MSME Success Lies on Skill. And Testing Infrastructure Development. Presented by: Mr Vinod Simon Chairman, RSDC

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1 MSME Success Lies on Skill And Testing Infrastructure Development Presented by: Mr Vinod Simon Chairman, RSDC

2 Micro, Small and Medium Enterprises (MSMEs) Micro, Small and Medium Enterprises (MSMEs) play a significant role in the economic growth of the country owing to their contribution to production, exports and employment. The sector contributes 8 per cent to the country s GDP, 45 per cent to the manufactured output and 40 per cent to the country s exports. It provides employment to 80 million people through 36 million units. MSME sector confronts several challenges despite the sector s strategic importance in overall industrialization strategy and employment generation. High Cost of Credits Low access to New Technology Inadequate Infrastructure Facilities Lack of Skilled Manpower Lack of access to International Markets

3 Importance of Testing India is one of the largest manufacturers of rubber products and exporting to various countries at competitive prices. Quality standards for the products are framed by the consumers, manufacturer or by the Government bodies. Laboratory tests and actual performance tests help the manufacturer to assess and maintain the quality of the products manufactured. The standard test methods are useful tools in quality control, producing design data, predicting service performance and in investigating failures. Kind of the tests are carried out on the rubber compounds used for its manufacture (non-destructive type) and some tests are carried out on the product itself (destructive type).

4 Importance of Testing MSME industries do not give importance to testing may lead to: Product Rejection Financial Loss Loss of Customer Environmental Hazard Loss of Time Staff Morale To ensure production of higher quality product and meet the global standards, Testing of raw materials and in process materials at appropriate stage is essential to become sustainability.

5 Rubber Testing Raw Material Testing Mechanical Testing Chemical Testing Thermal Analysis Physical Testing Rubber Product Reverse Engineering

6 Rubber Testing Raw Material Testing identify grade and quality of rubber and helps to decide the supplier of raw material. Chemical Testing helps to identify characterization of rubbers and ingredients like fillers, accelerators, oil, etc in the vulcanized/finished products. Physical tests of rubber vulcanized and finished products is necessary to trace out the short falls in processing methods and to understand the behavior, nature and effect on the properties of the compounding ingredients. Mechanical Testing helps to understand about the mechanical properties. Thermal Testing helps to understand about the temperature of the product.

7 Benefits of Testing Good Product Customer Satisfaction Increase in Export orders Uniformity in Quality of Product Reduction in Wastage

8 Importance of Testing Infrastructure The Testing Infrastructure are facilitators of sustainable eco-system development as they support the MSMEs from development stages

9 Need of Testing Infrastructure Lack of proper testing infrastructure facilities causes a very serious damage to the enterprise's valuable chain process includes production, consumption and distribution of the products. This constraint is apart from scarcity of finances, inadequate marketing facilities, technological obsolescence, etc that are being already faced by MSMEs. So, there is a requirement of infrastructural development of the industries in general and MSMEs in particular which should include all types of facilities like Tool Rooms, Testing Labs, Design Centers, etc.

10 Non-Availability of Testing Infrastructure Lack of Adoption of New Technology The massive shortage of skilled manpower Lack of availability of training infrastructure Low level utilization of high value and critical machines

11 Strategy & Approach - Testing Infrastructure The cluster development approach is a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Objectives To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc. To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc. To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs. To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc).

12 Strategy & Approach - Testing Infrastructure The Testing Facilities to concentrate on an integrated development of related segments of industries by way of providing Development of sophisticated moulds, dies, tools and equipment Adoption of New Technology Quality tools to the sector at reasonable cost Consultancy in Product and Process Development To conduct training programs to meet the shortage of trained manpower. The increase in infrastructure up gradation will lead to rapid industrialization which will primarily be in the MSME sector. The MSME sector in turn will need large number of skilled manpower as well as technological support in line with the demands of new millennium which generate employability.

