ENTERPRISE DEVELOPMENT

CUSTOMER FOCUS THROUGH VALUE CREATION


In the present day situation of consumer driven market, it is necessary to focus on the expectations of the customer.As an entrepreneur one must concentrate on the value created in a product or service. A customer buys a product only when he/she gets its real usefulness,quality and reliability and the service provided after sales. When sincerely adhered to these parameters it not only helps the entrepreneur in cost cutting but also retain the customer. In a buyer’s market it is the customer who defines the value. That means your values created by external means only through the customer/consumer. Evidently, we must focus on customers by providing good service to them and retain them almost valued partners in the supply chain/value chain.

The value chain includes the suppliers, the employees, the customers, the consumers and the share holders.In order to keep the quality one must focus on the quality of a supplier; in other words the quality of the materials, the price and just in time supply. The true value of the product or service depends on the quality of the in-puts. The consumer should satisfy with the product/service. This will result in repeat orders. A repeat order is a sign of the value created.

The most important input is the human contribution. The efficiency of the employees determines the quality of the output and thus creates the value. The efficiency is not only the skill but also the commitment of the employee for the work assigned to him/her. A satisfied worker is an asset to the company. The satisfaction comes through good pay package, welfare measures, job security, job satisfaction, status(position), etc. The shareholders look the value in financial terms and security for the money invested.

In order to achieve the goal we have to look all the above parameters through a process approach. Efficiency means doing things in the right way. An Entrepreneur, as a leader, shall do things differently.It means he/she must always focus on innovative approach. There must be continuous effort to put new ideas in the process to improve efficiency. The ultimate target shall be the customer satisfaction. In the supply chain every element plays its own role and each role is important in creating the value chain.

WE SHOULD ALWAYS REMEMBER THAT CUSTOMER IS GOD FOR THE ENTERPRISE

DECISION MAKING THROUGH PROBLEM SOLVING

DECISION MAKING THROUGH PROBLEM SOLVING

The decision making process often involve problem solving in a given situation.Planning, organizing, leading and coordinating are the key elements in a decision making process. At times decisions are to be taken at very short time,particularly when a crisis arises. In order to have a better understanding the actions shall be taken considering the following elements. There should be an organized approach to solve a problem and take appropriate decision. It must be noted that all problems cannot be solved at a time and some problem remain unsolved also .In order to make correct decisions it is necessary to understand and analyze the pros and cons .
· Define the problem
· Look at potential causes for the problem
· Identify alternatives for approaches to resolve the problem
· Select an approach to resolve the problem
· Plan the implementation of the best alternative/Action Plan
· Monitor implementation of the plan
· Verify if the problem has been resolved or not

In defining a problem it is necessary to know When, where, how, when and by whom the problem happened. Based on this information further actions shall be initiated.It is very important to note that the actions initiated may affect certain people who might have made certain mistakes unknowingly. Hence strict confidentiality should be maintained and the team involved in the decision making process must be very loyal to the company and preferably from the top management.

TECHNOLOGY INTERVENTIONS

TECHNOLOGY INTERVENTIONS
IN
MICRO & SMALL ENTERPRISES




INTRODUCTION

Technological innovation is essentially a fundamental learning process. A developing country like India has to 'Catch up' with the developed countries. Micro & Small Enterprises are major contributors to the Indian economy in terms of employment, social development and GDP Growth.

There are about 13.32 Million MSMEs providing employment to 42.2 Million persons in the country producing over 8000 products. The product ranges vary from traditional items like Pickles to most sophisticated products and components used in Nuclear, Aviation and Space sectors. The sector contributes 45% share in manufacturing output, 40% of exports and 8% of GDP.(Statistics from DC(MSME)

In Andhra Pradesh, as on 31.3.2005, there are 1, 46,481 units in the MSE sector providing employment to 13, 22,461 persons. The maximum numbers of units are found to be engaged in the Food-Processing sector.Repairing sectors and Metals products industry shares the 2nd and 3rd slots respectively. Investment wise, the maximum investment is seen in food processing sector, as also the employment potential.

