ON

Report on Quality Management Practices and

Tools being used by SME’s in Industries in Punjab

Submitted in the partial fulfillment of the Degree of masters of

business administration

SUBMITTED BY: - GUIDED BY:

Name: Mandeep Mr. Harendra

Singh
Contents

 Introduction of SME’s sector

 Opportunities for SME’s

 A new lifeline for Punjab SME’s

 SME’s industries in Punjab and their Quality Management

Practices and Tools

 Six sigma for SME’s

 Five S program
 Some more quality management practices
 Conclusion
 Reference
Small and Medium Enterprises – An Introduction
In the Indian context, the small and medium enterprises (SME) sector is broadly a term used for
small scale industrial (SSI) units and medium-scale industrial units. Any industrial unit with a
total investment in its fixed assets or leased assets or hire-purchase asset of upto Rs 10 million,
can be considered as an SSI unit and any investment of upto Rs 100 million can be termed as a
medium unit. An SSI unit should neither be a subsidiary of any other industrial unit nor be
owned or controlled by any other industrial unit.

An SME is known by different ways across the world. In India, a standard definition surfaced
only in October 2, 2006, when the Ministry of Micro, Small and Medium Enterprises,
Government of India, imposed the Micro, Small and Medium enterprises Development
(MSMED) Act, 2006.

This definition, however was changed according to the changing economic scenario and thus has
separate definitions to it. For instance, an SME definition for manufacturing enterprises is
different from what an SME definition for service enterprises has to say.

A novel beginning to this sector:

Concerted efforts to support and promote SMEs in the context of a globalised competitive world
began with the implementation of the Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006.

The MSMED Act 2006, which came into effect from October 2, 2006 aims to remove several
bottlenecks faced by the SME sector such as those mentioned under:

 Competition from domestic companies and MNCs

 Inadequate access to finance due to lack of financial information and non-formal business
practices

 Lack of access to private equity and venture capital

  Lack of access to interstate and international markets

 Limited access to secondary market instruments

 Fragmented markets in respect of their inputs as well products.

 Vulnerability to market fluctuations

 Limited access to technology and product innovations

 Lack of awareness of global best practices

 Considerable delays in the settlement of dues/payment of bills by large-scale buyers.

General:

The small and medium enterprises (SME) sector in India has a very pivotal role to play in the
development of the country. The SME sector in India has a minimum of 95% of industrial units,
which accounts for almost 40 % of the gross industrial value-added in the Indian economy, 34%
of exports and provision of direct employment to 20 million persons in around 3.6 million
registered SME units. In addition, the SME sector in India contributes to about 7 % of India’s
gross domestic product (GDP).

This sector produces a melange of industrial products such as food products, beverage, tobacco
and goods produced from it, cotton textiles and wool, silk, synthetic products, jute and jute
products, wood and wood products, furniture and fixtures, paper and goods produced from it,
printing publishing and such. Other services also include machinery, apparatus, appliances and
electrical machinery. This sector also has a large number of growing service industries.

At the moment, Small and Medium Enterprises (SMEs) stand for one of the fastest establishing
industrial sectors of our country. Liberalisation and globalisation has provided a whole lot of
opportunities and challenges for the industry as a whole and more so for the SMEs. They can
now aspire to market their products to any part of the world along with facing tight competition
in the domestic markets from low cost imports. Furthermore, with more than a year of recession,
it has become extremely important for SMEs to reorient their focus according to the emerging
market trends and thus strive to become globally competitive.

A growing recognition has been felt throughout the world such that small and medium
enterprises (SMEs) have a vital role to play in the present context given their greater resource-
use efficiency, capacity for employment generation, technological innovation
Economic Importance

Unarguably, the services sector contribution to the GDP is noteworthy; nonetheless SMEs
contribution to the economy is also growing.

As per government estimates there are around 12 million registered small and medium
enterprises in India, of which 55 percent are located in rural hinterlands, while the remaining 45
percent live in urban areas.

However, according to a research organization Zinnov, the total number of SMEs in India in
2006-07 was almost 35 million, next to China. This number is slated to reach 48 million by 2015.
The research also claims that Indian SMEs contribute almost 60 percent to the nation’s GDP.

Interestingly, the growth rate of SMEs has been consistently on the higher side, as compared to
the overall industrial growth. In the last two years, the SMEs have registered a remarkable
growth rate of 35 percent. However, proper use of technology will predictably boost its growth
prospects further, by almost 40 percent.

A crucial link in the economic value chain

Boosting industrial growth

By enhancing existing capacities, and by delivering cost-efficient goods and services as per the
requirements of the local markets, SMEs have been driving industrial growth.

Inspiring Consumption and Social Change

SMEs play a defining role by offering reasonable, yet revolutionary goods and services to cater
to the changing market requirements. Currently, SMEs have made its presence felt in areas like
education, medical care, transportation, entertainment and local infrastructure development.

