Project Planning

&
Scheduling

What is a Project?
A project is a attempt undertaken to create a unique product or
service.
A project is a well-defined set of tasks or activities that must all
be completed in order to meet the projects goals.
A project is an organized attempt aimed at accomplishing a
specific non-routine set of tasks within a certain time and under
a certain resource constraint.
Time required and costs are usually significant.
Tasks are ordered such that they must be performed in a given
sequence.

Characteristics of projects

There is a set of well-defined goals.

There is a specific start and a specific end point.
The endeavor is unique
A project usually contains costs and time schedules to
produce a specified product or result.
A project often cuts across many organizational and
functional lines, and thus there are requirements for
specific expertise, and sometimes conflicts with within the
project team.

Steps in Project Plan

Project Classification
Quantifiable & Non Quantifiable projects
Projects for which quantifiable benefits can be made e.g
industrial development, power generation etc.
Projects for which quantifiable benefits can not be made e.g
health education etc.

Sectoral projects
Agricultural, irrigation, industry, transport, social service etc.

Techno- economic project

Factor intensity oriented classiication- capital or labour
intensive
Magnitude oriented classification- size of investment

 Project identification
Knowledge of potential customer needs
Watching emerging trends
Visits to trade fair & exhibitions
Meeting with Govt. agencies
Knowledge about Govt. policy, concessions & incentives etc.
Project Selection
SWOT analysis
Project formulation
Written description of the course of action with two
purposes
Its road map-what, where how
Attract investors
Project execution and control
Project termination

Planning Activities & Decisions

Planning involves producing a prioritised list of what needs to be done
to complete the project.
The project plan will assist
to understand the project
the strategy for completing the project,
act as the baseline against which progress and achievement can
be measured.
Identify the project customer
Establish the end product or service
Set project objectives
Estimate total resources and time required
Make key personnel appointments
Define major tasks required
Establish a budget

Planning Activities & Decisions

Project plans:

Provide direction and focus

Give order for raw materials etc.
Minimise the risk of error
Facilitate the identification of problems before they occur
Allow the monitoring of progress
Provide motivation and satisfaction

The ability to plan a complex project and manage this

plan is a transferable skill that is attractive to future
employers!

Scheduling Activities & Decisions

Develop a detailed work-breakdown structure

Estimated time required for each task
Sequence tasks in proper order
Develop a start/stop time for each task
Develop detailed budget for each task
Assign people to tasks

Execution & Control

Monitor actual time, cost, and performance

Compare planned to actual figures
Determine whether corrective action is needed
Evaluate alternative corrective actions
Take appropriate corrective actions i.e When one or more activities
threaten the time, cost, or performance of the project, a corrective
action is necessary:
Redefine the activity (e.g. split the activity).
Add resources to the activity.
Shift resources from one activity to another

Resources = people, equipment, money

Scheduling Methods
Gantt Charts
Shown as a bar charts
Visual & easy to understand

Network Methods
Shown as a graphs or networks
Show precedence relations
More complex, difficult to understand and costly
than Gantt charts

Gantt Charts
A Gantt chart is a graphical representation of the
duration of tasks against the progression of time.
It allows you to:
1) assess how long a project should take;
2) lay out the order in which tasks need to be carried out;
3) manage the dependencies between tasks;
4) see immediately what should have been achieved at a
point in time;
5) see how remedial action may bring the project back on
course.

Gantt Charts
Named after Henry Gantt.
Around since 1st World War
ID
1
2
3
4
5
6
7

Task Name

Market Research
Formulate Spec.
Concept Design
Detail Design
Testing
Manufacture
Sales

18

20 Mar '00
20
22

24

27 Mar '00
26
28
30

01

03 Apr '00
03
05

07

Network analysis
Network analysis is the general name given to
certain specific techniques which can be used for
the planning, management and control of
projects.

