Analysis and Ranking of Critical Supply Chain Risk Factors in Small & Medium Scale Industries Using QFD

Abstract

The small scale sector is a symptom of India’s socio-economic development model and has met with the country’s long term expectations in terms of contribution to Gross Domestic Product (GDP), industrial base, employment and exports. This sector forms a major part of Indian industrial base. Small and Medium scale industries contribute about 10% of total GDP. The Small and Medium Scale Industries (SMSI) are supported by the government and financial institutions like Micro Small and Medium Enterprises (MSME), Tamil Nadu Industrial Investment Corporation (TIIC), State Bank of India (SBI) etc., in terms of technical and financial assistance. Even then Micro and Small Enterprises (MSE) are lagging in infrastructure, skilled labour. In order to analyse the various risk factors in SMSI, the survey was conducted in 20 small and medium scale industries who are supplying their product to many Tier 1 companies and leading automobile companies of Original Equipment Manufacturer (OEM) in India. This paper brings out most critical supply chain risk factors exist in every business processes inside and outside the Small and Medium Enterprises (SME). Quality Function Deployment (QFD) is used to prioritize supply chain risk factors and also the SMSI owners and managers are advised to focus from the highest ranking critical factors to improve their technical and financial performance.