Minuscule investment

SMEs need low capital investment, in terms of per unit of output

Increased Employment Opportunities

SMEs generate both direct and indirect employment opportunities, in 2006-07, for instance, for
every ten million rupees invested by the SME sector spawned employment opportunities for over
150 people. However, the same amount of investment carried out by the overall economy
generated employment for just 37. 4 people. As per Government statistics in 2007-08, SMEs
generated employment for 31.25 million people.

Fuelling the local economy

SMEs make use of natural resources and domestic skills to cater to the domestic market. The
growth of SME sector also helps in socio-economic upliftment as it generates employment
opportunities for untapped masses, living in urban and rural regions.

Discourages migration to urban areas

SMEs are synonymous for entrepreneurship. And the best part being setting up an SME doesn’t
include much risk. If SMEs generate employment opportunities in rural and semi-urban areas,
migration to urban areas can be stemmed to a great extent.

Transition from Agriculture Economy to Service-oriented one

SMEs can play a crucial role in achieving the transition from a dominant agricultural economy to
a service oriented economy, akin to Japan. Japan’s agricultural workforce has gone done from 68
percent to 4.9 percent, in case of United States, from 44 percent to 9 percent.

Further, Indian agriculture sector can no longer generate extra employment opportunities to meet
the requirements of the ever-growing population. In such a situation, only SMEs can come to the
nation’s rescue.

Moreover several developed nations like USA, Japan and several European countries have
brought to light the fact that conscious and articulated policies on SME promotion can generate
far better employment opportunities than large enterprises. In the US, for instance, firms that
employ less than 100 people, generate 80 percent of the new jobs. But one can’t deny the fact
that SMEs are the offshoots of many large enterprises. SMEs in auto ancillary and
pharmaceutical sectors in India have grown, given the fact that these areas have witnessed
growth of large companies. On the other hand, vertical growth of SMEs can also result in
formation of big groups via M&As. Aurangabad-based Rucha Engineers collaboration with US-
based precision sheet metal and integrated assembly player Craftsman Custom Metals in 2006, is
a case in point.

Opportunities for SMEs

The size of the SMEs fortunately works in its favour. The biggest plus; they can manage most of
the processes in-house, in comparison to larger companies where majority of the work gets
outsourced. As a result of this, SMEs have greater control and demand shorter production time.
In addition, since SMEs operate in rural areas, cheap labour is also available in plenty.

Meanwhile, SMEs can profit from India’s growing economy and especially focus on India’s
domestic market. In fact, recent studies reveal that Asian companies should better concentrate on
catering to the local demand, though exports, of late, form their top priority. Currently, India’s
population stands at 1.1 billion and is increasing at a rate of 1.3 percent a year. And incidentally,
almost 350 million Indians are reported to have disposable income. Unarguably, India’s per
capita income is low; however, it has more than doubled in the past years. India’s current per
capita disposable income stands at around US$556 per annum, which will be inch up to $1,150
by 2015. Plus, the opening of SMEs to foreign direct investment is going to benefit the SME
players in a significant way.

Prospects of SMEs in the future

As per the survey conducted by Neilson group, Indian SMEs are pretty positive about their future
growth prospects. Nearly, 79 percent of SMEs surveyed were looking forward to positive growth
this year. Around 30 percent of SMEs expect moderate growth, while 43 percent expect
phenomenal growth in the future. In terms of cross-border trade, 73 percent are looking forward
to trade with China.

Even from the global perspective Indian SMEs are doing pretty well. According to UPS ABM
2008 survey, almost 41 percent of offshore SMEs respondents have rated Indian SMEs more
aggressive and competitive than them.

A New Lifeline For Punjab SMEs

Feb 10, 2009 – The small and medium enterprises (SMEs) in Punjab can finally heave a sigh of
relief after a long ordeal. The recently announced Punjab industrial policy has come as a new
lease of life for sick and non-performing small scale units in the state. The new policy has given
priority to the SME segment to drive the industrial growth of the state. It is further aimed at
promoting their development to boost the economic growth of the state. With the implementation
of this new industrial plan, SMEs in the state are optimistic of a promising future ahead.

As a part of the new industrial policy, the Punjab government would offer tax concessions and
provide a relief package to accelerate the growth of SMEs in the state. Adoption of the cluster
approach and initiation of development models under the new industrial plan is expected to
enhance the competitiveness of the SME segment. Under this policy, measures for the revival of
sick units would also be undertaken to stimulate the industrial growth of the state.

Small scale industrial units engaged in the steel, forging, casting, hand tool and textile sectors of
Punjab are expected to be benefitted from the new policy. Several small scale units in Jalandhar,
Ludhiana, Batala, Amritsar, Mohali, Kapurthala, Gobindgarh and Mandi are most likely to gain
from the new industrial policy that would come into effect by January end or beginning of
February, 2009.
With its focus on the SME segment, the new industrial policy in Punjab can bring about a
meaningful change to the state’s economy. Some of the major policy initiatives are also aimed at
making the state a favourable investment destination.

