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Geeta Nair
PUNE, OCT 18: If obtaining an ISO certification were to be used as the sole yardstick for judging the importance given to quality by the small industries then their performance is disappointing to say the least. Using the certification process as a tool towards achieving quality standards does not feature prominently in the list of priorities of small industries.
So far it is the bigger companies that have gone in quality certification. Around 135 companies in thePune region have acquired ISO certification which accounts for barely two percent of the companies operating from this region.
Most of the certificates have been requested by and awarded to the bigger companies. Thus Telco has eight certifications to its credit followed by Philips and the Kalyani group with five certifications each. Thermax, Finolex and Kirloskar companies have two each while Alfa Laval, Atlas Copco and Bajaj Electricals are among the other big companies in this list.
Some defence establishments such as Ammunition Factor,Bharat Electronics, High Explosive Factory and Ordnance Factory too are included as are some medium sized companies.
That leaves only a handful of small units which have ISO certification. It could have been used as an important tool to put systems in place but this has not happened in a significant way.
This is despite the sustained efforts over the last five years to create an awareness about ISO certification by various industry associations, it is learnt. An industry association spokesperson cites high cost, extensive documentation and disinterest as the main deterrents.
There are other reasons why small units are not going or ISO certification. One of them being that big companies have their own vendor development programmes and the vendors have to follow the quality standards demanded by their clients. Bigger companies demand that units put systems in place and monitor them regularly.
But with competition hotting up and companies being forced to seek new export markets, the SSI units arerealising that a certification could be an important additional asset. Among the smaller units to get themselves a certification are Bipin Engineers, Jayshree Electrodevices, Pravin Masalewale and Chaphekar Engineering.
Chaphekar Engineering is a manufacturer and supplier of automotive sheet metal components and body for LCVs. It acquired an ISO 9002. Pravin Masalewale which is involved in processing spices and condiments has got itself an ISO 9001 certification.
S Sashiuddin, general manager of Pravin Masalewale, says his is a 35-year old company where people had got used to working without any benchmarking system. Acquiring a certification led to an exercise involving intensive documentation of the whole process.
"It helps to put systems in place and it will be useful in the export markets. Even our existing customers are looking at us differently now," he says.
Demanding domestic customers have started giving some weightage to the ISO certification "and we are being constantly asked if we havegot ourselves certified" says V M Dombe, quality manager of North Star Freezing Equipment which makes ice-flake making machines. This process will lead to a stage by stage inspection of our working systems and correction if any defects or faults are found in the system, says Dombe.
North Star is also exploring the export market and thinks an ISO certification will be helpful in this context. Dombe, however, warns that certification on its own will not bring about an improvement in quality - that has to be inherent in the company - but certification will complement it.
Some more small units are trying to acquire a quality certification. Filtronics, Stud Craft India and Kranti Industries are among the latest to join the bandwagon. These three units are among the first beneficiaries of the quality certification project for SSIs started by the Maharatta Chamber of Commerce Industries and Agriculture (MCCIA).
The MCCIA started the project for small industries which were inhibited by the high cost ofobtaining a certification. These three companies have started working simultaneously towards certification. Their readiness to work jointly under the coordination of the Chamber is also aimed at a more economical process since some of the expenses could be shared. For instance, the most expensive part of the process is hiring ISO consultants.
Consultants will now be available through the Chamber at lower consultation fees. MCCIA will also coordinate mobilising grants and soft loans for entrepreneurs seeking certification. All this has helped reduces costs by 50-60 percent. A small unit could get its certification for a total of Rs 1.5 lakh under the scheme. Chances are also better when applying for government incentives and SIDBI loans for the purpose of certification through this project. Two other banks have also pitched in with loans at discounted rates.
To encourage units to go in for an ISO certifiation various incentives are also available for SSIs. The central governemnt provides subsidy of upto 50per cent while SIDBI too finances some part of the cost. Units can get a refund of upto 50 per cent of the expenses incurred in by units which sometimes runs into a couple of lakhs depending on the size of the companies.
For itself, the Chamber has set a target of 10 certifications by the year-end.
Achieving high quality standards may remain a difficult objective for SSIs but they could at least get started with an ISO certificate and work their way upto to a total quality management. Just a little effort is needed especially when so much assistance is at hand.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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