NETWORK TECHNIQUES
PERT
-Program Evaluation and
Review Technique
- developed by the US
Navy on the Polaris
Missile/Submarine
program 1958

CPM
-Critical Path Method
-Developed by El Dupont
for Chemical Plant
Shutdown Project
- About same time as
PERT

CPM - Critical Path Method

In CPM activities are shown as a network of precedence
relationships using activity-on-node network construction
Single estimate of activity time
Deterministic activity times
Nodes

A node is represented by a circle

USED IN : Production management - for the jobs of

repetitive in nature where the activity time estimates
can be predicted with considerable certainty due to the
existence of past experience.

CPM - The emphasis was on the trade-off between the cost of the
project and its overall completion time (e.g. for certain activities it
may be possible to decrease their completion times by spending
more money - how does this affect the overall completion time of
the project?)
Duration of each activity is known with certainty.
Used to determine the length of time required to complete a
project.
CPM can also be used to determine how long each activity in the
project can be delayed without delaying the completion of the
project.

PERT Project Evaluation & Review Techniques

In PERT activities are shown as a network of precedence relationships
using activity-on-arrow network construction
Multiple time estimates
Probabilistic activity times
Arrows

An arrow leads from tail to head directionally

USED IN : Project management - for non-repetitive jobs (research and
development work), where the time and cost estimates tend to be quite
uncertain. This technique uses probabilistic time estimates.

 PERT- The emphasis was on completing the program in the

shortest possible time. In addition PERT had the ability to cope
with uncertain activity completion times (e.g. for a particular
activity the most likely completion time is 4 weeks but it could
be anywhere between 3 weeks and 8 weeks).
duration of each project is not known with certainty.
used to estimate the probability that the project will be completed
by the given deadline.

PERT / CPM PROCESS

1. Analysis of the project
Define the project and all of its significant activities or
tasks.
2. Sequence the activities
Develop the relationships among the activities. Decide
which activities must precede others.
3. Draw the network connecting all of the activities.
4. Assign time and/or cost estimates to each activity.
5. Compute the longest time path through the network, known
as the critical path.
6. Use the network to help plan, schedule, monitor, and control
the project.

PERT / CPM program provides management

with the following information:

What are the critical activities or tasks in the project.

Which activities are non-critical.
The amount of slack (or float) on each non-critical activity.
When will the entire project be completed.
What is the probability that the project be completed by a
specific date.
If project is on schedule, behind schedule, or ahead of schedule
at any particular date.
If money spent equal to, less than, or greater than the budgeted
amount on any given date.
if there are enough resources available to finish the project on
time.
The best way to accomplish the project at the least cost, if the
project is to be finished in a shorter amount of time.

Comparison Between CPM and PERT

CPM

PERT

Uses network, calculate float or

slack, identify critical path and
activities, guides to monitor and
controlling project

Same as CPM

Uses one value of activity time.

CPM is a deterministic tool

Requires 3 estimates of activity

time. PERT is a probabilistic tool

Used where times can be

estimated with confidence,
familiar activities

Used where times cannot be

estimated with confidence.
Unfamiliar or new activities

Minimizing cost is more

important

Meeting time target or

estimating percent completion is
more important

Example: construction projects,

Example: Involving new
building one off machines, ships, activities or products, research
etc
and development etc

21

BENEFITS OF CPM / PERT

Shows interdependence of all tasks.

Helps proper communications between departments and
functions.
Determines expected project completion date.
Identifies so-called critical activities, which can delay the
project completion time.
Identified activities with slacks that can be delayed for
specified periods without penalty, or from which resources
may be temporarily borrowed
Determines the dates on which tasks may be started or
must be started if the project is to stay in schedule.
Shows which tasks must be coordinated to avoid resource
or timing conflicts.
Shows which tasks may run in parallel to meet project22
completion date

Limitations to CPM/PERT
Clearly defined, independent and stable
activities
Specified precedence relationships
Subjective time estimates
Over emphasis on critical paths

Production Management

Plant Location
Plant layout
Product design
Production design

Plant location

Establishment of an industry at a particular place.

Choice of a location is a strategic decision that can not
be changed except at considerable loss
It is of 2 types1. Localization /centralization-means concentration of
similar type of industries at some particular place. E.g.
textile in Mumbai.
2. Delocalization /Decentralization-means spreading of
similar type of industries at different places. E.g.
banking industries.