Banks provide aid to 88,990 SME units in Punjab

BANKS have been told to double credit to small and medium enterprises (SMEs) in 2005-2010.
SMEs manufacture about 8,000 products, accounting for 6% of the GDP, 34 % of national
exports. They also 30 million people. According to data available, in Punjab the banks have up to
to June 2007 provided assistance to 88,990 SME units amounting to Rs 10,801.33 crore. Out of
these, as many as 56,943 units or around 64% of the total units are having initial investment in
plant and machinery up to Rs 5 lakh. The amount of financial assistance provided to these units
is to the tune of Rs 1,241.94 crore. Similarly, there are 17,869 or around 20% units financed by
banks where investment in plant and machinery is in the range of Rs 5 lakh to Rs 25 lakh. The
amount of financial assistance provided to these units is to the tune of Rs 1,950.81 crore or 18.06
% of the total credit provided to the SME sector. Further, there are 10,709 or around 12% units
financed by banks where investment in plant and machinery is in the range of Rs 25 to Rs 1
crore. The amount of financial assistance provided to these units is of the order of Rs 4,097.10
crore or around 38 % of the total credit under the SME sector. Data shows that there are 3,469
units financed by the banks where investment is in the range of Rs 1e crore to Rs 10 crore. The
amount of financial assistance provided to these units is to the tune of Rs 3,511.48 crore or 32.5
% of the total credit under the SME sector. During the first quarter of 2007-08, specialized
SSI/SME bank branches sanctioned loans to the tune of Rs 110.15 crore in Punjab to 486 SSI
units and disbursement has been of the order of Rs 82.37 crore. Up to June 2007, specialized
SSI/SME branches of different banks sanctioned loans to the tune of Rs 2,306.66 crore to 19,053
SSI units and disbursement has been of the order of Rs 1,988.92 crore.
 SME’s Industries in Punjab and their Quality
Management Practices and Tools

1. Ajaco Engg. Products Pvt Ltd

Company Name: Ajaco Engg. Products Pvt Ltd

Address: G.T.Road, Goraya
Level of Office: Head Office
Phone No: (1826) 501271 262271
Website: www.ajacoengg.com
Industry: Capital Goods /Machine Manufacturing
City: Phillaur
State: Punjab
Pin: 144409
Company Type: SMEs
Total Turnover: 10-100 Crs
No. of Employees: 51-100
Sector: Private Sector
INTRODUCTION

An ISO 9001:2000 certified Company “AJACO ENGINEEIRNG PRODUCTS PVT. LTD” is

pioneers and leading manufacturers/exporters of Agricultural & Industrial Machinery along with
its sister concern“M/S KIRPAL SINGH SEHMBEY & SONS” under worldwide renowned
brand name AJACO.

PRODUCTS

• AGRICULTURAL
1. Combine Harvesters
2. Straw Combine Harvesters
3. Chaff Cutters & Wood Chippers

• INDUSTRIAL
1. Hydraulic Iron Workers
2. Hydraulic Press Brakes
3. Lathe Chucks.

QUALITY POLICY

“Quality is our pride”

Ajaco Engineering Products Pvt. Ltd. is committed to:

• Supply quality machinery and machine tools

• Timely delivery
• Enhance Customer satisfaction
• Continual improvement in QMS
• Adhere to regulatory and statutory requirement

INFRASTRUCTURE

• Having own Modern Foundry with Cupola Furnaces and Shot Blasting facility.
 • Material testing facility at R&D and well to do measuring equipments duly
tested by the authorized testing centers.
• Expert Quality Management System (QMS) analysts for timely advice to
improve the QMS system, quality of products and services to customers.

2. Accurate Engineering Works

Company Name: Accurate Engineering Works

Address: Dugri Road, Near Canal Bridge
Level of Office: Head Office
Phone No: (161) 2492554 2490553
Website: www.accurate-group.com
Industry: Engineering
City: Ludhiana
State: Punjab
Pin: 141002
Company Type: SMEs
Total Turnover: 0-10 Crs
No. of Employees: 51-100
Sector: Private Sector

INTRODUCTION

ACCURATE is cohesive unit of ACCURATE AUTO LATHE PVT. LTD, ACCURATE ENGG.
WORKS, ACCURATE HOSEIRY NEEDLES; under the banner of ACCURATE, they all stand
aloft today since they started.

