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Outline of Proposal for project work

Name of Student

Name of Guide

INTRODUCTION OF ORGANISATION

PROPOSED TITLE OF THE PROJECT WORK WORK:


CRITICAL INVESTIGATIONS INTO THE FACTORS INFLUENCING SURVIVAL & GROWTH OF
SMALL SCALE AND MEDIUM SCALE TECHNOLOGICAL INDUSTRIES IN MUMBAI & SUBURBAN
REGIONS.

INTRODUCTION
In the present scenario of liberalization, privatization & globalization, small and medium scale
technological industries are facing intense competition and hence survival and growth of these
industries has become a tough challenge. Some industries are consistently achieving the growth
under competitive conditions while others are not. As a result of this, new opportunities and
threats have emerged.

Maharashtra is financially and industrially one of the most developed state in India and often
called as the economic power house of India while the states capital Mumbai is called the
Commercial or the Business capital of India. While agriculture sector provides employment to a
majority (approximately 70%) of states population, it is the manufacturing and service sectors
that constitute significantly to the gross domestic product. This sector provides nearly 80% of the
states GDP, as compared with the national average of 65%. Major technological manufacturing
industries are located in and around Mumbai, Nashik, Aurangabad and Pune. Many small scale
technological industries have grown up and supporting the needs of the local big manufacturing
industries as well as exporting their products [1, 2].
Many small and medium scale technological industries are operating in Mumbai and suburban
region .Though there are lots of challenges and opportunities in front of these industries, most of
the people neglect the importance of the existing technology in these industries and its handling.
At present many small and medium scale industries are either sick or underperforming. There is
tremendous scope for the production management, product development, process planning, tool
design, plant layout improvement, productivity improvement etc. for performance improvement
in these industries with ultimate aim of cost reduction and to provide the innovative product or
technology to catering to the needs of the customer.

PROBLEM IN HAND

IMPORTANCE OF THE STUDY


There are many factors which affects the performance of technological industries. It may be
divided into two groups: (1) External factors & (2) Internal factors.

External factors are those which result from factors beyond the control of entrepreneur (e.g.
availability of power and other infrastructure facilities required for smooth running of industry)
while internal factors are those which are within the control of an entrepreneur. Some of the
internal factors affecting the industries are related to organization structure, production planning
& control, distribution channel, technical know-how, training, industrial relations and inadequacy
of management etc [9,10].

Industrial sickness and growth is a gradual process and does not develop suddenly. There are
some symptoms on the basis of which growth or decline of S.S.I. is seen. It includes turnover of
Industries, stock movement (slow or fast), increase or decline in production, sales and
profitability [7].

Small scale industries sector plays a vital role for the growth of the country. It contributes 40 %
of the gross manufacture to the Indian economy. The number of small scale units has increased
from 8.74 lakhs units in 1980-81 to 50 lakhs units in the year 2007. The S.S.I. sector was also
affected by foreign exchange constraints, credit squeeze, demand recession, higher interest
rates, shortage of raw material etc [3]. When the performance of this sector is viewed against
the growth in the manufacturing and the industrial sector as a whole, it shows confidence in the
resilience of small scale sector. In India, small scale sector play a pivotal role in the overall
industrial economy. It is estimated that in terms of value, the sector accounts for about 40 % of
the total export of the country. Further, in recent years, the medium & small scale enterprises
(MSE) sector has consistently registered higher growth rate compared to overall industrial sector.
The major advantage of the sector is its employment potential at low capital cost. As per
available statistics, these sector employs about 31 million persons spread over 12.8 million
enterprises and the labor intensity in the small scale sector is estimated to be almost four times
higher than the large enterprises.

Maharashtra contributes almost 14.7 % of Indians GDP and more than 15 % of the national
income, more than 215 industrial estates. Out of this major contribution is given by industries in
and around Mumbai and Pune. Almost 40 % of Technological manufacturing output comes from
small scale industries [3]. Despite the tremendous potential and large contribution of small and

medium enterprises to the economy, nearly 60% of the units are limping or are declared sick
[26]. There are various causes for such a situation and unfortunately there are no easy solutions.
Considering the above facts, it is more important to study the factors influencing survival and
growth of small scale technological industries in Mumbai & suburban regions and develop
conceptual framework for performance improvement of these industries

LITERATURE REVIEW
Entrepreneurship Development:
Entrepreneurship Development is a process in which persons are injected with motivational drives
of achievement and insight to tackle uncertain and risky situations especially in business
undertaking. The process of Entrepreneurship Development focuses on Training, education,
reorientation, creation of healthy environment for growth of enterprises.

Development and commercialization calls for expertise, ingenuity, and entrepreneurial creativity
in order to achieve success [9, 10]. By combining international marketing experience, human
resources, financial management, risk assessment skills, brand names, and intangible
organizational capabilities, these entities are far better positioned than smaller firms and public
agencies to convert an innovation into a commercial asset. Large firms are not necessarily the
most creative in terms of new ideas, nor are their R&D expenditures necessarily more productive
than those of smaller companies in terms of innovations. But the bigger companies stand a better
chance of developing and marketing an innovative product or service on a global scale and
reaping large returns with the help of well-developed research systems and channels of
distribution. The larger industries have advantage of resources, infrastructure and finance. But
changing business model, values and ultimately culture is difficult, if not possible for large
established companies. Smaller organization on the other hand can leverage their capacities for
entrepreneurial innovations and organizational change, thereby learning to achieve advantages
over larger organizations [19].

The Industrial Service Institute (ISI) under the Department of Industrial Promotion (DIP)
launched the EDP to give substance to the governments policies of stimulation of economic
growth of the country with following objectives:
1. To promote the development of small and medium enterprises that would encourage selfemployment among potential entrepreneur.
2. To provide in rural areas, special programmes are designed to stimulate new ventures and
encourage expansion of existing activities of small and medium enterprises.

3. To generate employment and self employment opportunities in the processing o indigenous


raw materials for local consumption and export.
4. To develop entrepreneurial opportunities for potential entrepreneur and upgrade managerial
skill for existing entrepreneur.

Techno-entrepreneurship:
Techno-entrepreneurship is defined as the entrepreneurial and intrapreneurial activities of both
existing and nascent companies operating an technology intensive environments (5).
It is a process in which industries are performing impressively in the development,
commercialization and standard new technology with sustained growth. [23]. The interplay of
Techno-nationalism and Techno-Globalism will have increasingly important regional dimension in
coming years [23].
Factors affecting Entrepreneurship Development
There are external and internal factors which affect the entrepreneurship development process as
mentioned below [42]:
Culture: Attitudes to wealth, elders, youth, experimentation, risk, work, professions, achievers,
success etc. Family, extended family, collective ownership vs. individual, Treatment of women,
castes, classes, minorities, etc.
INFRASTRUCTURE: Tangible, intangible, telecommunications, transport, distribution, health,
public safety, law and courts, education system, etc.
TECHNOLOGY: Access to large firms or universities and research labs for technology transfer
Access to supply chains Access to incubators and technology support
SOCIAL: Demographic profile (e.g. ageing population reduces entrepreneurship and start up
rates) Immigration and migration patterns Caste and class rigidities Social homogeneity
ECONOMIC: Growth opportunities, domestically and across borders Cyclical opportunities and
threats (unemployment may lead to entrepreneurship) Taxation treatment of capital gains, start
up expenses, intangible asset expenditure, stock options, etc.
LEGAL AND REGULATORY: Administrative burden imposed on smaller firms and start ups
Regulatory barriers (licenses, etc.) Property rights (tangible, intangible) can be protected and
marketed Right to incorporate, and costs of incorporation Costs of defending or enforcing

