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Modenisation and Protection from Sickness


Once you have started the production most important aim for long run should be to remain at the forefront of business and avoid being obsolete in terms of products, services or management aspect. Listen and gauge the market, anticipate the future demands. There are many market survey document or market reports published by individual agencies and government departments on this aspect. An entrepreneur can use these as indicative guide to project the future conditions.

In face of competitive environment entrepreneur should keep abreast of process and technological changes that are taking place and wherever possible incorporate the changes which could increase the productivity, efficiency and /or reduce the cost of production.

Modernisation and Technology Upgradation Schemes of DCSSI

A Technology Management Division has been set up in Small Industries Development Organisation (SIDO) to bring all the promotional schemes/activities of the Ministry of SSI & ARI relating to technology upgradation and modernization of the small scale sector under one umbrella.

The areas covered under this division are :

  • Integrated Technology Upgradation and Management Programme (UPTECH)
  • Incentive Scheme for Acquiring ISO- 9000 Certification
  • Awareness & Motivational Programme on ISO - 9000
  • Energy Conservation
  • Technology Trust Fund.

Integrated Technology Upgradation and Management Programme (UPTECH)

UPTECH has been devised to cater to the technological needs of small scale industries on cluster basis. The first steering committee meeting was held in the month of Sept., 1998. 12 clusters in small scale sector have been identified for taking up modernisation and technology upgradation programme during the 9th Five Year Plan.

Incentive Scheme for Acquiring ISO-9000 Certification

ISO-9000 has become synonymous with quality for export of goods to other countries. The incentive scheme provides reimbursement of the charge for acquiring ISO-9000 certification to the extent of 75% of the cost subject to a maximum of Rs.75,000 in each case. The number of units assisted during 1997-98 was 88. An amount of Rs. 21 lakhs has already been approved out of the budget provision of Rs. 65 lakhs made during 1997-98 for reimbursement to 40 cases decided in the first meeting. It is estimated that 80 more cases will be reimbursed during the remaining part of the year.

Awareness and Motivational Programme on ISO-9000

During 1998-99, 10 number of 5 days Awareness cum Educational Programme on ISO-9000 and 25 number of one day Awareness cum motivational programme have been allocated to different organisations under SIDO. FICCI Quality Forum, New Delhi has been entrusted to prepare video cassette on ISO-9000 Quality System, for SSI Sector.

Energy Conservation

The specific consumption of energy in small scale sector is generally high in sectors like foundry, forging, re-rolling mills, glass and ceramics industries etc. The purpose of taking up the energy conservation is to create awareness about the advantages of new techniques of energy conservation. An amount of Rs. 20 lakhs has been made for B.E. 1998-99 for conducting programme viz. awareness programme/ preparation of video films/ energy audit etc. Energy conservation amount of Rs. 1.5 lakhs has been allocated to organise 25 workshops on quality conservation during 1998-99 by various Small Industries Service Institutes (SISI's) and Regional Testing Centres (RTCs). Tata Energy Research Institute (TERI) has been assigned preparation of an energy conservation plan for small scale industries located in NOIDA, UP.

Technology Trust Fund

A Technology Trust Fund to meet the technological needs of small scale industries has been created with a corpus fund of Rs. 150 lakhs contributed by the Government of India, Karnataka State Government and Karnataka Association. Some of NG0s have also been involved in this project. Government of India has already released a sum of Rs. 50 lakhs out of its share of contribution of Rs. 75 lakhs.

Avoiding Sickness

Here are some tips to to avoid sickness.

Have Company Policies

Some entrepreneur view company policies as a sign of encroaching bureaucracy and avoid issuing or observing them like the plague. However, having some sort of company policies helps in taking decision over various issues and small problems that are part of running a business. Policies makes it clear to employees what kind of behaviour is expected in the workplace. They can set clear guidelines on what is and isn't appropriate. Policies ensure that decisions will be uniform across the organisation thereby avoiding variance in decision for same type of problem. And policies can help you avoid many troubles.

Learn from Mistakes

No matter how talented you are in business, you're going to make mistakes, so learn from mistakes. Don't take it to heart, analyse the mistakes, think of possible solution so that should a similar situation arises in the future you are able to deal with it effectively.

Never Look at an Expense in Isolation

It's so easy to make blunders handling money in a business. Every day in business you are bombarded with what seems like great reasons to spend money on something you didn't budget. Taken in isolation, so many unplanned expenses seem like a great idea, but question should be how much it is going to contribute actually in developing the business.

Think Before You Spend on Marketing

You never know what is going to work in marketing, so don't be afraid of making mistakes-as long as they are small mistakes and does not hurt you financially in a big way.

  • Never, ever, spend lots of money on any marketing program until you see that it is bringing in money.
  • Never assume that someone else's marketing program will work for you.
  • Never assume that an ad agency or marketing expert can guarantee you results-no one can.
  • Make small test promotions and put in that extra effort to carefully measure results.
  • Ask every customer how they heard about your business, and track the response to every promotional effort.
  • There are some marketing avenues out there that will work for your business-but it could take you a long time to find the right mix of the right media, the right offer, the right ad copy, and the right ad design.

Appreciate the Work

You can't just drive people to work 100 percent flat out all day long and well into the night-well, at least not every day! So even if people are doing a reasonably good job-loosen up and show them how much you appreciate their work!

Nurture relationships with Customers

Even if you're a relatively small vendor, meet executives of a large company you're doing business with they will be happy to know you are not just meeting with them to simply get more orders, but to try to serve their needs better.

You are so much better off if you have developed a close relationship with key decision-makers, and not just the buyers at businesses with which you are dealing. Sooner or later if there are some kind of problem-such as over discount, payment terms, faulty products, or whatever-then you will not going to end up dealing with the key decision makers for the first time under negative circumstances.