13 Skill Status of India compared with other Nations Over 65% of India s large population is below 35 years of age that can be transformed into a productive workforce giving the Indian Economy a Demographic Dividend. Percentage of workforce receiving skill training Currently a major proportion of this population is not productively engaged in economic activities due to a skills v/s jobs requirement mismatch. One of the key concerns for the Indian industry is shortage of skilled labour.

14 Current Scenario Vocational Training The magnitude of the task of skilling in India can be gauged by the following scenario: 12.8 million annually entering the labour market for the first time million employed in the organised sector million working in the unorganised sector The National Sample Survey Office (NSSO) 68th Round Report on Status of Education and Vocational Training clearly indicates that a large number of people surveyed by NSSO are yet to be formally trained in vocational skills. Category of person Receiving formal vocational training Formal Received vocational training Non formal Hereditary Self-learning Learning on the job Others All Did not receive vocational training Rural Male Female Person Urban Male Female Person Rural + Urban Male Female Person Total

15 Skill India? Keeping in view the importance of skill development in the growth of the country, the Prime Minister of India outlined a vision for skill development in India under the aegis of Ministry of Skill Development & Entrepreneurship (MSDE). The Ministry is responsible for co-ordination of all skill development efforts across the country, removal of disconnect between demand and supply of skilled manpower, building the vocational and technical training framework, skill up-gradation, building of new skills, and innovative thinking not only for existing jobs but also jobs that are to be created. The Ministry aims to Skill on a large Scale with Speed and high Standards in order to achieve its vision of a 'Skilled India'. It is aided in these initiatives by its functional arms National Skill Development Agency (NSDA), National Skill Development Corporation (NSDC), National Skill Development Fund (NSDF) and 38 Sector Skill Councils (SSCs) as well as 187 training partners registered with NSDC.

16 About RSDC Was constituted in 2012 under the aegis of National Skill Development Corporation (NSDC), and promoted by All India Rubber Industries Association (AIRIA) and Automotive Tyre Manufacturers Association (ATMA) To identify and fulfill skill development needs in the Rubber sector is managed by a Governing Council of 12 members representing o ATMA o AIRIA o Rubber Board o IRI o ICRTMA o IRMRA

17 Role of SSC 1. TRAINING NEED ANALYSIS 2. CURRICULUM DEVELOPMENT 3. ROLLOUT OF TRAINING 4. ASSESSMENT AND CERTIFICATION National Occupational Standards (NOS) drives the process 1.Create Occupational Standards And Competency Levels for Job Roles (NVEQF) 2. LMIS 3. Skill Gap Study 4.Accreditation of Training Institutes 5. Academies Of Excellence 6.Training Of Trainers 7 & 8*. Guidelines and Participate In Assessments and Certification of Trainers and Trainees

18 National Occupational Standards (NOS) National Occupational Standard (NOS) is a core part of India s current efforts to develop a standardized and high quality vocational and Education system. Once the NOS has been developed it will specify the standard and performance, an individual must achieve when carrying out a function in the workplace, together with the knowledge and understanding they need to meet that Standard consistently. Government of India issued a gazette notification on National Skills Qualification Framework (NSQF) dated Dec 19, 2013, according to this within the next three years all the trainings/programs in the country has to be mapped with National Occupational Standards (NOS). QP - Lab Chemist Rubber

19 QPs on Testing by RSDC 69 NOS has been developed for manufacturing job roles (for Tyre, Non-Tyre & Tyre Service segments) and 32 NOS for Natural Rubber Plantation Segment. Following are the job roles available in Testing segment: Occupation Lab Chemist Lab Chemist Research & Development Quality Assurance Occupation Lab Chemist Quality Control Manufacturing Sub-Sector Job Role Lab Chemist-Rubber Lab Chemist (Latex) Scientist Chief/Principal Scientist Rubber Product-Quality Assurance Supervisor NR Plantation Sub-Sector Job Role Laboratory Assistant/Chemist Manager QA (CENEX) Quality Controller-Technically Specified Rubber

