With the increase in quality consciousness and expectations of the customers around
the world, Medium, Small and Micro Enterprises (MSMEs) in India are also trying to
keep-up with them by improving the quality of their products. This paper is an
assessment of quality practices, issues and challenges of MSMEs of Kanpur, India.
The focus of the study is to identify the quality readiness of these MSMEs, their
contribution to export, the strategic advantages and disadvantages faced by MSME in
export. A study was conducted on export oriented leather, plastics and chemical
industries of Uttar-Pradesh (India) which was presented at the end of the paper as a
case study so as to understand the current quality management practices of these
industries.
Table of Contents
1. Introduction
2. Importance of MSMEs
2.1 Contribution to Economy
2.2 Contribution to GDP
2.3 Contribution to Exports
3. Strategic Advantages and Disadvantages of Export Faced by MSMEs
4. Quality Management as Competitive Strategy
4.1 Benefits of Quality Certificates in MSMEs
4.2 The Benefits of Quality Management
5. Cost of Quality
5.1 The Six Sigma Philosophy of Cost of Quality
6. Challenges Faced by MSMEs in Implementing Quality Management System (QMS)
7. Few Case Studies-Some Industrial Best Practices in Quality Management at MSMEs of Uttar-Pradesh (India)
7.1 Everest Tannery (P) Ltd
7.2 Vivek Polychem Pvt. Ltd.
7.3 M.L.A Group of Industries
Objectives & Core Themes
This paper assesses the current quality management practices, challenges, and strategic export readiness of Micro, Small, and Medium Enterprises (MSMEs) in Kanpur, India. The primary research objective is to analyze how these enterprises adapt to global quality standards to maintain competitiveness in international markets.
- Role of MSMEs in national economic development and GDP growth.
- Strategic assessment of international export advantages and barriers.
- Implementation of Total Quality Management (TQM) and ISO 9000 standards.
- Impact of the Six Sigma philosophy on reducing the cost of quality.
- Case studies of industrial best practices within the Indian leather, plastic, and chemical sectors.
Excerpt from the Book
3. Strategic Advantages and Disadvantages of Export Faced by MSMEs
Before committing their resources to venture in to export, MSMEs must carefully assess the advantages and disadvantages they may face in exporting. As discussed promotion of export is no doubt the main objective of any economy in the world but the MSMEs should evaluate and carefully assess the advantages and disadvantages before committing the resources. While some MSMEs enter in export business unintentionally after receiving a request to purchase from a foreign buyer or getting an order form the same. Some make a deliberate move after conducting a through research before entering a new venture.
The reasons for MSMEs to consider exporting are compelling; the following are few of the major advantages of exporting:
Increased sales and profits
After liberalization and followed by globalization the whole world become a common market. Companies once confined in own countries are in a voyage to conquer the world. By going international, companies will participate in global market and gain a piece of the huge international marketplace.
Diversification
Selling to multiple markets allow companies to diversify their business and spread their risk. As a result, companies are not be tied to changes within the domestic market or of one specific country.
Summary of Chapters
1. Introduction: Defines the scope of MSMEs through various international organizational frameworks and explains the lack of a single universal definition.
2. Importance of MSMEs: Analyzes the significant contribution of the sector to employment, industrial output, and GDP in both the Indian and global contexts.
3. Strategic Advantages and Disadvantages of Export Faced by MSMEs: Outlines the motivations for global expansion while highlighting the operational risks and costs involved.
4. Quality Management as Competitive Strategy: Discusses the necessity of standardization, such as ISO 9000, for achieving customer satisfaction and operational excellence.
5. Cost of Quality: Breaks down quality costs into conformance and non-conformance, applying the Six Sigma philosophy to process improvement.
6. Challenges Faced by MSMEs in Implementing Quality Management System (QMS): Identifies common barriers such as resource constraints and the lack of formal, long-term planning.
7. Few Case Studies-Some Industrial Best Practices in Quality Management at MSMEs of Uttar-Pradesh (India): Presents practical applications of quality management through company-specific profiles in Kanpur.
Keywords
MSME, Quality, Quality Management, Strategy, Six Sigma, ISO 9000, Export, GDP, Manufacturing, Total Quality Management, Standardization, Cost of Quality, Industrial Development, Competitive Advantage, Performance
Frequently Asked Questions
What is the fundamental focus of this research?
The paper examines the quality management landscape within MSMEs in India, focusing on their readiness to compete in the global export market.
Which sectors are analyzed in the study?
The study specifically highlights industries in Kanpur, Uttar Pradesh, with a focus on leather, plastics, and chemical manufacturing.
What is the primary objective of this work?
The main goal is to identify how MSMEs address quality challenges and leverage management strategies to successfully participate in international trade.
What methodology does the paper utilize?
The research combines an analysis of economic data with industry case studies to evaluate current quality management practices.
What is covered in the main body of the work?
The main sections cover the economic importance of MSMEs, the strategic benefits/challenges of exporting, the implementation of quality management, and specific industrial case studies.
Which keywords characterize this paper?
Key terms include MSME, Quality Management, Six Sigma, ISO 9000, Export, and Competitive Advantage.
How does the Six Sigma philosophy relate to MSMEs?
The paper argues that by improving process sigma levels, MSMEs can drastically reduce the costs of poor quality and improve net income.
What unique case study examples are provided?
The paper includes detailed profiles of Everest Tannery (P) Ltd, Vivek Polychem Pvt. Ltd., and the M.L.A Group of Industries.
Why are quality certifications important for these firms?
Certifications like ISO 9000 help build institutional trust, satisfy government tender requirements, and provide a competitive edge in international markets.
- Quote paper
- Prof. Moloy Ghoshal (Author), Dr. Pankaj Madan (Author), 2011, Issues & Challenges of Quality Management faced by MSMEs, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/183398