PRESENT STATUS OF MSEs IN ANDHRA PRADESH : Industrial clusters

Micro & Small Enterprise Clusters grew in some pockets all over the State. Depending on the local availability of resources, be it raw materials, skilled labor or based on local demand, these Clusters have sprung up and have grown to become important industrial centers. The prominent clusters in AP are:


1. Cashew Processing: Palasa, Srikakulam & Vetapalem, Prakasam
2. Mango Jelly: East Godavari &Vizianagaram districts.
3. Fruit Canning: Chittoor and Krishna districts.
4. Biscuits and Confectionery: Hyderabad, Tenali, Guntur Dt.
5. Marine Foods: Visakhapatnam and Kakinada (EG Dt.)
6. Brass Metal: Budithi, Srikakulam dt. (For bronze, bell metal and brass), Srikalahasti (Chittoor), Agraharam (West Godavari Dt.), Tandur (RR Dt.), Chundur (Nalgonda Dt.) and Siddipet (Medak Dt.)
7. Cast Brass Hardware : Pembarthy (Warangal) and Lal Bazaar of Hyderabad
8. Aluminium Utensils: Rajahmundry (East Godavari Dt.)
9. Steel Furniture: Chunduru (Nalgonda), Hyderabad, Ranga Reddy and Vijayawada
10. Automobile Industry: Vijayawada, Kakinada
11. Agricultural Implements : Gudivada (Krishna) and Ramachandrapuram (East Godavari)
12. Pneumatic Hammers, Drill Bits, Drilling Equipments - Twin cities (Hyderabad and Secunderabad).
13. Hand Pumpsets - Hyderabad.
14. Water Coolers, Freezers - Hyderabad.
15. Wooden Furniture: Mancherial (Adilabad)
16. Steel Re-rolling Mills : Ranga Reddy district, Hyderabad, Medak and Ananthapur
17. Balancing Beams : Dowleswaram (East Godavari)
18. Wooden Toys : Kondapalli (Krishna Dt.), Srikalahasti and Varipenta of Cuddapah district
19. Ceiling Fans: Balanagar (Hyderabad)
20. Distribution Transformers: Jeedimetla and Patancheru at Hyderabad
21. Power supplies, Battery chargers, ASCR conductors: Electronic Complex, Kushaiguda, Ranga Reddy district.
22. Sago Rice : East Godavari Dt.
23. Clay Graphite Crucible :Rajahmundry
24. Granite Processing Industry: Chittoor, Prakasam& Khammam.
25. Pickle Jar Manufacturing Industry : Rajahmundry
26. Refractory Industry : East & West Godavari Hyderabad region.
27. Lime Industry: Dronachalam, Kurnool Dt.; Piduguralla, Guntur Dt.
28. Slate Industry: Markapur, Prakasam district.

The MSE sector in the state has more or less grown up in a traditional way with limited resources of Technology, Finance and Market support.

In many of the MSEs /Clusters the key to survival was incremental innovation and cross-fertilization of technology from one sector to the other.


CONSTRAINTS FOR SLOW TECHNOLOGICAL GROWTH

The main factors are:

• Non-adequate technical and financial resources to create in-house R&D facilities to develop new technologies.
• High cost of import of technologies.
• Lack of coordination between the R&D labs, Universities and Industry.
• The mismatch between the R&D level technologies and application of technology in the industrial level leading to a "no takers" stage in many cases.
• Slower credit delivery by Financial Institutions for modernization.
• Lack of self-motivation among the entrepreneurs to introduce innovative methods in their enterprises.
• Information gap on various inputs like technology, finance, human resources and market.
• No awareness on IPRs


TECHNOLOGY NEEDS OF MSEs

Technology up gradation is an integration of various inputs. The following are the price and non-price inputs.

TECHNOLOGICAL NEEDS

• Technology Acquisition
• Technology Absorption/Adaptation
• Testing/Quality Certification
• Environment control
• Productivity Improvement
• Energy Conservation

INFORMATION NEEDS

• Raw Materials/Components/sub Assemblies
• Plant & Machinery
• Technology Sources
• Technology Needs/New Developments
• IPR Awareness

HRD NEEDS

• Training
• Development of new skills
• Inventory Management
• Technology Management
• Production Management

ట్రాఫిక్ జామ్స్ ఇన్ హైదరాబాద్

Traffic jams in hyderabad is increasing. Please suggeast solutions

recision in Industry

I invite views on the present status of MSME Sector in view of the deteriorated economic senerio

Cluster Study Report - Mango Jelly Cluster (East Godavari District)

