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

May 23, 2024
Updated on

The Quality Management Standards (QMS) and Quality Technology Tools (QTT) scheme is an initiative of the Ministry of Micro Small and Medium Enterprises (MSMEs) 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 QMS and QTT policy and to track 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.


QMS and QTT play a crucial role in various industries to ensure consistent quality, customer satisfaction, and competitiveness. Here are some key standards and tools commonly used in India:

Quality Management Standards:

  • ISO 9001: This is the international standard for quality management systems that provides a framework for organisations to implement effective quality processes and continuously improve customer satisfaction.
  • Six Sigma: Although not a standard, Six Sigma is widely used in India for process improvement and reducing defects. It focuses on achieving near-perfect quality levels through statistical analysis and problem-solving methodologies.
  • Total Quality Management (TQM): TQM is a management approach that emphasises the involvement of all employees in continuous improvement and meeting customer requirements.

Quality Technology Tools:

  • Statistical Process Control (SPC): SPC involves monitoring and controlling processes using statistical techniques to ensure they are within acceptable limits. It helps identify variations and take corrective actions to maintain quality standards.
  • Lean Manufacturing: Lean principles and tools, such as Value Stream Mapping, Kaizen, and 5S, are utilised to eliminate waste, improve efficiency, and enhance overall quality.
  • Quality Function Deployment (QFD): QFD is a structured approach that translates customer requirements into specific product or service characteristics. It ensures that the final output aligns with customer expectations.

Eligibility Criteria and Documents Required for QMS/QTT Scheme

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

  • The 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 are that 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 workshops at metros
  • Organise national workshop in Delhi

Benefits of the QMS and QTT Scheme

QTT and QMS offer several benefits to organisations. Here are the key advantages of implementing QTT and QMS:

Benefits of QTT

Improved Process Efficiency

QTT, such as Statistical Process Control (SPC) and Lean Manufacturing tools, help identify and eliminate process inefficiencies and waste. By optimising processes, organisations can reduce defects, rework, and lead times, leading to improved productivity and cost savings.

Data-Driven Decision Making

QTT enables organisations to collect, analyse, and interpret data related to quality metrics and performance indicators. This data-driven approach helps in identifying trends, patterns, and areas of improvement, enabling informed decision-making for quality enhancement.

Enhanced Product Quality

QTT provides tools like Failure Mode and Effects Analysis (FMEA), which helps identify and mitigate potential failures and risks early in the product development process. By addressing quality issues proactively, organisations can ensure better product quality and customer satisfaction.

Continuous Improvement Culture

QTT fosters a culture of continuous improvement within an organisation. Through tools like Kaizen and Value Stream Mapping, employees are encouraged to contribute ideas and suggestions for process optimisation, leading to a more engaged and empowered workforce.

Benefits of QMS

Consistent Quality

QMS establishes standardised processes and procedures across an organisation, ensuring consistent quality in products or services. By adhering to defined quality standards, organisations can meet customer expectations consistently, enhancing customer satisfaction.

Regulatory Compliance

QMS helps organisations meet regulatory and compliance requirements specific to their industry. It ensures that necessary standards and guidelines are followed, minimising the risk of non-compliance, penalties, and legal issues.

Effective Risk Management

QMS includes tools like risk assessment and management processes to identify, assess, and mitigate risks associated with product quality, safety, and organisational operations. This proactive approach helps reduce the likelihood of quality incidents and associated costs.

Increased Efficiency and Cost Savings

QMS streamlines processes eliminates redundancies, and optimises resource utilisation. This leads to improved operational efficiency, reduced waste, and lower costs associated with rework, scrap, and customer complaints.

Customer Satisfaction and Loyalty

QMS focuses on understanding and meeting customer requirements, ensuring consistent delivery of quality products or services. By achieving and maintaining customer satisfaction, organisations can enhance customer loyalty, build a positive reputation, and gain a competitive edge.

QTT and QMS provide organisations with structured approaches, tools, and methodologies to improve quality, streamline operations, reduce costs, and enhance customer satisfaction.

