 12.51 cr
Physical Progress Awareness Programme : 120 (target 100) SPVs formed : 100 (target 100) Lean Consultants finalized : 85 (target 100) Lean implementation underway :
Mini clusters : 85 (target 100)
MSME units : 840 (target 1000)
Lean Manufacturing Scheme ….contd.
9
1S implementation - scrap yard
Before After
Removed the scrap in scrap yard. & create the space for die storage
2S implementation - Packing & dispatch area
Before After
Packing & dispatch area –unwanted material removed
Shining Example for Shadow Board
Before After
Die Set up Graph- (Before/After)
SPVs formed (Zone wise)
Sr. No. Zone SPVs
formed
1 North 37
2 East 16
3 West 25
4 South 26
Total 104
SPVs formed (State wise)
S.No. State No. SPVs formed
1 Andhra Pradesh 3
2 Assam 23 Bihar 14 Delhi 115 Gujarat 86 Haryana 3
7 Himachal Pradesh 2
8 Jharkhand 3
9 Karnataka 5
10 Kerala 4
S.No. State No. SPVs formed
11 Madhya Pradesh 2
12 Maharashtra 1513 Orissa 514 Punjab 1115 Puducherry 116 Rajasthan 2
17 Tamil Nadu 13
18 Uttar Pradesh 7
19 West Bengal 5
20 Uttarakhand 1Total 104
SPVs formed (Sector wise) S.No. Sector/Sub Sector
No. of SPVs formed
S.No. Sector/Sub SectorNo. of SPVs formed
1Auto & Engg. Components
1814
Light Engineering 7
2 Ball Bearing 3 15 Machine Tools 3
3 Diamond Processing 1 16 Metal Work 1
4Diesel
Engines/Motor&Pump sets
217
Oil expellers 1
5 Electrical/Electric Fans 3 18 Packaging 2
6Engg. & Fabrication 19
19Chemical & Die
Units.1
7 Food Processing 6 20 Pharma 2
8 Foundry 4 21 Plastic 4
9Granite 1
22IT Hardware &
Electronics1
10Hand Tool 4
23Rice Milling 3
11 Handicrafts 2 24 Scientific Instruments 2
12Apparels and Garments 8 25 White Goods 3
13 Leather 3Total 104
17 17
• Lean Manufacturing is a comparatively new initiative
(on such a large scale) hence MSMEs are initially
hesitant
• Reluctance in data sharing
• SPV formation is time consuming
• NPC has limited resources for monitoring on large
scale, hence some more agencies are required
• Good LMCs not inclined to work with MSMEs
• Pvt. Share is not being contributed as per schedule
• Difficulty in co-ordination among 10 units
Lean Manufacturing Scheme (Constraints)
17
18 18
Objective:
To Bring the industrial design fraternity closure to the MSME sector
Increase the competitiveness of local products / services through design
Develop an institutional base for the industry’s design requirement
Major activities :
Setting up of design clinic centre - HQ
Regional Centres – 4 Nos.
Awareness seminars and workshops – 200 Clusters.
Design projects for individual MSME or a group of MSMEs
Students Projects
Orientation Programme for Designers
NID & IISc. Are the nodal agency
2. Design Clinics Scheme
18
19
Design Clinics Scheme – New Products developed by MSMEs
(1) Visitor Management System,
(2) Improved light weight pump
(3) Bottle vision equipment
20 20
Design Clinics Scheme – New Products
(1) Portable Hydraulic (2) ENT multi scope(3) Syringe (precision type)
21 21
• Total Scheme Budget : Rs. 73.58 cr.
– GoI contribution : Rs. 49.08 cr.
Financial Progress
– Fund Released (upto 16.07.2012) : Rs. 15.30cr
Physical Progress Setting up Design centres : 5 (target 5 ) Design Seminars : 197 (target 200) Design Workshops : 49 (target 200) Design projects MSMEs : 66 (target 300) Students : 23 ( target 100)
Design Clinics Scheme ……contd.
21
22 22
Lack of inclination of Industrial Design professionals
towards MSMEs
MSMEs hesitant to contribute their share
Sector specific design institutes not yet actively
involved
MSMEs still believe in copy – paste rather then
innovation
Design Clinics Scheme (Constraints)
22
23 23
Objective:
• Focuses on Energy Conservation, CDM & Product
Certification
• Activities Proposed:
1) Awareness Generation for Energy Efficient Technology
2) Credit Linked subsidy for EET Projects (25 %)
3) Encourage MSMEs through subsidy to acquire National
as well as International Certification of Products
3. Technology and Quality Upgradation Support (TEQUP)
ENERGY EFFICIENT TECHNOLOGY FOR MSME SECTOR
Roller kiln - Morbi ceramic cluster
Re-cupeater – pot furnace Firozabad
Boiler - Plywood unit, Ernakulum
25
Total Scheme Budget : Rs. 140.98 cr.◦GoI contribution : Rs. 65.73 cr.