PRODUCTS
 Machine Tools (Lathes) Cutting Tools

Hosiery Needle Agricultural Spray Pumps

Three Wheeler Spare Parts

QUALITY POLICY

Aculathe is dedicated to the design and manufacture of various optimum performance Automatic
Lathes, Single Spindle Turret Lathes, Single Spindle Automatic Lathes, Nut Tapping Machines,
Cam Milling Machines and Vertical Tapping Machines. All machines provide heavy duty,
accurate, highly productive and dependable operations. At Aculathe we strive to produce the best
research and development possible, improving and building the machines you need. Aculathe
machines meet your rigorous standards by using the most advanced technology available on the
market. All machine parts are precisely manufactured by extremely sophisticated machining
equipment to ensure consistently high accuracy. Aculathe machines are assembled by our highly
skilled technicians and have undergone rigorous quality control inspections during the
manufacturing process and during final testing, giving you year after year of dependable
operation performance. We are not only committed to providing the most advanced Machines
but also after-sale service and support. This is important to us at Aculathe as we value mutually
beneficial relationships with all of our customers. Our business concept is based on providing
you with the productivity, reliability and flexibility to let your business grow. Aculathe spraying
equipment has continuously improved over the past few years and
will continue
Improving throughout the new millennium with leadership from a
second generation Aculathe family member. Responding to
changing customer needs, being a leader in customer support,
while delivering value throughout the ownership experience is
the foundation of Aculathe. Knapsack Spray Pumps, Foot Sprayer and Rocker Sprayer are ISI
approved.
 3. Akal Spring Ltd

Company Name: Akal Spring Ltd

Address: A-8, Phase-V, Focal Point
Level of Office: Head Office
Phone No: (161) 4690800
Website: www.akalspring.com
Industry: Auto Ancillaries/ Auto components
City: Ludhiana
State: Punjab
Pin: 141010
Company Type: SMEs
Total Turnover: 10-100 Crs
No. of Employees: 101-250
Sector: Private Sector

INTRODUCTION

Since its inception in 1979, Akal Spring has always strived to offer the best to its patrons. The
company was established under the guidance of Late Sh. Manjit Singh Riat , who had more than
forty years of experience in the Automotive industry.

PRODUCTS

QUALITY POLICY
The Company has set-up a well defined quality system to ensure reliable product quality. It has
set an ambitious target of achieving quality standards of international class, and is focused on
“building quality in the process”. To achieve this the company is working on various aspects
like Statistical Process Techniques, process capability studies, quality circles, emphasis on
imparting training etc. Underlining the obsession for quality, Akal's all pervasive spirit for
international technology is ubiquities. Akal technologically intense manufacturing base - a
modern state of the art plant offers optimum utilization of recourses. This automation &
optimization results in an operating configuration with competitive advantage & cost.

FINAL QUALITY CHECK OF THE MAIN LEAF

The Company in order to attain excellence, follows its QUALITY POLICY to the core. The policy states that:

AKAL SPRING LTD. COMMIT TO PUT IN HIS BEST ENDEAVOR TO ACHIEVE TOTAL CUSTOMER
SATISFACTION BY:-

 PRODUCING QUALITY GOODS .

 ADHERING TO DELIVERY SCHEDULES .

 CONTINUOUSLY UPGRADING OUR PRODUCTS AND PROCESSES THROUGH UP

GRADATION IN TECHNOLOGY AND ACTIVE PARTICIPATION OF EMPLOYEES AT ALL
LEVELS.

4. Bhagat Forge Ltd

Company Name : Bhagat Forge Ltd

Address : 265-L, Model Town,
Level of Office : Head Office
Phone No : (161) 2815700
Website : www.bhagatforge.com
Industry : Auto Ancillaries/ Auto components
City : Ludhiana
State : Punjab
Pin : 141002
Company Type : SMEs
Total Turnover : 0-10 Crs
No. of Employees : 51-100
Sector : Private Sector

INTRODUCTION
Bhagat Forge Ltd. Is India based prominent automobile component manufacturing company
operating at the highest levels of accuracy within the field of camshaft Manufacturing for the
most demanding applications on a global basis. It also provides all types of forgings to its global
customers.

PRODUCTS

Cam Shaft :

Design develop and manufacture any kind of Cam Shafts according to customer's design or
sample. Bhagat Forge has specialty in the development of Mercedez Benz Cam Shafts.

APPLICATION:

Trucks, Cars, Tractors, Jeeps, Oil Engines, Compressors and Marine Engines etc..

QUALITY POLICY

Bhagat Forge Ltd. is committed to customer satisfaction & improves its product quality by
striving for continual improvements .The competence of company to offer products with a high
grade of innovation is being realized convincingly with in enterprise.

All machines are innovative with simple handling Zero defect output using production-
monitoring system. They conduct a very stringent quality management system recognized by
TUV Rhineland (India) Pvt. Ltd. as accredited Company meeting requirements of ISO
9001:2000

5. Eastman Industries Ltd

Company Name : Eastman Industries Ltd
Address : C-87, Phase-5 Focal Point,
Level of Office : Head Office
Phone No : (161) 2670936
Website : www.eastmanglobal.com
Industry : Auto Ancillaries/ Auto components
City : Ludhiana
State : Punjab
Pin : 140010
Company Type : SMEs
Total Turnover : 0-10 Crs
No. of Employees : 101-250
Sector : Private Sector
INTRODUCTION

A leading bicycles manufacturer, supplier and exporter from India. Eastman is specialized in
manufacturing, supplying and exporting complete bicycles, bicycles components, parts, tyres and
tubes.

QUALITY POLICY

Research and Development

In an effort to provide globally accepted products with zero defects Research & Development
section work round the clock, servicing the feedback (if any) for improvement.