20 RSDC s Skill Development Training program Training Programs Training Program (New Skilling) - The objective of Skill Training and Certification is to enable youth to take up industry-relevant skill training that will help them in securing a better livelihood. It is for the candidates who are fresh entrants to the sector or unemployed. The Training program is generally from 200 hrs to 500 hrs according to the nature of the job roles. Re-skilling of existing workforce (called as Recognition of Prior Learning (RPL)) - Individuals with prior learning experience or skills assessed and certified. This training program is for 12 hrs to 80 hrs according to the skill gap identified. Training Delivery Methodology Curriculum aligned to industry requirements: As RSDC s mandate is to provide skilled resources to the rubber sector and has designed National Occupational Standards (NOS) considering the needs of the sector for skilled manpower. Course delivery through theory sessions supplemented with practical sessions and internship for hands on skills and industry exposure to the students. RSDC emphasis on industry involvement throughout the course, right from Curriculum and Content Development, Training of Trainers, industry visits and internships for students.

21 Skill Gap Analysis (SGA) Skill Gap Study conducted in twenty/uts states namely Maharashtra, Tamil Nadu, Kerala, Punjab, West Bengal, Gujarat, Uttar Pradesh, Haryana, Delhi/NCR,. Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh, Jharkhand, Himachal Pradesh, Pondicherry, Goa/Daman, Orrisha, Assam & Telengana to identify skills available v/s skills required skill gaps. Major Findings of SGA Employment forecast for the next 5 years is estimated to be 23.5 lakhs, for manufacturing and services sector Majority of workers are provided on the job training No trend witnessed in the industry to hire skilled workforce from training institutes Training requirement is mainly indicated for Operator level No separate training department in existence for majority of the firms 21

22 Skill Gap Analysis (SGA) Around 6000 manufacturing units Majorly constituted by the Micro, Small and Medium Enterprises (MSME ) Sector in Tyre, Moulded goods, tread rubber products, footwear, dipped goods and adhesives Punjab (402) Jammu & Kashmir (4) Himachal Pradesh (29) Rubber Products Manufacturing Units: 24 States and 4UTs Haryana (598) Delhi (283) Gujarat (613) Daman & Diu (8) Rajasthan (159) Dadra & Nagar Haveli (12) Goa (11) Jharkhand (24) Madhya Pradesh (61) West Chhattisgarh (7) Bengal (591) Maharashtra (598) Uttar Pradesh (710) Andhra Pradesh & Telangana (177) Orissa (12) Bihar (1) Assam (7) Meghalaya (1) Tripura (4) High (More than 300) Medium (50 to 300) Low (5 to 50) Less than 5 Karnataka (206) Kerala (853 Tamil Nadu (606) Pondicherry (20) 22

23 Skill Gap Analysis (SGA) Summary - Current Employment and Forecasting of Human Resource for the Manufacturing Segment States Current (Est)^ Increment ( Forecast ) Punjab 80, Kerala Maharashtra Tamil Nadu Gujarat Haryana West Bengal Uttar Pradesh Delhi Andhra Pradesh Rajasthan Karnataka Madhya Pradesh Jharkhand Other 5 States (AGHOP*) Total 1,763,063 2,355,948 *AGHOP: Assam, Goa, Himachal Pradesh, Odisha, Puducherry ^ Estimates include Tyre, Non-Tyre as well as Repair & Maintenance Segment & Services

24 What we have done till now.. Conducted Skill Gap Analysis in twenty States/UT s to assist in the planning and delivery of training, besides identifying skill development needs of the sector RSDC also develops Curriculum and Content for each job role as per the mandate given by Ministry of Skill Development & Entrepreneurship (MSDE). RSDC has trained 90,000 trainees in manufacturing and plantation job roles and more than 43% of the certified students have been placed/self-employed. Conducted TOT for 750 trainers and 350 assessors across country. RSDC has developed and introduced the curriculum for Bachelor in Vocational Studies (B. Voc) in Rubber Technology and a special Dual Certification courses in colleges/universities. RSDC organizes Job Fairs cluster wise, every quarter to support the placements of the trained candidates.

