A MICRO PROJECT

On
Small Scale Industry

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 are 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 best response 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
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 are the lifeline of the economy, particularly in developing countries like
India. These industries are usually effortful, and thence they play a very important
role within the creation of employment. SSI’s are 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 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.
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.
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.
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-specializing 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.
(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.
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.
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.

3. Contribution to Export Nearly ½ 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

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