Make exactly what is wanted. Feedbacks of customer time to time are taken to keep updated
with the pulse.

Innovation is a culture here. Contemporary products like eco friendly vehicle, e-bikes, e-scooter
are already in line.

Cost reduction technique without compromising on quality and other services are the uniqueness
they have developed , which a big organization can do

Eastman has got ISO 9001:2008 Certificate

6. J.B Laboratories Pvt Ltd

Company Name : J.B Laboratories Pvt Ltd

Address : D-47, Sports and surgical goods complexKapurthala Road ,
Level of Office : Head Office
Phone No : (181) 3298403 5017755
Website : www.deepakphenyl.com
Industry : Chemical
City : Jalandhar
State : Punjab
Pin : 144002
Company Type : SMEs
Total Turnover : 0-10 Crs
No. of Employees : 10-50
Sector : Private Sector
INTRODUCTION

Incorporated in 1992,is a prestigious company engaged in the manufacture and export of

premium quality household cleaning products.

Product Range

Black Disinfectant Fluid (ISI)

Naphthalene Balls Car Wash
Toilet Cleaner Marble Shiner
Glass Cleaner Hand Wash
Tile Cleaner Laundry Wash
White Phenyl (Economy) Urinary Balls
White Phenyl (Extra Strong) Black Phenyl
Super Concentrate Kitchen Care (Dish Wash

QUALITY POLICY

J. B. Laboratories is totally committed to producing unmatched quality products. That is why, the
products are inspected right from the initial stage of selecting the raw materials to the final stage
of production. Over the years, the company has built a strong reputation as a reliable supplier of
high quality products and focuses on complete customer satisfaction.

The backbone of the company is its testing laboratory, where all the raw materials and finished
products are tested according to their standards and specifications.

The lab is divided into three sections.

• Chemicals Analysis

• Instrumental Analysis

• Micro Biological Analysis

The condition of goods are monitored regularly and their packing and forwarding are modified to
give better service to consumer/dealers

7. Kapurthala Durastic Pvt Ltd

Company Name : Kapurthala Durastic Pvt Ltd

Address : Village: Dhawankha Jagir, Jalandhar Road, Pst Box No. 72
Level of Office : Head Office
Phone No : (1822) 231765, 231766
Website : www.heddlebelting.com
Industry : Rubber/Glass/Plastic & Polymers
City : Kapurthala
State : Punjab
Pin : 144601
Company Type : SMEs
Total Turnover : 0-10 Crs
No. of Employees : 10-50
Sector : Private Sector

INTRODUCTION

A well-established organization, Kapurthala durastic is distinguished manufacturers & exporters

of rubber conveyor belts, conveyor belt and spares for loom industry. The organization excels in
delivering premium quality products at affordable prices.

PRODUCTS

- Rubber Nylon Sandwich Belts

- Leather Nylon Sandwich Belts
- Combing &Gill Box Leathers
- Perforated & Serrated Belts
- Rubber Conveyor Belts
- Condensor Tapes
- Spindle Tapes
- Heddle Belts
- Tanned Leather
- Polyamide Sheets
- Synthetic Adhesive
- Self Adhesive Tapes
- Rubber Emery / Fillet

QUALITY POLICY

Company that quality is backbone of every business and are committed to provide customers
with top class products which will always meet or exceed their specifications. Durastic signifies
quality,reliability and an enduring commitment to the demands of the future .At durastic they
strive to achieve perfection in all spheres of operations, products, processes, services, human
relations. Quality control is built in to the attitude of people in every department at every step.
Elaborate quality assurance measures ensures that only the best should roll out from state of art
product facilities at ‘Durastic’. The quality mark of ‘Durastic’tapes has been approved by Govt.
as per IS-13262

8. Mahajan Group of Companies

Company Name : Mahajan Group of Companies

Address : 7-8 R, Industrial Area - B
Level of Office : Head Office
Phone No : (161) 2532132 2530538
Website : www.mahajangroup.com
Industry : Auto Ancillaries/ Auto components
City : Ludhiana
State : Punjab
Pin : 141010
Company Type : SMEs
Total Turnover : 10-100 Crs
No. of Employees : 101-250
Sector : Private Sector

INTRODUCTION

A humble beginning was made in 1964-65 by Mr. T.N. Mahajan by establishing Mahajan Group
in the biggest industrial hub, with abundant source of labour and raw material, commonly known
as ‘Manchester of India’ situated at Ludhiana, about 350 km north from Capital city of India.

PRODUCTS

Mahajan Group is an O.E. i.e. Original Equipments Supplier of cycle parts like Frames Lugs,
Handle, B.B. Shell, Handle-Lugs to all the Industrial giants and big names in the cycle Industry
like HERO CYCLES, T.I. CYCLES of Madras, ATLAS CYCLES, HAMILTON, GAZEBO,
AVON GROUP etc.

