1

A MICRO PROJECT

On

Small Scale Industry

Part A: A micro-project proposal

Aims/Benefits of the micro project

The aim of this course is to help the student to affined following

industry identified competency through various teaching learning
experience.

Course outcome addressed.

Develop a project report on study on Small Scale Industry.

Proposed methodology

In this project we learnt about applying management principles to a

small scale industry.

Action Plan
2

Plan Plan Name of

Sr.
Detail of activity start finish responsible team
No.
date date members

1 Group Discussion

Searching of real
2
life task

Selection of micro
3
project topic

Gathering of
4
information

5 Group discussion

Distribution of
6
work to be done

Preparing the
7 overview of
project

Gathering the
8
details

9
3

Implementing the
10 row10 col 5
data

11 Demonstration

12 Group Discussion

13 Gathering the data

14

15

16

Index

Sr no. Topic

1 Abstract

2 Introduction

3 Characteristics of SSI

4 Objectives of SSI

5 Role of SSI

6 Classification of SSI

7 Principles of SSI
4

8 Seven Essential Principles of SSI Success

9 Role of SSI in Indian Economy

10 Advantages of SSI

11 Disadvantages of SSI

12 Steps to manage SSI

13 Important tips to manage SSI

14 Conclusion

15 References

Abstract:-

Small Scale industries play a key role within the industrial economy
everywhere the world. They contribute considerably to economic
growth, innovation, and employment generation. globalisation, fast
technological changes, and greater competitive pressure ar having a
serious impact on little scale industries round the globe. little scale
industries got to upgrade their organisation strategies to succeed in
money, social and environmental improvement while not giant
investments or in depth changes. the combination of lean and 6 letter
of the alphabet is that the bestresponse to the current challenge.
However, the adoption of lean Six letter of the alphabet in little scale
industries is not widespread due to the worry of high implementation
5

value and therefore the sequent edges. With the restricted resources to
implement Lean six letter of the alphabet for little scale industries while
not external aid. Essentially the little scale industries ar usually
comprised of these industries that manufacture, manufacture and render
services with the assistance of little machines and fewer personnel.
These enterprises should make up the rules, set by the govt. of India.
The SSI’s ar the lifeline of the economy, particularly in developing
countries like India. These industries ar usually effortful, and thence
they play a very important role within the creation of employment.
SSI’s ar an important sector of the economy each from a money and
social purpose of read, as they assist with the per capita financial gain
and resource usage within the economy.

Introduction:-

Small scale industries comprise of tiny enterprises WHO

manufacture merchandise or services with the assistance of
comparatively smaller machines and a number of employees and
workers. Basically, the enterprise should constitute the rules set by the
govt. of Asian nation. At the nonce such limits ar as follows,
• For producing Units for Goods: Investment in plant and machinery
should be between twenty {five} lakhs and five crores.
• For Service Providers: Investment in machinery should be between
ten lakhs and 2 crores. In developing countries like Asian nation, these
6

tiny scale industries ar the lifeline of the economy. These ar usually

labor-intensive industries, so that they produce abundant employment.
They additionally facilitate with per capita financial gain and resource
utilization within the economy. they're a awfully necessary sector of
the economy from a money and social purpose of read.

Characteristics of SSI:-

1. Ownership: SSI’s typically square measure below single possession.

thus it will either be a sole proprietary or generally a partnership.

2. Management: Generally, each the management and therefore the

management is with the owner/owners. thus the owner is actively
concerned within the every day activities of the business.

3. Labor Intensive: SSI’s dependence on technology is pretty restricted.

thus they have an inclination to use labour and work force for his or her
production activities.

4. Flexibility: SSI’s square measure additional adaptable to their

dynamic business surroundings. thus just in case of amendments or
sudden developments, they're versatile enough to adapt and continue,
not like massive industries.
7

5. restricted Reach: Small scale industries have a restricted zone of

operations. Hence, they will meet their native and regional demand. 6.
Resources utilisation: They use native and pronto out there resources
that helps the economy totally utilize natural resources with minimum
wastage.

Objectives of SSI:-

Small enterprises generally aim at enjoying complementary role within

the socio economic found out of a rustic. Its practical objectives aren't
solely business however additionally social.

• The basic objectives of small-scale business are:

(i) Providing accumulated employment opportunities on honest and

cheap terms.