Location Analysis
Is the dynamic process of analyzing & comparing the
alternatives sites with the aim of selecting the best site for a
given enterprise
Trade area analysis: Analysis of the geographical area that
provide continuous customer to the firm
Demographic analysis: study of population in term of age,
per capita income, educational level etc.
Competitive Analysis: nature , location, size & quality of
competition
Site economic: cost depends on land price,
Operating cost include expenses on materials, freight, wages ,
water , fuel etc.

Factors affecting location & site decisions

Availability of raw material

Nearness to the potential market
Near to the source of operating requirements like
electricity, disposal of waste, drainage facilities.
Supply of labor (wages v/s skill)
Transport & communication facilities
Suitability of land & climate
Availability of housing, other amenities & services
Safety requirements
Others like low interest on loans, special grants

Methods for the evaluation of plant location

1. Quantitative factors- Comparative cost chart
2. Qualitative factors.

Comparative cost chart

A comparative chart of total costs involved in setting up
a plant of desired size is prepared.
The total cost is represented by the height of column for
each location. we select a location for which total cost is
minimum.
40
35
30
25

20

15

10

5
0

locations

Qualitative factors.
Factors to which cost values cant be assigned. Like
lack of good schools, community attitude. These can be
termed as good or excellent.
factors

Location A

Location B

labor

adequate

excellent

relation

good

Very good

education

Good

Very good

Clearly location B appears to be better one.

Plant layout

Plant layout is the physical arrangement of

industrial facilities.
It involves the allocation of space & the
arrangement of equipment in such a manner
that overall operating costs are minimized.

Objectives of plant layout

Economies in materials & facilitate manufacturing process thereby

increase in productivity
Proper & efficient utilization of available floor space.
To avoid congestion & bottlenecks.
Provision of better supervision & control of operations.
Careful planning to avoid frequent changes in layout which may
result in undue increase in cost of production.
To provide adequate safety to the workers from accidents.
To meet the quality & capacity requirements in the most
economical manner
Provision of medical facilities & cafeteria at suitable & convenient
places.

Types of plant layout

1. Product layout
2. Process layout

Product layout In this layout plan, machines & equipment are

arranged in a sequence required to produce a
specific product.
Here raw material enter the production process at
one end & comes out at other end as finished
good.
Also known as line layout

Product or Line Layout

Product
A
Step 1

Step 2

Step 3

Step 1

Step 2

Step 3

Step 2

Step 3

Step 4

Product
B
Step 4

Product
C
Step 1

Step 4

Advantages of Product Layout

Ensures a smooth flow of materials ,minimizing work

in progress & thereby high rate of output
Low material handling cost & simplifies control
Low unit cost
Labor specialization
Established scheduling
Short processing time
Smooth and continuous operations
Lesser inventory and work in progress
Optimum use of floor space

Disadvantages of Product Layout

Inflexible as breakdown of one machine can

disrupt the entire production process & highly
susceptible to shutdowns
Creates dull, repetitive jobs
Fairly inflexible to changes in volume

Process layout Machines performing similar type of operations are

grouped together at one location in the process layout.
Thus here facilities are grouped together acc. to their
functions.
E.g. all drilling machines are located at one place known
as drilling section.

Advantages of Process Layouts

There is high degree of machine utilization, as a machine is not

blocked for a single product.
Machines breakdown doesnt result in shutdown.
Wide flexibility in production facilities.
High utilization of facilities
Variety makes the job interesting.
The overhead costs are relatively low
Supervision can be more effective and specialized.

Disadvantages of Process Layouts

In-process inventory costs can be high

Challenging scheduling
Material handling is slow and inefficient
Longer processing time
Work in progress inventory is high needing greater storage space
Suitable for job order production wherein goods are produces
according to customer specifications e.g tailoring, jewellery

Product & Process layout

factors
1.

