Study of management principle in small scale industry

Management

Microproject

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Study of management principle in small scale industry

MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

MICROPROJECT
Academic Year: 2023-2024

Topic:- Study of management principle in small scale industry

Program:- Computer Engineering.

Subject Name:- Management
Course code:- 22509

Course:- CO6I

Prof. Prof. PROF.

[Name of Guide] [Name of HOD] [Principal]

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Study of management principle in small scale industry

MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

CERTIFICATE

This is to certify that Mr. Roll No: of TYCO of Diploma in Computer

Engineering of Institute: MIT Polytechnic Pune (Code: 0148) has
completed the Micro Project satisfactorily in Subject: Management
For the academic year 2023-2024 as prescribed in the curriculum.

Place :Pune Enrollment No:

Date: Exam. Seat No: --------

Subject Teacher Head of the Department Principal

(Prof. ) (Prof. ) (Prof . )

Institute

Seal

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Study of management principle in small scale industry

Index

Sr.No Content Page No.

1. Abstract 8

2. Introduction 9

3. Classification Of SSI 11

4. Objective Of SSI 13

5. Micro-Project Proposal A 17

6. Micro-Project Proposal B 19

7. Conclusion 20

8. Evaluation Sheet 21

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Study of management principle in small scale industry

1.0 ABSTSRACT :-

Small-scale industries constitute a crucial segment of the global economy,

contributing significantly to employment generation, innovation, and economic
growth. Effective management in these enterprises is paramount for sustained
success and competitiveness in the dynamic business environment. This abstract
elucidates the fundamental principles of management tailored specifically for
small-scale industries.

The principles encompass various facets of management, including planning,

organizing, leading, and controlling, adapted to the unique context and
challenges faced by small-scale enterprises. Planning involves setting clear
objectives, identifying resources, and formulating strategies aligned with the
organization's goals while remaining agile to respond to market changes swiftly.

Organizing in small-scale industries entails creating efficient structures,

delineating roles and responsibilities, and fostering teamwork and collaboration
among limited personnel. Leadership assumes a pivotal role, emphasizing
visionary guidance, effective communication, and motivation to inspire
commitment and drive innovation amidst resource constraints.

Control mechanisms in small-scale industries prioritize monitoring performance

metrics, implementing feedback loops, and leveraging technology to optimize
processes and enhance productivity while ensuring cost-effectiveness and
quality standards.

Furthermore, principles such as adaptability, resilience, and customer-centricity

underscore the importance of flexibility, responsiveness, and customer
satisfaction in navigating uncertainties and sustaining competitive advantage in
small-scale enterprises.

Drawing upon empirical research and best practices, this abstract offers a
comprehensive framework for effective management in small-scale industries,
providing invaluable insights and strategies to empower entrepreneurs and
managers in maximizing their potential and fostering sustainable growth in the
dynamic business landscape.

2.0 Introduction :-
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Study of management principle in small scale industry

Since the time of independence, the small-scale sector in India has been a major
contributor to country’s Gross Domestic Product (GDP). This traditional sector
in India is considered to have huge growth prospect with its wide range of
products. With 40% in total industrial output and 35% share in exports, the
small-scale industrial sector in India is acting as Engine of Growth in the new
millennium.

The definition for small-scale industrial undertakings has changed over time.
Initially they were classified into two categories :-

 Those using power with less than 50 employees.

 Those not using power with the employee strength being more than 50
but less than100.

However the capital resources invested on plant and machinery buildings have
been the primary criteria to differentiate the small-scale industries from the
large and medium scale industries. An industrial unit can be categorized as a
small- scale unit if it fulfills the capital investment limit fixed by the
Government of India for the small-scale sector.

As per the latest definition which is effective since February 28, 2007, for any
industrial unit to be regarded as Small Scale Industrial unit the following
condition is to be satisfied :-

i)Investment in fixed assets like plants and equipments should not be more than
Rs.1.5Cr.

ii)An initial Investment of capital directly / indirectly.

iii)The trade is classified Domestic, Export Oriented Units (EOU).

iv)Artisans, Village, Cottage industries, are identified.

v)Women enterprise is also given importance- investment up to 10 lakhs.

The Village and Small Industries Sector comprises of five Sub-Sectors viz.

