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

Updated On

February 18, 2025

QMS and QTT for MSMEs

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

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:

Efficient Resource Utilization: Streamlined processes reduce rejection rates and minimize rework in manufacturing.

Enhanced Product Quality: Delivers better quality products at competitive prices.

Optimized Inventory Management: Reduces inventory build-up across raw materials, work-in-progress, and finished goods.

Increased Market Reach: Expands visibility and growth opportunities for MSMEs.

Competitive Insights: Improves understanding of foreign products and competitor offerings in the Indian market.

Stronger Brand Reputation: High perceived quality boosts customer satisfaction, leading to better brand recognition and increased sales.

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.

Micro and Small businesses that fulfill the set requirements can receive benefits from the QMS/QTT program. The Committee for Monitoring and Advisory will be responsible for selecting which business clusters and small enterprises qualify for participation.

Conclusion

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 Machinery 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. 

FAQs

1. Why are QMS and QTT important for MSME manufacturers?

QMS ensures consistent product quality, efficiency, and compliance, while QTT enhances workforce skills and innovation. Together, they help MSME manufacturers improve productivity, reduce defects, and gain a competitive edge in the market.

2. Can MSMEs afford to implement QMS and QTT?

Yes! MSMEs can implement QMS and QTT cost-effectively by starting with basic frameworks, leveraging government schemes, and using digital tools. The long-term benefits—higher efficiency, fewer defects, and better market opportunities—far outweigh the initial investment.

3. What is the relationship between QMS and QTT?

QMS (Quality Management System) sets standards for consistent quality, while QTT (Quality Tools & Techniques) provides methods to achieve it. QTT supports QMS by improving processes, reducing defects, and ensuring continuous improvement in manufacturing efficiency and product reliability.

4. How do Quality Testing Tools improve manufacturing processes?

Quality Testing Tools detect defects, ensure precision, and maintain standards in manufacturing. They help MSMEs reduce waste, enhance efficiency, and deliver reliable products by identifying issues early, leading to cost savings and improved customer satisfaction.

5. Can QMS and QTT help MSMEs expand into new markets?

Yes! QMS ensures compliance with global standards, while QTT enhances product quality and efficiency. Together, they help MSMEs build credibility, meet market requirements, and gain customer trust, making it easier to expand into new marketers.

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