|
| After
deciding the issues of product and process, the next important question is
where to set the unit up? |
| For
many tiny units and service-based units, the home is perhaps the best
starting point. |
Setting up an establishment is much more
than putting a signboard 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.
|
Construction of Building
|
| 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 and have an appropriate plant layout. |
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.
|
Getting the Utility Connections
|
| 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
specified 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.
|
Getting 3M's Right
|
Men
|
Projections for manpower and staffing are
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 provided, 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, MSMEI and NSIC can also be sought.
|
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 is large proper planning is all the more
essential |
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