(ii) Promoting production of an oversized kind of goods-specially

goods through effortful ways.

(iii) Encouraging adoption of contemporary techniques within the

unorganised ancient sector of the trade while not inflicting any
perceptible technological state.

(iv) Facilitating a good mobilisation of resources of capital and talent

which might have otherwise remained unutilised.
8

(v) group action the viable little sector with the very important massive
scale-sector.

(vi) Encouraging and supporting the native talent and utilising native
resources to realize native self-reliance.

(vii) Avoiding the issues of unplanned urbanisation of industries,

(viii) guaranteeing a additional evenhanded distribution of the value

Associate in Nursingd a balanced industrial growth in numerous
regions thus on lay down a basis for an primarily localised socio-
economic set-up.

(ix) making a replacement cadre of small-entrepreneurs, skilled and self

used consultants.

(x) Correcting regional disparities in industrial growth through

locational spread of small-enterprises.

Role of Small Scale Industries:-

1) Small Scale industries give Brobdingnagian scope for increasing

employment.

2) They area unit labour intensive and need relatively very little capital
to start out with.
9

3) They facilitate production of commodity and thus will meet the

demand for shopper merchandise.

4) They facilitate reduction of costs.

5) They accelerate the speed of commercial growth.

6) They facilitate in equitable distribution of national wealth.

Classification of Small-Scale Industries:-

• Small-scale industries are classified into 5 main categories:

(a) producing industries-producing articles for direct consumption also

as process industries. (

b) Feeder industries-specialising
specific|especially|specially|particularly|above all|specifically} sorts of
particular product and services, e.g., casting, electroplating, fastening
etc.

(c) sexual union industries-covering light-weight repair retailers

necessary to take care of mechanical instrumentality.
10

(d) Mining or production.

(e) Ancillaries-producing elements and parts for light-weight

engineering product cycles, stitching machines, diesel engines,
machine tools, mathematical instruments, workplace and home
instrumentality, electrical appliances, air-conditioners, etc.

Principles of management:-

1. Division of work:- Dividing the complete work of the organization

among people and making departments is named the division of labor.
Division of labor ends up in specialization helps to extend potency
which ends up in enhancements within the productivity and profit of
the organization.

2. Discipline:- Discipline suggests that relevancy the foundations and

rules of the organization. Discipline could also be self-discipline, or it
should be implemented discipline.

3. Unity of command:- in line with this principle subordinate should

have and receive orders from just one superior.

4. Unity of direction:- One head and one arrange for a bunch of

activities with an equivalent objectives. Al activities that have an
equivalent objective should be directed by one manager, and he should
use one arrange. this can be known as unity of direction.
11

5. Authority and responsibility:- There ought to be a balanced between

authority and responsibility .The right to present orders ought to be
thought of while not regard to responsibility.

6. Scalar chain:- The chain of command, generally known as the scalar

chain, is that the formal line of authority, communications, and
responsibility at intervals a company.

7. Equity:- in line with this principal , manager , ought to treat all staff
with fairness, kindness and justice. this may build staff to be additional
loyal and devoted towards the organization.

7 Essential Principles of Small scale industry

Success:

1. Associate in Nursing Entrepreneurial mentality To develop a

mentality for achievement, you want to understand that however you
understand your business and your life determines your reality.
Business homeowners with Associate in Nursing entrepreneurial
mentality don't suppose like employee bees. they need many
characteristics that cause them to square get in the gang. Entrepreneurs
don't seem to be born. they're engineered through constant study and
determination. Entrepreneurs square measure willing to fail to
12

eventually win. They perceive that not each plan could be a sensible
one. there'll be times once you are going to be doing all your best,
however feel annoyed by a scarcity of progress in your business. each
businessperson goes through these troublesome periods. I actually are
there on quite one occasion. it's sometimes like this that you just got to
concentrate on the positive and keep your optimism operating. The
key's to avoid negative thinking.

2. Strict commercial enterprise Discipline Successful business

individuals use budgets and realistic sales projections to run their
businesses. They recognize by the fifteenth of the month however well
their business did financially the month previous. they are doing not
pay cash on travel, events or trade shows that don't seem to be
budgeted. they are doing not rent employees while not have the money
or contracts in situ ahead. They additionally perceive the way to use a
line of credit. They use it fastidiously for short-run money desires, and
not long funding desires like promoting expenses.