Nature

Product layout

Process layout

Sequence of facilities

Similar aregp2gether

2. Machines utilization Not to full capacity

Better utilization

3. Product

Standardized

Diversified

4. Processing time

Less

More

5. Material handling

Less

more

6. Breakdown

Cant tolerate

Can tolerate

7. Production centre

Simple

complex

8.Flexibilty

Low

high

9. Investment

High

low

Factors affecting plant layout

1.
2.

3.

4.
5.

Nature of product- product layout is suitable for uniform products &

process layout is more appropriate for customer made products
Production Process:
1. In assembly line, product layout is better
2. In job order process layout is appropriate
Type of machine:
1. General purpose machine: product
2. Special purpose machine: process
Adequate space for Repair & maintenance
Climatic conditions, need of light, temperature also affect design of
layout.

Product Design
What to produce & how to produce
Standardization
Reliability
Maintainability
Servicing
Sustainability
Quality
Product value

Production Design
Estimating
Quantity of product to be manufactured & inputs
required

Routing
Sequence of operations involved in production is
decided to minimize time & cost

Loading
Scheduling
Fixing of priorties & time for different job

EXPORT /
INTERNATIONAL
ENTREPRENEURSHIP

 Process in which firms creatively discover and exploit

opportunities that are outside their domestic markets in order
to develop a competitive advantage
Is the study of firms risk- taking behaviour as it ventures into
international markets
A business organisation that seeks to derive significant
competitive advantage from the use of resources & sale of
outputs in multiple countries.
A firm level activity that crosses national borders & focuses on
the relationship between businesses & the international
environments in which they operate
Is a process of an entrepreneur conducting business activities
across national boundaries. The mechanisms usally adoted
can be through exporting, licensing & opening a sales office.

ADVANTAGES
Helps as growth strategy
Geographic expansion may be used as a business strategy

Helps in managing product life cycle

Every product has to pass through different stages of product life
cycle, when it may ne maturity stage in one market, it may get proper
response at other market

Technology advantages
Companies having outstanding technology help in capturing other
markets
Firms can obtain an patent & exploit an advanced technology e.g IBM
in computers, etc.

New business oppurtunities

Expansion in other markets if have reached a saturation point in
domestic market

 Proper use of resourses

Sometimes industrial resources , such as labour, minerals etc.
are available in a country but are not productively used
Availability of quality products
In open markets , better quality products will be ava.
everywhere
Earning foreign exchange
International business helps in earning foreign exchange which
may be used for strategic imports. India needs foreign exchange
to import crude oil, defence equipment, raw materials &
machinery.
Countries depend upon each other for meeting their
requirement. India depends on golf countries for its crude oil
supplies, investment in infracture
Economies of scale
Large size of firm help in economies of scale & thus lower cost,
e.g Wal Mart

 Diversification of risk
Bearing the risk of cyclic economies declines
Diversification of political, economic & other risk

DISADVANTAGES
Foreign regulations and standards: The firm may need to
conform to new standards. This may require changes such as
in the production process, inputs and packaging, incurring
additional costs.
Delays in payments: International trade may cause delays in
payments, adversely affecting the firm's cash flow.
Complex organizational structure: language barrier,
additional costs, changed mindset

International Business Entry

Export
Direct Export

Exporter handles every aspect of the exporting

process.
Market research
Foreign distribution
Collections

Direct methods of exporting give your firm:

More control over the export process
Potentially higher profits
A closer relationship to the overseas market

 Direct methods of exporting require a significant

commitment.
They are not cheap and require substatial resources.
Reorganizing the company to support the export effort may be
necessary.

Methods of direct exporting include going through:

Sales Representatives, Distributors, A Foreign Retailer,Direct sales to
the End User

Indirect Export
Exports that are not handled directly by the manufacturer or
producer but through an export agent .
Indirect methods of exporting requires less marketing
investment, but you lose substantial control over the
marketing process.
Export Merchant
Buys the local firm's goods outright
assume the risk of being able to resell them profitably
abroad.
Usually specializes
in a particular line of products and/or
in a particular geographical market area.
Sometime sells goods with the original supplier's labels
or puts its own label.