1)Small Scale Industries (under the control of the Director of Industries and
Commerce),

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Study of management principle in small scale industry

2)Handlooms and Textiles

3)Khadi and Village Industries Handicrafts Development.

Small scale industries (SSI) are those industries in which manufacturing,

providing services, productions are done on a small scale or micro scale. For
example, these are the ideas of Small scale industries: Napkins, tissues,
chocolates, toothpick, water bottles, small toys, papers, pens. Small scale
industries play an important role in social and economic development of India.

Small scale industries (SSIs) play a crucial role in the economic development of
nations around the world. These enterprises typically operate on a smaller scale,
with limited manpower, resources, and capital compared to large corporations.
However, despite their size, small scale industries contribute significantly to
employment generation, income generation, and overall economic growth.

Managing a small scale industry requires a unique set of skills, strategies, and
considerations due to the inherent challenges and opportunities that come with
operating at a smaller scale. Effective management practices are essential for
the success, sustainability, and growth of small scale enterprises.

3.0 Classification Of SSI:-

In management, the classification of Small Scale Industries (SSI) can be based
on various factors, including their size, nature of operations, ownership
structure, and industry sector. Here's a brief classification:

1. Size-based Classification:

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Study of management principle in small scale industry

- Micro Enterprises: Typically have fewer than 10 employees and low

investment thresholds.

- Small Enterprises: Employ between 10 to 50 employees and have slightly

higher investment thresholds compared to micro-enterprises.

- Medium Enterprises: Employ between 50 to 250 employees and have higher

investment thresholds compared to small enterprises.

2. Nature of Operations:

- Manufacturing Enterprises: Involved in the production of goods through

processing, manufacturing, assembling, or fabrication processes.

- Service Enterprises: Engaged in providing services such as retail, hospitality,

healthcare, education, consulting, etc.

3. Ownership Structure:

- Proprietorship: Owned and managed by a single individual.

- Partnership: Owned and managed by two or more individuals who share

profits and liabilities.

- Private Limited Company: A separate legal entity owned by shareholders,

limiting the liability of owners.

- Cooperative: Owned and operated by a group of individuals or communities

for their mutual benefit.

4. Industry Sector:

- Agro-based Industries: Engaged in processing agricultural products or

utilizing agricultural resources.

- Textile and Garment Industries: Involved in manufacturing textiles, clothing,

and related products.

- Food Processing Industries: Engaged in processing and preserving food

products.

- Chemical and Pharmaceutical Industries: Involved in the production of

chemicals, pharmaceuticals, and related products.
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Study of management principle in small scale industry

- Handicrafts and Cottage Industries: Involved in producing handmade goods

with traditional methods and skills.

5. Technology Adoption:

- Traditional/Conventional Industries: Employ traditional methods and

technologies in their operations.

- High-Tech Industries: Utilize advanced technologies and modern production

methods.

4.0 Objectives Of SSI:-

The objectives of Small Scale Industries (SSIs) in management encompass a

range of goals that contribute to their sustainability, growth, and success. Here
are some common objectives:

1. Profitability: Like any business, SSIs aim to generate profits and ensure
financial sustainability. Profitability allows for the reinvestment of earnings into
business expansion, innovation, and meeting financial obligations.

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Study of management principle in small scale industry

2. Employment Generation: One of the primary objectives of SSIs is to create

employment opportunities, particularly in rural and semi-urban areas where
large-scale industries may not have a significant presence. By providing jobs to
local communities, SSIs contribute to poverty reduction and socio-economic
development.

3. Promotion of Entrepreneurship: SSIs foster entrepreneurship by providing

opportunities for individuals to start and manage their own businesses. They
encourage creativity, innovation, and risk-taking among entrepreneurs, thereby
contributing to economic dynamism and competitiveness.

4. Utilization of Local Resources: SSIs often utilize local resources, raw

materials, and labour, contributing to the development of regional economies
and reducing dependence on imported goods and services. This promotes local
self-sufficiency and enhances the resilience of communities.

5. Technology Upgradation and Innovation: SSIs aim to adopt modern

technologies, processes, and techniques to improve productivity, quality, and
efficiency. Innovation in product design, manufacturing processes, and
marketing strategies enables SSIs to stay competitive in dynamic markets.