Financial Progress
◦Till end of 2011-12 (XI Plan) : Rs. 5.97 cr
◦Expenditure (till 31.3.2012) : Rs. 6.04 cr.
Physical Progress MSMEs asstd for EETs (XI Plan): 113 (target 390)MSMEs asstd for product certi. : 448 (target 4000)Awareness programme : 50 (target 60)
25
Technology and Quality Upgradation Support (TEQUP)
25
26 26
• Fund release for EETs too complex
– SIDBIs procedure may be streamlined
• EET DPRs for MSMEs (1050 nos ) received from BEE recently,
– These need to be capitalized with the assistance of MSME-Dis
• Product Marking reimbursement taking time at MSME-DI end
TEQUP – Constraints
• The modified ICT Scheme with cloud
computing approach has been concurred by
Planning Commission and Shortly SFC
meeting will be held.
4. Promotion of ICT in MSME sector
28
Advantage of Cloud Computing
• Capital Expenditure(CAPEX) is getting converted into operational expenditure (OPEX).
• Device and Local independent• Centralized meeting system.• Pay as you use model facility• MSMEs does not have to invest in IT personnel
for maintenance purpose.
Components of Cloud Computing
• Software as Service• Portal as Service• Infrastructure as Service
29
SCALING OF SUBSIDY*
Sl.No.
Turn over CategoryOf MSME
1st yearsubsidy
2nd year subsidy
3rd year subsidy
1. Below Rs.1.0 cr. OTNER 85 % 75 % 70 %
2. Rs. 1.0 cr < up to Rs. 5.0 cr. OTNER 75 % 70 % 65 %
3. Rs. 5.0 cr. And Above OTNER 60 % 55 % 50 %
4. All NER, Special states
85 % 75 % 70 %
5. All Women owned units
85 % 75 % 70 %
* Tentative
FUNDING PATTERN OF MODIFIED ICT SCHEME* (Rs. In Lacs)
Sl.No.
Activity Quantity Rate Done by GOIcontr.
PvtContr.
Total
1. AwarenessProgramme andworkshops, etc.
100NOS.
2.0 MSME-DI ServiceProvider, with local partners, etc.
200 - 200
2. Subsidy for availing Cloud computing services
1500units
3.0 On service usage model
3375 1125 4500
3. National Portal for MSMEs
LS 100 By Outsource Agency
200 - 200
4. Impact Assessment
LS 50 By Outsource Agency
50 - 50
TOTAL 3825 1125 4950
* Tentative
32 32
Objectives:
• Scheme to support awareness generation as well as implementation of
Quality System Tools in MSME sector
Conforming to International Standards, 5S, Six-sigma, TQM, TPM
ISO 9000, ISO 14000, ISO18000, ISO 22000 etc.
• Major activities to propagate Quality Management in MSMEs are:
1) Compulsory Courses in Govt . ITIs / Polytechnics
2) Awareness Programmes in Clusters on QMS / QTT topics
3) Implement Quality Mgt Techniques among MSMEs
4) Special Studies for Threatened Products
5) Assist International Study Missions for SME groups
6) Organize National level workshop on QMS/QTT
5. Quality Mgt. Systems/Tools (QMS/QTT)
32
33 33
Progress:
1) Course materials for 1800 ITIs prepared and 1745 teachers
trained,
2) Course details for Polytechnics is taken up this year.
3) More than 364 awareness programmes in MSME clusters
completed on QMS / QTT topics by expert agencies,
4) Implementation of Quality Mgt .Techniques among MSMEs –
10 clusters has been initiated.
5) Assist International Study Missions for SME groups – 1 mission
to Japan (with 20 SMEs) completed last year.
Quality Mgt. Systems/Tools (QMS/QTT) ….Contd.
33
34 34
• Total Scheme Budget : Rs. 50.00 cr.– GoI contribution : Rs. 41.10 cr.
Financial Progress
– Till date : Rs. 5.31 cr
Physical Progress Awareness Programme : 364 (target 400) ITI teachers trained : 1745(target 1800) Study mission : 01 QMS/QTT implementation ; 100nos.MSME initiated
(10 Cluster)
Quality Mgt. Systems/Tools (QMS/QTT)
34
35 35
• QMS/QTT implementation not yet sanctioned due to IFW
insisting on competitive bidding for engaging expert agency
• Limitation to use only clusters from Threatened product
catagory
• QMS/QTT courses yet to be prepared for Polytechnics
• State Govt not sparing ITI teachers for training
• MSMEs / Associations Hesitant to give contribution
• Medium units not included
QMS/QTT (Constraints)
35
36 36
• Objectives:
• IPR Tools :
– Patents Trademark Indl. Design
– Copyrights G.I. Trade Secret
• Most MSMEs are unaware of IPR Benefits / Norms
• Focused Activities
1) Awareness & Sensitization Programmes
2) Pilot Study
3) Interactive Seminars / Workshops
4) Short / Long Term Training
5) IP Facilitation Centre
6) Assistance for Grant on Patent / GI Registration
6. I P R Campaign
37 37
• Total Scheme Budget : Rs. 55.00 cr.– GoI contribution : Rs. 50.00 cr.