 Export Agent
Acts for local manufacturers,
usually representing a number of non-competing manufacturers.
In return for obtaining export order from abroad, the export agent
receives a commission.
Does not become the owner of the goods
Does not assume the risk of not being able to sell them abroad.
Functions

Appraise the export potential of the manufacturer's products,

Advertise products abroad,
Look for foreign buyers,
Obtain export orders
Advise on, or arrange for

Documentation
Shipping
Insurance

 Resident Foreign Buying Agent

Acts as the purchasing agent for foreign companies
Earns a commission on the goods purchased.
The foreign principal says that it wants certain products
at certain prices
Agent stationed locally goes looking for them, asking
for quotations from several different local suppliers.

Incentives for Exporters

Duty drawback
Excise duty paid for various inputs in manufacturing
Duty paid for import of raw materials

Excise rebate- An excise tax is one levied on specific goods or commodities

produced or sold within a country

Exported goods have excisable goods in manufacturing

Marketing assistance
Assistance for market surveys
Participation of various trade exhibitions assisatnce of R & D work &
consultance services

Raw materials
Priorty in allotment like steeel & alloys etc.
Engineering export promotion council reimburses the rate
difference of raw material

 EOU ( export oriented units)

Separate space in industrial areas called EPZ (
export processing zones)
Near to sea or airport

Ready made plots & buildings

100% foreign investment approved
Income tax exemtion for 5 yrs
Concessional rates working capital loans
Exempted from excise duty
No license is required for import of machineries ,
spares part
Necessary administrative faclities, container facility ,
customs clearance & security in EPZ.

 Fiscal Support
To be competitiveness of Small Scale Sector, the exemption for excise
duty limit raised from Rs. 50 lakhs to Rs. 1 crore.
Credit Support
The composite loans limit raised from Rs. 10 lakhs to Rs.25 lakhs.
In the National Equity Fund Scheme, the project cost limit is raised
from Rs. 25 lakhs to Rs. 50 lakhs. (small scale units are given equity
type seed capital assistance to meet the margin money requirements
of small units)
The soft loan (loan with a below-market rate of interest) limit is
retained at 25 per cent of the project cost subject to a maximum of Rs.
10 lakhs per project.
Assistance under the NEF is be provided at a service charge of 5 per
cent per annum.

Infrastructural Support
The Integrated Infrastructure Development (IID) Scheme will cover all
areas in the country with 50 per cent reservation for rural areas.

Marketing Support
The Vendor Development Programme, Buyer-Seller Meets
and Exhibitions will take place more often and at dispersed
locations.

Export-Import
Documentation

Export Documentation in India

Export Documentation in India has evolved a great deal
of interest since 1990.
Prior to 1990, documentation was manual and it lacked
proper co-ordination & The result was lot of delays and
mistakes, rendering the task very clumsy, tiresome,
repetitive, and truly frustrating.
India adopted the ADS (Aligned Documentation System)
in 1991 which is the Internationally accepted
documentation system

Export Documents
Principal Documents include:
Commercial Invoice (and the invoice prescribed by
the importer)
Packing list
Certificate of Inspection
Certificate of Insurance/Insurance Policy
Bill of Lading/Airway bill/Combined Transport
Documents
Certificate of Origin
Bill of Exchange
Shipment Advice

Commercial Documents
(1) Commercial Invoice:
This document requires the exporter to submit details such as
(1) Own details,
(2) Invoice number with date,
(3) Details of the buyer
(4) Buyers order number with date,
(5) Country of origin of the goods,
(6) Country of final destination,
(7) Terms of payment and delivery,
(8) Pre-carriage details (Road/Rail),
(9) Port of loading
(10) Final destination
(11) Container number, numbers and kind of packaging,
(12) Detailed description of goods, quantity, rate and total amount chargeable

Commercial Documents
(2) Packing List:
This document provides the details of number of packages; quantity
packed in each of them; the weight and measurement of each of the
package and the net and gross weight of the total consignment.
Net weight refers to the actual weight of the items and the gross weight
means the weight of the items plus the weight of the packing material.
The packing list serves a useful purpose of the exporter while dispatching
the consignment as a cross check of goods sent.
For the port personnel, it comes handy while planning the loading and
offloading of cargo.
It is also an essential document for the customs authorities as they as they
can carry out the physical examination of the cargo and conduct checks
on the weight and measurements of the goods smoothly against the
declarations made by the exporter in the packing list.