6. Contribution to Exports: Many SSIs engage in export-oriented activities,

contributing to foreign exchange earnings and enhancing the country's export
competitiveness. Export promotion policies and support services facilitate SSIs'
participation in global markets.

7. Social Responsibility and Sustainability: SSIs recognize their role in

promoting sustainable development and corporate social responsibility (CSR).
They strive to minimize environmental impact, comply with regulations, and
contribute to community development through initiatives such as education,
healthcare, and infrastructure development.

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Study of management principle in small scale industry

8. Access to Finance and Support Services: SSIs seek access to finance, credit,
and support services tailored to their needs. Government schemes, financial
institutions, and industry associations provide funding, training, and technical
assistance to SSIs to overcome challenges and seize opportunities.

Traditional and Modern Small Scale Industries and Their Products:-

The traditional small-scale industries clearly differ from their modern

counterparts in many respects. The traditional units are highly labour
consuming with their age-old machineries and conventional techniques of
production resulting in poor productivity rate whereas the modern small-scale
units are much more productive with less manpower and more sophisticated
equipment’s.

Some of the traditional small scale industries are that of Khadi and Handloom,
coir, village industries etc. The modern small scale industries are that of
garments, leather products etc. But in today's scenario, most of the small scale
industries in India are modern small scale industries. The items manufactured in
modern Small-scale service & Business enterprises in India now include:

>Rubber Products >Plastic Products >Chemical Products

>Glass And Ceramics >Mechanical Engineering Items > Hardware

Traditional Small Industries Modern Small Industries

Include khadi, handloom, village Variety of goods including simple

industries, handicrafts, sericulture, and sophisticated goods such as TV
coir etc. sets, engineering products and
electronic control systems.

Highly labor-intensive. Use highly sophisticated equipment

and machinery.

o Distinction Between Traditional And Modern Small Industries

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Study of management principle in small scale industry

Since independence the Government of India has nurtured this sector with
special care with the following aims:

1. To develop this sector as a major source of employment

2. To encourage decentralized industrial expansion
3. To ensure equitable distribution of income.
4. To mobilize capital investment and entrepreneurship skills.

Need to Boost Small Scale Industries:

Realizing the importance of small scale industries in Indian economy, the
government is trying to develop this industry keeping in mind the following
aims:

 To increase employment.
 To prevent unequal distribution of income.
 To develop capital investment.

1. Access to Finance: Provide easier access to affordable finance and credit

facilities tailored to the needs of SSIs. This could involve government-
sponsored loan programs, microfinance institutions, venture capital funds, and
angel investors.

2. Capacity Building and Skill Development: Offer training programs,

workshops, and skill development initiatives to enhance the managerial,
technical, and entrepreneurial capabilities of SSIs. This includes training in
areas such as marketing, finance, production processes, and technology
adoption.

3. Infrastructure Development: Improve infrastructure such as roads, electricity,

water supply, and telecommunications in industrial clusters and rural areas
where SSIs are prevalent. Better infrastructure reduces production costs,
enhances connectivity, and facilitates market access.

Estimated No. of Units 3.57 million

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 Study of management principle in small scale industry

Employment 19.96 million

Share in Industrial Value Added 40%

Share in Total Exports 3.57 million (45-50%)

Total Number of Items Produced Over 9,000

Number of Reserved Item 298

SSIs In India

Micro-Project Proposal-A
Project Problem Statement/title:- Study of management principle in
small scale industry
1.0 Brief Introduction: Since the time of independence, the small-scale
sector in India has been a major contributor to country’s Gross Domestic

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 Study of management principle in small scale industry

Product (GDP). This traditional sector in India is considered to have huge

growth prospect with its wide range of products.

2.0 Aim of the Micro-Project : The aim of Small Scale Industries in

management is to foster entrepreneurship, create jobs, innovate, and contribute
to economic growth.
3.0 Action Plan:--
Sr Details of activity Planned Time Name of
No
Start Responsible team
.
Date
member