25 What we have done till now.. Conducted Skill Gap Analysis in twenty States/UT s to assist in the planning and delivery of training, besides identifying skill development needs of the sector RSDC also develops Curriculum and Content for each job role as per the mandate given by Ministry of Skill Development & Entrepreneurship (MSDE). RSDC has trained 90,000 trainees in manufacturing and plantation job roles and more than 43% of the certified students have been placed/self-employed. Conducted TOT for 750 trainers and 350 assessors across country. RSDC has developed and introduced the curriculum for Bachelor in Vocational Studies (B. Voc) in Rubber Technology and a special Dual Certification courses in colleges/universities. RSDC organizes Job Fairs cluster wise, every quarter to support the placements of the trained candidates.

26 Government Projects Government of Andhra Pradesh Government of Kerala Government of Tamil Nadu Government of Jharkhand Government of Punjab

27 Tie-up with Universities/Colleges B. Voc course in Rubber Technology Tripura Central University Hindustan University, Chennai Dr. M.G.R. Educational and Research Institute, University, Chennai St Berchmans College, Kerala 27

28 Tie-up with Universities/Colleges Dual Certification in Rubber Technology Kamaraj College of Engineering & Technology, Madurai Downtown University, Assam ICFAI University, Tripura Sharda University, Agra & Mathura 28

29 RSDC Job Portal Job Portal Url - Job seeker & Employer can hunt for jobs /employees 24/7 For Job Seeker: Zero investment Separate Log-in IDs Direct Contact with Recruiter Jobs at door step For Employer: Post Job Search Resume Shortlist Resume Advertise through the portal to get visibility For RSDC: Collaboration with the Industry Placement assistance Would be able to track placement status The portal also come with advanced filtration tools that allow employers and jobseekers to filter their search based on their desired interests, locations, skill set and more. 29

30 RSDC Mobile App Now Skilled Workforce is just a DOWNLOAD away - Get Skilled manpower - Know more about certificate courses of RSDC - Locate your nearest Training Centre - Re-skill your existing workforce - Create your own training centre Search for RSDC on Google Play Store and Apple App Store 30

31 Saamarth Empowering a Million Lives in Rubber - 1M Rubber RPL Project S.No Project Details 1 Applicant Name RSDC 2 Number of Training Partners 24 3 Number of Assessment Agency(s) 15 4 Number of Auditing/Monitoring Partners (s) 3 5 Project locations 29 States & 354 Districts 6 Total job roles proposed 27 Job Roles 7 Total targets requested Project duration (in months) 48 Months

32 State Wise Targets Rajasthan (39070) Gujarat (38880) Himachal Pradesh (9310) Punjab (59083) Haryana (62665) Maharashtra (56070) Delhi (12470) Madhya Pradesh (25250) Telangana (21000) Uttar Pradesh (74990) Chhattisgarh (10210) Orissa (42150) Sikkim (560) Bihar (27810) Jharkhand (11450) West Bengal (40234) Assam (6449) Meghalaya (2900) Tripura (43400) Arunachal Pradesh (7290) Nagaland (1870) Manipur (1180) Mizoram (1030) Rubber Products Manufacturing Units: 24 States and 4UTs 1.5 Lac- 75K 75k 50k 50k 25K Less than 25k Goa (1820) Karnataka (58820) Andhra Pradesh (63270) Pondicherry (2200) Kerala (154428) Tamil Nadu (76480)

