1 National Manufacturing Competitiveness Programme (NMCP) for MSME sector Implemented by Ministry of...

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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

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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.

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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

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• 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

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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

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• 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.

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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

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• 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)

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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

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Design Clinics Scheme – New Products developed by MSMEs

(1) Visitor Management System,

(2) Improved light weight pump

(3) Bottle vision equipment

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Design Clinics Scheme – New Products

(1) Portable Hydraulic (2) ENT multi scope(3) Syringe (precision type)

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• 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.

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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)

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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

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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)

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Technology and Quality Upgradation Support (TEQUP)

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• 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

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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

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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

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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)

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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.

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• 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)

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• 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)

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• 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

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• 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

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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)

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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

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• 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

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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

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• 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

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• 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

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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)

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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)

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• 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……..

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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)

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Thank You