agreements or rights Penalties imposed for "failure", treatment of bankrupts Specific regulations
and laws relating to specific markets or activities
INFORMATION: Access to information about opportunities, technology, partners, laws and
regulations etc. Freedom of press and ability to advertise or disseminate information (e.g. about
new products) Accessibility of information in different languages
FINANCE : Discrimination in finance (e.g. age, gender, class discrimination) Sophistication and
development of markets (e.g. microfinance, start up and seed finance, angles, equity, religion
[e.g. Muslim finance], Venture Capital, second board and OTC markets, mezzanine, etc.)
Continuity in finance markets (i.e. are the gaps in the markets, or can an entrepreneur expand
smoothly from seed to IPO) Competition in financial markets (e.g. competitive finance markets
reduce the margin above cost of finance to lenders, and increase range of services) Ability to use
property rights as security (enables entrepreneurs to secure finance)
EDUCATION and HUMAN RESOURCES: Levels of literacy, numeric Computer and ICT literacy -Specific education in entrepreneurship at school, university - Access to training programs,
mentoring, advice
MARKET STRUCTURES: Monopolistic behavior, predatory pricing by large firms Networks,
clusters Flexibility in labour markets Industry or market specific incentives and subsidies
INDIVIDUAL: Individual personality and motivation traits e.g. locus of control, risk taking,
innovativeness Individual experience and knowledge

Creativity, Innovation, Entrepreneurship Development and Economic Growth:

Talent Quality

Creativity

Culture

Wikicapital
Incentives

Innovation

Institutions

Urban Environment
Finance

Entrepreneurship
Development /
Commercialization

R&D
Corporate System

Economic
Growth

Fig-1: Creativity and Economic Performance

Creativity: Creativity in some societies might be expressed through art, music, and crafts or
through institutions that ensure survival in harsh environments. While many forms of creativity
can be valuable, the economic measure encourages creativity that ultimately leads from
innovations to commercial results [17].

As knowledge deepens and becomes more varied, human capital becomes more creative pooled
into Wikicapital [15] through the formation of local and global teams, partnerships,
associations, and learning societies that facilitate the deepening and sharing of knowledge and
bring together diverse talents with different perspectives, viewpoints, and spheres of knowledge.
Wikicapital is accumulating because so many scientists share a common medium of
communication (English and Mathematics), they are increasingly mobile, and they have more
opportunities for face-to-face contact. Moreover, collaborative work has been greatly facilitated
by information and communication technology and the declining cost of Internet access.

Entrepreneurial Innovation:

The quality of human capital and its enhanced creativity create preconditions; but catalyzing that
innovation requires triggers and mechanisms that reinforce certain types of productive behavior.
One is a culture that is relatively tolerant of risk taking, specifically risks associated with
entrepreneurial activity. Such a culture is also more tolerant of entrepreneurial failure. Not only is
business failure not stigmatized, but specific institutions (e.g., bankruptcy and limited liability
laws) that contain penalties to be imposed on individuals when their business ventures fail, may
also encourage fresh initiatives. Thus, the social attitude towards certain kinds of risk taking
induces willingness on the part of individuals to be ambitious and to search for significant and
disruptive innovations. Culture, institutions, and incentive mechanisms serve as the matrix within
which creativity can flourish and lead to innovation [17].
There are three forms of innovation [7]:

Programmed innovation that is planned through research and development

Non- programmed innovation occurs when there is slack in the organization in the form
of more resources available than are presently needed. These are then used for
innovation purposes

Distressed innovation, when it is forced on the organization, such as when a crisis is


perceived and new actions are taken.

The techniques which speed up innovation process are:

Quality Function Deployment (QFD)

Robust Design(Taguchi Methods)

Failure-Mode-Effect-Analysis(FMEA)

CAD/CAM

The following are the other techniques which speed up innovation process:

Overlapping development phases

Fewer development phases can be implemented using CAD/CAM

Incremental Development using Kaizen

Better use of prototyping

The outcomes of value innovation as summarized in literature are [7]:

High commitment to the professional training of organizational members.

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Ther
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r
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hi
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oget
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x
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25]
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ti
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kt
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vi
dual
,br
oadl
yc
oupl
ed wi
t
hc
or
r
ec
tdec
i
s
i
on mak
i
ng [
9]
.Ac
c
or
di
ng t
ot
he
l
i
t
er
at
ur
e,onec
anf
i
ndt
hef
ol
l
owi
ngf
or
msofent
r
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s
hi
p:
1. Ac
ademi
cent
r
epr
eneur
s
hi
p(
Ber
c
ov
i
t
z&Fel
dman,2008)
;
2. Di
f
f
us
edEnt
r
epr
eneur
s
hi
p(
Mi
nk
e
s&Fox
al
l
,1980)
;
3. Di
s
per
s
edent
r
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s
hi
p(
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nk
es&F
ox
a
l
l
,2003)
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s
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r
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hi
p(
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i
eh,Ni
c
k
er
s
on,&Zenger
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s
i
nt
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at
edent
r
epr
eneur
s
hi
p(
Roy
er&St
r
at
mann,2007)
;
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l
abor
at
i
veent
r
epr
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s
hi
p(
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l
es
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l
es
,&Snow,2005)
;
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l
ec
t
i
veent
r
epr
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s
hi
p(
Zi
t
o,2001)
;
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t
ybas
edent
r
epr
eneur
s
hi
p(
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edo&Chr
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s
ma
n,
2006,c
ommuni
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yi
nt
he
9. Soc
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ngoft
het
er
m)
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10.Cor
por
at
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r
epr
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s
hi
p(
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gel
man,1984)
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nt
r
apr
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s
hi
p(
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r
i
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s
hi
p(
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t
t&Zel
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13.Manager
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alent
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s
hi
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ev
ens
on&J
ar
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l
o,1990)
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arent
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epr
eneur
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hi
p(
Br
us
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ar
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,2006)
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s
hi
p(
Har
r
y
s
on,2008)
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s
hi
p(
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uber&Henk
el
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17.Ser
i
alent
r
epr
eneur
s
hi
p(
Hyt
i
nen&I
l
ma
k
unnas
,2007)
[
20]
.
18.I
nt
er
nat
i
onalent
r
epr
eneur
s
hi
p;
19.Tec
hnoent
r
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s
hi
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por
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onofnew
bus
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nes
s
est
oac
or
por
at
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on.[
24]
.I
nt
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lEnt
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s
hi
pi
s ac
ombi
nat
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onofi
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hes
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udyofI
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albehavi
ori
nmul
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i
pl
ec
ount
r
i
es

[
21]
.
Fol
l
owi
ngar
et
hebas
i
cel
ement
si
nt
heent
r
epr
eneur
s
hi
p;
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r
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:per
s
on
2. Ent
r
epr
eneur
s
hi
p:Pr
oc
es
sofac
t
i
on
3. Ent
er
pr
i
s
e:Obj
ec
t
Ent
r
epr
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.Ef
f
i
c
i
entEmpl
oyee:
her
es
our
c
esaddv
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tandc
onv
er
t
st
hem i
nt
oa
Ef
f
i
c
i
entempl
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v
ent
pr
oduc
tors
er
vi
c
e
s
t
andi
ng t
he need, gener
at
es r
es
our
c
es and
Ent
r
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: pr
oac
t
i
v
e under
c
onver
t
st
hem i
nt
oapr
oduc
tors
er
v
i
c
e
Thef
ol
l
owi
ngqual
i
t
i
esc
ont
r
i
but
es
uc
c
es
st
ot
heent
r
epr
eneur
:
Needf
orpr
of
es
s
i
onal
i
s
m(
Tec
hnoec
onomi
c
et
hi
c
al
)
Tec
hnos
c
i
ent
i
f
i
cvi
s
i
on
Or
gani
z
i
ng
Mot
i
vat
i
on

