Sudhir Kumar

This is my second article about project management of Small scale industries.

In this article I am ready to disclose why small scale industries are facing problems, when multiple projects come together.

Lots of factor is moving in my mind but I am going to put some major points which richly affect.

1. Low budget for development
2. Less qualified management team
3. Less facilities
4. Irresponsible working style
5. Weak planning team
6. Working with no tracking

Low budget for development

As we know small scale industries haven’t direct relation with OEM & MNC Industries so tier one company gives the business and you are thinking why original equipment manufacturers (OEM) do not give the business.

I will discuss in next article about it because of it is a part of supply chain management so forget it let’s focus on low budget.

How, low budget affects the multiple project?

Due to low budget small scale industries have to complete all the projects in in-house facilities while they have no much facilities to complete multiple projects at a time then their employee have to work under pressure.

Now a question will be swimming into the ocean of your mind, why not outsource facility.

 They can’t afford outsource facilities due to they already work on low profit margin and their customer is already a supplier of original equipment manufacturer so they also offer low target cost.

Less qualified management team

As small scale industries work on low profit margin, so they can’t hire a well-qualified management and at the end they have to work with moderate and less qualified team, which are not more capable to make better strategy to complete a project in low budget with quality.

 Less facilities

Normally small scale industries have moderate facility due to low budget and it is very difficult to manage multiple project with this facilities.

Irresponsible working style

Generally in small scale industries most of employee have direct reporting to owner and direct involvement of owner in every department along with customer interaction. This is the reason of no one take responsibility of their possessive work. No one ready to listen each other, they work as per their convenient.

Weak planning team

Small scale industries have no well experienced planning team to make a effective plan to complete multiple project at a time, they are not able to decide which project should start with in-house facility and which project should start with outsource facility.

Working with no tracking

In small scale industries have no track record of any previous project, running project, plant booking, plant capacity.