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DESIGN CHALLENGES OF MSME’S Important for conducive Eco Systems for Cluster Development.

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Presentation on theme: "DESIGN CHALLENGES OF MSME’S Important for conducive Eco Systems for Cluster Development."— Presentation transcript:

1 DESIGN CHALLENGES OF MSME’S Important for conducive Eco Systems for Cluster Development

2 Charles Darwin’s – theory of evolution states that one who adapts oneself to the changing environment will undergo evolution otherwise will perish. Adaptability with DESIGN… 21 st February‘2014, a presentation by Bindoo Ranjan National Institute of Design

3 INDIA SHINING ---- yesterday an image at Yahoo home page

4 LIFE CYCLE OF A MSME WHAT IS AN MSME MSME is an entrepreneur Explores and finds an opportunity. Builds upon it as a business venture. Identifies and organises all the required resources. Accepts both the risks and rewards associated with the venture.

5 Development of Entrepreneurship Earliest Period- Marco Polo Middle Ages- Theater, Architectural Works 17 th Century- Mississippi Company 18 th Century- Edison & Whitney 19 th & 20 th Centuries – Organize/Operate – Innovate

6 The Entrepreneurial Revolution “We are in the midst of a silent revolution – a triumph of the creative and entrepreneurial spirit of humankind throughout the world.” “I believe its impact on the 21 st century will equal or exceed that of the Industrial Revolution on the 19 th and 20 th.” -- Jeffry A. Timmons ( The Entrepreneurial Mind, 1989) In his February 24th State of the Union Address, Barack Obama publicly declared that “The future of our economy relies on the imagination of our Entrepreneurs.” State of the Union Address Many people around the world are calling for an “entrepreneurial revolution” to fix social and economic problems. This call naively assumes that more entrepreneurs are needed to address these issues.

7 7 Common Challenges- faced by MSME for attaining sustainable ecosystem

8 1. Problem: Failed/Repeatative product line –a mundane activity. Solution: Try adopting new product lines gradually rather than all at once, suggests Jonathan Fields, social entrepreneur and author of two books,Jonathan Fields 2. Problem: Shady suppliers or customers. Solution: Take precautions. Have network of suppliers lined 3. Problem: Too much paperwork. Solution: Outsource and use effective technology. 4. Problem: Outmoded business model. Solution: Listen to the market adapt for it. 5. Problem: Doing what you love or wear too many hats-Jack of all. Solution: Research. It's easy to mistake your own enthusiasm for market opportunity 6. Problem: Financing. Solution: Have something real– to show potential investors. "Make sure investors feel it as opportunity now to get involved," suggests John Friess, Journey Gym's co-founder and CEO. 7. Problem: Too many competitors, not enough differentiation. Solution: Find a niche. It is a trendy prescription. Can U see common chord in the solutions- Be creative in ascertaining the solutions

9 So can we say they all are DESIGN CHALLENGES The challenges in the minds The challenges in the approach The challenges in systems The challenges in the processes The challenges in the inputs The challenges in the output

10 Design Clinic Scheme for MSMEs DESIGN CLINIC SCHEME, NATIONAL INSTITUTE OF DESIGN, PALDI, AHMEDABAD 380

11 Sl. No.Name of the Sub-Scheme Amount (In Crores) 1National Programme on Application of Lean Manufacturing Promotion of ICT in Indian Manufacturing Sector Mini-Tool Rooms to be set up (by Ministry of SSI) Technology And Quality Upgradation Support for SMEs Support for Entrepreneurial and Managerial Development of SMEs Design Clinic scheme to bring design expertise to the Manufacturing Sector Enabling manufacturing sector to be competitive through quality management standards and quality technology tools National campaign for investment in Intellectual Property Market assistance/SMEs and technology upgradation activities (Ministry of SSI in co-operation with TIFAC/CSIR) Marketing Support/Assistance to SMEs24.25 National Manufacturing Competitiveness Programme (NMCP) DESIGN CLINIC SCHEME, NATIONAL INSTITUTE OF DESIGN, PALDI, AHMEDABAD 380