Ri
s
kTak
i
ng
Apt
i
t
udef
orc
hange
Wi
l
lPower
Cr
eat
i
vi
t
y
Manager
i
alqual
i
t
y
Ambi
t
i
ous

Small Scale Industry:


Thef
ol
l
owi
ngr
equi
r
ement
sar
et
obec
ompl
et
edwi
t
hbyani
ndus
t
r
i
a
lunder
t
ak
i
ngt
obegr
aded
ass
ma
l
ls
c
al
ei
ndus
t
r
i
alunder
t
ak
i
ngwi
t
hef
f
ec
tf
r
om 21.
12.
1999.
[
2,
6]

An i
ndus
t
r
i
alunder
t
aki
ng i
n whi
c
ht
he i
nv
e
s
t
menti
nf
i
x
ed a
s
s
et
si
n pl
antand mac
hi
ner
y
whet
herhel
d orowner
s
hi
pt
er
mson l
eas
eoron hi
r
e pur
c
has
e doesnotex
c
eed Rs
.
1c
r
or
e
(
s
ubj
ec
tt
oc
ondi
t
i
on t
hatuni
tnotowned,c
ont
r
ol
l
ed ors
ubs
i
di
ar
y ofany ot
heri
ndus
t
r
i
al
under
t
aki
ng)

[
6]
.
Ancillary industrial undertaking:
The f
ol
l
owi
ng r
equi
r
ement
sar
et
o be c
ompi
l
ed wi
t
h by an i
ndus
t
r
i
alunder
t
ak
i
ng f
orbei
ng
r
egar
dedasanc
i
l
l
ar
yi
ndus
t
r
i
alunder
t
ak
i
ng[
6]
:

Ani
ndus
t
r
i
alunder
t
ak
i
ngwhi
c
hi
sengagedori
spr
opos
edt
obeengagedi
nt
hemanuf
ac
t
ur
eor
pr
oduc
t
i
onofpar
t
s
,c
omponent
s
,s
ubas
s
embl
i
es
,t
ool
i
ngori
nt
er
medi
at
e
s
,ort
her
ender
i
ngof
s
er
v
i
c
esandt
heunder
t
aki
ngs
uppl
i
esorr
ender
sorpr
opos
est
os
uppl
yorr
endernotl
es
st
han50
% ofi
t
spr
oduc
t
i
onors
er
v
i
c
es
,ast
hec
as
emaybet
ooneormor
eot
heri
ndus
t
r
i
a
lunder
t
ak
i
ngs
whos
ei
nves
t
menti
nf
i
xedas
s
et
si
npl
antandmac
hi
ne
r
ywhet
herhel
donowner
s
hi
pt
er
msoron
l
eas
eoronhi
r
epur
c
has
e,doesnotex
c
eedRs
.1c
r
or
e.

Medium Scale Industry:


Thef
ol
l
owi
ngr
equi
r
ement
sar
et
obec
ompl
et
edwi
t
hbyani
ndus
t
r
i
a
lunder
t
ak
i
ngt
obegr
aded
asmedi
um s
c
al
ei
ndus
t
r
i
alunder
t
ak
i
ngwi
t
hef
f
ec
tf
r
om 21.
12.
1999.[
2,
6]

An i
ndus
t
r
i
alunder
t
aki
ng i
n whi
c
ht
he i
nv
e
s
t
menti
nf
i
x
ed a
s
s
et
si
n pl
antand mac
hi
ner
y
whet
herhel
d orowner
s
hi
pt
er
msonl
eas
eoron hi
r
epur
c
has
edoesnotex
c
eedRs
.
10 c
r
or
e
(
s
ubj
ec
tt
oc
ondi
t
i
on t
hatuni
tnotowned,c
ont
r
ol
l
ed ors
ubs
i
di
ar
y ofany ot
heri
ndus
t
r
i
al
under
t
aki
ng)
[
6]
.
Ther
ei
swi
des
c
opef
ort
hewaybywhi
c
ht
ec
hnol
ogi
c
ali
nnov
at
i
onsandac
qui
s
i
t
i
oni
sc
ar
r
i
edout
i
nSMEs
,par
t
i
c
ul
ar
l
yi
nt
ec
hnol
ogi
c
ali
ndus
t
r
i
e
s
.Sot
her
ei
saneedt
oa
s
s
e
st
heappl
i
c
at
i
onof
t
ec
hnol
ogyandi
t
sc
ons
equenc
es
.

Entrepreneurship Development large-scale vs. Small-scale industries:

10

Thel
ar
geri
ndus
t
r
i
eshav
eadv
ant
ageofr
e
s
our
c
es
,i
nf
r
as
t
r
uc
t
ur
eandf
i
nanc
e.But
c
hangi
ngbus
i
nes
smodel
,v
a
l
uesandul
t
i
mat
e
l
yc
ul
t
ur
ei
sdi
f
f
i
c
ul
t
,i
fnotpos
s
i
bl
ef
or
l
ar
gees
t
abl
i
s
hedc
ompani
es
Smal
l
er or
gani
z
at
i
on on t
he ot
her hand c
an l
e
v
er
age t
hei
rc
apac
i
t
i
e
sf
or
ent
r
epr
eneur
i
ali
nnovat
i
onsandor
gani
z
at
i
ona
lc
hange,t
her
ebyl
ear
ni
ngt
oac
hi
eve
advant
agesoverl
ar
geror
gani
z
at
i
ons[
22]
.

Technology:[
8]
I
ngener
alt
ec
hnol
ogyi
st
her
el
at
i
ons
hi
pt
hats
oc
i
et
yhaswi
t
hi
t
st
ool
sandc
r
af
t
sand
t
owhatext
ents
oc
i
et
yc
anc
ont
r
oli
t
senv
i
r
onment
.
The Mer
r
i
am Webs
t
erdi
c
t
i
onar
y of
f
er
sa def
i
ni
t
i
on oft
he t
er
m:
The pr
ac
t
i
c
al
appl
i
c
at
i
onofknowl
edgees
pec
i
al
l
yi
napar
t
i
c
ul
arar
e
aand
ac
apabi
l
i
t
ygi
v
enby
t
hepr
ac
t
i
c
alappl
i
c
at
i
onofk
nowl
edge

Thewor
d
t
ec
hnol
ogyc
ana
l
s
obeus
edt
or
ef
ert
oac
ol
l
ec
t
i
onoft
ec
hni
ques
.

Thev
ar
i
oust
ec
hnol
ogi
c
alt
er
msar
eex
pl
a
i
nedbel
ow:

hnol
ogyi
nt
el
l
i
genc
ebegant
obedev
el
opeds
t
ar
t
i
ngwi
t
hWor
l
dWarI
Iand
Thec
onc
eptofTec
gener
al
l
yi
ndi
c
at
est
hepr
oc
es
sofgat
her
i
ngandus
i
ngi
nf
or
mat
i
onont
het
r
endsoft
ec
hnol
ogi
es
t
hat

havet
hepot
ent
i
alt
o af
f
ec
tac
ompany

sc
ompet
i
t
i
v
es
i
t
uat
i
on
;s
omet
i
mest
ec
hnol
ogy
i
nt
el
l
i
genc
ei
smeantnotonl
yast
hepr
oc
es
sbutal
s
oa
si
t
sout
put
,namel
yv
al
uabl
ei
nf
or
mat
i
on.

hnol
ogyf
or
ec
as
t
i
ng,i
st
oi
dent
i
f
ypr
edi
c
t
i
onsoft
ec
hnol
ogi
c
alc
hanges
,s
eemst
o
Theai
m ofTec
beai
medl
es
st
hant
ec
hnol
ogyi
nt
el
l
i
genc
eatgat
her
i
ngandpr
oc
es
s
i
ngi
nf
or
mat
i
on.Thet
er
m
t
ec
hnol
ogyas
s
es
s
mentt
akeson di
f
f
er
entmeani
ngsdependi
ng on t
hea
i
msoft
hee
v
al
uat
i
on
pr
oc
es
sandc
ont
extwher
ei
ti
sbei
ngc
ar
r
i
edout
,e
.
g.i
ti
sof
t
enus
edt
omeanananal
y
s
i
soft
he
goal
sandc
os
t
sandbenef
i
t
sr
el
at
edt
ot
heac
qui
s
i
t
i
onofanew t
ec
hnol
ogy
,j
us
tasi
ti
sof
t
en
us
ed,es
pec
i
al
l
yi
nmanager
i
alpr
ac
t
i
c
e
,t
or
ef
ert
ot
hepr
oc
es
sofmak
i
nganov
er
a
l
lev
a
l
uat
i
onof
t
het
ec
hnol
ogi
c
alpat
r
i
monyofac
ompany
.