Commercial Documents
3) Certificate of Inspection: This is the Certificate issued
by the Export Inspection Agency after it has conducted
the pre-shipment inspection of goods for export provided
the goods fall under the notified category of goods
requiring compulsory shipment of inspection.
(4) Certificate of Insurance/Insurance Policy:
Insurance is an important area in the export business as
the stakes are usually very high.
Protection needs to be taken in the form of insurance
cover for the duration of transit of goods from the
exporter to the importer.

Commercial Documents
(5) Bill of Lading:
This is issued when the goods are shipped using ocean
(marine) transport.
When the exporter finally hand over the goods to the
shipping company for loading on board the ship for
transport to their final destination, the shipping company
issues a set of Bills of Lading to the exporter.
(6) Airway Bill:
Airway Bill is a bill of lading when the goods are
shipped using air transport.
It is also known as air consignment note or airway bill of
lading.

Commercial Documents
(7) Certificate Of Origin:
This document serves as a proof of the country of origin
of goods for the importer in his country.
Imported countries usually require this to be produced at
the time customs clearance of import cargo.
It also plays an important part in computing the liability
and the rate of import duty in the country of import.
This certificate declares the details of goods to be
shipped and the country where these goods are grown,
manufactured or produced.
Such goods needs to have substantial value addition so
as to become eligible to certification of this nature.

Commercial Documents
(8) Bill of Exchange:
It is a written unconditional order for payment from a drawer to a
drawee, directing the drawee to pay a specified amount of money
in a given currency to the drawer or a named payee at a fixed or
determinable future date.
The exporter is the drawer and he draws (prepares and signs) this
unconditional order in writing upon the importer (drawee) asking
him to pay a certain sum of money either to himself or his
nominee (endorsee).
This order could be made for payment on demand, called a bill of
exchange at sight or payment at a future date, called a usance bill
of exchange.

Commercial Documents
(9) Shipping Advice:
The exporter sends this document , called shipping
advice, to the buyer soon after the shipment is made to
provide him all the shipment details.
This serves as an advance intimation of the shipment and
allows the importer to arrange for delivery of the same.

Institutions Supporting Small

Business Enterprises

Institutions Supporting Small-scale Industries

CENTRAL LEVEL
SSI BOARD
KVIC

STATE LEVEL

SIDO
NSIC
NSTEDB
NPC

DIs
DICs
SSIs

NISIET
NIESBUD
IIE
EDI

SFCs
SIDCs/SIICs
SSIDCs

OTHERS
Industry Association
Non Governmental Organizations
R & D Laboratories

Small-scale Industries Board (SSI Board)

Constituted in 1954 to facilitate the coordination and interinstitutional linkages for the development of SSI sector
The Board is an apex advisory body constituted to render advice
to the government on all issues pertaining to the SSI sector
The office of the Development Commissioner (Small-Scale
Industry) serves as the secretariat for the board
The Board operates broadly in the following areas:
- Policies & programs
- Development of industries in specific region like Northeast
- Ancillary development, quality improvement, mktg. assistance
- Credit facilities, taxation and modernization
- Industrial sickness

Khadi and Village Industries Commission (KVIC)

Statutory body created by an act of Parliament
It is charged with planning, promotion, organization and
implementation of the program for the development of
Khadi and other village industries in the rural areas in
coordination with other agencies engaged in rural
development
KVICs functions also comprise building up a reserve of raw
materials and implements for supply to producers, creation
of common service facilities for processing of raw materials
and provision of marketing of KVIC products
KVIC is entrusted with the task of providing financial
assistance to institutions or persons engaged in the
development and operation of Khadi and village industries
and guide them through supply of designs, prototypes and
other technical information

