Barricades

Case Study

One of the major areas of weakness identified during the diagnostic study in the cluster is lack of human resources skill at all levels viz. at shop floor, managerial and entrepreneurial levels. While skill up gradation at shop floor level is routine and basic one, developing the skill of the managers is vital and technical, as they deploy and control all resources of production. Their role is still more important, in the cluster, since the first generation entrepreneurs solely depend on their skill for execution.

The cluster has grown gradually without employing systematic approach in the management. There is no standard operational system in the industry. There is no role clarity for the managers. There is no prescribed qualification too for appointing a person for a particular post. The whole system operates on previous experience.

Most of the managers in the cluster are not having formal technical or managerial knowledge. Often problems arise among the various department in the firm and with other firms in the supply chain due to improper specification and communications. Issues relating to rejection; disputes relating to quality; delay in production and delivery are mainly due to lack of managerial skill in the relevant area; and lack of coordination and communication among them.

They are not aware the hidden losses that are added to the production cost, due to their inefficiency and lack of knowledge on the subject; say material management and production planning. For example, neither the production manager nor the processing manager are aware of the hidden loss that are added to the cost of production, on account of delay in taking the fabric, when it comes to the dyeing unit. On an average, the knitted fabric will be lying idle for nearly 20 days in the dyeing units for want approval of color shades from the buyer. Had the production manager informed about the expected date of receipt of the fabric and the color that is required to be made while making production plan, the organization would have saved a sum of Rs. On account inventory cost for 20 days for the average consignment size of Rs. 40 lakhs.

Managers in the cluster are also not aware of the developments that are taking place elsewhere relating to the industry and the bench marking production processes.  They are in activity trap. They also do not have the time and opportunities in the cluster to upgrade the skill in the relevant areas.

Therefore, it is required to continuously raise awareness among the managers and to create a permanent mechanism in the cluster to continue the activities even after completion of the project. Since, the Government of India is also focusing on upgrading HR skills and allocating funds, it is required to promote an independent body which will work for the benefit of the members by availing support from the schemes.

Constant efforts were made to mobilize members for such ‘Knowledge Network’ sensitizing the need and importance of such network. As a result of the efforts taken, nearly 300 executives have shown interest to become members of the ‘network’ by agreeing to pay nominal subscription of Rs.250/- per annum. It has now been identified as PROGRESSIVE MANAGERS’ FORUM, and the ‘Bye laws of the Forum’ have been submitted for approval and registration.

NIFT-TEA College of Knitwear Fashion has been made as the nodal agency for implementation. So far, 3 seminars were organized on identified topics like, (a) Developments in the competing countries (b) Application of ICT for improving organizational efficiency and (c) Opportunities for Product Diversification in the cluster. Members are showing interest to attend the seminar even on Sundays.

Based on the feedback received from them serious training program and short term courses have been planned for the year 2010-11,in the areas like industrial engineering, lean and six sigma green belt,  personnel management, materials management etc. Thus a foundation has been laid for developing HR skill in the cluster.