Tec
hnol
ogymoni
t
or
i
ng,anexpr
es
s
i
onwhi
c
hi
ss
t
i
l
lma
i
nl
yus
edi
nmanager
i
a
ll
i
t
er
at
ur
e,s
eemst
o
enc
ompas
st
het
hr
eeas
pec
t
st
hathav
ej
us
tbeenme
nt
i
oned,i
.
e
.t
hewor
d
moni
t
or
i
ngc
anbe
under
s
t
ood as a pr
oc
es
s
,pr
ovi
di
ng i
nf
or
mat
i
on on t
ec
hnol
ogy (
i
nt
e
l
l
i
genc
e)
,pr
edi
c
t
i
ng t
he
di
r
ec
t
i
ons t
ec
hnol
ogi
c
alc
hange wi
l
lt
ak
e(
f
or
ec
as
t
i
ng) orev
al
uat
i
ng and s
c
out
i
ng outt
he
pot
ent
i
alt
ec
hnol
ogi
est
hatac
ompanys
houl
dadopt(
as
s
es
s
ment
)
,buti
ti
smos
tof
t
enus
edt
o
i
ndi
c
at
et
hepr
oc
es
sofi
dent
i
f
yi
ng and ev
a
l
uat
i
ng t
hec
r
i
t
i
c
alt
ec
hnol
ogi
c
a
ladv
anc
est
hatc
an
hav
eas
i
gni
f
i
c
anti
mpac
tonac
ompany

sc
ompet
i
t
i
v
epos
i
t
i
oni
ng(
i
nt
el
l
i
genc
e)
[
18]
.

11

Technological Competencies:

Core Competencies
Marketing
Competenc
ies

Technologi
cal
Competenc

Technolo
gical
Influence

Integrative
Competenc
ies

Market
Influence

Integrated firm
performance

Fig-2: Rel
at
i
ons
hi
pBet
weenDi
f
f
er
entCompet
enc
i
e
sonFi
r
m
sPer
f
or
manc
e[
17]

Tec
hnol
ogi
c
alc
ompet
enc
i
esdet
er
mi
newhi
c
hpr
oduc
t
sors
er
v
i
c
esc
anbepr
ov
i
dedt
ec
hni
c
al
l
yat
ket
i
ngc
ompet
enc
i
esdet
er
mi
newhi
c
hpr
oduc
t
sors
er
v
i
c
esc
anbedet
ec
t
edt
hat
onet
i
me;mar
ar
e demanded byt
ar
get
ed c
us
t
omer
s
;i
nt
egr
at
i
ve c
ompet
enc
i
esr
ef
l
ec
tt
he degr
ee off
i
t
nes
s
bet
weent
heabovet
woc
ons
t
i
t
uent
sofc
or
ec
ompet
enc
i
esandt
heef
f
ec
t
i
v
enes
sandef
f
i
c
i
enc
yof
del
i
v
er
i
ng of
f
er
i
ngs wi
t
hs
uper
i
orc
us
t
omerv
al
ue.I
ti
s bas
ed on t
he t
hi
r
dc
ons
t
i
t
uentof
i
nt
egr
at
i
vec
ompet
enc
i
est
hataf
i
r
mi
sabl
et
oenc
ompas
st
hedepl
oy
mentofi
t
suni
quer
e
s
our
c
es
andc
apabi
l
i
t
i
est
or
es
pondt
oavar
i
et
yofc
hangi
nge
nv
i
r
onment
alc
ondi
t
i
onsi
nawayt
hatc
an
l
eadt
os
us
t
ai
nabl
eper
f
or
manc
e.

Production and Industrial Engineering Techniques to improve the performance of an


industry:
Ther
ear
evar
i
oust
ec
hni
quesus
edi
nmoder
ni
ndus
t
r
i
est
oef
f
ec
t
i
v
el
ymanaget
hebus
i
nes
s
:
1. Total Quality Management (TQM)
TQM i
st
he or
gani
z
at
i
onwi
de management ofqual
i
t
y
.Management c
ons
i
s
t
s ofpl
anni
ng,

ot
albec
aus
ei
tc
ons
i
s
t
sof
or
gani
z
i
ng,di
r
ec
t
i
ng,c
ont
r
ol
,andas
s
ur
anc
e.Tot
a
lqual
i
t
yi
sc
al
l
edt
i
t
y ofr
et
ur
nt
os
at
i
s
f
yt
he nee
ds oft
he s
har
ehol
der
s
,and qual
i
t
y of
t
wo qual
i
t
i
es
: qual
pr
oduc
t
s
[
30]
.TQM i
s an appr
oac
ht
oi
mpr
ov
i
ng bot
hc
us
t
omers
at
i
s
f
ac
t
i
on and t
he way
or
gani
z
at
i
onsdobus
i
nes
s[
31]
.I
nanut
s
he
l
lTQM c
ompr
i
s
esf
ol
l
owi
ngba
s
i
cc
onc
ept
s
:
1. Ac
ommi
t
t
edandi
nv
ol
vedmanagement
2. Foc
usont
hec
us
t
omer

12

3. I
nvol
vementoft
ot
alwor
kf
or
c
e
4. Cont
i
nuouspr
oc
es
si
mpr
ovement
5. Suppl
i
erpar
t
ner
i
ng
6. Per
f
or
manc
emeas
ur
es
I
nJ
apan,TQM c
ompr
i
s
esf
ourpr
oc
es
ss
t
eps
,namel
y
:
us
eson "
Cont
i
nuousPr
oc
es
sI
mpr
ov
e
ment
"
,t
o mak
e pr
oc
es
s
esv
i
s
i
bl
e,
1. Kai
z
en Foc

r
epeat
abl
eandmeas
ur
abl
e.
2. At
ar
i
mae Hi
ns
hi
t
s
u The i
dea t
hat"
t
hi
ngswi
l
lwor
k ast
hey ar
es
uppos
ed t
o"(
f
or
exampl
e,apenwi
l
lwr
i
t
e)
.
ni
ngt
hewayt
heus
erappl
i
est
hepr
oduc
tl
eadst
oi
mpr
ov
ementi
nt
he
3. Kans
eiExami
pr
oduc
ti
t
s
el
f
.
dea t
hat"
t
hi
ngss
houl
d hav
e an aes
t
het
i
cqual
i
t
y
"(
f
or
4. Mi
r
yokut
ek
iHi
ns
hi
t
s
u The i
exampl
e,apenwi
l
lwr
i
t
ei
nawayt
hati
spl
eas
i
ngt
ot
hewr
i
t
er
)
.

