The Small and Medium Enterprises (SMEs) in the Asia-Pacific region have been increasingly facing the heat of globalization following the stipulations of the World Trade Organization (WTO). According to the WTO mandate, the custom duties, import tariffs and other taxes will be reduced to zero level by the year 2005. The SMEs will face a very stiff competition from European and American manufacturers for the marketing of their products within and outside their country. This paper looks at the issues of Quality Management in the areas of production, quality assurance, technology upgradation, standardization and human resource development. The real life experiences have been drawn from the shop floor in SMEs and efficient cost-effective solutions have been recommended to improve the quality of production, quality control, standardization and human resource development. A coordinated approach has been discussed in the paper which makes optimum utilization of United Nations funded institutions like the Asia-Pacific Center for the Transfer of Technology, the Instruments Design Development and Facilities Center (UNIDO/UNDP Assisted Center) and the Central Scientific Instruments Organization, Chandigarha Government of India Research Laboratory. Further, the paper suggests suitable measures which can enable SMEs to become globally competitive and establish their markets even in developed countries of the Europe and United States.
The Small and Medium Enterprises (SMEs) in the Asia-Pacific countries generate a substantial part of the national gross domestic product ; create employment for the educated, skilled and unskilled manpower and produce a large number of consumer and industrial products. Prior to 1990, majority of industrial establishments and business organizations were enjoying trade tariff protections. The entry of consumer and industrial goods from the industrialized countries of Europe and United States was restricted by high import tariffs and custom duties. Thus the SMEs , in the Asia-Pacific region , were enjoying near monopolistic economic regime . The Multinational Corporations (MNCs) posed no threat to the SMEs.
The industrial scenario has been changing gradually since 1990 after the implementation of the World Trade Organization (WTO) economic regulations. Most of the countries in the Asia-Pacific Rim became the signatories to the WTO Agreement . The WTO stipulated that globally all trade tariff restrictions will go and the import duties and custom tariffs will be reduced to zero level by the year 2005. Subsequent to the implementation of WTO stipulations, the SMEs in the Asia-Pacific countries have started feeling the heat of economic liberalization. Some of the recent studies on the status of textile manufacturing mills in Ahmedabad (India) , handtools manufacturers and sports goods manufacturers in Jallandhar ( India) , carpet manufacturers in Badohi (India) and scientific instruments manufacturers in Ambala Cantt. (India) have revealed that either the existing SMEs are closing down their production units or their products have become uncompetitive due to high production costs and unacceptable due to poor product quality in the global market. Thus, an urgent need was felt to save the SMEs from extinction and effect their transition from mere survival to consistent growth[1]. |
