Auto component industry enhances productivity, quality

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New Delhi, Sept 25 (UNI) The Indian auto component industry has enhanced its productivity and achieved substantial improvement in quality as a result of the United Nations Industrial Development Organisation (UNIDO) Partnership Programme, according to an Impact Assessment of the Programme by Price Waterhouse Coopers.

The programme is now in the third phase of implementation since its launch eight years ago.

The report says that the partnership programme enhanced the business performance as well as the operational performance of targeted domestic small and medium enterprises (SMEs).

Out of 30 firms 15, for which data was available for the phase II of the programme which began in 2002, showed growth rates that beat the industry growth rate of 62 per cent.

The programme is in partnership between the UNIDO, the Government of India and the Automotive Component Manufacturers Association of India (ACMA).

Around 20 companies participated in the first phase in the western region, 40 companies in phase 11 and 58 companies in the current phase III of the programme at the national level.

It aimed at strengthening the SME auto component suppliers to meet the requirements of automobile manufacturers and their first tier suppliers, and enhancing productivity and overall performance to enable their inclusion in the domestic as well as global supply chains.

Referring to business performance in terms of productivity, quality, delivery, safety and cost, the study states that existing customers have placed additional orders, and firms have also acquired new customers in the course of the programme.

As per representatives of many participant firms, the interventions transformed the look and feel of their shop floors to such an extent that customers who would otherwise not be inspired to place an order with them felt confident that the firm could deliver to expectation.

Firms have been awarded quality certifications over the course of the programme (ISO 9001, QS 9000, ISO 14000), many of which were (due to) training interventions.

The programme has helped firms to plan better to meet delivery schedules. About 50 per cent of the firms have shown a percentage increase in inventory turnover ratio (ITR) of 95 per cent, while Kaizen activities have helped firms achieve cost savings, the study reveals.

Under its new Integrated Programme of Cooperation 2007-2012, currently under review by Government of India, UNIDO plans to develop turnkey training packages for manufacturing enterprises building on the core expertise in quality and productivity management honed through the partnership with ACMA.

UNI

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