2. Just in Time (JIT)


Ac
c
or
di
ngt
oAmer
i
c
anPr
oduc
t
i
onandI
nv
ent
or
yCont
r
olSoc
i
et
y(
API
CS)
,"
J
I
Ti
saphi
l
os
ophyof
manuf
ac
t
ur
i
ngbas
edonpl
annedel
i
mi
nat
i
onofal
lwas
t
eandc
ont
i
nuousi
mpr
ov
ementof
pr
oduc
t
i
vi
t
y
.I
tenc
ompas
s
est
hes
uc
c
es
s
f
ule
x
ec
ut
i
onofal
lmanuf
ac
t
ur
i
ngac
t
i
v
i
t
i
e
sr
equi
r
edt
o
pr
oduc
eaf
i
nalpr
oduc
t
,f
r
om des
i
gnengi
neer
i
ngt
odel
i
v
er
yandi
nc
l
udi
ngal
ls
t
agesof
c
onv
er
s
i
onf
r
om r
aw mat
er
i
alonwar
d.Thepr
i
mar
yel
e
ment
si
nc
l
udehav
i
ngonl
yt
her
equi
r
ed
i
nv
ent
or
ywhenneeded;t
oi
mpr
ovequa
l
i
t
yt
oz
er
odef
ec
t
s
;t
or
educ
el
eadt
i
mebyr
educ
i
ng
s
et
upt
i
mes
,queuel
engt
hsandl
ots
i
z
es
;t
oi
nc
r
ement
al
l
yr
e
v
i
s
et
heoper
at
i
onst
hems
e
l
v
e
s
;and
t
oac
c
ompl
i
s
ht
hes
et
hi
ngsatmi
ni
mum c
os
t
"
.
When t
heJ
I
T pr
i
nc
i
pl
esar
ei
mpl
ement
ed s
uc
c
es
s
f
ul
l
y
,s
i
gni
f
i
c
antc
ompet
i
t
i
v
eadv
ant
age
sar
e
r
eal
i
z
ed. J
I
T pr
i
nc
i
pl
esc
an beappl
i
ed t
oa
l
lpar
t
sofan or
gani
z
at
i
on: pr
oduc
tde
s
i
gn,or
der
t
ak
i
ng,pur
c
has
i
ng,manuf
ac
t
ur
i
ngoper
at
i
ons
,di
s
t
r
i
but
i
on,s
a
l
es
,ac
c
ount
i
ng,et
c
.
J
I
Ti
saphi
l
os
ophyofc
ont
i
nuousi
mpr
ov
ementi
nwhi
c
hnonv
al
ueaddi
ngac
t
i
v
i
t
i
e
s(
orwa
s
t
es
)
ar
ei
dent
i
f
i
edandr
emovedf
ort
hepur
pos
e
sof[
31,32]
:
Reduc
i
ngCos
t

I
mpr
ov
i
ngQual
i
t
y

I
mpr
ov
i
ngPer
f
or
manc
e

I
mpr
ov
i
ngDel
i
ver
y

Addi
ngFl
ex
i
bi
l
i
t
y

I
nc
r
eas
ei
nnov
a
t
i
v
ene
s
s

13

J
I
Tus
ual
l
yi
dent
i
f
i
ess
evenpr
omi
nentt
y
pesofwas
t
et
obeel
i
mi
nat
ed:
Was
t
ef
r
om Over
pr
oduc
t
i
on

Was
t
eofwa
i
t
i
ng/
i
dl
et
i
me

Tr
ans
por
t
at
i
onWas
t
e

I
nv
ent
or
yWas
t
e

Pr
oc
es
s
i
ngWas
t
e

Was
t
eofMot
i
on

Was
t
ef
r
om Pr
oduc
tDef
ec
t
s

3. Process flexibility
I
ti
sr
equi
r
eds
ot
hatt
hec
ompanyc
anr
eac
ts
wi
f
t
l
yt
oc
hangesi
nt
hev
ol
umeandmi
xoft
hei
r
pr
oduc
t
s[
31]
.Toac
hi
evet
hi
soper
at
or
sandmac
hi
nesmus
tbef
l
ex
i
bl
eandt
hes
y
s
t
em mus
tbe
abl
et
obec
hangedoverqui
c
k
l
yf
r
om onepr
oduc
tt
oa
not
her
.

4. Total Productive Maintenance (TPM)


TPM i
sanew wayofl
ooki
ngatmai
nt
enanc
e,orc
onv
er
s
el
y
,ar
ev
er
s
i
ont
ool
dway
sbutona
mas
ss
c
al
e.I
n TPM t
hemac
hi
neoper
at
orper
f
or
msmuc
h,and s
omet
i
me
sal
l
,oft
her
out
i
ne
mai
nt
enanc
et
as
kst
hems
el
v
es
.Thi
saut
omai
nt
enanc
eens
ur
esappr
opr
i
at
eandef
f
ec
t
i
v
eef
f
or
t
s
ar
eex
pendeds
i
nc
et
hemac
hi
nei
swhol
l
yt
hedomai
nofoneper
s
onort
e
am.TPM i
sac
r
i
t
i
c
al
adj
unc
tt
ol
eanmanuf
ac
t
ur
i
ng.I
fmac
hi
neupt
i
mei
snotpr
edi
c
t
abl
eandi
fpr
oc
es
sc
apabi
l
i
t
yi
s
nots
us
t
ai
ned,t
hepr
oc
es
smus
tkeepex
t
r
as
t
oc
k
st
obuf
f
eragai
ns
tt
hi
sunc
er
t
a
i
nt
yandf
l
ow
t
hr
ought
hepr
oc
es
swi
l
lbei
nt
er
r
upt
ed.
.Onewayt
ot
hi
nkofTPM i
s"
det
er
i
or
at
i
onpr
ev
ent
i
on"
and"
mai
nt
enanc
er
educ
t
i
on"
,notf
i
xi
ngmac
hi
nes
.Fort
hi
sr
ea
s
onmanypeopl
er
ef
ert
oTPM as
"
Tot
alPr
oduc
t
i
veManuf
ac
t
ur
i
ng"or"
Tot
alPr
oc
es
sManagement
"
.TPM i
sapr
oac
t
i
v
eappr
oac
h
t
hates
s
ent
i
al
l
yai
mst
opr
eventanyk
i
ndofs
l
ac
kbef
or
eoc
c
ur
r
enc
e.I
t
smot
t
oi
s"
z
er
oer
r
or
,z
er
o
wor
k
r
el
at
edac
c
i
dent
,andz
er
ol
os
s
"
[
33]
.

5. Partnership with Suppliers


Par
t
ner
i
ng i
mpl
i
esa l
ong t
er
m c
ommi
t
mentbet
wee
nt
wo ormor
e or
gani
z
at
i
onst
o ac
hi
eve
s
pec
i
f
i
cgoal
s
.Ther
ear
et
hr
eekeyf
ac
t
or
si
npar
t
ner
i
ngl
ongt
er
mc
ommi
t
ment
,t
r
us
t
,ands
har
ed
v
i
s
i
on.
Thebenef
i
t
st
ot
hes
uppl
i
erar
e:
I
mpr
ovementi
nqual
i
t
yofs
uppl
i
edpr
oduc
t
.
Theabi
l
i
t
yt
omakef
r
equentdel
i
v
er
i
esonaj
us
t
i
nt
i
mebas
i
s
.
I
mpr
ovementi
nper
f
or
manc
e,qual
i
t
yandc
os
t
.
Thebenef
i
t
st
ot
hebuyerar
e:
Agr
eat
ers
har
eofbus
i
nes
swi
t
hl
ongt
er
ms
ec
ur
i
t
y
.

14

Abi
l
i
t
yt
opl
anmor
eef
f
ec
t
i
v
e
l
y
.
Mor
ec
ompet
i
t
i
veasaj
us
t
i
nt
i
mes
uppl
i
er
.

