• Posted on: 29 January 2016
  • By: admin

Scheme for "Enabling Manufacturing Sector be Competitive through Quality Management Standards and Quality Technology Tools"

The Main objective of the Scheme is to encourage SMEs to adopt Latest Quality Management Standards and  Quality Technology Tools. It has been ascertained that by implementing Quality Technology Tools (QTT), like 6-Sigma, TQM, TPM (Details at Annexure-B) in certain sectors or group of industries in the micro and small sector, the performance of the industries have improved substantially in terms of productivity (Confederation of Indian Industries, Quality Council of India, etc. have reported improvement by 50 to 100 percent in one year), improvement in quality and reduction of rejections and customer's complaints (by 50% in one and half years’ duration). Similarly, adoption of Quality Management Standards (QMS) like ISO 9000/18000/22000, etc, by MSMEs have also shown improved performance. It is therefore essential for the MSMEs to adopt the best manufacturing practices to enable them to be competitive in the current scenario of global competition. 


Major Activities:-

Introduction of Appropriate course Modules for Technical Instititutions. About 1800 ITIs and Polytechnics in four years of the XI plan. The selection of the technical institutes will be done in consultation with DGET and other stakeholders. The following sub-activities are proposed under the Scheme.

» Study the gap analysis

» Develop Training Materials Kit

» Train 80 Master Trainers

» Identify ITIs/Polytechnics

Component of the scheme:-

i) Efficient use of resources,

ii) Improvement in product quality,

iii) Reduction in rejection and re-work in the course of manufacturing,

iv) Reduction in building up inventory at the various stages in the form of raw materials, work-in-progress, finished components, finished products etc.

Office of DC(MSME) will finalized the MSME clusters for conducting the Awareness Programme on Quality Management Standards and Quality Technology Tools (QMS/QTT)

The Sub-activities to be undertaken are:

a) Organising Countrywide Quality Orientation Campaigns for workers and staff of micro & small enterprises, and

b) Session with Experts to explain Quality Technology Tools and different Quality Management Standards to Entrepreneurs and Managers from micro & small enterprises.

25% & 50% of the cost will be collected from participating micro & small units respectively. 


(a) Where individual units are to be the beneficiaries, Micro & Small enterprises having Entrepreneurs Memorandum (E.M. No.) and considered eligible to take benefit under the Scheme or specific activities would be considered

(b) Wherever organizations are to be the beneficiaries they would be eligible if they are engaged in current activities for at least last 2 years and have a good track record. However, relaxation in this respect may be considered by the Monitoring and Advisory Committee.

(c) The applicant organisation should have regular audited accounts for the past 2 years.

(d) All attempts will be taken to ensure that 50% of the enterprises are selected from micro sector and 50% from small sector.

Other Conditions

(e) Financial assistance to any one organisation or association would normally be restricted to two events in a financial year, unless it has active state or regional chapters or hubs.


(a) All Micro & Small Enterprises meeting the criteria laid down will be eligible to take benefit under the scheme.

(b) The final selection of the clusters/Micro & Small Enterprises will be done by the Monitoring and Advisory Committee.


The Scheme will be implemented through office of the Development Commissioner (MSME) by involving expert Organisations or by using in-house expertise wherever available.


All eligible Micro & Small Enterprises should submit their Application in the prescribed Proforma (Annexure-A) along with following documents:

(a) An undertaking to contribute 25% or 50% of the total cost as applicable to the unit, wherever applicable.

(b) An undertaking / Affidavit that similar benefits have not been obtained from any other Government sponsored schemes.


(i) The funds will be released to the expert organisations activity wise (As per details in Annexure-C) in the phased manner for the specific activity.

(ii) Contribution of 25% from Micro units and 50% from Small units will be collected by Office of DC(MSME) / or the implementing agencies wherever applicable.

(iii) The implementing agency will submit the fund utilization certificate along with the detailed report about the component.

Detailed Document of Scheme