UNIT DEVELOPMENT
PLACE IS EVERYTHING
After one decides the issues of
product and process selection one has to answer yet
another important question: what place is one going to
set the unit up? For a lot of tiny units and service
based units, home is perhaps the best starting place.
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| SERVICE ORIENTED BUSINESS TO START FROM HOUSE
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- Courier and
Messenger Service
- Outdoor
Catering Service
- Childcare
(creche) Service
- Mail Order
Retailing
- Beauty
Parlours
- Health
Clubs
- Travel
Agencies
- Clearing
and Maintenance Service
- Data Processing
- Medical
Clinics
However, a modern small scale unit needs to be located at an industrial
area or estate where basic infrastructure facilities are provided. In most
cases the location choice is governed by the kind of subsidy and incentive
package offered by the state's industrial development corporation.
However if your unit is more like a retail business (e.g. Fashion
garments, Consumer durable) then location is not of paramount importance.
Other factors that are usually
considered while deciding on the locations are :
- Proximity
to markets
- Proximity
to source of raw materials
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| UNIT DEVELOPMENT
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| Setting up an
establishment is much more than putting a sign board up
and waiting for customers to walk in. It requires
negotiating a favourable plot or shed purchase,
organising for proper construction of building, design
of interiors and finding good deals for equipment and
machinery.
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CONSTRUCTION OF PHYSICAL BUILDING
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Once an industrial plot for the unit is secured, then the next job is that
of finding a suitable architect. Design of factory building has to be in
consonance with the type of industry. It should also take care of the
requirement of plant layout.
It should be noted again that an
architect's estimate of building construction is
essential for loan applications. Further, architect's
certificate for money spent on building is needed for
disbursement of loan. After the construction of building
is over the interiors are designed according to the need
of specific industry.
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GETTING THE UTILITY CONNECTIONS
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Among the utilities of prime importance are power and water. In many cases
getting power connection causes delay in setting up of plant. Therefore it
is imperative to commence work on these aspects with diligent follow up.
Power connections are generally of either LT (Low Tension) or HT (High
tension) type. If connected load is upto 75 HP, LT connection is provided.
For connected loads of 130 HP or higher only HT connection is provided.
A formal application needs to be made in a specific form to the state
electricity board. An electrical inspector is deputed for evaluation of
application to factory site, after which the load is sanctioned. In areas
of power shortage, it is advisable to augment the power supply with a
captive generating set.
Water connection is also obtained likewise by applying in advance in
formal forms. The water supply can be augmented by installation of
tubewell.
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GETTING 3M's RIGHT
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MEN
Projections for manpower and staffing is made in the project report.
However it is necessary to time the induction of manpower in a planned
manner. The engineers and operatives must be available before the
installation of the machinery.
MACHINERY
Choosing and ordering of right machinery is also of paramount importance.
In many cases technology or process provides us with specifications which
is not adequate, then an extensive techno-economic survey of machinery and
equipment available must be carried out. International trade fairs and
engineering fairs are good places to look at available options. The
entrepreneur must also consult experts, dealers / suppliers as well as
users, prior to making a selection of equipment and machinery. The advice
of DIC, SISI and NSIC can also be sought in this regard.
MATERIALS
Materials
procurement and planning are critical to success, of a
start-up with a MSME unit. Inventory management can lead
to manageable cash flow situations, otherwise if too
much is ordered too soon considerable amount of working
capital gets locked up. On the other hand,
non-availability may result in production hold-ups, and
idle machine and manpower. For essential imported raw
material whose lead time are large proper planning is
all the more essential.
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