3. A coterie of Advisors You will got to develop relationships with

people that square measure already entrepreneurs or different business
people in an exceedingly position to present nice insight into what you
would like to be a business success. it's terribly useful to additionally
embrace a possible consumer in your line conversations. purchasers
will offer valuable insight into budget cycles and current pain points,
and most significantly introduce you to different potential customers.
13

Keep the corporate of good individuals. typically a telephone to

Associate in Nursing adviser will save heaps of symptom and cash.

4. an outlined complete Your complete is that the temperament of your

product, company or service, however what makes the complete great?
you want to shield your complete with the required emblems, patents
and/or copyrights for everything from your brand, colours and style of
your packaging to the invention of a replacement product or method.
Your complete enhances the performance, innovation, transparency of
your company and it's the ability to project a way of social
responsibility outside the corporate.

5. a distinct segment Market Successful little businesses homeowners

perceive that solely a restricted variety of individuals can obtain their
product or service. They solely pursue promoting efforts toward the
precise individuals they're targeting as customers. Having a narrowly
outlined cluster of shoppers is however they’ve engineered their
business.

6. glorious client Service Successful entrepreneurs recognize glorious

client service can keep customers coming.In today’s customer-oriented
business setting, “people skills” square measure important for little
business success. however you handle your customers will directly
have an effect on your company’s performance. robust businesses offer
manuals and employees coaching on the talents required to speak
expertness, gain respect and enhance client relationships. They
14

additionally use client relationship management (CRM) software

package to trace the worth {of clients|of consumers|of shoppers} to the
business and to manage customer contacts.

7. money Position and sensible Banking Relationship On a every day

basis, prospering entrepreneurs perceive what their money position is
in terms of assets and accounts collectible. they are doing not simply
build deposits and withdrawals. they need a relationship with the
manager and head teller at their bank. They additionally use 2 banks to
form positive that their personal and business assets don't seem to be
situated within the same bank.

Role of Small Scale Industries in the Indian

Economy:-

1. Total Production These enterprises account for pretty much four-

hundredth of the full merchandise and services created within the
Indian economy. they're one in all the most reasons for the expansion
and strengthening of the economy.

2. Employment These tiny scale industries square measure a serious

supply of employment within the country. the full labour force cannot
realize add the formal sector of the economy. therefore these labor-
intensive industries offer a keep to an outsized portion of the personnel.
15

3. Contribution to Export Nearly 1/2 the products (45-55%) of the

products that square measure exported from Republic of India square
measure created by these tiny enterprises. concerning thirty fifth of
direct exports and 15 August 1945 of the indirect exports square
measure from the little scale industries. therefore India’s export
business majorly depends on these tiny industries for his or her growth
and development.

4. Welfare of the general public Other than economic reasons, these

industries also are vital for the social growth and development of our
country. These industries square measure sometimes started by the
lower or bourgeois public. they need a chance to earn wealth and
worker others. It helps with financial gain distribution and contributes
to social progress.

Advantages Of SSI:-

 Close supervision
 Nature of demand
 More employment
 Need of small capital
 Easy management
 Freedom of work
 External economies
 Direct relation between the workers and the employee
 Direct relation between the customers and the produce
16

Disadvantages Of SSI:-

 High cost of production

 Wastage of by-products
 Less use of machine
 Lack of division of labour
 Lack of research
 Old techniques
 Costly raw material
 Difficulty in getting loans
 Difficult to face economic crisis

Steps to manage Small Scale Industry:-

1.Be ready To Grow When you launched your company your goal
was to succeed. whereas your business arrange could have printed
metrics of what that growth would possibly seem like, actively getting
ready for it had been a additional holistic approach. Be proactive
concerning next steps before they happen thus you'll manage them fitly
while not losing your grip on them.

2. Get Your internal control so as It’s straightforward to lose sight of

maintaining quality standards once your company is apace increasing.
Remember, it’s not solely however you’ve given yourself to your
customers, however what you provide that LED to your success. If you
don’t have already got one, place along a team to possess oversight over
17

your internal systems, development, producing, etc. the kind of internal

control required to succeed is totally different for every business, thus
gear yours to what suits you and your standards best.