6. Enterprise Resource Planning (ERP)


ERP ba
s
i
c
al
l
yi
nvol
vest
he pl
anni
ng oft
he
4M
sofan ent
er
pr
i
s
e
sr
es
our
c
es-Man,Money,

Mat
er
i
al
s
,and Mac
hi
nest
o obt
ai
nt
hei
rbe
s
ts
y
ner
gi
s
t
i
cv
a
l
ue.ERP hel
psan or
gani
z
at
i
on i
n
addr
es
s
i
ngc
r
i
t
i
c
ali
s
s
uess
uc
has[
7]
:

Es
t
abl
i
s
hi
ngnew s
er
v
i
c
el
evel
sf
ori
nc
r
eas
edmar
k
ets
har
e,

Cr
eat
i
ngnew mar
ketoppor
t
uni
t
i
est
hr
ought
heex
t
ens
i
onofex
i
s
t
i
ngPr
oduc
t
s
/
s
er
v
i
c
es
of
f
er
i
ngort
hedevel
opmentofnew ones
,

Devel
opi
ngas
uppor
tandi
nt
er
f
ac
i
ng i
nf
r
as
t
r
uc
t
ur
et
of
ac
i
l
i
t
at
edec
i
s
i
on ma
k
i
ng atal
l
l
evel
sandevent
uat
ei
ns
t
antac
t
i
on,

St
r
eaml
i
ni
ngpr
oc
es
s
esandpr
oc
edur
esandac
hi
ev
i
ngs
y
ner
gyt
hr
oughl
ogi
c
alappl
i
c
at
i
on
andi
nt
egr
at
i
on.

7. Business Process Re-engineering (BPR)


BPRi
sanappr
oac
hai
mi
ngati
mpr
ov
ement
sbymeansofel
ev
at
i
ngef
f
i
c
i
enc
yandef
f
ec
t
i
v
enes
sof
t
he bus
i
nes
s pr
oc
es
s
es t
hatex
i
s
twi
t
hi
n and ac
r
os
s or
gani
z
at
i
ons
.The k
ey t
o BPR i
sf
or
or
gani
z
at
i
onst
ol
ookatt
hei
rbus
i
nes
spr
oc
es
s
esf
r
om a"
c
l
eans
l
at
e"per
s
pec
t
i
v
eanddet
er
mi
ne
how t
heyc
anbes
tc
ons
t
r
uc
tt
hes
epr
oc
es
s
est
oi
mpr
ov
ehow t
heyc
onduc
tbus
i
nes
s[
34]
.
The
pr
operc
oor
di
nat
i
onbet
weendi
f
f
er
ents
t
r
at
egyi
si
mpor
t
antt
oef
f
ec
t
i
v
el
yr
unt
hebus
i
ne
s
s
.The
bus
i
nes
sexc
el
l
enc
ei
nc
l
udespr
opera
l
i
gnmentbet
we
en manuf
ac
t
ur
i
ng s
t
r
at
egy and bus
i
nes
s
s
t
r
at
egy
,f
or
mals
t
r
at
egi
c pl
anni
ng,and c
ommuni
c
at
i
on ofmanuf
ac
t
ur
i
ng s
t
r
at
egy t
ot
he
empl
oy
ees[
40,41]
.

8. Lean Manufacturing
I
ti
sac
onc
eptt
hathasevol
vedf
r
om J
I
T.I
ti
st
hes
y
s
t
emwi
dephi
l
os
ophi
c
a
lappr
oac
hus
edt
o
i
nt
egr
at
et
he s
ys
t
em t
owar
dsan ul
t
i
mat
e goalofmax
i
mi
z
i
ng c
us
t
omers
er
v
i
c
e wi
t
h mi
ni
mal
s
er
v
i
c
ewas
t
e[
31]
.I
ti
st
hepr
oc
es
sofs
at
i
s
f
y
i
ngt
hec
us
t
omerbyaddi
ngv
a
l
ueande
l
i
mi
nat
i
ng
t
he was
t
e.I
ti
nv
ol
v
esmai
nt
ai
ni
ng l
ong t
er
mr
el
at
i
ons
hi
p wi
t
hs
uppl
i
er[
36]
.L
ean t
hi
nk
i
ng i
s
appl
i
edatoper
at
i
onl
evelef
f
ec
t
i
vel
yt
or
educ
ec
os
t
,t
oi
mpr
ov
equal
i
t
yandt
oi
mpr
ov
epr
ompt
del
i
v
er
y by i
mpr
ovement i
n over
a
l
l equi
pment ef
f
ec
t
i
v
enes
s
,t
he ov
er
al
ls
uppl
y c
hai
n
ef
f
ec
t
i
v
enes
s
,andover
al
lvehi
c
l
eef
f
ec
t
i
v
enes
s
[
35]
.

9. Agile Manufacturing

15

I
ti
sani
nt
egr
at
i
onofs
ys
t
em t
owar
dss
at
i
s
f
y
i
ngt
hec
us
t
omerbyc
onf
i
gur
i
ngt
oor
der
.I
tgi
ves
mor
ei
mpor
t
anc
et
or
es
pons
i
venes
s ofs
uppl
yc
ha
i
n.Cus
t
omers
at
i
s
f
ac
t
i
on i
s a mea
s
ur
e of
ef
f
ec
t
i
v
enes
si
nagi
l
emanuf
ac
t
ur
i
ng.
10. Material Requirement Planning (MRP)
MRPi
sapr
oc
es
sus
edt
oes
t
abl
i
s
has
c
hedul
es
howi
ngt
hec
omponent
sr
equi
r
edate
ac
hl
ev
e
lof
t
he as
s
embl
yand,bas
ed on l
ead t
i
mes
,c
al
c
ul
at
est
he t
i
me when t
hes
ec
omponent
swi
l
lbe
needed[
31]
.Thei
nput
sofMRPar
emas
t
erpr
oduc
t
i
ons
c
hedul
e,i
nv
ent
or
yr
ec
or
dandbi
l
lof
mat
er
i
al
.
11. Manufacturing Resource Planning (MRP-II)
MRPI
Ii
st
hepr
oc
es
sofi
nt
egr
at
i
ngmar
k
et
i
ng,f
i
nanc
eandmanuf
ac
t
ur
i
ngpl
an.I
tpr
ov
i
dest
he
mec
hani
s
mf
orc
oor
di
nat
i
ngt
heef
f
or
t
sofmar
k
et
i
ng,f
i
nanc
e,pr
oduc
t
i
onandot
herdepar
t
ment
s
i
nt
hec
ompany.MRPI
Ii
samet
hodf
ort
heef
f
ec
t
i
v
epl
anni
ngofal
lr
es
our
c
esofamanuf
ac
t
ur
i
ng
c
ompany[
31]
.
12. Total Productivity Management
Thev
ar
i
ousdef
i
ni
t
i
onsofPr
oduc
t
i
v
i
t
ygi
v
eni
nl
i
t
er
at
ur
ear
es
ummar
i
z
edasf
ol
l
ows[
11,12,13,
14,15]
:
Dependi
nguponwhoi
sdef
i
ni
ngi
t
,whet
heri
ti
sanEc
onomi
s
t
,Ac
c
ount
ant
,Manager
,Pol
i
t
i
c
i
an,
Uni
on L
eader or I
ndus
t
r
i
alEngi
neer y
ou wi
l
lgetl
i
ght
l
y di
f
f
er
entdef
i
ni
t
i
ons oft
he t
er
m