Small Industries Development Organization (SIDO)

Established in 1954 on recommendation of Ford
Foundation
Over the years, it had seen its role evolve into an agency
for advocacy, handholding and facilitation for the small
industries sector
SIDO provides facilities for testing, tool mending, training
for entrepreneurship development, preparation of project
and product profiles, technical and managerial consultancy,
assistance for export, pollution and energy audits, and so
on
SIDO provides economic information services and advises
the government in policy formulation for the promotion and
development of SSIs

National Small Industries Corporation Ltd. (NSIC)

Established in 1955 by GOI with the main objectives to
promote, aid and foster the growth of SSIs in the country
Over four decades of transition and growth in the SSI sector,
NSIC has provided strength through a progressive attitude of
modernization, upgradation of technology, quality
consciousness, strengthening linkages with large and
medium-scale enterprise and boosting exports of products
from small enterprises
Main services provided by NSIC are:
- Machinery and Equipment (Hire Purchase / Lease scheme)
- Financial Assistance Scheme
- Assistance for Procurement of Raw Material
- Government Store Purchase Program
- Technology Transfer Centre (TTC)
- Marketing Assistance

National Science and Technology

Entrepreneurship Development Board (NSTEDB)
Established in 1982 by GOI, is an institutional mechanism to
help promote knowledge-driven and technology-intensive
enterprises
Major objectives are:
- promote and develop high-end entrepreneurship for S&T
manpower as well as self-employment by utilizing S&T
infrastructure and by using S&T methods
- facilitate and conduct various informational services relating to
promotion of entrepreneurship
- network agencies of support system, academic institutions and
R&D organizations to foster self-employment using S&T with
special focus on backward areas
- act as a policy advisory body with regard to entrepreneurship

National Productivity Council (NPC)

Autonomous institution functioning under the overall supervision of
the Ministry of Industry, GOI
Primary objective is to act as a catalyst in enhancing the productivity
of all sectors of the economy, including industry and agriculture
Administered by a tripartite Governing Council (GC) which has equal
representation from the government, industry and trade unions
Active in the field of consultancy and training and has a number of
specialized divisions to provide tailor-made solutions to agriculture
and industry. These divisions, manned by trained consultants, deal
with issues related to industrial engineering, plant engineering,
energy management, HRD, informal sector, agriculture and so on
NPC is a member of the Asian Productivity Organization (APO),
Tokyo, an umbrella body of all productivity councils in Asian region
To channelise expertise of NPC to small-scale and informal sector,
SIDBI has tied-up with NPC for enhancing technology in small units

National Institute for Small Industry

Extension and Training (NISIET)
Set up in early 1950s, NISIET acts an important resource
and information centre for small units and undertakes
research and consultancy for small industry development
An autonomous arm of the Ministry of Small Scale
Industries, the institute achieves its objectives through
training, consultancy, research and education, to extension
and information services
In 1984, UNIDO has recognized NISIET as an institute of
meritorious performance under its Centre of Excellence
Scheme to extend aid

National Institute for Entrepreneurship and

Small Business Development (NIESBUD)
NIESBUD is an autonomous body under the administrative
control of the Office of the DC(SSI)
NIESBUD established in 1983 by the Ministry of Industry, GOI,
as an apex body for coordinating and overseeing the activities
of various institutions/agencies engaged in Entrepreneurship
Development particularly in the area of small industry and
business
The policy, direction and guidance to the institute is provided by
its Governing Council whose chairman is the Minister of SSI.
Besides conducting national and international training
programs, the institute undertakes research studies,
consultancy assignments, development of training aids, etc.

