UNIDO-ACMA Automotive Component Supplier Development Programme

In 1999, UNIDO initiated a supplier development programme with a view to supporting small and medium-sized manufacturers in the automotive component industry in India. The Programme was developed and implemented by UNIDO jointly with the Indian Automotive Components Manufacturers Association (ACMA), supported by FIAT and funded by the Government of India, to help SMEs in the sector overcome challenges related to low productivity, insufficient and inconsistent quality, as well as scalability to become more efficient, reliable and cost-effective suppliers.

Results Achieved

To date, 133 supplier firms were upgraded through intense training, counselling and coaching activities offered to each firm by a qualified counsellor who visited the companies every 20 days over a period of 30 months and provided training and improvement suggestions. In addition, more than 50 counsellors, company experts and quality staff have undergone intensive skills development training – these remain in the companies or continue to offer their services through ACMA through consulting services. For more concrete quantitative results achieved in the participating firms, please see our section on “Case Studies”.

The results achieved at the firm level have been remarkable. Participating companies achieved up to 25% improvement in delivery time for many products, up to 52% decrease in average lead-time required for completion of products and up to 30% reduction in machine downtime through preventive maintenance practices. In terms of environmental performance, the company Metalman Auto, for instance, has reached substantial savings in the consumption of energy and resources (24,000 litres per month in water, and 260 units per month in electricity were saved). Furthermore, accidents were reduced to practically zero. In addition to these indicators, absenteeism among employees has also been reduced by 51% since the implementation of the programme.

OEMs and Tier-1 manufacturers acknowledged that the UNIDO upgrading methodology provided a very structured, systematic and long term focus. Bosch initiated its participation by signing-in some of their suppliers into the UNIDO program. It was stated that the commitment UNIDO experts have shown with their systematic mechanisms of counselling, handholding, monthly group/peer review meetings, plant visits, and exhibitions, have been responsible for the transition of these companies into very reliable partners.

The programme is expected to soon enter into a new phase, funded by the Ministry of Heavy Industries (MoHi). 

"Besides the improvements in terms of productivity – I now see my firm differently. Only through the avenue of continuous improvement we will be able to remain competitive in the market place." - Statement by an entrepreneur after having undergone the UNIDO-ACMA training programme. 

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