Pr
oduc
t
i
vi
t
y
.
Pr
oduc
t
i
vi
t
yi
st
hequant
i
t
at
i
ver
el
at
i
onbet
weenwhatwepr
oduc
ei
.
e.out
putandwhatweus
eas
ar
es
our
c
et
opr
oduc
et
hem i
.
e.i
nput
.
Pr
oduc
t
i
vi
t
y=Out
put/I
nput
Theot
herdef
i
ni
t
i
onsofpr
oduc
t
i
v
i
t
yar
e:
Pr
oduc
t
i
vi
t
yi
st
he meas
ur
e ofhow wel
lt
he r
e
s
our
c
es ar
e br
oughtt
oget
heri
n an
or
gani
z
at
i
onandut
i
l
i
z
edf
orac
c
ompl
i
s
hi
ngt
hes
etofobj
ec
t
i
v
es
.
Pr
oduc
t
i
vi
t
yi
sc
onc
er
nedwi
t
hes
t
abl
i
s
hi
ngc
ongr
uenc
ybet
weenor
gani
z
at
i
ona
lgoa
l
swi
t
h
s
oc
i
alas
pi
r
at
i
onst
hr
oughi
nput
out
putr
el
at
i
ons
hi
p.
Pr
oduc
t
i
vi
t
yc
anbei
nc
r
eas
edbyf
ol
l
owi
ngt
hr
eeway
s
[
12]
:
I
nc
r
eas
ei
nout
putwi
t
hs
amei
nput
.
Sameout
putwi
t
hdec
r
eas
ei
ni
nput
.
Ther
at
eofi
nc
r
eas
ei
nout
puti
smor
ec
ompar
edt
or
at
eofi
nc
r
eas
ei
ni
nput
.
TheSt
r
at
egi
est
oi
mpr
ovepr
oduc
t
i
vi
t
yar
e[
27]
:
I
mpr
ovepr
oduc
tdes
i
gn,pr
oc
e
s
spl
anni
ng,manuf
ac
t
ur
i
ngmet
hods
,et
c
I
mpr
ovemat
er
i
alf
l
ow
I
mpr
ovepl
antl
ay
out
13. Supply Chain Management (SCM)

16

SCM c
ons
i
s
tofal
ls
t
agesi
nvol
veddi
r
ec
t
l
yori
ndi
r
ec
t
l
y
,i
nf
ul
f
i
l
l
i
ngt
hec
us
t
omerr
eque
s
t
.The
s
uppl
yc
hai
nnotonl
yi
nc
l
udest
hemanuf
ac
t
ur
eands
uppl
i
erbutal
s
ot
r
ans
por
t
er
,war
ehous
es
,
r
et
ai
l
er
s
,andc
us
t
omert
hems
el
ves[
37]
.Theobj
ec
t
i
v
eofev
er
ys
uppl
yc
hai
ni
st
oma
x
i
mi
z
et
he
ov
er
al
lv
al
uegener
at
ed.Val
uei
sc
or
r
el
at
edwi
t
hSuppl
yc
hai
nspr
of
i
t
abi
l
i
t
y
,andi
ti
st
het
ot
al
pr
of
i
tt
obegener
at
edac
r
os
sal
ls
uppl
yc
hai
ns
t
age
s
.SCM i
nv
ol
v
est
hemanagementoff
l
ows
bet
weenandamongs
t
agesi
nas
uppl
yc
ha
i
nt
omax
i
mi
z
et
ot
alpr
of
i
t
abi
l
i
t
y
.
14. Concurrent Engineering
I
ti
sanappr
oac
hi
nwhi
c
h al
lt
hedepar
t
ment
si
nac
ompanywor
kt
oget
hert
odef
i
neapr
oduc
t
,
det
er
mi
nehow t
o des
i
gn i
ts
ot
hati
tc
an bemadeand s
ol
d pr
of
i
t
abl
y
,and dec
i
dehow t
he
f
ac
t
or
yc
an be oper
at
ed t
os
uppor
tt
he l
ogi
c of t
he des
i
gn and pr
oduc
t
i
onmar
k
et
i
ng
s
t
r
at
egy
[
39]
.

15. Flexible Manufacturing System (FMS)


FMSc
ons
i
s
tofgr
oupsofc
omput
erc
ont
r
ol
l
edmet
a
lc
ut
t
i
ngmac
hi
neswi
t
hac
ommonc
ont
r
oland
mat
er
i
alhandl
i
ng s
ys
t
em.I
nt
hi
spr
oduc
tdes
i
gn c
an bedonewi
t
h ac
omput
erai
ded des
i
gn
(
CAD)s
ys
t
em whi
c
hdi
r
ec
t
l
yc
onnec
t
edt
omanuf
ac
t
ur
i
ngs
y
s
t
em.Aut
omat
i
ci
nv
ent
or
yc
ont
r
ol
,
t
ooloper
at
i
ons
,i
ns
pec
t
i
on,andqual
i
t
yc
anbec
l
os
el
yc
oupl
edi
nt
hi
ss
y
s
t
em [
31,39]
.

Indicators for performance improvement:


Thei
ndi
c
at
or
sf
orper
f
or
manc
ei
mpr
ov
ementofanor
gani
z
at
i
onasment
i
onedi
nl
i
t
er
at
ur
ear
e
:

Cos
t

Qual
i
t
y

Fl
ex
i
bi
l
i
t
y

Del
i
ver
yDependabi
l
i
t
y

Del
i
ver
ys
peed

I
nnovat
i
on

NEED OF THE STUDY


Smal
land medi
um s
c
al
et
ec
hnol
ogi
c
ali
ndus
t
r
i
e
s e.
g.s
t
ee
l
,c
as
t
i
ngs
,t
ex
t
i
l
e and agr
i
c
ul
t
ur
e
mac
hi
ner
i
es
,f
er
t
i
l
i
z
er
s
,pol
ymer
s
,c
ommer
c
i
a
lv
ehi
c
l
es
,mac
hi
ne t
ool
,f
abr
i
c
at
i
on,pol
y
e
s
t
er
f
i
l
amentyar
ns
,t
yr
ei
ndus
t
r
i
es
,t
wowheel
er
,aut
omobi
l
ebas
edi
ndus
t
r
i
es
,el
ec
t
r
i
cac
c
es
s
or
i
es
,
manuf
ac
t
ur
i
ngi
ndus
t
r
i
es
,c
ement
,gl
a
s
set
c
.ar
epl
ay
i
ngmaj
orr
ol
ei
nt
hedev
e
l
opmentoft
he
I
ndi
anec
onomy.Thes
mal
ls
c
al
et
ec
hnol
ogi
c
a
li
ndus
t
r
yi
nandar
oundMumbaihasmaj
ors
har
ei
n
i
t
,bec
aus
eMumbaii
sc
ons
i
der
edi
ndus
t
r
i
a
landc
ommer
c
i
alhubofI
ndi
a,c
ont
r
i
but
i
ng40% of
i
nc
omet
axgener
at
edi
nI
ndi
a.Thec
ont
r
i
but
i
onofs
mal
l& medi
um s
c
al
ei
ndus
t
r
i
est
oI
ndi
an
ec
onomyi
ss
howni
nTabl
e1.

