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

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

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

Distribution of Cluster Programmes Sl. No StatesNo s. Sl. No StatesNo s. 1. Delhi1 9. Maharashtra22 2. Goa1 10. Pondicherry1 3. Gujarat4 11. Punjab20 4. Haryana Rajasthan5 5. Himachal Pradesh1 13. Tamil Nadu4 6. Jharkhand2 14. Uttar Pradesh1 7. Karnataka2 15. Uttrakhand3 8. Madhya Pradesh1 16. West Bengal3 Region wise Distribution Sectoral Distribution

Sr. No. Key IndicatorUOMBeforeAfterImprovement 1Financial Benefits In Cr Benefits in Space Saving Sq. Ft Inventory Turn OverIn No.1825Increased by 37 % 4Customer ComplaintsIn Nos.72Reduced by 64 % 5Customer ReturnPPM Reduced by 52 % 6In Process RejectionPPM Reduced by 57 % 7Delivery Schedule Adherence %9299.7Improved by 8.2% 8Employee Involvement% Cluster Company SalesIn Cr Increased by 44% Example of Benefit from one cluster

Key Cluster Results More than 1 lac Kaizens implemented via CII-Cluster approach More than 1000 Crore Savings achieved 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

1000 Visionary SME Programme

1000 Visionary SME is the programme for Tier 1 & Tier 2s work together to create Tier Relationship Of Win-Win, leading to developing visionary leaders in SME sector and contributing Indian manufacturing.

System Approach Traditional Way Focus on individual SME Focus on system OEM Tier 2 1 Tier 1 2 Tier 1 1 Tier 2 2 Tier 2 3 Visionary SME Learning Community

What Are The Results Of Visionary SME For The Last 3 Years? Examples of results: Batch 3 (2012)

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

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

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

Result-3: Reduction Of Inventory (WIP) Tier 1 Tier % 85%

Result-4: Business Growth NSV (Mn$) Tier 1Tier Times

Thank you!