the professional msme – a key to sustainability of the

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The Professional MSME – a key to sustainability of the Indian Economy Sanjiv Singh CEO, Gilard Application Programmers In the interest of the nation and its economy, it is imperative that the MSME sector in India develops, sustains and grows. The Indian micro, small and medium enterprise (MSME) has been a major revenue and employment generator for the country. Further, each successful MSME has been sustained by the efforts of an individual entrepreneur, driving it to profitability. By the very nature of MSMEs and the entrepreneur driving them, all of them become people-dependent. The system of control and decision-making is deeply entrenched with the entrepreneur themselves. The profitable entrepreneur is highly valuable, each ensconcing experiences and skills gathered over years of trials, failures and successes. He is able to sustain and grow upto a level. However, when the time comes to upscale the operations or to handover the legacy to the next generation, major restraining factors crop up. At this stage, he feels handicapped by his own limitations of not being able to pass on the same drive, passion, expectations and controls to his employees or heirs. What is the solution? After investing years of effort to make an enterprise profitable, the entrepreneur’s role should focus on making the organisation professional. A professional organisation is one that depends on processes rather than people - a systems-orientated organisation where each business-linked process is defined, documented, implemented, monitored and improved upon. At the end of the day, we do realise that a person dependent organisation is a weak organisation. A strong organisation is a system dependent organisation. Once the systems are in place, up-scaling becomes relatively easier as new management begins to rely on well-established processes. Further, it improves the efficiency when the next generation of the family steps in to take control. This removes dependency on human capacity and shifts reliance onto the operations already e s t a b l i s h e d b y t h e entrepreneur. Today, there are tested and proven models that are available to be adopted, and that can help convert India’s people-dependent MSMEs to process-dependent enterprises. Industry 4.0 is one such model. The reproduction of this article in part or in whole is not permitted without the author’s consent. Copyright of Gilard Application Programmers LLP - Don’t reproduce

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Page 1: The Professional MSME – a key to sustainability of the

The Professional MSME – a key to sustainability of the Indian EconomySanjiv Singh CEO, Gilard Application Programmers

In the interest of the nation and its economy, it is imperative that the MSME sector in India develops, sustains and grows. The Indian micro, small and medium enterprise (MSME) has been a major revenue and employment generator for the country. Further, each successful MSME has been sustained by the efforts of an individual entrepreneur, driving it to profitability. By the very nature of MSMEs and the entrepreneur driving them, all of them become people-dependent. The system of contro l and decision-making is deeply e n t r e n c h e d w i t h t h e entrepreneur themselves.

T h e p r o fi t a b l e en t rep reneur i s h igh l y valuable, each ensconcing exper iences and sk i l l s

gathered over years of trials, failures and successes. He is able to sustain and grow upto a level. However, when the time comes to upscale t h e o p e r a t i o n s o r t o handover the legacy to the next generat ion, major restraining factors crop up. At this stage, he feels handicapped by his own limitations of not being able to pass on the same drive, passion, expectations and controls to his employees or heirs.   What is the solution?

After investing years of effort to make an enterpr ise profitable, the entrepreneur’s role should focus on making t h e o r g a n i s a t i o n professional. A professional organisation is one that depends on processes rather than people - a s y s t e m s - o r i e n t a t e d organisation where each business-linked process is d e fi n e d , d o c u m e n t e d , implemented, monitored

and improved upon. At the end of the day, we do realise that a person dependent organisat ion is a weak o rgan isa t ion . A s t rong organisation is a system dependent organisation.

Once the systems are in place, up-scaling becomes relatively easier as new management begins to rely o n w e l l - e s t a b l i s h e d p ro c e s s e s . F u r t h e r, i t improves the efficiency when the next generation of the family steps in to take c o n t ro l . T h i s re m o v e s dependency on human capacity and shifts reliance onto the operations already e s t a b l i s h e d b y t h e entrepreneur.

Today, there are tested and proven models that are available to be adopted, and that can help convert India’s people-dependent MSMEs t o p ro c e s s - d e p e n d e n t enterprises. Industry 4.0 is one such model.

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Page 2: The Professional MSME – a key to sustainability of the

What is Industry 4.0? Industry 4.0 is a subset of t h e f o u r t h i n d u s t r i a l revolution and modernises enterprises by bringing technology and industry together. It refers directly to t he s ta te whe re each process in the organisation is run through software and the status of each process or activity is available to see and mon i t o r, on you r computer or mobile screen, from anywhere in the world, in real time as it takes place.

To be Industry 4.0, you need different processes running on their own track and at the same t ime i n t e rac t i ng w i t h o the r processes to either get an input from them or give them an input for making the multiple processes reach their logical conclusions.   Industry 4.0 itself may seem to be a daunting task. With jargons like Big Data, Cloud Computing, EDGE C o m p u t i n g , I I o Ts , Artificial Intell igence, Analytics, Robotics being thrown around, it can easily overwhelm enterpr ises. However, thanks to the technology available, all that the enterprise needs is one good software that brings together all the required

processes in one package. A software, based on global best practices, and simple to run.

G A P O S M T M (Operating System for M a n u f a c t u r i n g ) i s a software solution that covers all the aspects of production and business processes used in the manufacturing industry. It uses a centralised d a t a b a s e a n d m a k e s relevant data available to all t h e u s e r s a c r o s s departments. It effectively reduces time to market and e n h a n c e s fl e x i b i l i t y , responding to changing customer needs.

G A P O S M T M i s a n offspring of  a DOS based E R P i . e . E n t e r p r i s e Resource Planning system that was in perpetual Beta mode for around 3 decades and has now been born in a new Browser based avatar. It includes the basic  ERP m o d u l e s l i k e S a l e s , P u r c h a s e , A c c o u n t s , Inventory, Payroll, CRM etc. but in addition,  also has c o n t r o l s   f o r L e g a l C o m p l i a n c e , D a t a & K n o w l e d g e c a p t u r i n g , e x t e n s i v e H R D , A B C ( A c t i v i t y B a s e d Management ) , Product C o s t i n g , O p e r a t i o n a l E f fi c i e n c y  M o n i t o r i n g ,

Dynamic Inspection, New Bus iness Deve lopment (NBD), APQP & PPAP based New Product Development ( N P D ) , P r o d u c t L i f e M a n a g e m e n t ( P L M ) , Calibration & Control of I n spec t i on Equ ipmen t , Process Capability Studies, T o t a l P r o d u c t i v e M a i n t e n a n c e ( T P M ) , Integration with IOTs and much more.

About the Author: Sanjiv Singh, MD of Gilard Electronics Pvt. Ltd. has 40 y e a r s o f m a n u f a c t u r i n g experience. He is also the CEO o f G i l a r d A p p l i c a t i o n Programmers LLP, a software company that provides Smart Manufacturing (Industry 4.0) solutions to the manufacturing industry. He has 32 years of e x p e r i e n c e i n s o f t w a r e development and together with his experience of manufacturing industry, he is one of the leading specialists on the subject of Industry 4.0. He has successfully i m p l e m e n t e d ‘ S m a r t Manufacturing’ at his Mohali plant.

OSM software, go to www.gaposm.com/demo.

The reproduction of this article in part or in whole is not permitted without the author’s consent.Copy

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Note: For a free demo of the G.A.P