3M business principles for small business manufacturing in India

3M business principles for small business manufacturing in India : 

1. Manpower Projections for manpower and staffing are made in the project report. However, it is necessary to time the induction of manpower in a planned manner. The engineers and operatives must be available before the installation of the machinery. 3M business principles rely on things like this.

2. Machinery Choosing and ordering of right machinery are also of paramount importance. In many cases technology or process provides us with specifications which are not provided, then an extensive techno-economic survey of machinery and equipment available must be carried out. The entrepreneur must also consult experts prior to making a selection of equipment and machinery.

3. Material Materials procurement and planning are critical to success, of a start-up with a small scale manufacturing unit. Inventory management can lead to manageable cash flow situations; the otherwise if too much is ordered too soon the considerable amount of working capital gets locked up. On the other hand, non-availability may result in production hold-ups, and idle machine and manpower. For essential imported raw material whose lead-time is large proper planning is all the more essential.

ENTREPRENEURS MEMORANDUM FOR SMALL BUSINESS MANUFACTURING ( Along with 3M business principles this things are also very important to keep in mind ) :

Registering the company with R.O.C is the must. As per your desired ownership pattern you can register your manufacturing business by following ways:

1. One Person Company

2. Private Limited Company

3. Limited Liability Partnership

4. Public Limited Company

Section 8 of the Micro, Small and Medium Enterprises Development (M.S.M.E.D) Act, 2006 provides for the filing of a memorandum by a Micro, Small or Medium Enterprise.

Sub-section (2) of section 8 stipulates that the form of the Memorandum, the procedure of its filing and other matters incidental thereto shall be such as notified by the Central Government. The memorandum may be filed by all three categories of enterprises with the District Industries Centre in the jurisdiction of which the enterprise is (or, is proposed to be) located. Every S.S.I unit has to comply with various regulations in force. These include regulatory, taxation, environmental and certain product specific clearances. This section looks into the methodology of obtaining these approvals and clearances.

UNIT SETUP FOR SMALL BUSINESS MANUFACTURING

UNIT SETUP FOR SMALL BUSINESS MANUFACTURING

Setting up a manufacturing unit requires negotiating a favorable plot or shed purchase, organizing for proper construction of the building, design of interiors and finding good deals on equipment and machinery. unit setup for small business manufacturing is very first thing which leads your all arrangement from electricity to transportation management.

 

UNIT SETUP FOR SMALL BUSINESS MANUFACTURING
UNIT SETUP FOR SMALL BUSINESS MANUFACTURING

The design of factory ( UNIT SETUP FOR SMALL BUSINESS MANUFACTURING )  building has to be in consonance with the type of industry and must have an appropriate plant layout. An architect’s estimate of building construction is essential for loan applications. Further, the architect’s the certificate for money spent on the building is needed for disbursement of that loan. Among the utilities of prime importance are power and water. In many cases getting power connection causes delay in setting up of the plant. Therefore, it is imperative to commence work on these aspects with diligent follow-up. Power connections are generally of either LT (Low Tension) or HT (High-tension) type.

If connected load is up-to 75 HP, LT connection is provided. For connected loads of 130 HP or higher only HT connection is provided. You also need to obtain water connection. The water supply can be augmented by the installation of the tube-well or submersible pump.

Summary :

  • Proper design for unit setup for small business manufacturing is needed.
  • design must include electricity and water supply.
  • transportation is also must for unit setup for small business manufacturing .

SMALL BUSINESS MANUFACTURING | THINGS TO CONSIDER BEFORE STARTING

SMALL BUSINESS MANUFACTURING | THINGS TO CONSIDER BEFORE STARTING

Initiating a small business manufacturing in India is generally considered as an opportunity. Manufacturing opportunity produces a product that can generate sufficient surplus. The product plays an important role in the small business manufacturing operation. Setup and financing of a manufacturing business require in-depth planning and plentiful resources. The manufacturing industry is also heavily regulated by different Government Authorities. Here we articulate important things to consider in starting a small business manufacturing in India.

IDENTIFY WHAT IT TAKES IN STARTING A SMALL BUSINESS MANUFACTURING

Starting a manufacturing business involves a lot of commitments. Often manufacturing business calls for a up-front financial investment for specialized facilities, equipment and raw material. Identifying the proper human resource requirement and recruiting skilled personnel is also important. Manufacturing processes come in different shape and size, such as a manual, semi-automatic and fully-automatic operation.

MAKING A PRODUCT CHOICE IN SMALL BUSINESS MANUFACTURING

Selecting a right product is the most primary issue in getting success form manufacturing business. In a project conceptualization stage while making a product choice following factors are related to product need to be considered:

● Product Line – Depth, Width

● Packaging

● Branding
● Warranties

● After Sales Service

● Ease of availability of raw-material

● Process Technology

● Accessibility to the market

● Incentive and support from Government If you are looking for a product that has export potential.

the following additional factors need to be considered:

● Contents of export-product portfolio

● special requirements for packaging to export the products

● What product adaptations are needed to be made for exporting a product to a specific country.

● WTO conditions involved e.g. “child labour free”, ISO 9000 certified, GMP followed etc.

TECHNOLOGY & MACHINERY FOR SMALL BUSINESS MANUFACTURING

Choice of technology and process involves the selecting right machinery . Only a customized detailed project report can give you the solution about the machinery and process with project cost. For some complex products, a process knows how has to be imported. In such cases, agreements for technology transfer should be made with due care to safeguard interest. A lot of appropriate technology is being developed at CSIR and Defense Research Labs and some of this technology can now be bought. Indigenously developed process know-how has intrinsic benefits such as appropriateness and relative inexpensiveness.

ARRANGING FINANCE FOR SMALL BUSINESS MANUFACTURING IN INDIA

No manufacturing business can take off without monetary support. This need for finance can be classified into following types:

● Term Loan (long & medium term)

● Working Capital Loan

● Seed Capital

● Hire Purchase Leasing For Machinery

● Angel Investment

● Loan Against Property

● Unsecured Business Loan In arranging finance you must consider the several Government schemes and grant specially designed for SME.

Regardless to the bank or types of loan, you are applying for, these documents are generally required for a loan application :

● Documentation for Loan Application

● Balance Sheet and Profit Loss Statement for last three consecutive years of firms owned by promoters

● Income Tax Assessment Certificates of Partners/Directors

● Proof of Possession of Land/Building

● An architectural estimate for construction cost.

● Partnership deed/Memorandum and Articles of Associations of Company

● Project Report