Financial Progress
– Till end of 2011-12 : Rs. 7.64 cr
– Budget Outlay (2012-13) : Rs. 5.00 (GoI)
– Expenditure (till 12 July,12) : Rs. 8.42 cr.
Physical Progress Assistance for setting up IPFC : 24 (target 40) Awareness Programme : 128 (target 150) Workshops : 42 (target 50) Pilot Study : 02 ( target 30) Short term training : 07(target 50)
IPR Campaign
37
38 38
1) Lack of Awareness, Knowledge & Expertise
2) Lack of confidence in Enforcement mechanism and
perception of higher cost of Monitoring & litigation.
3) Majority of MSMEs do not have IP Strategy in place.
4) Shortage of Trained Human Resources
IPR Campaign (Constraints)
39 39
Objectives:
Assist Incubation of Innovative Ideas Promote Emerging Technological & Knowledge-based
Innovative Ventures Encourage Ideas to Become MSMEs
• 100 BIs to be Located in engineering colleges, management
institutions and R&D Institutes @ 25 p.a in 4 yrs.
• Govt. Grant (Max. 85%) = Rs.4 - 8 lakh per Idea
• Each BI to Assist 10 Ideas / Units – Max. Rs.62.5 lakh + Rs.3.78 for
Infrastructure & Training.
• BIs to support and Nurture ideas for commercialization in a year
7. Incubators
39
40 40
• Total Scheme Budget : Rs. 79.45 cr.– GoI contribution : Rs. 66.50 cr.
Financial Progress
– Till end of 2011-12 : Rs. 9.00 cr
– Budget Outlay (2012-13) : Rs. 12.00 cr (GoI)
– Expenditure (till June,12) : Rs. 9.20cr.
Physical Progress Incubators set up : 105 (target 100) Incubatees approved : 350 (target
1000) Incubatees assisted : 250
Incubators
40
41
Constraints (Incubators)
• Lack of proposals with new ideas• Payment terms not attractive ( 30 %, 70 %) • Delay in Up-front contribution from Beneficiary• Delays in signing agreement Incubator / Incubatee
42 42
• Objectives:
• To enhance MSMEs competitiveness in the National as well as International
market through following activities;
• Major activities:
Technology up gradation in packaging
Skill up gradation /development for Modern marketing techniques
Special component for NER clusters
State/District level local exhibitions
Corporate governance practices
Marketing hubs
Reimbursement to ISO 18000/22000/27000 certification
8. Marketing Assistance and Technology Upgradation Scheme for MSMEs
42
43 43
• Total Scheme Budget : Rs. 23.00 cr.
– GoI contribution : Rs. 18.61 cr.
Financial Progress
– Till 16.07.2012 : Rs. 0.95 cr.
– Budget Outlay (2012-13) : Rs. 8.00 cr.
– Expenditure (till March,12) : Rs. 0.99 cr.
Physical Progress MSMEs (NER) benefitted : 18 MSMEs (OTNER) benefitted : 847 ISO 18000/22000 /27000 : 7 Corporate Governance : 20
Marketing Assistance and Technology Upgradation Scheme for MSMEs
43
44 44
Selection of agency is through EoI / Tender
ISO certification agencies not available
Duplicity of activity with other similar initiatives
State level local exhibitions not allowed outside states
Corporate governance practice not preferred by
MSMEs
Marketing hubs only for limited scope of work
Marketing Assistance and Technology Upgradation Scheme for MSMEs (Constraints)
44
45 45
9.Bar CodeObjectives: • Bar Coding assist in popularizing MSME Products, especially
for Exports & Retail
• Bar Coding an effective Tool to improve marketability
• Reimbursement allowed : 75% of Annual Fee for first 3 years (Bar Code Certificate)
45
46 46
• Bar Code Component (NMCP) has been merged
in MDA scheme for the year 2012-13 onwards.
Further Funds for Bar Code is in process for
allocation to MSME-DIs.
Bar Code contd……..
46
NMCP Web Applications- Bar Code- Marketing Assistance- Product Certification- Incubator- Design Clinic
NMCP Web Applications- Bar Code- Marketing Assistance- Product Certification- Incubator- Design Clinic
Web Address
• http://dcmsme.gov.im• http://nmcp.dcmsme.gov.in (To launch soon)
50 5050
Thank You