MANGO JELLY CLUSTERS IN AP Introduction India is a major producer of Mango and processed mango products. It accounts for 65% of the world production with a quantum of over 10 million metric tones. India is also a leading exporter of mangos and processed mango products. India out ranks all other countries as an exporter of processed mangos and mango preserves including Mango Jelly to Hongkong. Iraq, Canada, USA and other countries. Andhra Pradesh is the largest producer of mangos(29%) in the country. The areas of concentration of mango groves in the state are Krishna(29%), Khammam(14%), Chittoor(14%), Vizianagaram(11%),West Godavari(10%), East Godavari(9%), Visakhapatnam (7%), and Kadapa(6%). Large quantities of fresh fruit are exported to the Middle east, European and South-East Asian countries. Mango jelly is a golden yellow, layered and dried mango pulp and is manufactured in the state in traditional open drying method. The product is manufactured and marketed in many costal districts and prominent among the concentration of the industry is at Bhimali in Vizianagaram district and Kakinada in East Godavari district. Status of the Industry The Mango Jelly units are mostly micro enterprises and come under village industries category with a capital investment of around Rs.1.00 lakh. The unite are spread with in 20 km radius of the main land marked location and thus formed as clusters at Bhimali and kakinada. It is noteworthy that the clusters provide direct employment to over 5000 people in the season and indirect employment to vendors mostly in Railway Stations across the state and neighboring states. The status of the industry in the two clusters as reported in the SICDP study is given in Table-1 TABLE-1 S.no Indicators Bhimali cluster Kakinada Cluster 1 Spread of cluster 20 20 2 No.of units 240 600 3 Aggregate Employment(nos) 1500 3600 4 Aggregate Investment(Rs. Crores) 1.0 4.20 5 Aggregate Production (Tons) 450 2200 6 Aggregate Sales value (Rs. Crores) 1.8 8.0 At present Mango Jelly is produced through conventional drying process involving spreading of Mango pulp in layers one above the other till the desired thickness forms and dried to the stipulated consistency. The cakes are then cut into sizes and packed on polyethylene film. There is need for improving the process technology and hygiene of the product. It was reported in the cluster study that the key issues for interventions are primitive pulping and drying process, poor in-process hygiene, highly decentralized operations, high dependence on middlemen for marketing of the product and low skills of workers. Cluster Development Initiatives The Ministry of Micro, Small& Medium Enterprises (formerly min. of SSI) Govt. of India has laid special emphasis for development of clusters across the country on a holistic approach encompassing marketing, exports, skill development, setting up of common facility centers, and technology up gradation, The Mango jelly clusters of Bhimali and Kakinada are among them and were taken up by APITCO through Govt. of Andhra Pradesh during 2003-04. Cluster Level Interventions and The results. The cluster diagnosis studies conducted identified certain key areas as stated earlier and initiated interventions, the major among them are as under: · Demonstration of improved pulping and drying techniques · Organising sensitization programmes on in-process hygein · Training in product quality and packaging · Organising buyer-seller meets · Conducting skill development training to improve skills of workers The implementation of these interventions gave fruitful results and shown signs of improvement in the product quality and productivity in the enterprises. Prominent among the interventions are installation of mechanical pulpers (57 units), installation of pasteurizers (50 units),improvement in in-process hygiene, introduction of solar dryers, training of workers in better production, drying techniques, packaging and marketing practices, introduction of food grade tools & implements, quality control methods etc. These interventions have shown positive results. The impact can be seen from the following Table-2 TABLE-2 S.No Indicators Bhimali Cluster Kakinada Cluster 1 Spread of Cluster 20 km 20 km 2 Total Units 240 (240)* 790 (600)* 3 Aggregate Employment(Nos) 1500 (1500)* 4500 (3600)* 4 Aggregate Investment(Rs. Crores) 1.95 (1.0)* 6.5 (4.20)* 5 Aggregate Production(Tons) 650 (450)* 4900 (2200)* 6 Aggregate Sales(Rs. Crores) 3.1 (1.8)* 14.8 (8.0)* · Figures in Brackets indicate those prior to interventions. It is pertinent to mention that the productivity has considerably improved after the implementation of the suggested interventions. As a result of the signs of improvements, Development Commissioner (MSME), Ministry of MSME, Govt of India, sanctioned for the establishment of a Common facility Centre in Mango Jelly Cluster at Bhimali, Vizianagaram district. Conclusion It is seen that the Govt. initiatives for the sustained growth and development proved encouraging results and benefited the industry. In a cluster approach the individual enterprises, commonly known as cluster actors play a vital role. Their cooperation and team work as an association will go a long way in expanding the business multifold. The cluster actors should now act positively to get better results. Acknowledgment: I sincerely acknowledge DC(MSME) and APITCO for using the cluster reports as references