12 Design Clinic Scheme MSMEs Design Experts + To address issues of competiveness, in view of Global challenges

13 S.R. NoIndustrial SectorsTotal 1Agricultural Equipments6 2Auto Components9 3Ceramics & Glass10 4Electrical Equipments5 5Electronics Equipments5 6Engineering & Fabrication47 7Food Processing13 8Garments7 9Gems & Jewellery19 10Handicraft8 11Handloom7 12Jute Products8 13Leather Products10 14Machine Tools6 15Machinery5 16Medical Equipments2 17Metalware20 18Packaging & Branding13 19Plastic Products15 20Rubber Products4 21Safety & Security1 22Sport Goods2 23Stone & Marble3 24Textile Products6 25Toy2 26Wood & Bamboo10 27Wood/Steel Furniture13 28Multi Products7 Total263 ZoneNo. Of DASsMSMEsDesignersCity/Location West North South East North East Total Design Awareness Seminar: Cluster/ Industries Sector Covered Across India: Completed 263 seminars across the country covering more than 25 states and union territories. Data as on 20 th Nov 2013

14 Product. Processes. Design Corporate Communication & Co. Image Intra-Departmental Level Inter-Department Level Organisational Level Design audit -- to understand the challenges  Observations  Interviews  Video ethnography  Market Research  Scenario Building ©2009, SDM, National Institute of Design

15 National Institute of Design, Paldi, Ahmedabad

16 Search for Technique & Technological support DESIGN BLENDING Business development Support Researches in Artisan social, cultural & religious background SWOT Analysis S = Skill W = Workmanship O = Opportunities T = Techniques Individual & group entrepreneurial development Potential Markets – Wholesale, Retail, Exhibition, Export

17 Design Awareness Programme (NAS + Workshop) : Covered majority of sectors under the DAP and generated reports for individual clusters from design and systems perspective highlighting the issues related to products, processes, training, infrastructure, technology etc Interactive Study -- Brings design/er to the doorsteps of the MSME units and expose MSMEs to the benefits of design and provides expert advice and solutions on real time design problems. Design Need Assessment Study Report -- highlights Design Diagnosis / Design Opportunity.Mapping, cluster based macro study, industry/ unit based micro study. Holistic Understanding of Design Status at the cluster. Workshop We Share overall understandings, insights and opportunities identified Discussion on common design based issues concerning the cluster. Train participants to the creative problem solving techniques. Suggestions of Remedial Steps/ Solutions and Strategy for Further Design Interventions. ZoneNo. Of DAPsCity/LocationMSMEsDesigners West North South East North East Total S.R. NoIndustrial SectorsTotal 1Agricultural Equipments7 2Auto Components2 3Ceramics & Glass11 4Electrical Equipments 5Electronics Equipments2 6Engineering & Fabrication27 7Food Processing4 8Garments1 9Gems & Jewellery14 10Handicraft15 11Handloom5 12Jute Products11 13Leather Products4 14Machine Tools 15Machinery1 16Medical Equipments1 17Metalware15 18Packaging & Branding4 19Plastic Products4 20Rubber Products1 21Safety & Security 22Sport Goods 23Stone & Marble2 24Textile Products3 25Toy2 26Wood & Bamboo14 27Wood/Steel Furniture7 28Multi Products1 Total158 Cluster/ Industries Sector Covered Across India: Data as on 20 th Nov 2013

18 MANUFACTURING CLUSTERS TRADITIONAL CLUSTERS – more than 200 years, some examples Textile – Handloom /Printing- 600 Firozabad –glass 400 Moradabad- brass300 Khurja- pottery 300 Aligarh- locks Rampur - knifes MODERN CLUSTERS – about 100 years some examples Ambala- Scientific & home Appliances. Jagadhari – stainless steel. Machine tools –Ludhiana. Surgical tools & equipments- Bhiwani.

