Management of Operational Efficiency: Can Indian SMEs Afford Overseeing IT

Abstract

In present era of throat-cut competitiveness, the earning and growth of Indian SMEs has been deteriorating continuously and such companies are bleeding out of financial crunch. This paper examines the influence of evaluating, implementing, and accounting for the various operational efficiencies in an organization which can bring turnarounds in improving the firm’s commercial and financial performances. Fifty companies were scanned for this study using well structured questionnaire as well personal contact program at various levels of organization. The results show that there is a significant correlation between the roles of various operational efficiencies within the organization that can prove to be a turnaround in enriching the commerce of the business entity. Type of corporate culture and organizational commitment do influence on the financial performance of Indian SMEs especially in densely populated auto component manufacturing companies. The propositions of the study have also been addressed.  Furthermore, an attempt has also been made to improve agility, visibility, and operational performance across manufacturing. This paper is unique in dealing with the ways and means for applying six-sigma, lean-manufacturing,QMS, TQM culture for assessing business efficiency especially in SMEs in Indian Auto Component manufacturing units.

Keywords: SMEs, Operational Efficiency, Financial Performance, Turnaround, Lean-Manufacturing.