How to Implement the QMS/QTT Schemes in MSMEs?

Firstly, an examination of all the available resources and processes of manufacturing at the current stage is to be done. This is followed by implementing the best practices suitable for the business. In order to accomplish the intended goals, top management should take the responsibility to ensure that personnel planning and training are carried out. 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.
  • Expert organisations like the 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.


The adoption of QMS and QTT is crucial for the success and competitiveness of MSMEs in India. These initiatives promote a culture of quality, continuous improvement, and customer satisfaction. By implementing QMS, MSMEs can establish standardised processes, enhance product quality, and meet regulatory requirements. QTT, on the other hand, equips MSMEs with tools and techniques to improve process efficiency, reduce waste, and drive productivity gains. 

The government of India has launched various schemes and initiatives to support MSMEs in implementing QMS and acquiring QTT. Through financial assistance, training programs, and technical support, these schemes aim to empower MSMEs to enhance their quality standards, adopt modern technologies, and improve their overall competitiveness. MSMEs are encouraged to explore and apply for these schemes to leverage the benefits of QMS and QTT, thereby propelling their growth and success in the dynamic Indian market.

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’s 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, an RBI-registered Systemically Important NBFC in India, offers a wide range of products and services to the MSME sector. MSME owners can choose from business loans and asset purchase loans as per their requirements. The NBFC provides discounted collateral-free loans with a minimal and flexible documentation process for women business owners. To check your loan eligibility in 1-minute, download the myKinara app from the Google Play store and go from decision to disbursement in 24-hours.

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Through its cutting-edge loan options, Kinara encourages financial inclusion in India’s MSME sector, enabling small companies to realise their full growth potential. With an amazing track record of distributing 87,000 business loans totalling more than Rs. 4000 crores, Kinara has established itself as a reliable partner for numerous MSMEs throughout the nation. With 125 locations, 3400+ pin codes served, and more than 1600 employees, the organisation has a huge network that allows it to reach even the most outlying regions of India.


What are the benefits of QMS and QTT?

  • Improved quality of products and services
  • Increased efficiency
  • Reduced costs
  • Increased customer satisfaction
  • Improved employee morale
  • Increased compliance with regulations

What are the different types of QMS?

  • ISO 9001:2015: This is the most common type of QMS. It is a set of international standards that organizations can use to ensure the quality of their products and services.
  • ISO 13485:2016: This is a QMS standard for medical devices. It is designed to help organizations ensure the safety and effectiveness of their medical devices.
  • AS9100D: This is a QMS standard for the aerospace industry. It is designed to help organizations ensure the quality of their products and services for the aerospace industry.

What are the different types of QTT?

  • Basic QTT: This type of training covers the fundamental principles of quality management.
  • Advanced QTT: This type of training covers more advanced topics in quality management, such as statistical process control and lean manufacturing.
  • Customized QTT: This type of training is tailored to the specific needs of an organization.

How can MSMEs implement QMS and QTT?

Implementing QMS and QTT can be beneficial for MSMEs in India. It can help them to improve the quality of their products and services, increase their efficiency, reduce their costs, increase customer satisfaction, improve employee morale, and increase compliance with regulations. Here are some ways:

  • Getting help from government agencies. The government of India offers a number of programs and services to help MSMEs implement QMS and QTT. These programs include:
  • The Quality Council of India (QCI) offers a number of training programs and certification schemes for MSMEs.
  • The National Small Industries Corporation (NSIC) offers a number of loans and grants to MSMEs that are implementing QMS and QTT.
  • The Ministry of Micro, Small and Medium Enterprises (MSME) offers a number of advisory services and support to MSMEs that are implementing QMS and QTT.

How long does it take to implement QMS and QTT?

The time it takes to implement QMS and QTT varies depending on the size and complexity of the organization. However, it is important to note that implementing QMS and QTT is a continuous process. Once implemented, organizations need to continuously monitor and improve their QMS and QTT to ensure that they are meeting the needs of their customers and stakeholders.

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