19 MANUFACTURING CLUSTERS TRADITIONAL CLUSTERS – more than 200 years old, some characteristics  Large broad based markets  Emotionally rich designs  Traditional manufacturing practices.  Strong production systems may be time consuming & involve drudgery  System is deeply embedded emotionally. MODERN CLUSTERS – more than 100 years, some characteristics  Market is specific –focus on functional items.  Sales is on technical specifications  Thinking /approach is with a systematic processes.  Comparatively faster production systems may be not sturdy

20 Case study of two MSME sectors Textile Industry –an age old cluster. Scientific Instruments cluster Ambala – a modern cluster.

21  Second largest producer of textiles and garments after China.  Second largest producer of cotton in the world.  Second largest employer in India after agriculture – Direct Employment to 35mn.people  Constitutes about 12% of India’s exports.  Contributes about 14% to Industrial production.  Contributes about 4% to GDP.  Investment made in Textile sector since launch of TUFs scheme is Rs crores till June 2010 Indian Textile Industry Size -2010: Source : Ministry of Textiles –India/Technopack units in USD bn. Indian Textile Industry– a current scenario

22 India’s current USD 52 Billion Domestic Textile and Apparel industry has the potential to grow to reach USD 140 Billion by reflecting a substantial growth…

23 Indian textiles- export potentials Textile manufacturing continues to shift to low cost Asian countries. Increasing cost of labor, scarcity of raw material and other key resources like power, rising domestic demand is restricting China’s ability to further increase its share in the world trade thereby making it as fourth largest importer of textiles. Buyers need to diversify sourcing risk. Availability of raw materials, especially cotton, integrated operations and design skills in India. Favorable demographics, rising income and population levels, and rising retail penetration in other developing countries (other Asia countries, Latin America etc.) Hence…Good Opportunity for India to Increase Exports TOO….

24 Raw materials- eco friendly, natural, regenerated, organically produced etc Weaving processes- technological interventions to retain the essence but remove drudgery Dyeing/ Printing processes and other embellishments - use of azo free/ natural dyes Product diversifications – to cater to wider market segments Some innovations with respect to markets.

25 A case study – to promote sustainable textiles in a grass root handloom cluster while adapting to the expected market demand in the journey of sustenance.

26 Handloom weavers of Barabanki, U.P Design developments planned and executed under the Integrated Handloom Cluster Development, pilot project of o/o DC Handlooms, Ministry of Textiles, GOI, with a vision to inculcate sustainable development in the textile cluster of Barabanki..

27 Traditional products– of the cluster Is the low priced rayon stoles and Arafat scarves priced at Rs 35 to Rs 42/- including raw material and wages of weaving. Strength of the cluster – Weavers have great weaving skills and knowledge of weaving structures and patterns and motivation to adapt to new designs. Challenge was - For sustainability they have to adapt and cater to wider market segment unlike their present image of creating only low cost, cheap quality stoles ie TO CREATE AND ESTABLISH A NEW BRAND – with emphasis on Sustainable Development- the future milestone.

28 DEVELOPMENT in WEAVING PATTERNS & COLOUR COMBINATION Stoles

29 INTRODUCTION OF SURFACE EMBELLISHMENT SKILLS Block Printing

30 INTRODUCTION OF ALTERNATE YARNS in Weaving- Introduced alternative natural yarns like ----  Eri silk,  Muga silk,&  Bamboo yarns in weaving stoles. Attempts were also made to use Mulberry silk and wool.

31 PRODUCT DIVERSIFICATION Home Furnising range

32  Accessory range

33 IMPACT of this intervention  The cluster could adapt for a wider and varied market segment by positioning its products differently.  A much improved range and quality of products in terms of weaving quality, dyeing and colouring and design and colour combinations.  Great improvements in the per stole wages earned by the weaver. They are almost able to get three times the price of the stoles with quality and design interventions.