QUALITY POLICY

Product quality is assured through strict adherence of established quality system. The Sole
objective of our Quality Policy is customer satisfaction. Salient features of the Quality Assurance
Programme are as follows :

The system involves strict process control through inspection at every stage of production and
systematic documentation of all quality related activities to ensure traceability up to final stage.

Starting from checking of chemistry of each & every raw-material, the quality assurance system
covers checking of chemistry of steel, segregation, homogenity, shape, size and type of
inclusions, Nitrogen and Oxygen levels, grain size, surface defects by magnaflux, hot & cold
upsetting, tensile strength, hardenability, dimensions and tolerances etc.

Implementation of TQM i.e. Total Quality Management principle.Eco-Friendly operations.

9. Mohit Engineers Pvt Ltd

Company Name : Mohit Engineers Pvt Ltd

Address : E-314, Phase-IV-A, Focal Point,
Level of Office : Head Office
Phone No : (161) 5018068 2674509
Website : www.mohitengineers.com
Industry : Engineering
City : Ludhiana
State : Punjab
Pin : 141010
Company Type : SMEs
Total Turnover : 0-10 Crs
No. of Employees : 101-250
Sector : Private Sector

INTRODUCTION

Mohit Engineers Pvt. Ltd., established in the year 1987 to manufacture Precession Engineered
automotive components, especially for all types of Two Wheelers. Since then over the years the
company has achieved an impeccable reputation in terms of quality, reliability and delivery of its
products

PRODUCTS

The main parts which we are manufacturing and supplying are Ring Gears, Clutch Gears, Gear
Starters, Kick Levers, Brake Arms, Sprockets, Pinions, Axles, etc. and are being widely
appreciated by the global Customers as a quality parts supplier across the globe

QUALITY POLICY

Mohit Engineers Pvt. Ltd. Committed for Total Customer Satisfaction to become a leading
player in Automotive parts through continual improvement in Product Quality and upgrading
Technology. Plant is certified with ISO 9001:2000 Quality Management Systems from BVQI.

Being Quality as backbone, they are continuously thriving towards 'Customer Delight' and
products see the light of most developed OEM's and after markets of the world.
They are unendingly striving towards Improvement of their Quality Management Systems with
objective of doing the things right, the first time and every time. Growing markets and Customer
base is an indicator of their continuous efforts towards the achievement of goal of Customer
Delight.

"Quality Centered" team approach of manufacturing ensures Products of the finest Quality,
giving drive to some of the most advanced Vehicles manufactured globally.

Standards of Customer Service Distinguish from competitors. Their focus is to identify the
needs of the Customer in terms of Quality, Performance, Delivery and to provide the product at
very competitive price. They pursue open and long term relationships based on mutual gains and
encourage Win / Win relationships with Customers and Suppliers.

They are constantly looking for the ways to advance the art of Manufacturing and keeping
abreast with the latest technology to ensure that deliver only the highest quality product.

10. Modern Insecticide Ltd

Company Name: Modern Insecticide Ltd

Address: 2nd Floor, Kesar Complex Gurdev Nagar
Level of Office: Head Office
Phone No: (161) 4320000
Website: www.modernpesticides.com
Industry: Agriculture/ Dairy/ Fertlizer
City: Ludhiana
State: Punjab
Pin: 144001
Company Type: SMEs
Total Turnover: 0-10 Crs
No. of Employees: 101-250
Sector: Private Sector

INTRODUCTION

Modern Insecticides Limited was started in 1998 under the name of Modern Agro Sprayers
Corp. with the sole objective of providing Indian Farmers with the most Modern Insecticides at
affordable prices. Apart from giving best possible pesticides, company had committed itself to
work with the farmers, analyzing their crop problems and solving them in their own fields by
arranging demonstration and discussions.

QUALITY POLICY

Company is committed to produce the best Quality of world standard pesticides thru strict
quality check measures. Quality assurance staff is highly qualified and trained in this line. Each
Product passes thru rigorous and exhaustive quality checks before it is rolled out of plant
premises. This is the reason, why products give the best control in the field.

The Research & Development is a continuous process at Modern Insecticides Ltd., which is
carried out by a team of skilled and dedicated researchers and scientists, with a vast experience
in the field of agrochemicals

11. Precision Auto Engineers

Company Name: Precision Auto Engineers
Address: Opp. S.B.I., Miller Ganj
Level of Office: Head Office
Phone No: (161) 2532448 2542171
Website: www.precisionfasteners.com
Industry: Engineering
City: Ludhiana
State: Punjab
Pin: 141003
Company Type: SMEs
Total Turnover: 0-10 Crs
No. of Employees: 51-100
Sector: Private Sector

INTRODUCTION

Started in 1963, the company has touched scoring heights of distinctive recognition in Indian
industrial market. All our products confirm to ASTM, BS, ISS, DIN Specifications and have
found wide acceptability among Government/Public Sector Organizations & International
Market.

