MSME QMS/QTT Scheme

The Scheme for Enabling the Manufacturing Sector to be Competitive through Quality Management Standards (QMS)/Quality Technology Tools (QTT) is an initiative of the Ministry of Micro, Small, and Medium Enterprises. This scheme was launched under the National Manufacturing Competitiveness Programme (NMCP) to sensitize and encourage MSEs to adopt the latest QMS and QTT policies. It ensures they stay updated on sectoral developments by undertaking the stated activities. In this article, we will examine the MSME QMS/QTT Scheme in detail.

Benefits of QMS/QTT Scheme

The importance of the QMS/QTT Scheme is explained in detail below:

• Optimized resource utilization, enhancing productivity
• Significant improvements in product quality
• Reduced rejection and rework costs in manufacturing
• Minimized inventory buildup across raw materials, components, and finished products
• Helps MSEs strengthen their foothold in the export market.
• The Competition Watch component of this scheme aids Indian MSEs in understanding foreign products infiltrating Indian markets.

Objective

The primary objective of the MSME QMS/QTT scheme is to sensitize and encourage MSEs to adopt the latest QMS and QTT technologies and to keep abreast of sectoral developments by undertaking relevant activities.

Major Activities

Key activities under the MSME QMS/QTT scheme are explained in detail below:

Introduction of Appropriate Course Modules For Technical Institutions

This activity involves developing and introducing training course modules in technologies such as 5 S, 6 Sigma tools, and Kaizen tools at ITI and Diploma levels. Implementing these courses will furnish trained manpower to support MSEs in QMS/QTT.

• Conduct gap analysis studies
• Develop comprehensive Training Material Kits
• Train 80 Master Trainers annually
• Identify ITIs and Polytechnics for training
• Organize 5-day Training sessions at selected ITIs/Polytechnics
• Engage with Consultants through the Quality Council of India and other expert organizations
• Introduce studies on International Training and Best Practices
• Conduct Workshops at metro locations
• Organize National Workshops in Delhi
• Implement additional relevant activities as decided by the Monitoring and Advisory Committee

Organizing Awareness Campaigns For Micro & Small Enterprises

Awareness campaigns will be conducted nationwide to inform Micro & Small Enterprises about Quality Management Standards/Quality Technology Tools. The technical and managerial staff of micro and small industries, as well as ITI students, will gain a better understanding of these subjects through shop-floor campaigns planned for target industries across India.

Organizing Competition–Watch (C-Watch)

Systematic and organized studies on specific products from other competing economies include monitoring their production centers, markets, and exhibitions.

• Analyze products and designs of competitors, procured during Technical Exposure visits, on a cost-sharing basis.
• Conduct Detailed Design Analysis/Engineering.
• Prototype Development in two sectors per year

Monitoring of International Study Missions

• Send one Micro and Small Enterprises Mission per year abroad for interactive training and site visits to targeted award-winning organizations.
• Dispatch one Micro and Small Enterprises team yearly to international events for first-hand study of Advanced Quality Management Systems & Tools.
• This activity is implemented in association with expert organizations like the Indian Institute of Quality Management (IIQM), NPC, and QCI.

Implementation Of Quality Management Standards and Quality Technology Tools

As part of the Competition-Watch strategy explained above, it is proposed to strengthen MSE organization by building competitiveness through groups of selected MSEs. Every year, 100 MSEs facing threats from prospective competition will be assisted with appropriate QMS/QTT implementation. Selection will be based on open invitation and shortlisting during Awareness Programmes.

Target Group

A cluster-based approach will be adopted for economies of scale, better dissemination of QMS/QTT, and best results. Individual units (preferably within specific product groups) will be considered under the MSME QMS/QTT Scheme. Micro and small enterprises will be selected from clusters under study by this Ministry and clusters identified by organizations and ministries. Applications will be shortlisted, and the Monitoring & Advisory Committee will finalize the unit selections.

Prescribed Authority

The MSME QMS/QTT Scheme is implemented through the office of the Development Commissioner (MSME) by involving expert organizations or using in-house expertise wherever available.

Eligibility

Micro & Small enterprises with an Entrepreneurs Memorandum are considered eligible to benefit from the QMS/QTT Scheme.

• Organizations eligible as beneficiaries must have been engaged in current activities for at least two years and have a good track record.
• Organizations should have regular audited accounts for the past two years.
• 50% of the organizations will be selected from the micro sector and 50% from the small sector with the possibility of overflow from one sector to another if necessary.
• Typically, financial assistance to any association is limited to two events per fiscal year unless it has active state or regional chapters.
• The Committee may recommend relaxation of conditions for documented reasons.
• Typically, only one organization per event will be sponsored unless it has active state or regional operations.
• All publicity materials and reports related to the event should indicate the Ministry's support.
• The Ministry will participate in delegations with a relevant technical relationship, aiding the anchoring of knowledge.

Documents Required

Eligible Micro and Small Enterprises must submit the Application in the prescribed format, accompanied by the following documents:

• An undertaking to contribute 50% or 25% of the total cost if indirect investments are needed.
• An undertaking or Affidavit confirming similar benefits have not been obtained from other Government-sponsored schemes.

MSME QMS/QTT Scheme Application Procedure

The application procedure for the QMS/QTT scheme is detailed below:

Eligible enterprises must submit an application in the prescribed format along with the supporting documents.

Download the QMS/QTT Application

After verifying the details, enterprises will be selected for the MSME QMS/QTT scheme.

Selection Procedure

All Micro and Small Enterprises meeting the criteria as stated above will be eligible to benefit under the QMS/QTT Scheme. The Monitoring and Advisory Committee will make the final selection of the clusters and Micro and Small Enterprises.

Release Of Funds

• Funds are released to the expert firms on an activity-wise phased basis.
• Contributions of 25% from Micro units and 50% from Small units will be collected by the Office of DC(MSME) or the implementing agencies where applicable.
• The implementing agency must submit the fund utilization certificate and a detailed report about the component.

Related Resources

• Learn about the Digital MSME Scheme, which supports digital transformation in MSEs.
• Explore the Pavala Vaddi MSME Scheme, offering interest subsidies to MSEs in Andhra Pradesh.
• Discover the MSME Scheme for International Cooperation, enhancing global partnerships and technology exchange.
• For more details on this scheme, visit MSME QMS/QTT Scheme Overview.
• Uncover the Odisha MSME Development Policy, fostering enterprise growth in the state.