January - March 2013 - National Institute of Rural Development

10 D. Nagayya and P. Tirumala Raotechniques so as to enhance their productivity,efficiency and competitiveness by reducingor eliminating manufacturing waste, andstreamlining the system through applicationof various LM techniques, e.g., 5S System,Visual Control, Standard Operating Procedures(SOPs), Just in Time (JIT), KANBAN SystemCellular Layout, Value Stream Mapping, PokaYoke or Mistake Proofing, Total ProductiveMaintenance (TPM), etc. Workerempowerment is also emphasised. Initially thescheme will be implemented in 100 miniclusters (each of a group of 10 enterprises) forone year at a total cost of ` 30 crore. Thescheme is in operation from July 2009. Later itwill be extended to 300-500 clusters in a fewyears. Results will be in the form of improvedprocess flows, reduced engineering time,proper personnel management, better spaceutilisation, scientific inventory management,etc. These will improve the quality of productsand reduce costs. LM counsellors appointedfor a few clusters will identify and implementappropriate LM techniques. The effort will bringabout improvement in the quality of productsat lower costs, which will enhance thecompetitive ability of enterprises. NationalProductivity Council, New Delhi has beenappointed the National Monitoring andImplementation Unit for the pilot project. TheMSME-Development Institute at the state levelhas nominated the nodal officer forcoordination with NPC at the local / field level.Awareness programmes will be conducted inthe clusters. Consultant’s fee for each clusterup to 80 per cent will be borne by GoI, and 20per cent by the beneficiary enterprises (LUS,November 2009, pp.6-8).Quality Management Standards (QMS)and Quality Technology Tools (QTT) : This waslaunched during 2008-09, with a budgetprovision of ` 40 crore for four years. Thescheme aims at improving the quality ofproducts in the MSME sector, and inculcatingquality consciousness among units of thesector. The major activities envisaged underthe scheme are: (a) Introduction of appropriatemodules for technical institutions with a targetcoverage of 2000 technical institutions; (b)Organising awareness campaigns every yearfor MSMEs; (c) Organising competition-watch(c-watch) every year in the two sectors; (d)Implementation of QMS and QTT in 100selected MSEs every year; and (e) Monitoringat least two international study missions peryear. The focus is on sensitising andencouraging MSMEs to adopt the latest QMSand QTT techniques so as to strengthen theiroperations, and to keep a watch on the sectoraldevelopments in the country by undertakingdefined activities (LUS, October 2009, pp. 16-19).Energy Efficiency and Quality CertificationSupport (Energy) : The focus is on sensitisingenterprises and spreading an awareness aboutthe need and benefits of adopting energyefficient technologies and using differentquality certification measures for reducingemission of green house gases (GHGs), andimproving the quality of products at reducedcosts so as to improve the competitiveness ofthe enterprises in the global arena. Thefollowing initiatives are being pursued underthis scheme: (a) Conducting awarenessprogrammes on energy efficient technologies,availability of energy efficient equipments, andbenefits from energy efficient techniques andclean development mechanism (CDM); (b)Supporting energy audits in sample units inclusters; (c) Promoting replication of modelenergy efficient technologies (EET) afterpreparing detailed project reports in theclusters, and implementation of the clusterplan; (d) An innovative concept of clusterbasedcarbon credit aggregation centres(CCACs) has been planned under the schemeto initiate MSMEs to CDM benefits; and (e)MSMEs are encouraged to acquire productcertification / licences from national /international bodies, and adopt otherJournal of Rural Development, Vol. 32, No. 1, January - March : 2013JRD 2 (1)