ancillarisation in india
TRANSCRIPT
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ANCILLARISATION IN INDIA
Unit 8
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About Ancillarization
Ancillary Industrial Undertaking in which investment should not exceed to 1 crore is termed as Small Scale Industries
Unit engaged in services like manufacturing or production of parts, components. Tooling. Intermediaries, storage, transportation
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In India……the Importance
Existence of Large scale Units & Small scale Units gives boost to various ancillary units opportunities to grab it.
It helps to generate employment Lessens the burden of Large scale
units Increase in production of SSI’s Development of various sectors being
on the verge of loosing the existence.
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Factors due to which ancillaries are born
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Sub Contracting
A subcontract is broadly defined as an understanding agreed upon by a prime contract and subcontractor to provide goods or services needed for complementing the performance of the prime contract.
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Advantage
Subcontracted out to specialist firms with specialist skills.
Passing over responsibility Your permanent staff can concentrate on the
core business Keeps a lot of businesses alive which depend on
the larger businesses which dominate the market share
Constant flow of money. Some contractors/ subcontractors can start the
work or project atshort notice, even when large numbers of workers are required
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Disadvantage
Arguments can arise when something does go wrong
Contractors/subcontractors may cost the business more than the equivalent daily rate for employing someone
Your business does not acquire or develop skills in-house and relies on suppliers
You have no direct control over the quality of subcontractors' work
Contractors/subcontractors may not appreciate your business culture and may lack the motivation andcommitment of permanent staff
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Sectors of Ancillarization
Hotels Hospitals IT BPO Banking Logistics
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Industrial Sector
SSI Medium Scale Industries Manufacturing Technology Ancillaries
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Agro Industry Sector
Farming Agro Based Products industries Milk Processed Industries Cold Storage Industries Poultry
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Supplier Organization Network
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Whether your supply chain organization is well-established or in its infancy, it’s worth taking a close look at this critical business component and asking: “Is our supply chain organization truly acting as a value chain? If not, what can we do to
improve its contributions?”
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Effectively managing your human inventory
Supply chain organizations vary as much as the people who manage them—and every business will have its own set of human characteristics that define success. In my experience, successful humans in the supply chain organization share some common traits:
Process orientation Pragmatism Global perspective Relationship focus Dogged determination Superb communication skills Tendency toward action