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Management Microproject

Small scale industries play a key role in economic growth, innovation, and employment globally. However, globalization, technology changes, and competition are impacting small industries. Implementing lean six sigma could help small industries improve without large investments, but adoption is low due to cost fears. With limited resources, implementing lean six sigma for small industries requires external aid.

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Gajanan Deutkar
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24 views16 pages

Management Microproject

Small scale industries play a key role in economic growth, innovation, and employment globally. However, globalization, technology changes, and competition are impacting small industries. Implementing lean six sigma could help small industries improve without large investments, but adoption is low due to cost fears. With limited resources, implementing lean six sigma for small industries requires external aid.

Uploaded by

Gajanan Deutkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SMALL

Abstract
Small Scale industries play a key role in the industrial economy all over the
Globe. They contribute significantly to economic growth, innovation, and
Employment generation. Globalization, quick technological changes, and bigger
Competitive pressure are having a major impact on small scale industries around
The globe. Small scale industries need to upgrade their professional organization
Methods to reach financial, social and environmental improvement without
Large investments or extensive changes. The integration of lean and Six Sigma
Is the best response to this challenge. However, the adoption of lean Six Sigma
In small scale industries is not widespread due to the fear of high
Implementation cost and the subsequent benefits. With the limited resources to
Implement Lean six sigma for small scale industries without external aid.
DEFINITION OF SMALL SCALE
INDUSTRY
Defining small-scale industry is a difficult task
because the definition of small-scale industry varies
from country to country and from one time to the
another in the same country and by industry.
SMALL
Small businesses are normally privately owned
corporations , partnerships, or sole proprietorships ,
which constitutes small in terms of government
support and tax policy varies depending on the
country and industry.
Definition of Small Scale Industries
in India-
An industrial undertaking in which the investment in
fixed assets in plant and machinery whether held on
ownership terms on lease or on hire purchase does not
exceed Rs.10 million.

ACCORDING TO SSI BOARD- "A unit employing


less than 50 persons if power and laess than I(Y)
persons without the use of power and with a capital
investment rupees 5 lakh"
ADVANTAGES OF SCALE
SMALL
INDUSTRIES
The following are the merits or small scale
industries-
I .Close Supervision
2.Nature of Demand
3.More Employment
4.Need of Small Capital
5.Direct Relation between the workers and the
employers
SMALL
ADVANTAGES OF SCALE
INDUSTRIES
6.Direct Relation between the customers and the
producers
7.Easy Management
8. Freedom of Work
9.External Economies
SMALL
10. Less possibilities of strike and lockouts
DISADVANTAGES OF SCALE
INDUSTRIES

The following are the demerits


or small scale industries-
I .High cost of production
2.Wastage of by-products
3.Less use ol' Machines
SMALL
4.Lack of Division of Labour
5.Difficulty in getting Loans
DISADVANTAGES OF SCALE
INDUSFRIES
6.Difficult to face Economic Crisis
7.Costly Raw Materials
8.Lack of Standardised Goods
SMALL
9.01d Techniques
10.Lack of Research
CHARACTERISTICS OF SMALL
SCALE INDUSTRIES
I .Labour Intensive
2.F1exibi1ity
3.0ne-man Show
4.Use of indegenous raw materials
5.Localised Operation
6.Lesser gestation period
7.Education level
8.Profit Motive
ROLE OF SMALL SCALE INDUSTRIES
Dynamic and vibrant sector of the economy .
Prominent role in socio-economic transformation
of the country.
Accounts for 35 percent of employment SSI sector
has, over past six prominent place in the
socioeconomic development in the country.
Sinall Scale Industries as a SeedbedTor larger
business
Seedbed refers to the preparing of soil for the
sowing of seeds so that we may have good
crop.Small business is regarded as a seedbed for
entrepreneurship as it provides conducive
conditions for the emergence and growth of
enterpreneurs. SSI's are called seedbed of
enterpreneurship due to the following reasons.
Small Scale enterprises can be started with lesser
investment
Small scale unit carry on business on a small scale
and as such the element of risk too is less.
Small Scale units are generally based on local
resources and as such there is no problem
regarding their availability.
Small scale unit can be located
anywhere and thus help in the
development of backward areas of
the country.
Small scale units help in building
achievement motivation amongst
entrepreneurs

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