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The Scheme for Enabling Manufacturing Sector to be Competitive through Quality Management Standards (QMS)/Quality Technology Tools (QTT) is an initiative of the Ministry of Micro, Small and Medium Scale Enterprises. This scheme is launched under the National Manufacturing Competitiveness Programme (NMCP). The key objective of the scheme is to sensitise and encourage MSE to adopt the latest QMS and QTT policy and to keep a watch on sectoral developments by undertaking the stated activities. In this article, we will look at the MSME QMS/QTT Scheme in detail.

Benefits of QMS/QTT Scheme

The importance of QMS/QTT Scheme is explained in detail below:

This scheme envisages Micro and Small Enterprises to understand and adopt the latest Quality Management Standards (QMS) and Quality Technology Tools (QTTs) to become more competitive and produce better quality products at competitive prices. The adoption of these features will enable MSEs to achieve the following:

  • Efficient use of resources
  • Improvement in product qualities
  • Reduction in rejection and rework  of manufacturing
  • Reduction in building up the inventory at the various stages in the form of raw materials, finished components, work-in-progress and finished products
  • This will also enable the MSE enterprises to enter into or strengthen their position in the export market.
  • The Competition Watch sub-component of this QMS/QTT scheme will enable Indian MSE organisations to understand the foreign products that are penetrating in Indian markets.


The primary objective of the MSME QMS/QTT scheme is to sensitise and encourage MSEs to adopt latest QMS and QTT technology and to keep a watch on sectoral developments by undertaking the QMS/QTT activities.

Major Activities

Major activities under the MSME QMS/QTT scheme is explained in detail below:

Introduction of Appropriate Course Modules For Technical Institutions

This activity needs the development and introduction of training course modules in technologies like  5 S, 6 Sigma tools, Kaizen tools at ITI and Diploma-level courses. By implementing the activity,  the trained manpower will be made available to micro and small enterprises in the field of QMS/QTT.

QMS/QTTThe following sub-activities are proposed under the MSME QMS/QTT scheme:

  • Study the gap analysis
  • Develop Training Material Kit
  • Train 80 Master Trainers
  • Identify ITIs, Polytechnics
  • Organise 5-days’ Training in selected ITIs/Polytechnics
  • Engage Consultant, Experts through the Quality Council of India and other expert organisation
  • Introduce International Training/Best Practices Studies
  • Conduct Workshop at Metros
  • Organise National Workshop in Delhi
  • Take up any other relevant activities decided by the Monitoring and Advisory Committee

Organising Awareness Campaigns For Micro & Small Enterprises

Awareness Campaigns to sensitise Micro & Small Enterprises on Quality Management Standards/Quality Technology Tools will be undertaken all over the country to enable the technical and managerial officials of the micro and small industries and students from ITIs to have a better understanding of the subjects. Shop-floorwise campaign is being planned in target industries all over India.

Organising Competition–Watch (C-Watch)

Systematic and Organized study on Specific Products of other competing Economies by monitoring their production centres, markets and exhibitions  

  • Analyse Products and Designs of Competitors, procured while undertaking Technical Exposure visits, on a cost-sharing basis.
  • Detailed Design Analysis/ Engineering.
  • Prototype Development in 2 Sectors per year

Monitoring of International Study Missions

  • Depute one Micro and Small Enterprises Mission per year abroad for Interactive Training and Site Visits to Targeted Award-Winning Organizations.
  • Depute one Micro and Small Enterprises team per year to International events for the first-hand study of Advanced Quality Management Systems & Tools.
  • This activity is implemented in association with expert organisations, like Indian Institute of Quality Management (IIQM), NPC, QCI. The Monitoring and Advisory Committee will visit the exhibitions and organisations.

Implementation Of Quality Management Standards and Quality Technology Tools

As part of the Competition Watch (C-Watch) strategy as explained above, it is proposed to strengthen the MSE organisation by building competitiveness through groups of selected MSE. 100 MSE per year will be chosen in the threatened products and assisted by implementing appropriate QMS/QTT. The selection process will be through open invitation and shortlisting at or after the Awareness Programmes.

Target Group

The Cluster-based approach will be adopted for the economy of scale, better dissemination of QMS/QTT and best results. The individual units (preferably from specific products in groups) will be considered under the MSME QMS/QTT Scheme. Micro and small enterprises will be selected from the clusters under study or intervention by this Ministry and clusters identified by the Organizations and Ministries. Applications will be shortlisted, and the Monitoring & Advisory Committee will make the final selection of the units.

Prescribed Authority

The MSME QMS/QTT Scheme is implemented through the office of the Development Commissioner (MSME) by involving expert Organisations or using in-house expertise wherever available.


Micro & Small enterprises having Entrepreneurs Memorandum and considered eligible to take benefit under the QMS/QTT Scheme

  • Wherever organisations are to be the beneficiaries, they would qualify if they are engaged in current activities for at least the last two years and have a good track record.
  • The organisation should have regular audited accounts for the past two years.
  • All attempts will take to ensure that fifty percent of the organisation is selected from the micro sector and 50% from the small sector. Spillover from one sector to another will be considered if sufficient numbers of enterprises will not available in particular sectors and funds permit.
  • Financial assistance to any association will normally be restricted to two events in a fiscal year unless it has active states or regional chapters.
  • The Committee may recommend a relaxation of this condition for reasons to be recorded.
  • For the same events, not more than one organisation will normally be sponsored unless it has active state or regional chapters or hubs.
  • All publicity banners, material and reports relating to the event should indicate the support of the Ministry.
  • The Ministry will be represented in the delegation if it has an appropriate technical and active relationship with the product and it helps ‘anchoring’ of the information knowledge.

Documents Required

All eligible Micro and Small Enterprises should submit the Application in the prescribed Pro format along with the following documents:

  • An undertaking to contribute 50% or 25% of the total cost to the enterprises. In case if any indirect investments are required, the beneficiary units would take care of it.
  • An undertaking or Affidavit that similar benefits have not been obtained from any other Government sponsored schemes

MSME QMS/QTT Scheme Application Procedure

The application procedure for QMS/QTT scheme is explained in details below:

The eligible enterprises will have to submit an application in prescribed format along with the supporting documents.

QMSQTT Application

After verifying the details, the enterprises will be selected for MSME QMS/QTT scheme.

Selection Procedure

All Micro and Small Enterprises meeting the criteria as stated above will be eligible to take benefit under the QMS/QTT Scheme

The Monitoring and Advisory Committee will make the final selection of the clusters/Micro and Small Enterprises.

Release Of Funds

  • The funds will be released to the expert firms activity wise in the phased manner for the specific activity.
  • The contribution of 25% from Micro units and 50% from Small units will be collected by the Office of DC(MSME) or the implementing agencies wherever applicable.
  • The implementing agency will submit the fund utilisation certificate along with a detailed report about the component.