OCTOBER 19-20, 2012 - YMCA University of Science & Technology

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
TO STUDY THE IMPLEMENTATION OF PARETO ANALYSIS IN SME
INDIAN INDUSTRIES BY USING CAUSE AND EFFECT DIAGRAM: A
CASE STUDY
Kailash Attri¹, Rajeev Kr. Saha²
1 Research Scholar, Department of Mechanical Engineering, YMCA University of Science & Tech., Faridabad,
India
2 Asst. Prof., Department of Mechanical Engineering, YMCA University of Science & Tech., Faridabad, India
1* kailashattri.257@gmail.com
Abstract
The new generation has brought new challenges for firms, industries and countries. Success in such times is
demanding new perspectives on competitiveness. Analysis of problems of SME in India identified cause in
understanding about the concept and its implementation. Review of SME related literature, clearly indicated the
factors responsiblefor problems of SME. The focus of this work is on review of literature at the small medium
enterprise Indian industries and study of Pareto analysis -related frameworks and models. The studies are
further classified on the cause and effect frameworkkey criteria. Select frameworks and models of Pareto
Analysis were reviewed and categorized. A cause and effect diagram analysis is used for find out the real cause
of problems of SME.
Key words: Pareto Analysis, Cause and Effect Diagram, Small & Medium Enterprises (SME)
1. Introduction
SME are considered backbone of economic growth in all countries. Since economic reforms in 1991, Indian
small and medium enterprises (SME) are facing a very different scenario compared with the protective
environment for the past. Due to global competition, technological advances and changing needs of consumers,
competitive paradigms are continuously changing. These changes are driving firms to competitors,
simultaneously along several different dimensions such as design and development of product, manufacturing,
distribution, communication and Marketing[1].Seven Quality tool is becoming more efficient and more
responsive to find out the cause of problems of SME Indian industries.Today is the time of competition.
Everyone wants the better quality of product at minimum cost. There are various techniques to analyze and solve
work related problems like brain storming, Pareto analysis, cause and effect analysis, along with several methods
of data collection and analysis [4]. Pareto analysis and cause and effect analysis are widely being used in small
medium scale industry to identify the cause of problems related to the quality and productivity [2]. The purpose
of this paper is to identify the problem related to the Indian SME using cause and effect analysis. It plays a major
role in integrating manufacturing and managing them more effectively. Almost every industrial company is now
considering the implementation of an advanced system more efficiently.
2. Research Objectives
The Pareto Analysis framework is to be developed for analysis of strategy formulation in finding out the cause of
problems. Any SME can be analyzed and evaluated on the basis of various key items of framework. For our
study, we have undertaken a Fabrication Company. Therefore this study is aimed to
-Develop a case study with Pareto Analysis framework for analyzing the cause of problems
- Identify performance indicators in SME.
3. Company Profile
TFI Ltd is family run company, which started its operation in 1994 with vision of becoming a supplier of heavy
fabricated itemsfortheoriginal equipment manufacturers. With the coming of construction Equipments
Company like JCB ltd, Action Construction Equipments, Riva, Hercules, Indofarm,(ECEL, a unit of Escort’s
ltd.), MetsoMinerals group etc, there was a strong need of good quality parts suppliers. The company becomes
an automatic choice for thiscompany due to its commitment towards quality and on time delivery.TFI Ltd. is an
ISO-9001 – 2000 company and manufacturers of heavy fabrication items like main Frames, Boomscabin and
other child parts for different models cranes. These materials help in producing consistent quality products. The
total manpower employed is 150 which include qualified engineers having expertise in quality control, process
control, product development etc. The unit has an annual turnover of 35 Cr and current year growth in all respect
is targeted to be 12% higher then the previous year. The manufacturing operations are located in Faridabad
having a total area of 1500 square yard.
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