PRODUCTS

Hex Bolts
Screws
Brass Bolts
Centre Bolts
Plain Washers
Plate Washer
Spring Washer
Hex Nut
Blank Nut
Cap Nut
Spindle Nut

QUALITY POLICY

Precision Auto Engineers is an ISO 9001 : 2008 Certified Company and adheres to the
conditions set out in its appendix. A specific Quality policy exists in out unit. It is clearly
defined to check the products at various stages of manufacture and at achieve this aim and
make an error free system, a job Route Card (Annexure “A”) an the basis of Quality Plan
(Annexure “C”) is made while launching the production of each item and inspection is carried
out during each operation on sampling basis as per sampling plan for threaded fasteners,
I.S.2614 by the concerned workman and counter checked QC staff.

During any stage of manufacturing, if any dimension does not conform to specifications, a
Non Conformity Report (NCR) is prepared and corrective action is taken then and there.
Work is allowed to proceed further only after the necessary corrective action is taken. In the
mass production product, sizes are thoroughly checked during the setting of the job, so that
negligible NCR's are raised.
 Thus the following documents are maintained for each item.

Job Route Card duly certified by QC staff.

Observation sheet duly certified by QC staff.

Test certificate for Chemical/Mechanical Properties as per requirement of Customer along

with dispatch documents.

All the above documents are maintained by QC staff which is easily retrievable. These
documents are normally retained for a period of three years.

OTHER QUALITY MANAGEMENT PRACTICES IN SME’S

Six Sigma for SME’s
In designing a Six Sigma framework for Small and Medium Sized Enterprises (SMEs), Process
Quality Associates took into account certain positive characteristics inherent in this business
sector which can speed up the structuring of an effective Six Sigma Quality Management System
(QMS) more than in large businesses, such as flexible process flows, short decision-making
chain, and high visibility of senior management, etc. On the other hand, there are factors that can
be disadvantageous, such as lack of resources and expertise in change initiatives. To make the
framework more applicable and suitable for SMEs, the identified critical factors for a Six Sigma
QMS are encompassed and designed into the proposed framework:

Six Sigma projects should be derived from your business' strategic plan which sets an
organization's goals and key performance measurements. Based on key business goals, senior
management defines the scope of each Six Sigma project and organizes the right project team.
While projects are progressing, they regularly review the projects and promptly provide
political, financial, and technical support. After the projects are completed, senior management
audits the projects' results, establishes necessary systems to sustain the improvements, and
continuously adjusts the business strategic plans.
More importantly, for managing a Six Sigma quality system, each critical factor should be
implemented through the mapping of the Six Sigma MAIC (measure, analyze, improve, and
control) discipline into its routine processes.

Measure the existing systems. Identify and describe the potential critical processes/products.
Establish valid and reliable metrics to help monitor progress towards the project goals.

Analyze the system to identify ways to eliminate the gap between the current performance of the
system or process and the desired goal.

Improve the process performance. Each process is modified and the outcome is measured to
determine whether the revised method produces results within customer expectations.

Control the new system. Institutionalize the improved system by modifying policies, procedures,
operating instructions, and other management systems.

Further, each critical factor should also be continuously improved by transforming its
management into different Six Sigma projects. The following explains how to apply the Six
Sigma MAIC discipline into each individual critical factor of your Six Sigma QMS.

MEASURE

1 Leadership Management provides personal leadership and commitment for

quality improvement

2 Customer Focus Marketing/Sales and customer satisfaction information is used

to target potential market segments and customers

3 Education & Training Education system balances short-term and long-term

organizational and employee needs

4 Information and The needs for quality tools in facilitating job performance are
Analysis identified

5 Process Management Key business processes are identified, improved and monitored

6 Strategic Planning Establish a quality steering committee to develop short-term

and long-term strategic plans to ensure quality improvements

7 Supplier Management Key performance requirements are incorporated into suppliers'

 process management

8 Quality Tools The needs for quality tools in facilitating job performance are
identified

9 Human Resource A variety of methods are designed and used to measure

Development employee satisfaction

10 Competitive Marketing, new technology, and competitor benchmarking

Benchmarking information is obtained

ANALYZE

1 Leadership Management communicates organizational policies and

performance expectations to employees

2 Customer Focus Complaints received from customers are aggregated and

analyzed for use in overall organizational improvement

3 Education & Training Management and employees are trained to obtain problem-
solving skills, and equipped with quality-related knowledge

4 Information and Analysis results of measurable are linked to work units and
Analysis functional-level operations

5 Process Management Project related training system is in place

Statistical techniques are used to reduce variance in processes

6 Strategic Planning Strategic plans are translated into executable action plans for
all business units
Measures are developed to evaluate the performance of each
action plan

7 Supplier Management Working with suppliers towards long-term partnerships

 Suppliers selected on the basis of quality aspects

8 Quality Tools Training on quality tools is provided to management and

employees

9 Human Resource Recruitment plan is aligned with strategic plan

Development

10 Competitive Benchmarking information is analyzed and used to identify

Benchmarking strategic opportunities

IMPROVE

1 Leadership Management acts as key driver in continuous improvement

Management regularly reviews quality performance measures

2 Customer Focus Processes are established to ensure customers' complaints are

effectively resolved
Follow up with customers on recent transactions is undertaken
in order to receive prompt feedback

