Clusters

CII Institute of Quality has taken the lead in promoting an innovative “Cluster Approach” that combines TQM, TPM and Lean principles and practices. This has been used very effectively to improve the competitiveness of small and medium enterprises.

Most companies in the manufacturing sector are very keen to become competitive in the global market. But to become and remain competitive, companies must develop strategies, skills and knowledge that will enable them and their suppliers to achieve continuous improvements that will drive costs down and enhance quality.

Large and medium sized companies depend to a large extent on small and medium sized companies for their procurement. The dependence may vary from 10% to 70-80% of their manufacturing cost. Raw materials are usually sourced from larger companies. If we ignore the opportunity of reducing costs and improving competitiveness of the suppliers, we may not remain competitive. SME’s, in turn, also see an opportunity to become “suppliers of choice” if they upgrade their level to world class levels of “competitiveness” factors.

CII Clustering for Competitiveness has been imparting training for SMEs on adopting good manufacturing and shop floor practices and carrying out handholding visits to help them actually implement it successfully.

The condition for forming clusters could be anyone of the following:

· Sectoral group e.g. Textile producing factories, machine tool manufacturing companies, plastic component suppliers, etc.

· Group of process plants (in geographical proximity or otherwise)

· Mixed groups but in geographical proximity

· For specific purposes like just-in-time capabilities or elimination of customer complaints etc.

How do Clusters get support?

· A group of 8-10 SMEs agree to participate in the cluster initiatives.

· CII assigns a Counsellor to the Cluster

· The Counsellor does a need survey and help each company to identify the baseline data on the key indicators for Competitiveness viz. Quality, Cost, Delivery, Safety, Morale (of employees).

· Once each month, all companies would meet to share progress in the previous month and receive feedback for further improvement.

· In about two years, the roadmap is administered.

Companies that have participated in this initiative have invariably found the cost of investment to be minimal when compared with long-term benefits. Unlike most programmes that work with one company at a time, this is a group that moves together.

Presently 118 Clusters have been formed covering over 950 companies, and out of this, 64 clusters impacting 530 companies are in progress.