1. Finalising the Topic 1/02/24 05 pm -06

and Allotment of pm
Work.
2. Searching 05/02/24 06 pm –
Information. 08 pm

3. Arranging the 06/02/24 05 pm –

collected information. 06 pm

4. Proofreading the 17/02/24 07 pm –

Information. 08 pm

5. Surveying 18/02/24 05 pm -06

Information pm

6. Requiremen 29/02/24 06 pm –
t Analysis 08 pm

7. Finalizing Layout 25/03/24 05 pm –

06 pm
8. Generating 26/03/24 07 pm –
Program and Final 08 pm
Execution

9. Report Generation 26/03/24 05 pm –

06 pm
10. Final submission 30/03/24 07 pm – 08 Verified by All &Submitted
pm

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 Study of management principle in small scale industry

4.0 Resources required :-

Sr.No Name of Specification Quantity Remark

. Resources/ma
terial
1. Computer System 12 GB RAM, 1
Windows 11
OS
2. Software Android Studio

3. Other resources internet

Micro-Project Proposal-B

❖ Project Problem Statement/title:- Study of management principle in

small scale industry

1.0 Course outcome : The course outcome for Small Scale Industries in
management is to equip students with knowledge of entrepreneurship, financial

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Study of management principle in small scale industry

management, market analysis, and operational strategies essential for effectively

managing and sustaining small businesses.

2.0 Brief Introduction : Small Scale Industries (SSIs) in management

encompass small businesses with limited capital and workforce. They play a
pivotal role in economic development, job creation, and entrepreneurship, often
focusing on local resources and niche markets for sustainability.

3.0 Aim of the Micro-Project: The aim of Small Scale Industries in

management is to facilitate entrepreneurship, promote economic development,
generate employment opportunities, foster innovation, utilize local resources
efficiently, and ensure the sustainable growth and success of small businesses.

4.0
Actual Resources used : Android Studio

5.0 CONCLUSION :-

Small Scale Industries (SSIs) constitute a crucial segment of the economy,

embodying entrepreneurship, resilience, and local empowerment. In
management, understanding the dynamics of SSIs is paramount for sustainable
economic development and inclusive growth.

These industries serve as incubators for innovation and creativity, often

spearheading niche markets and responding swiftly to changing consumer
demands. Their agility allows them to adapt to evolving market trends and
capitalize on emerging opportunities, thereby contributing to the dynamism of
the business landscape.

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 Study of management principle in small scale industry

Furthermore, SSIs play a pivotal role in job creation, particularly in regions

where large-scale industries may not have a significant presence. By providing
employment opportunities, they bolster local economies, alleviate poverty, and
enhance social well-being. Additionally, SSIs contribute to skill development
and capacity building, empowering individuals with the tools and knowledge
necessary for entrepreneurial success.

In the realm of management, SSIs face unique challenges, including limited

access to finance, inadequate infrastructure, regulatory constraints, and
technological barriers. Overcoming these challenges requires a multifaceted
approach that involves government support, financial institutions, industry
associations, and academia.

Policymakers must enact policies conducive to the growth and sustainability of

SSIs, streamlining regulatory processes, providing financial incentives, and
fostering an enabling business environment. Financial institutions should offer
tailored financing solutions, mentorship programs, and technical assistance to
support the expansion and modernization of SSIs.

Moreover, fostering collaboration and knowledge-sharing among SSIs, industry

clusters, and research institutions can facilitate innovation, promote best
practices, and enhance competitiveness in the global marketplace.

In conclusion, Small Scale Industries in management represent more than just

economic entities; they embody the spirit of entrepreneurship, resilience, and
community empowerment. By nurturing and supporting SSIs, societies can
unlock their full potential as engines of sustainable development, driving
prosperity and progress for generations to come.
Micro-project evaluation sheet

Rol Student Enroll Process Product Total

l Name m ent Assessme Assessment Mark
no. number nt s
(10)

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Study of management principle in small scale industry

Part A- Project Part Individual

Project Methodol B-Project Presentation
Propaso ogy report/ /Viva
al (2) working (4)
(2) model
(2)

Comments about team work/leadership/inter-personal

communication (if any):
________________________________________________________________
____________________________________________________

Any Other Comment:

________________________________________________________________
____________________________________________________

Name and designation of the faculty member:

Prof. (Micro-Project Guide)

Signature: ____________________

Logbook of the Student (Weekly Work Report)

Academic Year: 2023-2024

Name of Students :

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Study of management principle in small scale industry

Title of the Project:- Study of management principle in small scale

industry

Course : CO6I
Course-code:22509
semester:6I

(Name & Signature of faculty)

Prof.

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