Saturday, February 12, 2005

QUALITY FOR SMALL INDUSTRIES IN INDIA

My experience has it that small industries in India do no have enough resources to apply quality to their products. All the products though in demand are optimized to pay out higher profits by compromising on quality. Using lower quality than required standards, often lacking in finishing and inefficient technology causes the quality to really go in for a six.

The need of the hour is to hone in on the quality for maximizing profits through product differentiation and innovations instead of waylaying it by compromising it. But the story is very different when it compliance to standards and norms are to be applied. The ISO series is a total redundant afair. So have the BIS standards. All manufacturers except those in the Exports segment look askance when it comes to compliance to quality norms and standards. The reason for this are as follows:

1) higher cost of manufacturing
2) Need for investment in setting up of laboratory
3) Need for hiring and employment of skilled technicians and operators for the lab equipments and instruments.
4) Reduction in margins due to high competition

The Government can intervene in this matter by making:

1) mandatory for compliance to the quality norms
2) Provide susidy or relief ni the form of relaxation of taxes and duties
3) Provide assistance in setting up of laboratories and purchase of lab equipments and test instruments
4) Provide technological assistance for operating the lab/equipments
5) Provide manpower for operating the lab/equipments
6) Create a testing centre in each district which can sample and test products on cost effective rates. Existing centres are too far and wide spread and charges are not affordable by common businessmen.
7) Provide services that enable quality drive with the Small Businesses
8) Provide incentives to small businesses for achievement of quality compliance and standards
9) institute quality awards on district/state/national basis especially for small businesses and industries under 50 lacs.
10) Engage public sector corporations and DGS&D procurement through such small businesses so that marketability is not affected

All these amenities if supported by the goverment will ensure that the quaity for all small business in india can be a relative term for higher profits, market share and growth.

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