International Journal of Science and Research (IJSR), India Online ISSN: 2319-7064 Volume 2 Issue 6, June 2013 www.ijsr.net Effect of Globalization and Automation on Small Scale Industry Nagendra Sohani 1 , Burhan Adil 2 1, 2 Department of Mechanical Engineering, Institute of Engineering & Technology, Devi Ahilya Vishwavidyalaya, Indore (M.P.), India Abstract: This is an era of highly competitive environment. Small Scale Manufacturing Organizations should be very conscious, while selecting product before starting manufacturing. Because without implementation of atomization it is very difficult to achieve break even small scale industries are facing same problem. Globalization of market also effecting small scale industries because international product quality and cost is better than produced by small scale because better facility & low cost of fund available in china, Korea, Malaysia. Keywords: Globalization, Industry, Small Scale, Manufacturing, Production, Automation, Quality 1. Introduction It is a study on small scale industries that are facing a problem of automation in their relevant stream, along with globalization of the market. This study will highlight the problems faced by SSI in facility development. a) Product selection. b) Location of plant. c) Size of plant. d) Technology. e) Manpower. f) Government policies. g) Funds. • Availability of similar product due to globalization. • Cost cutting at each and every level of manufacturing. 2. Literature Review 1. Globalization and its Impact on Small Scale Industries in India (PCMA Journal of Business). 2. Role of Small Scale Industries in Globalization Era (VSRD International Journal of Business and Management Research, Santosh Kr. Pandey and Pankaj Kant Dixit). 3. The Effect of Globalization on the Performance of Small and Medium Enterprises in the US: Does Owner’s Race/Ethnicity Matter? (Elizabeth Asiedu, James Freeman). 4. Projects Planning Analysis Selection Implementation and Review. (Prasanna Chandra). 5. The relationship between cost, quantity, capital, technology has to be taken into consideration in order to achieve highly profit earning SSI and the emphasis should be given to BEA. 6. The data envelopment analysis (DEA) is incorporated as a decision support tool to evaluate the degree to which each combination of automation and cost is feasible for SSI. 7. Globalization controlling worldwide economy. (PCMA Journal of Business) 8. Indian excise manual (Government of India chapter 2011) 3. Problem Definition 1. The framework model is the tradeoff between product cost & product quality and product quantity in terms of investment using Break even analysis. 2. Plant size, facility planning and skilled labor training cost and labor turnover analysis. 3. Global market impact on product selection. 4. Methodology 4.1 Break Even Volume A break even analysis shows the relation between the cost and profit with sale volume. The sales volume which equates total revenue with related cost and result in neither profit nor loss is called break even volume. 1. Algebraic methods. Fixed Cost BEP (Units) = (Sales Price – Unit Variable Cost) Fixed Costs BEP (Units) = Contribution Margin (Cm) Per Unit 5. Discussion 5.1 Banking Facilities for Large scale industries for Cash Flows 1. Banking Nursing Program 2. Banking Exposure of Limits, 3. Limits on Stocks & Exports 4. Concessional Rate of Interest 5.2 Banking Nursing Program For large scale industries RBI has provided a Bank Nursing Program at the time of recession and for seek units in which RBI provides special funds with large time 140