Facility for International Cooperation for
Inclusive & Sustainable Industrial Development

Uday Pride: Productivity & Innovation in automotive components sector - Supporting small and medium-sized manufacturers in the automotive component industry in India: Deepening and widening the services provided within the framework of the UNIDO-ACMA-DHI Partnership Programme (Phase II)

UDAY-PRIDE: Productivity & Innovation in automotive components sector -
Supporting small and medium-sized manufacturers in the automotive component industry in India: Deepening and widening the services provided within the framework of the UNIDO-ACMA-DHI Partnership Programme (Phase II)

Background

In 1999, UNIDO initiated a supplier development programme aiming to support small and medium-sized manufacturers in the automotive component industry in India. In specific, the programme facilitated MSMEs in the sector to overcome challenges related to low productivity, insufficient and inconsistent quality, as well as scalability issues resulting in MSMEs to become more efficient, reliable and cost-effective suppliers.

The programme, which was funded by the Government of India, was jointly developed and implemented by UNIDO and the Indian Automotive Component Manufacturers Association of India (ACMA) with the support of FIAT.

The UDAY-PRIDE (UNIDO-DHI-ACMA Yojana – Professionalism, Responsibility & Innovation in Driving Excellence) came into existence after the success of its predecessor projects which started in 1999 and ran until 2010, and most recently, after the successful completion of Phase 1 of the new advanced subsidized training and counselling programme UNIDO-ACMA-DHI Partnership Programme Phase-I (2014-18).

The previous phase, Phase I of the renewed partnership, ran from 2014 to 2018. It assisted 152 SMEs against the initial target of 120 (27% more) in 26 clusters at various geographical locations in India that covered the main automotive production hubs in North, West, East and South regions.

The current Phase II of the UDAY-PRIDE programme which is running from 2019 and is expected to finish at the end of 2022 focuses on productivity and innovation. This phase seeks to cover 275 companies through shop-floor intervention counseling training programme along with lighter e-Learning online programme across various geographical locations in India.

Objectives

The project aims to strengthen the capability/competency of Indian small and medium-sized automotive component and other allied manufacturers to meet the stringent quality, delivery and cost requirements of OEM/Tier-1s. Focus is also on enhancing their productivity and operational performance levels so as to facilitate their inclusion into domestic as well as the global supply chains.

Beneficiaries

Indigenous automotive component suppliers and other (lower tier) MSMEs; Technology Experts of business support institutions; Academic institutes and R&D community; and Industry Associations

Outcomes

Improved productivity and innovation of automotive component manufacturers through application of world class techniques and improvement of the industry’s business support and innovation ecosystem.

Phase 1 of the project successfully implemented in 25 clusters, 152 companies across India and phase-II project aims to increase the scope and coverage of the Partnership Programme to 275 component manufacturers to provide practical services to SMEs to achieve the following inter-related outputs:

  • Increase the availability and applicability of productivity improvement and innovation enhancement methods and tools and capacity of ACMA counsellors for automotive component manufacturers.

  • Improve productivity of selected supplier companies through adoption of continuous improvement techniques through counselling (target 225 component manufacturers) and skills development through e-learning (50 component manufacturers) across all geographical locations in India.

  • Improve the sector ecosystem for better delivering innovation and business support to the automotive sector for automotive supply chain development and innovation.

Modules

The programme contains below-mentioned 6 core along with optional elective modules:

  1. Visual Management and Workplace Safety
  2. My Work My Place
  3. Quality Management
  4. Waste Management
  5. Material Management
  6. Productivity Management

UDAY-PRIDE E-learning portal

The portal features:

  • Provides training on lean manufacturing tools and techniques
  • Supports dual form of learning, the self-learning and instructor-led learning (ILT)
  • Over 300 minutes of animated content
  • In-video Learning checks/chapter Questions
  • Resources/exercise files
  • Forum to start questions and raise questions
  • Certificate on completion of course
  • Transcript on completion of one or more modules
  • Supporting Innovation & Digitization

    1. Industry 4.0
      1. Training and awareness raising for UDAY-PRIDE Counselors and cos.
      2. Trial Assessment of 63 Companies
      3. Deep Dive interviews of 4 companies for best practices
      4. Assessment Report published
      5. Work for Pilot Implementation started
    2. System of Innovation (SI)Sectoral System of Innovation (SSI) Survey measures perceptions on the functioning of the SSI for a comparative analysis of the knowledge and policy linkages which shape innovative activities as well as barriers to innovation in the economy.

      1. Data collected from 357 actors.
      2. Draft Report ready
      3. Policy recommendations to MHI.

Partners

The programme is jointly implemented by the UNIDO and the ACMA and is funded by the Ministry of Heavy Industries, Government of India.

As per the data of 94 companies that completed the one-year program, following are the results:

  1. 94% of the participants found the benefits exceed the costs to participate in the program.
  2. 98.5% of the participants continue with continuous improvement cycle after the program.
  3. Accidents have been brought down to zero.
  4. In-house rejections have been reduced by 82%.
  5. Customer rejections and complaints have been reduced by 75% and 79% respectively.
  6. The program resulted in net savings of Rs. 4.2 Crore!

Customer Testimonial Videos