FIBRE GLASS REINFORCED PLASTICS CLUSTER -HYDERBAD

INTRODUCTION

FRP – Fibre Reinforced Polymer was first developed in U.K. by M/s. Pilkington about 80 years ago. It was a composite material containing man-made Fibre (Glass, Kevlar, Carbon etc.) and a binding material. The binding material may be Polymer such as Thermosets (Polyesters, Phenolics, Epoxies, Polymides, etc.) or Thermoplastics (Peek, PPd, PS, etc.). The combination is such that there is sufficient aspect ratio (length to thickness) to provide a discernable reinforcing function in direction or more directions. FRP Composite may also contain filters, additives and core materials that modify and enhance the properties of the final product. The constituent elements in a composite retain their identities (they do not dissolve or merge completely into each other) and provide a host of benefits ideal for structural applications. FRP is also called a wonder material as it has high strength with light weight. They can be designed to provide a wide range of mechanical properties including tensile, flexural, impact and compressive strength. They are 1/5th of the weight of steel. They have good creep properties i.e. permanent deflection under long-term loading. They can also withstand higher temperatures than plastics. Properly designed and formulated, composites can offer fire resistance performance approaching that of metals. The most important property is resistance to environmental factors. Composites display excellent resistance to corrosive effects freeze thaw. They are not attacked by galvanic corrosion and have low water absorption, resist the destructive expansion of freezing water etc.. FRP Composite structures don’t whither and filter out ultra-violet light. They do not rust or corrode and can be formulated to provide long term resistance to nearly every chemical and temperature environment.

The applications of the material are as follows:

1) Fibre Glass Reinforced Plastic Components
2) FRP Anti-Corrosive Coatings
3) FRP Linings
4) FRP Sheets
5) FRP Laminates
6) FRP Furniture
7) FRP Fixtures
8) FRP Body covers for Instruments, motors etc.,
9) FRP Equipment
10) FRP Washing Machines
11) FRP Air Coolers
12) FRP Radomes
13) FRP Antennae Reflectors
14) FRP Floats
15) FRP Buoys
16) FRP Shells
17) FRP Shelters
18) FRP Containers
19) FRP Gratings
20) FRP Ladders
21) FRP Platforms
22) FRP Pallets
23) Boat Building
24) A host of other items
INDUSTRY STATUS and Cluster in Hyderabad

The basic process of manufacturing is hand-laying process. A mould is prepared and fibre and resin are filled in the mould layer after layer by hand. This process is tedious and slow and superior quality composites cannot be produced. This is generally called as brush and bucket technology. In advanced countries like Japan, America, China, Europe, the process has undergone a sea change. The process has been mechanized. While a rich expertise exists in a few national centers of excellence in India, especially for Aerospace for limited consumption, the knowledge-flow to the industry has not come up to the desired level from these agencies.. The applications were mostly confined to brush and bucket level fraught with obvious poor product quality, thus restricting the growth of composite usage and large-scale consumption in India. The per Capita usage in USA is 50 Kgs per annum. and India consumes only 100 gms. and the senerio in Andhra Pradesh is mere 30 gms. . There are about 3000 micro and small enterprises in the country out of which 300 are in A.P. with equal number in unorganized sector.

The FRP activity came to India in 1960 and to A.P. in the year 1970. The activity picked-up its pace with the advent of pharmaceutical, chemical and air coolers industries in Hyderabad. Due to high demand and availability of raw materials suppliers in Hyderabad, many FRP Industries came up, thus become a Cluster. The industries could not survive competition among themselves and from Plastic products manufacturing enterprises. The limited application in chemical and pharmaceutical companies did not favour growth of FRP industries. Those diversified into new application survived

Though there are 300 Units in A.P., about 100 of them are located in Hyderabad. 50% of these are micro enterprises and unorganized and the remaining are small scale enterprises registered with DIC.
Cluster Scenario:

The Cluster is spread in three Industrial Estates, namely, Jeedimetla, Balanagar and Cherlapally in Hyderabad. These Industrial Estates have good infrastructure facilities.