3 Education & TrainingKnowledge/skill sharing system is established across work

units
Continuous learning is provided through education & training

4 Information and Integrated performance information is provided to management

Analysis to review overall organizational performance
The accessibility and utilization of information systems are
improved

5 Process Management Systems and procedures for quality assurance are implemented

6 Strategic Planning Allocate human and financial resources to accomplish action

plans
A recognition/reward system based on quality performance is
established so as to facilitate attainment of the business
 objectives

7 Supplier Suppliers are actively involved in quality improvement

Management activities
Supplier performance audit and evaluation are important
activities to be conducted

8 Quality Tools Quality tools are used in production and non-production related
functions for improvement activities

9 Human Resource Job advancement system is provided

Development Communication methods (such as newsletter, meetings) are
implemented
Work environment is conducive to the well-being of all
employees

10 Competitive Benchmarking information is used to drive improvement

Benchmarking

CONTROL

1 Leadership Management audits the execution of results of each action

plan

2 Customer Focus Customer satisfaction levels are measured and controlled

3 Education & Training The performance and process of the training systems are
evaluated by management

4 Information and Information analysis results are used to monitor improvement

Analysis activities

5 Process Management Work unit performance measures are identified and used to
control and evaluate the improvement process

6 Strategic Planning Define performance measurements for tracking progress

relative to action plans

7 Supplier Management Suppliers' quality performance levels are measured and

monitored

8 Quality Tools Quality tools are used in management processes

9 Human Resource The measures for employee performance are clearly defined
Development and have been communicated with employees

10 Competitive The process for selecting benchmarking information is

Benchmarking evaluated

Five S Program
The 5S program is usually a part of, and the key component of Visual Factory (Workplace)
Management. It focuses on having visual order, organization, cleanliness and standardization.
The results you can expect from a 5S program are improved profitability, efficiency, service and
safety.

A well implemented 5S program is a good foundation for workplace improvement. In fact, it is a

prerequisite for effective implementation of JIT production or Total Productive Maintenance.

What are the pillars of the 5S Program?

The 5S system is a Japanese system on practical housekeeping technique and involves five
pillars:

Japanese English Description

Word Translation

SEIRI Sort An ACTION to sort the items and classify them as to whether
they are needed or unneeded. The unneeded items are
discarded, eliminated or disposed while the needed items are
managed and stored properly.

SEITON Systematize An ACTION to put each needed item in their proper location
and making sure that it is in good order. This involves the use
of labels, signages, storage and record keeping systems to make
the storage and retrieval of these items easier.

SEISO Sweep An ACTION to clean your workplace thoroughly making sure

 that it is neat and tidy.

SEIKETSU Sanitize A CONDITION where high standard of good housekeeping is

maintained so that there is no dust and rust anywhere and that
the employees are committed to the first 3S's.

SHITSUKE Shitsuke A CONDITION where all members practice the above 4S's
spontaneously and willingly as a way of life and has become a
company culture.

SOME MORE PRACTICES

Benchmarking is the use of standard measurements in a service or industry for comparison to
other organizations in order to gain perspective on organizational performance.

Continuous Improvement, in regard to organizational quality and performance, focuses on

improving customer satisfaction through continuous and incremental improvements to processes,
including by removing unnecessary activities and variations.

Failure Mode and Effects Analysis is an approach that helps identify and prioritize potential
equipment and process failures.
ISO9000 is an internationally recognized standard of quality, and includes guidelines to
accomplish the ISO9000 quality standard. Organizations can be optionally audited to earn
ISO9000 certification.
Total Quality Improvement (TQM) is a set of management practices throughout the
organization, geared to ensure the organization consistently meets or exceeds customer
requirements. TQM places strong focus on process measurement and controls as means of
continuous improvement.
Six Sigma is a quality management initiative that takes a very data-driven, methodological
approach to eliminating defects with the aim to reach six standard deviations from the desired
target of quality. Six standard deviations means 3.4 defects per million.

Conclusion:
SME’s are the important sector of Punjab industries and contribute reasonable part in the GDP
of Punjab. As in the globalised market, competition is increasing day by day. So to be in the
market, production of quality product is important for all industries specially SME’s.By
following various Quality management practices and tools this can be happen.

REFERENCES:

BOOKS REFFERED

 Stevenson, W.J.,2009 .Operation Management, Tata Mc Graw Hill.

SITES VISITED

 http://anahadmc.blogspot.com/2009/06/marketing-challenges-to-smes-in-punjab.html

 http://www.sme.in/CurrentNews.aspx?NewsID=1668

 http://www.bizxchange.in/

 http://www.made-from-india.com/article/Small-and-Medium-Enterprises-326.html'

 http://indiasmes.blogspot.com/

 http://nasscom-emerge.groupsite.com/post/six-sigma-for-sme-s
 http://managementhelp.org/quality/quality.htm

 http://www.fundoodata.com/