17

Table-1: Contribution of the SMEs for Select Years [


29]
1990

2000

2005

NumberofUni
t
s
(

000)

6790

10110

12340

Empl
oy
ees
(

000)

15830

23870

29490

Val
ue

$46.
73

$39.
44

$61.
31

$5.
33

$14.
93

$21.
72

29.
70%

34.
30%

33.
30%

of

Pr
oduc
t
i
on(
i
n

bi
l
l
i
ons
)
Ex
por
t
s
(
i
nbi
l
l
i
ons
)
Shar
e ofSME
s Expor
t
st
o
Tot
a
lEx
por
t
s
Des
pi
t
et
het
r
emendouspot
ent
i
alandl
ar
gec
ont
r
i
but
i
onofs
mal
landmedi
um ent
er
pr
i
s
est
ot
he
ec
onomy,near
l
y60% oft
heuni
t
sar
el
i
mpi
ngorar
edec
l
ar
eds
i
c
k[
26]
.
Ther
ear
ev
ar
i
ousc
aus
es
f
ors
uc
has
i
t
uat
i
onandunf
or
t
unat
el
yt
her
ear
enoea
s
ys
ol
ut
i
ons
.Ev
er
yuni
thasi
t
sownc
aus
es
f
ors
i
c
k
nes
s
.Des
pi
t
es
ev
er
als
i
c
kuni
t
s
,t
hepr
oduc
t
i
ons
har
eofSMEsi
s45perc
entandac
c
ount
s
f
or40perc
entoft
het
ot
alexpor
t
soft
hec
ount
r
yi
ny
ear2008a
spert
hei
nf
or
mat
i
ongi
v
eni
n
Raj
y
as
abha,by mi
ni
s
t
erf
orMi
c
r
o,Smal
landMedi
um I
ndus
t
r
i
esShr
iMahav
i
rPr
a
s
ad[
28]
.Ther
e
ar
ebi
gc
hal
l
engesi
nf
r
ontoft
hes
es
ma
l
landmedi
um s
c
al
et
ec
hnol
ogi
c
a
li
ndus
t
r
i
es
.Thei
rma
j
or
weak
nes
s
es ar
e hi
gh c
os
tofoper
at
i
on,f
i
nanc
i
al
l
y weak
,l
ac
k ofmanagements
k
i
l
land i
t
s
k
nowl
edge,l
ac
kofmar
ket
i
ng abi
l
i
t
y
,l
ac
kofk
nowl
e
dge aboutgener
at
i
on ofv
ent
ur
ec
api
t
al
,
t
r
ai
ni
ng et
c
.Sur
vi
valand s
t
eady gr
owt
h oft
hes
ei
ndus
t
r
i
es i
nt
he er
a ofgl
obal
i
z
at
i
on,
l
i
ber
a
l
i
z
at
i
on and c
ompet
i
t
i
on i
sdependi
ng on how ef
f
i
c
i
ent
l
yt
hes
ei
ndus
t
r
i
esar
e managed.
Per
f
or
manc
ei
mpr
ovementoft
hes
ei
ndus
t
r
i
e
si
s a need oft
i
me.Fort
hi
s pur
pos
ec
r
i
t
i
c
al
i
nv
es
t
i
gat
i
onoff
ac
t
or
saf
f
ec
t
i
ngt
hei
rs
ur
v
i
v
a
landgr
owt
hi
snec
es
s
ar
y
.

OBJECTIVES OF THE PRESENT PROJECT WORK

I
dent
i
f
yi
ng s
mal
land medi
um s
c
al
et
ec
hnol
ogi
c
ali
ndus
t
r
i
esi
n Mumbaiand s
ubur
ban

r
egi
on.

I
dent
i
f
yi
ngs
t
r
engt
hs
,weaknes
s
e
s
,oppor
t
uni
t
i
e
sandt
hr
eat
sofs
mal
landmedi
um s
c
al
e

t
ec
hnol
ogi
c
ali
ndus
t
r
i
esi
nMumbaiands
ubur
banr
egi
on.

Benc
hmar
ki
ngs
mal
landmedi
um s
c
al
et
ec
hnol
ogi
c
ali
ndus
t
r
i
esi
nMumbaiands
ubur
ban

r
egi
on

To i
dent
i
f
yt
he ext
ent of t
ur
bul
enc
ei
nt
he s
ma
l
land medi
um s
c
al
ei
ndus
t
r
i
al

env
i
r
onment
.

ToMeas
ur
et
hei
mpac
toft
het
ur
bul
enc
ef
ac
t
or
sandi
dent
i
f
yt
hos
ear
ec
r
i
t
i
c
al
.

St
udyi
ng manuf
ac
t
ur
i
ng s
t
r
at
egy adopt
ed by s
mal
land medi
um s
c
al
et
ec
hnol
ogi
c
al

i
ndus
t
r
i
esi
nMumbaiands
ubur
banr
egi
on.

18

Topr
i
or
i
t
i
z
eat
t
r
i
but
esbas
edondegr
eeofal
i
gnmentort
hr
eatt
obus
i
nes
ss
t
r
at
egy
.

Toi
dent
i
f
yanor
gani
z
at
i
on
sc
ur
r
entc
apabi
l
i
t
yi
nt
hes
ear
eaands
ett
ar
get
s
.

I
dent
i
f
yi
ngf
ac
t
or
sr
es
pons
i
bl
ef
orper
f
or
manc
ei
mpr
ov
ementofs
mal
landmedi
um s
c
al
e

t
ec
hnol
ogi
c
ali
ndus
t
r
i
esi
nMumbaiands
ubur
banr
egi
on.

Todevel
opc
onc
ept
ualf
r
amewor
kf
ors
ur
v
i
v
alandgr
owt
hofs
mal
landmedi
um s
c
al
e

t
ec
hnol
ogi
c
ali
ndus
t
r
i
esi
nMumbaiands
ubur
banr
egi
on.

METHEDOLOGY:
The met
hodol
ogy pr
opos
ed t
o ac
hi
ev
et
he obj
ec
t
i
v
e oft
he r
es
ear
c
h pr
oj
ec
tc
ons
i
s
t
soft
he
f
ol
l
owi
ngs
t
eps
:
1.I
dent
i
f
y
i
ngs
mal
landmedi
um s
c
al
et
ec
hnol
ogi
c
a
li
ndus
t
r
i
esi
nMumbaiands
ubur
banr
egi
on.
2.L
i
t
er
at
ur
eRevi
ew about
:
Conc
eptoft
ec
hnoent
r
epr
eneur
s
hi
p
Pr
es
ents
t
at
i
s
t
i
c
s ofs
ma
l
land medi
um s
c
al
et
ec
hnol
ogi
c
ali
ndus
t
r
i
es i
n
Mumbai&s
ubur
banr
egi
on.
SWOTanal
y
s
i
soft
hes
ei
ndus
t
r
i
es
St
r
at
egi
esf
orper
f
or
manc
ei
mpr
ov
ementl
i
k
e Pr
oduc
tdes
i
gn,Sel
ec
t
i
on of
Manuf
ac
t
ur
i
ng met
hods and Pr
oc
es
s pl
anni
ng us
i
ng t
he pr
i
nc
i
pl
es of
Conc
ur
r
entEngi
neer
i
ng,J
I
T,L
ean manuf
ac
t
ur
i
ng,TQM,BPR,Tec
hnol
ogy
t
r
ans
f
eret
c
.
3.Dev
el
opmentofques
t
i
onnai
r
es
:
Vi
s
i
t
st
ovar
i
ousmanuf
ac
t
ur
i
ngi
ndus
t
r
i
e
s
.
St
udyofmanuf
ac
t
ur
i
ngi
ndus
t
r
i
esi
nv
i
ew oft
ec
hnoent
r
epr
eneur
s
hi
p.
Fr
amepi
l
otques
t
i
onnai
r
eba
s
edonl
i
t
er
at
ur
eandf
eedbac
kf
r
om i
ndus
t
r
i
e
s
.
Col
l
ec
t
i
ngdat
af
r
om v
ar
i
ousc
a
s
es
t
udi
e
s
.
4.Anal
y
s
i
sofdat
a:Us
eofs
t
at
i
s
t
i
c
alt
ec
hni
quest
oanal
y
z
edat
af
r
om v
ar
i
ouss
t
udi
e
s
.
5.Dev
el
opmentofc
onc
ept
ualf
r
amewor
kf
ors
ur
v
i
v
ala
ndgr
owt
hoft
hes
ei
ndus
t
r
i
e
s
.

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ni
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l
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um
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i
z
ed ent
er
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i
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es f
ors
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t
ai
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nc
r
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ur
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r
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eneur
i
a
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