FRP is usually an enclosure, casing or sheet and they do not have sub-components. Hence all Units are considered as manufacturers enterprises. There are no assemblers or components manufacturers in this sector. The Units can be classified as mechanized and hand-laying. The cluster at Hyderabad can be classified as hand-laying type of industry as far as the technology is concerned.

As said earlier there are 300 Nos. of Units in A.P of which, 100 are located in Hyderabad and remaining are in Visakhapatnam and Vijayawada and other parts of the state. Out of 100 Units in Hyderabad, about 60 Units have good infrastructure and good turnover. These include raw material suppliers also. The remaining 40% are micro and cottage type enterprises operating from non-industrial area locations in Hyderabad.

The Cluster Manufactures FRP Roofing Sheets, Linings, Laminates, Furniture, Doors, Washing Machines, Air Coolers, Axial Flow Fans, Boats, Tanks, Chemical Process Equipments, Gratings, Ladders, Platforms and host of other products. The industry employs about 5,000 persons directly and 10,000 persons indirectly. The turnover of cluster is about Rs.100 crores in 2005-06

BACKWARD & FORWARD LINKAGES

The Cluster is having good backward linkages, viz., raw material suppliers. In fact the raw material suppliers are the drivers of these Cluster. One of the RM supplier Units is a multinational, it has access to latest developments in the field which is an advantage to the cluster. The relationship among the cluster actors is also good because of proactive presence of the association. This is not seen as far as the forward linkages are concerned. The cluster do not have good market linkages. There is need for formulation of strategic marketing policies as a collective effort to enhance the growth of the sector. At present the individual units do much of their business through personal contacts. A big market is untapped in entertainment field, pharmaceuticals, construction, automotive, railways and latest technology field (Aerospace, Defense, Non-Corrosive Electrical/Telephone Poles, etc.). There is need for a good sales force to identify the potential market and look for new areas. It is essential to organise workshops and consumer awareness activities.

Social Capital and Linkages with Support Institutions

The social capital in the Cluster is high, thanks to the presence of strong Industry Association. Regular exchanges take place among them and there is flow of information. There is also good exchange between cluster members and support institutions such as I.I.T., Mumbai, TIFAC, IIT, Chennai and FRP Institute, Chennai, and Developmental agencies. Finance Institutes are also having their presence. Though information is exchanging between members and support institutes is good, nothing concrete has taken place in terms of technology development, market growth etc,. There is a need to convert the exchanges into reality.

BUSINESS DEVELOPMENT SERVICE(BDS) PROVIDERS

The cluster is having BDS Providers. Even the Support Institutions like TIFAC, IITS may also act as BDS.

Value Chain Analysis:
This issue is not having impact on the Cluster as the raw material is reaching the user through approved dealer or directly. Similarly the product is reaching the user directly. Hardly anywhere in the cycle value is added.
Areas of Concern

Entry barriers are low in this Cluster hence many fly -by-night enterprises come and vitiate the field. This would affect the regular players. Hence there is a need to educate consumers on the advantage of standard products. Today the consumers hardly know of standards and look for low cot products. If quality standards are maintained, consumers get benefited and the Units also make good marketing.
There is a need to identify new technologies, processes of manufacture and product profile to make member units progressive and to contribute exports. The cluster is facing delayed payment syndrome because of its inability to grow and take higher risks. In short there is no product range of manufacture in any unit. Most of the manufacture tailor made products. In order to have a sustained growth the cluster should go for identification of new products and export markets

CLUSTER VISION
Making Cluster a product based, mechanize the process, establish training centre and enter into export of high tech and regular products in next three years.

INTERVENSIONS REQUIRED

1. A regular Association Office with Information Centre-cum-Sub Contract Exchange.
2. Increase the interactions between members and finance institutions for investment, factoring services and MCGF Schemes
3. Establish Training Centre
4. Establishing Common Facility Centre for addressing Pollution problem.
5. Increase awareness about FRP Products application and standards to common man.
6. Increase domestic and export market.
7. Establishing common testing and modern production centre to simulate modernization.
8. Introduce quality management systems, product certification and lean/best manufacturing systems.

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