3. remain prime Of rock bottom Line Your profits could look superb,
however if you see a disconnection with the value of doing business
you’ll need to stay a watch thereon increase. There’s forever a touch
risk once moving forward, however you don’t need to search out
yourself outspending what you'll afford to urge to ensuing level. Keep
your eye on the numbers and follow them consequently. This truly
leads US right into step range four.

4. create changes For Growth Keep Associate in Nursing open mind to

those areas which will ought to decrease whereas being aware of
wherever you actually do ought to expand. for instance, to form a
additional economical team you'll ought to add additional managers,
however lose performance reviews. or even you lose causation out
paper memos, however add sensible tablets. creating the foremost
effective shift required to assist you manage your growth can assist you
to remain relevant and economical.

5. kind an excellent Support Team You’ve detected the phrase “you

area unit solely as robust as your weakest link”. enable your team
members to play to their strengths and reward them for it. In turn, they'll
reward you with unimaginable results and create the bottom upon that
you're growing that way more solid.
18

6. bear in mind Your Customers Don’t forget that ultimately the

rationale your business is growing is owing to your customers. it's
imperative to stay their desires and wishes in mind as you progress
forward. you'll conjointly embrace them as you expand. absorb their
comments, hear their thoughts and take into account their suggestions.
There area unit lots of cautionary tales of tiny firms that lost sight of
those essential assets and went out of business owing to it. Keeping
your shopper base at the forefront of your strategy through each
revision, growth and discovery can keep you connected and make sure
you gain even additional fans.

Important Tips to manage SSI:-

1. produce a business set up To create a good business set up, define

your business goals and objectives and supply a compendious
description of your business and also the product or services. embody
the main points regarding the market you’re on the point of enter, your
selling and sales plans and your money projections. Review your
business goals often to envision what’s modified, what’s been
achieved, and what has to be revamped.

2. Separate your personal and business finances Since the taxes for you
and also the business ar calculated on an individual basis, it’s necessary
to open separate personal accounts that ar selected for under business
transactions.
19

3. verify funding needs If you’re beginning a brand new business,

funding the operations of the business is that the upmost priority.
whether or not you’re choosing personal investment, angel investment,
business incubators, bank loans or government grants, it’s vital to
acquaint yourself with the benefits and downsides of those funding
sources furthermore because the criteria they use to guage the business.

4. rent the proper folks If you wish your business to thrive, it’s vital to
rent impelled, high-energy trainable people that ar trying to find
success instead of creating a fast buck. As atiny low business owner,
you wish to understand a way to retain valuable staff by giving them
perks like versatile schedules, happy hours and team building
activities.

5. Train your staff Even if you rent the best folks within the world, it’s
aiming to take it slow for them to know the ins and outs of your business
and make out a way to place things along to attain long goals. this is
often why coaching your staff well is important for atiny low business.
produce a coaching set up that creates your staff feel additional
competent and authorised in their jobs.

6. Keep track of your finances When you begin a brand new business,
it’s straightforward to stay track of the cash coming back in and going
out of the business. However, as your business operations grow, this
task will become a headache. this is often why you must either rent a
full-time , on-staff controller or just invest in AN easy-to-use
20

accounting package that helps you retain track of your finances and
save your precious bucks.

7. Invest in selling In a world wherever brands ar perpetually

competitive for consumers’ attention, tiny businesses have to be
compelled to force their approach before of individuals, show them one
thing valuable and somehow have them hear their pitch. analysis the
various tiny business advertising and selling choices before selecting a
selling model that works best for you and also the business.

8. Learn to delegate Time management is crucial for little business

homeowners. a neighborhood of managing it slow involves having the
ability to delegate work to those impressive staff you’ve employed and
trained–especially tasks that you just don’t extremely relish doing or
those you recognize you’re not superb at.

Conclusion:-

In this project we learnt about the actual management of Small Scale

Industries, we learned about the principles and tips of management that
should be applied to the Small Scale Industries. We also learned about
the role of SSI in Indian Economy, the Steps to manage Small Scale
Industries, Characteristics of SSI, Objectives of SSI and also saw the
Seven essential principles to manage SSI. In this project we also
discussed about some of the advantages and disadvantages of Small
21

Scale Industries. This Project help us to gain all the knowledge that is
required to manage a Small Scale Industry in an efficient way. .