34 Sustainable Textiles– in news “Recycling the Dead” Turns Cremated Remains Into Textiles for Products IKEA Pledges to Transition to 100% “ Better Cotton ” by 2015 Designer Suzanne Lee “ Grows ” a Wardrobe From Bacteria Fashionably Natural Opens LA Fashion Week ECOLLECTION DAY 2: Fresh Eco-Friendly Fashions SUSTAINABLE STYLE SUNDAY: Exception de Mixmind by Ma Ke Solar Harvesting Textiles Energize ‘ Soft House ’ Nike Accelerates Sustainable Textiles DENMARK: Sustainable textiles fair to launch in September’2013 by CIFF Discovery of -Recron ® Green

35 Scientific Instruments Cluster, Ambala,Haryana  Ambala Cantt is a hub for scientific instruments with more than 800 units engaged in this business.  Is employing more 4000 skilled and semi-skilled people. Using more than 50 types of different raw material to manufacture more than 20,000 different types of instruments, which are being used in schools, colleges, engineering institutes, medical colleges, hospitals, universities, research laboratories, quality control lab of industries and defence/space applications.  The annual turnover of the industry is approx. 800 crore with approx 200 crore being the export cater destinations in Africa, the Far East and the Middle East. The larger players sell to the United States and Europe.

36 12 Industrial clusters from the city of AMBALA 1. Electronics Ambala 2 Heating Equipments Ambala 3 Physics Instruments Ambala 4 Optical Instruments Ambala 5 Pharmacy &Pharmacology Ambala 6 Woodware Ambala 7 Electrical Ambala 8 Biological Microscope Ambala 9 Clean Air Equipments Ambala 10 Glassware Ambala 11 Opthalmology Ambala 12 Home Appliances Ambala “Ambala main koi bhukha nahi marta, lekin koi tarakki nahi karta” …one of the MSME unit owner at Ambala

37 The cluster Ambala-- today The Ambala Scientific Instruments Cluster almost 100 years old but the complacency among the players, is today struggling for survival. It was a flourishing industrial centre until the late 1990s, but the rapid pace of change in the business environment in post-liberalisation India and growing competition in the international market has jeopardised its future. Over the years, manufacturing activity in the cluster has declined in the absence of technology upgradation. The technology used, is obsolete. The demand for scientific instruments is nevertheless increasing. So those who once manufactured them now find it more profitable to import products from China and trade in them. About 400 of the 1,000 enterprises in this hundred-year-old cluster are now purely traders. Scientific instrument manufacturing runs on low margins, We have consequently lost the competitive edge in the global market as well as the domestic market,” he said. The cluster, has the potential to yield annual sales revenue of Rs10,000 crore, but is doing business of only about Rs1,000 crore. A large chunk of this is accounted for by a couple of big players which have the funds to invest in R&D.

38 Need is to achieve the unified ecological approach- ----Taking the positive strengths of both clusters systems – The robustness and emotional stability of the traditional clusters and the technology advancement and future vision of the Modern clusters in the most balanced harmonious manner.

39 A FOOD FOR THOUGHT IS’ NT IT IS AMAZING, JUST BY TAKING A DECISION OF USING DESIGN AS A TOOL FOR THE SUSTAINED DEVELOPMENT OF OUR LOCAL MSME WHAT WE ARE FURTHER DOING IS STOPPING MIGRATION FROM SMALL TOWNS TO CITIES. STOPPING CORRUPTION & MAL PRACTICES. MAKING OUR VILLAGES/TOWNS MORE SOCIO ECONOMIC POWERFUL. PROVIDING BETTER STANDARD OF LIVING FOR ALL. INCREASING THE FLOW OF FOREIGN CURRENCY IN OUR COUNTRY. BY FOLLOWING THE TRADITIONAL GREENER PRACTICES WE WOULD CONTRIBUTE OUR PART IN SAVING MOTHER EARTH.

40 The biggest challenge is then to keep abreast with the changing paradigm to be able to ADAPT INNOVATE and ADOPT THANK YOU yahoo.co.in;


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