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Lean methods & ZED will help boost FDI in MSMEs

Jul 09, 2016

GOA, INDIA - June 24, 2016 – WTC Goa promoted by MVIRDC in association with WTC Mumbai, Quality Council of India and International Centre of Goa organized Make in India third in series on the theme of Lean Manufacturing and ZERO DEFECT ZERO EFFECT at ICG Hall, Dona Paula.

Mr. Manguirish P Raiker, MSME Board member visualised the impact of Make in India on the MSME industry during his welcome address and assured that India will emerge as a global destination for manufacturing. Government of Goa expresses its keen interest to develop the state as an industrial hub and has been very supportive through various policies initiatives said Raiker. Speaking on the topic he also mentioned that India's core potential lies in its MSME sector and if developed through such unique methods, it is capable of outscoring countries like China. There is also a strong need to develop specialisation in design and research having huge importance in the western countries, which is clear from the insignificant number of patent registrations every year in India. Goan universities are adopting various steps focussing on research and development and instrumental in creating an innovative atmosphere for the new generation. He also informed on the foreign delegations visiting Goa this year and its fruitful impact.

Cdr (Retd) J S Bhogal commenced with the background of Lean Manufacturing and its origination from Japan. It constitutes of the most important step to identify the wastes and devising systematic approach to eliminate the same. Seven types of wastes (non-value added activities adding costs without adding value) include Overproduction, Inventory, Waiting, Motion, Transportation, Rework and Over processing. He identified distinct goals in the implementation of Lean management like breakdowns, delays, defects, accidents, inventory, paper which must be zero. he also revealed that 95% of our total lead time contributes no-value addition and is a serious concern to be taken care of.

There are number of tools to implement lean in the system and one can realise several benefits cost reduction, cycle time reduction etc. Proceeding with the presentation Mr Bhogal provided live cases of a few companies covering different sectors highlighting lean as a universal model. QCI as a Government appointed National Monitoring and Implementing Unit (NMIU) has successfully conducted 250 workshops and created clusters in various sectors all over India. The sectors include engineering, automobile to handicrafts etc. The cluster formation involves 5 stages and there is an audit conducted by a team comprising of MSME board member, QCI and a 3rd party industry member at every stage.

Migrating to the topic of ZERO DEFECT ZERO EFFECT he suggested that the best way to improvise productivity is ensuring minimal defects in the production cycle and adverse effect on environment. QCI has developed an effective maturity assessment model with the inclusion of Government, various Industry association and International agencies. Members of NABET (QCI), Ministry of MSME and other stakeholders have been involved in drafting the parameters of ZED rating model. Rating model involves guidelines to gauge an entity on selectively chosen 50 parameters on a range of 0-5, he opined. Out of 50, 20 are most essential and 10 other parameters chosen by the company depending on the sector will be considered. This credible rating will help to gain trust of foreign investors and ultimately lead to the rise in country's GDP. Ratings will have to be visible on the online portals crediting the e-Commerce portals eventually rising the customer's confidence and larger sales as an outcome. SMEs can source from reliable vendors and manage in a systematic way as reliability is the key to increase profitability, he said. He also informed that there could be various Government taxation benefits aligned to the rating earned by the entity. He concluded on the strong note that MSMEs and Foreign Investors are the key to boost the nation's economy and the Government is equally participating in various ways along-with the public and private entities to generate the necessary trust of the foreign investors. Make in India initiative will definitely directly or indirectly, lead to prosperity of MSMEs, he ensured.

Ms Ambika Dhakhenkar, Asst Mgr, WTC Goa presented the Vote of Thanks and assured to conduct many such programs in association with QCI and NABET to strengthen the MSMEs in the Goan ecosystem at par with other Indian states.

PHOTO (L-R): Ms Cheryl Fernandes, Officer, WTC Goa, Cdr Jagmohan S Bhogal,  Sr Director, NABET - QCI and Ms Ambika Dhakhenkar, Asst. Mgr, WTC Goa. 

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