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SMEs must think beyond quality certifications
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Bikky Khosla | 04 Oct, 2011
In the last few decades, the business environment has changed tremendously, thanks to emergence of cross-cultural environment, increasing influence of MNCs, and growing technology-oriented operations. With these changes, competition has become intense, and as a result, quality improvement has become one of the keys to business survival and excellence.
Do our small and medium enterprises (SMEs) really recognize the importance of quality improvement? Is the level of our exporters' quality awareness enough to survive the international competition? I feel, there is a lot to do for the SMEs in this field. Although the number of small firms achieving quality assurance certification is increasing gradually these days, still their quality awareness has hardly gone beyond these certifications. This attitude needs to be changed.
For years, India businesses have succumbed to a structure based on functions where functions are outlined, rules are developed, and policies are implemented, and as the firm grows, more and more functions are created. It leads to a comfortable work environment but with a little scope for creativity. The modern day business environment, in contrast, demands a more dynamic environment where a business can untap the brains of workers.
Total Quality Management (TQM) is one of such revolutionary quality improvement concepts that can help our SMEs a lot. First bursting on the international scene in the early 1980s, the strategy was enthusiastically applied by the Japanese companies after the World War II, and within a few decades, it resulted in turnaround of Japan's industrial fortunes. Since then, TQM has become widely popular as an ultimate weapon for quality improvement.
Another quality improvement approach that has become highly popular is Six Sigma, which, I think, also could be a potent strategy for SMEs to survive business competition by transforming the culture and actions of the entire organization. Originally developed by Motorola in 1986, this approach defines the concept of achieving approximately zero defects following a six-step method.
In today's business environment, quality movement is here to stay always. The deregulated global competition has left no choice even for the small firms but to awaken themselves to the potential of competitiveness provided by quality. SMEs must think beyond quality certifications, which, as far as marketing is concerned, have merits but hardly help when it comes to improving business leadership.
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Request to assit/help to know about the quality certification with respect to food industry
J M Paliwal | Sat Oct 8 06:33:14 2011
Dear Patrons,
We are a SME estd in 2008, located at Kalmeshwar, Nagpur, Maharashtra. We are working in food industry, mfg of Fruit juice concentrates.
I wish to know what are the quality certifications which we should undergo. With which org we should apply?
How it could help us domestically?
How it could help us for exports?
Pl mail to us on:
paliwaludyog@gmail.com,
jpi_0002@yahoo.com
We would be highly thankful to you for the mail.
Regards,
J M Paliwal
9881068980
Facing hardships for quality stabization and customer delight
Puneet Mahajan | Thu Oct 6 14:46:08 2011
Ours is an SME unit manufacturing Galvanized fasteners ( IS 12527). Under recent expansion done two yrs back we are facing hardships in adopting six sigma and quality of the process
FOCUS ON QUALITY
Milind Naniwadekar | Thu Oct 6 05:22:22 2011
The focus on Quality is really necessary beyond Quality Certifications; but also the business has become more Capital intensive. In real sense the old SSI units can not survive at the existing financial conditions of scarcity & increasing interest.
Also QUALITY has a cost that has to be incurred; today maximum for the human resources.
Tier 1 & Tier 2 vendors of multinational OEM (Indian origin or otherwise) are facing very high pressures on their margins mainly due to 1) HR cost, 2) Tooling & Consumables cost, 3) Raw Material Cost, 4) Power Cost.
Out of these only the Raw material cost is considered by the customers (and that too partially on the ground of increasing volumes & many times late also). But the other costs have increased by approx. 40 in last 5 years are not at all considered.
Secondly Customers & Financial Institutions also consider DEPRECIATION as CASH PROFIT. This was true in the era of low cost machines & equipment. Due to high rate of obsolescence & cost of CAPITAL EQUIPMENT; DEPRECIATION can not be considered as cash profit. That has to be kept aside for regular investments & improvements
All this is making NET PROFIT margins thinner & thinner. This is making new entrants in the Indian Entrepreneur almost impossible. This will also result in further lesser innovations & lesser new developments.
A serious consideration has to be taken by our Engineering Organisations.
SMEs need to catch on to the proactive idea
Kirti | Wed Oct 5 05:15:43 2011
A good editorial and really the SMEs need to catch on to the proactive idea and not reactive and think ahead. Also corruption needs to be weeded out so that everyone can work to their potential better and quicker rather than be stifled. Bureaucracy needs be streamlined to encourage innovation, improved service and research. Indians and India can achieve a lot if they put their minds to it for the greater good of all otherwise they will be left behind while the world is zooming ahead.
Stick to the time-honoured practice
allan_dsouza1@rediffmail.com | Wed Oct 5 01:20:52 2011
Beyond the certifications and such SMEs should stick to the time-honoured practice of delivering quality products that are actually needed and always in time.
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