33 Job Roles Wise Target Manufacturing Job Roles Target Compression Moulding Operator Level Finishing and Packaging Operator (Latex) Level Injection Moulding Operator Level Internal Mixer Operator Level Junior Rubber Technician / Technical Assistant Level Latex Dipping Plant Operator Level Latex Mixing Operator Level Material Handling and Storage Operator Level Mill Operator Level Pneumatic Tyre Moulding Operator Level Rubber extruder operator Level Rubber Foaming Machine Operator Level Rubber product finishing operator Level Total RPL Manufacturing Natural Rubber Plantation Job Role Target Latex Harvest Technician (Tapper) Level Rubber Nursery General Worker Level Processing Technician Rubber sheeting Level General Worker Rubber Plantation Level Grader (RSS Trading) Level Laboratory Assistant / Chemist Level General Worker (CENEX) Level General Worker (RSS Trading) Level Processing Assistants TSR Level Total RPL NR plantation Tyre Service Job Role Target Tyre Fitter Level Tyre wheel alignment Operator Level Tyre Uniformity Operator Level Tyre Casing Inspection/Preparation Level Tyre Retreading Assembling & Curing Operator Level Total Service Numbers

34 Pilot Phase In the Pilot phase, Executive committee of PMKVY has approved 32,000 numbers. RSDC plans to cover maximum number of states in the pilot phase in following sub-sectors: Manufacturing Service NR Plantation Assam 250 Odisha 2000 Andhra Pradesh 150 Daman 100 Delhi 1000 Maharashtra 250 Delhi 120 Tamil Nadu 1000 Odisha 250 Gujarat 914 Karntaka 1000 Kerala 2500 Haryana 910 Madhya Pradesh 2500 Tripura 1500 Himachal Pradesh 145 Uttar Pradesh 1500 Assam 1000 Kerala 117 Rajasthan 1000 West Bengal 150 Madhya Pradesh 950 Maharashtra 2000 Goa 150 Maharashtra 500 Chattisgarh 1250 Arunachal Pradesh 150 Odisha 800 Jharkhand 1500 Mizoram 150 Punjab 809 Bihar 1250 Meghalaya 150 Tamil Nadu 1985 Nagaland 150 West Bengal 400 Manipur 150 Tamil Nadu 750 Karnataka 550 Grand Total 8000 Grand Total Grand Total 8000

35 Mobile Van Set-up for RPL

36 Iconic Common Facility Centres (CFC) CFC with state-of-the-art facilities for skill training, Testing and R&D Modular design to ensure flexibility and easiness in operation and excellent training space for industry players. CFC with all the latest State-of-the-Art equipment, self-contained, self-equipped with mandatory requirement for conducting testing & training. 36

37 Proposed Facilities Entrance Lobby Counselling Area Administrative Office/Store/Toilets Meeting Room Training Rooms 2-4 nos. o IT, Precision, Activity, Heavy Machinery with open yard, all with attached Processing Rooms Class Rooms 2-5 nos. Library Faculty Room/Store/Toilets Dining Room Sick Room Toilets, Stores & Service spaces etc. Training Hall Processing Room 37

38 Recommendation Setting up training infrastructures to cater to the rubber sector skilled manpower needs, namely by setting up more rubber parks and rubber zones which will also need proactive participation from the industry in the respective clusters. Industry associations and companies located in the particular cluster can participate actively for skilling and up-skilling of their employees to meet their specific manpower needs. Large industries to come forward and join hands with MSMEs to set up common facilities for training, testing and tooling centres which will also encourage entrepreneurship and generate employment. India has two rubber parks one in Ernakulam, Kerala and in Bodhungnagar, Tripura.

39 Recommendation There is a requirement for common infrastructure projects for MSMEs. By this all MSMEs, come together and share the costs of infrastructure, which are otherwise costly affair for individual MSMEs. Benefits are: Common Tooling/Machining Raw Material Procurement Testing Laboratory Common Infra & Facilities Training & Skill Up gradation Research & Development

40 Manufacturing Capabilities Improved Design What will be Achieved Product Development Process Development Productivity/Quality Improvement Design of dies & tools Latest Technology Innovated Tools for product deisgn Precision Machine

41 What will be Achieved Long Term Diploma & Certificate courses in tool engineering. Skilled enhancement courses for industry personnel Enhance Insituitional & Training Capacity Customized training programmes for industries Upgradation of courses for trainers in training institutions and industries

42 Q&A

43 THANK YOU