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July 25, 2022

Why are Quality Management Standards (QMS) and Quality Technology Tools (QTT) important for MSME Manufacturers?

    • July 25, 2022
    • By Team Kinara
    • < 1 mins read

    MSME Loan

    The QMS/QTT scheme is an initiative of the Ministry of Micro, Small and Medium Enterprises which is launched under the National Manufacturing Competitiveness Programme (NMCP). This scheme encourages MSME manufacturers to become more competitive and manufacture better quality products at competitive prices. The main objective of the scheme is to sensitise and support small business entrepreneurs to adopt the latest quality management standards (QMS) and quality technology tools (QTT) policy and to track the sectoral developments by undertaking the stated activities.
    By adopting this scheme, MSME will be able to increase the efficiency in using resources, produce better quality products, reduce rejection and reduce production cycle time. In this blog, MSMEs learn about the QMS/QTT scheme in detail.

    Eligibility Criteria and Documents required for QMS/QTT scheme

    Benefits of the scheme can be utilised by the enterprises that have the entrepreneur’s memorandum.

    • Enterprise must be operational for a minimum of 2 years and have a good track record.
    • Enterprises must have data of regular audits of their accounts for 2 years.
    • Banners or reports regarding advertising or marketing of their business should indicate MSME industry support
    • The selection criteria is such as 50% of the organisations will be from the micro sector and 50% will be from the small sector.
    • An undertaking that no similar benefits are obtained from any other government schemes.
    • An undertaking to contribute 25% and 50% of the total expense as applicable to the enterprise.

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    Major Activities under the QMS/QTT scheme

    There are many activities organised by the government under this scheme some of which are listed below:

    • Organising awareness programmes for MSMEs
    • Monitoring international study missions
    • Organising competition - analysing the competition in the market
    • Learning and development of training programmes such as 6 sigma tools, 5 S, Kaizen tools, etc, at ITI and Diploma-level courses

    Sub-activities are:

    • Study the gap analysis
    • Develop training material kit
    • Train 80 master trainers
    • Identify ITIs/polytechnics
    • Organise 5-days’ training in selected ITIs/polytechnics
    • Introduce international training practices studies
    • Conduct workshop at metros
    • Organise national workshop in Delhi

    Benefits of the Scheme

    • Well organised use of resources leading to reduction in rejection and rework of manufacturing.
    • Better quality of products at competitive prices.
    • By adopting this scheme, it reduces inventory build-up at various stages such as raw materials, work-in-progress goods and finished goods.
    • Higher market visibility, reach and growth opportunities for MSMEs.
    • Better understanding of foreign products in the Indian market and knowing their competitor products.
    • With high perception quality it increases customer satisfaction which helps in building brand reputation and increases sales.

    How to Implement the QMS/QTT Schemes in MSMEs?

    Firstly, an examination of all the available resources and process of manufacturing at the current stage is to be done. This is followed by implementing the best practices suitable for the business. The top management is supposed to ensure the planning and training of the workforce is done in order to achieve the desired goals. This practice will enable MSMEs to be competitive in the global market. The implementation strategies are as below:

    • The Development Commissioner (MSME) will implement the scheme by involving expert organisations or in-house expertise.
    • The expert organisations like Quality Council of India and National Recruitment Board for Personnel and Training, Consultancy Development Corporation, National Productivity Council, Standardisation Testing & Quality Certification, etc. may be engaged in the implementation of the Scheme.


    As MSME manufacturers implement this scheme it also helps them strengthen their position in the export market. MSME tech upgrades will help them produce better quality products at competitive rates and help them grow enormously. This will attract customers as well as new business opportunities as it builds the company reputation.

    To fasten this process small business entrepreneurs require funds to invest in the purchase of machinery to adapt to the latest technology. Kinara Capital offers a wide range of products and services among which asset purchase loan is one of them. The company offers collateral-free machinery loan rates with a minimum and flexible documentation process. To check your loan eligibility, download the myKinara app and go from decision to disbursement within 24 hours.

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    Written by
    Team Kinara
    • Tags
    • MSME Manufacturers
    • QTT scheme
    • OMS scheme
    • QMS/QTT schemes in MSMEs
    • Manufacturing MSMEs
    • MSME tech upgradations
    • machinery loan rates

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