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Changing Paradigm of Cluster Development: Learning from Global Experiences 20 th February 2014: The Lalit Hotel, New Del

Changing Paradigm of Cluster Development: Learning from Global Experiences 20 th February 2014: The Lalit Hotel, New Delhi. CII National Cluster Programme for SMEs & 1000 Visionary SMEs programme. Thank you Prof Tsuda for teaching us the cluster approach.

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Changing Paradigm of Cluster Development: Learning from Global Experiences 20 th February 2014: The Lalit Hotel, New Del

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  1. Changing Paradigm of Cluster Development: Learning from Global Experiences20thFebruary 2014: The Lalit Hotel, New Delhi CII National Cluster Programme for SMEs & 1000 Visionary SMEs programme

  2. Thank you Prof Tsuda for teaching us the cluster approach

  3. Thank you Prof Shiba(Padmashri 2012) for teaching us 1000 Visionary SME

  4. 237 Clusters formed by CII-AVANTHA Centre for Competitiveness for SMEs and its Strategic Partners .… impacting 2428 Companies LUDHIANA Ludhiana Advance HeterogenousCluster-II 18 Clusters of Maruti Centre of Excellence JALANDHAR Jalandhar Cluster – II HR International Cluster (Level-II) 2 ACMA Clusters (NR) HARIDWAR Century Metal Cluster RUDRAPUR MINDA Supplier Cluster, Pantnagar KolkataBata supplier Cluster DELHI BATA supplier Cluster 3 ACMA Clusters (ER) • ERODE • School Cluster FARIDABAD JCB Sustenance ClusterJCB Supplier Cluster IIIJCB Supplier Cluster II(Level II) PUNE Thermaxsupplier Cluster MUMBAI Forbes & Company Cluster 1 ACMA Clusters (WR) As on : Jan 2014 Ongoing 37 Clusters, covering 240 companies…

  5. Distribution of Cluster Programmes Region wise Distribution Sectoral Distribution

  6. Example of Benefit from one cluster

  7. Key Cluster Results • More than 1 lacKaizensimplemented via CII-Cluster approach • More than 1000 Crore Savings achieved • 50000+ professional Trained via Cluster Methodology • Reduction in Rejection & Rework by more than 80% • Reduction in Customer Complaints by 50% • Reduction in Inventory by more than 50% • Reduction in Mfg Cost by more than 25% • More than 60% of SMEs Profitability increased by 50% or more

  8. 1000 Visionary SMEProgramme

  9. 1000 VisionarySME is the programmefor Tier 1 & Tier 2swork together to create Tier Relationship Of Win-Win,leading to developing visionary leaders in SME sectorand contributing Indian manufacturing.

  10. System Approach Visionary SME Learning Community Traditional Way Focus on individual SME Focus on system OEM Tier 11 Tier 21 Tier 12 Tier 22 Tier 23

  11. What Are The ResultsOf Visionary SMEFor The Last 3 Years? Examples of results: Batch 3 (2012)

  12. Visionary Leaders Developed Nos of Real Change Leader developed (cumulative) Nos of plants participated (cumulative) Present Batch Present Batch Tier 1 Total: 288 + 142 Present Batch Present Batch Tier 2

  13. Result-1: Delivery Performance Tier 2 OEM Tier 1 Delivery of Tier 2 to Tier 1 Delivery of Tier 1 to OEM 97-100%: No delay in delivery of timing & quantity 97-100%: No delay in delivery of timing & quantity

  14. Result-2:Increase Of Productivity Tier 1 Tier 2 Highest:4.1times Highest:3.7times Average 2.2 times Average 2.0 times

  15. Result-3:Reduction Of Inventory (WIP) Tier 1 Tier 2 • 58-62% 85%

  16. Result-4: Business Growth Tier 2 Tier 1 1.5 Times NSV (Mn$)

  17. Thank you!

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