State Level Institutions DIs and DICs

Directorate of Industries (DIs) At the State level, the Commissioner/
Director of Industries implements policies for the promotion and
development of small-scale, cottage, medium and large scale industries.
The Central policies for the SSI sector serve as guidelines but each State
evolves its own policy and package of incentives. The Commissioner/
Director of Industries in all the States/UTs, oversee the activities of field
offices, that is, the District Industries Centers (DICs) at the district level
District Industries Centers (DICs) In order to extend promotion of
small-scale and cottage industries beyond big cities and state capitals to
district headquarters, DIC program was initiated in May, 1978, as a
centrally sponsored scheme. DIC was established with the aim of
generating greater employment opportunities especially in rural and
backward areas in the country. At present DICs operate under respective
Sate budgetary provisions. DICs extend services of the following nature
(i) economic investigation of local resources (ii) supply of machinery and
equipment (iii) provision of raw materials (iv) arrangement of credit
facilities (v) marketing (vi) quality inputs (vii) consultancy

State Level Institutions - SFCs

State Financial Corporations (SFCs) Main objectives are to
finance and promote small and medium enterprises in their
respective states for achieving balanced regional growth,
catalyze investment, generate employment and widen
ownership base of industry. Financial assistance is provided by
way of term loans, direct subscription to equity/debentures,
guarantees, discounting of bills of exchange and seed capital
assistance. SFCs operate a number of schemes of refinance of
IDBI and SIDBI and also extend equity type assistance. SFCs
have tailor-made schemes for artisans and special target
groups such as SC/ST, women, ex-servicemen, physically
challenged and also provide financial assistance for small road
transport operators, hotels, tourism-related activities, hospitals
and so on. Under Single Window Scheme of SIDBI, SFCs
have also been extending working capital along with term
loans to mitigate the difficulties faced by SSIs in obtaining
working capital limits on time

State Level Institutions SIDC / SIIC and SSIDC

State Industrial Development / Investment Corporation (SIDC/SIIC)
Set up under the Companies Act, 1956, as wholly owned undertakings of
the State governments, act as catalysts in respective states. SIDC helps
in developing land providing developed plots together with facilities like
roads, power, water supply, drainage and other amenities. They also
extend assistance to small-scale sector by way of term loans, subscription
to equity and promotional services. 11 out of 28 SIDCs in the country also
function as SFCs and are termed as Twin-function IDCs
State Small Industrial Development Corporations (SSIDC)
Established under Companies Act, 1956, as State government
undertaking, caters to small, tiny and village industries in respective
states. Being operationally flexible undertakes the activities like (i) procure
and distribution of scarce raw materials, (ii) supply of machinery to SSI
units on hire-purchase basis, (iii) product marketing assistance, (iv)
construction of industrial estates, allied infrastructure facilities and their
maintenance (v) extending seed capital assistance on behalf of State
government and (vi) providing management assistance to production units

Other State-level agencies Extending

Facilities for SSI Promotion

State Infrastructure Development Corporations

State Cooperative Banks
Regional Rural Banks
State Export Corporations
Agro Industries Corporations
Handloom and Handicrafts Corporations

Other Agencies
National Bank
for Agriculture
and Rural
Development
(NABARD)

Set up in 1982, provide refinance assistance to State Cooperative Banks, Regional

Rural Banks, and other approved institutions for all kinds of production and
investment credit to SSIs, artisans, cottage and village industries, handicrafts and
other allied activities. Helps SSI entrepreneurs to get loan for setting up SSIs in any
part of the country

Housing and
Urban
Development
Corporation Ltd.
(HUDCO)

Wholly owned company of GOI, incorporated Apr.1970, as a Pvt. Ltd. Co. and
subsequently, converted into a Public Ltd. Co. in 1986. Primary objective is to
provide assistance for urban, social sector infrastructure, and the creation of
housing facility, of late, to create SSI infrastructure. Also extends assistance for the
promotion of building material industries, besides imparting consultancy, training
and technical in related matters.

Technical
Consultancy
Organizations
(TCOs)

Set up by all-India financial institutions during 70s and 80s to cater to consultancy
needs of SMEs and new entrepreneurs. Services include preparing project profiles
and feasibility studies, undertaking industrial potential surveys, identifying potential
entrepreneurs and provision of technical and management assistance to them,
undertake market research and surveys for specific products, carrying out energy
audit and energy conservatism assignment, project supervision, taking up
assignments on a turnkey basis, undertaking export consultancy for EOU