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 SMEs in the sector to overcome challenges related to low productivity, insufficient and inconsistent quality, as well as scalability issues resulting in SMEs 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 Components Manufacturers Association (ACMA) with the support of FIAT.

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).

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) SMEs; Technology Experts of business support institutions; Academic institutes & R&D community; and Industry Associations

Outcomes

Phase 1 of the project successfully implemented in 25 clusters, 152 companies across India.

  1. Safety - Unsafe conditions at the shop floor-level have on average been reduced by 100%.
  2. Quality - Customer complaints and customer returns (ppm) have on average been reduced by 58% and 57% respectively.
  3. Delivery - Adherence to the delivery schedule has on average been improved by 11%.
  4. Space Optimization - On an average 120 square feet recovered.
  5. Net Savings - Participating clusters have reported net savings of on average 17.43 crore (INR).
  6. Absenteeism - Permanent absenteeism of employees in participating SMEs has on average been reduced by 31%.
  7. My Machine - As part of the My Machine Campaign, breakdown in hours and in process rejection (ppm) have on average been reduced by 39% and 51% respectively.

Partners

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

The overall impact of the project:

  1. 25% improvement in minimum sales
  2. 15-20% improvement in productivity
  3. 9,520 industry workforce skilled
  4. 8.6% improvement in employment levels
  5. 13.3% improvement in cost competitiveness profile of 152 enterprises