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ere are numerous arguments in favour of the small-scale industries which justify the rationale of small-scale industryvelopment. The Industrial Policy Resolution 1956 has put forward four arguments in favour of small-scale industriesich emphasise the very rationale of small-scale industry in the Indian economy. The arguments are:

Employment Argument: mall-scale industries have a great potential to create immediate large-scale employment opportunities which is essential

solving widespread unemployment problems of underdeveloped nations. Small-scale industries are labourensive i.e. they use more of labour per unit of output than investment.

India is a capital scarce and labour abundant country and the major problem of the economy refers to unemployment, ituld have been addressed by small-scale units which sometimes even provide 15 to 20 times greater employment thanresponding large industries with any given investment. Because of this huge employment potential small industry areferred over large ones.

Equality Argument:

other argument supporting the rationale of small-scale units refers to equality argument for even distribution of incomed wealth. Small-scale units, because of its ownership pattern which is widespread and labour intensive in characterovide millions of employment to the unemployed more particularly the rural poor who are in search of employment toe-out their livelihood.

Decentralisation Argument:

centralisation argument also supports the rational of small-scale units because it aims at regional dispersal of industriesthe country. Decentralisation of industries help tap local resources like raw materials, idle savings local talents etc. andke provision for self-employment and capital formation. This helps in increase in income of the people which ultimatelyproves the standard of living of the people.

Latent Resource Argument:

e latent resource argument for tapping hoarded and unutilized wealth strongly supports the case for small industries.mall enterprises provide an environment in which the latent talents of entrepreneurs find self-expression.

sides the above, small industries are also supporting large-scale industries overcoming territorial mobility, reducingssure on land relieving congestion in urban areas, and sustaining green revolution by developing agrobased industries incountry.

jective of Small Scale Industriestor can stimulate economic activity and is entrusted with the responsibility of realizing the following objectives:create more employment opportunities with less investment.remove economic backwardness of rural and less developed regions of the economy.reduce regional imbalance.mobilize and ensure optimum utilization of unexploited resources of the country.improve standard of living of people.ensure equitable distribution of income and wealth.solve unemployment problem.attain self reliance.adopt latest technology aimed at producing better quality products at lower costs.

TWORK ANALYSIS hat is a network? A network is a set of symbols connected with each other with a sequential relationship withch step making the completion of a project/event. As discussed earlier, a business plan or project involves variousivities to be undertaken to convert it into an enterprise. Delays e completion of activities cause, among other things, cost overruns.Hence, there is a need for deciding sequential order' of all activities of the project so as to accomplish the project economically in the minimumailab le ti me wit h the limited resource s. Th is is also ca lled II pr oj ec t scheduling".number of network techniques have been developed for project scheduling.me of them are:1: Programme Evaluation and Review Technique (PERT).2. Critical Path Method (CPM).3. Graphicalaluation and Review Technique (GERT).4. Workshop Analysis Scheduling Programme (WASP).5. Line of BalanceOB).

http://www.floorit.info/index.php/organization/organization/small-business/671-objective-of-small-scale-industrieshttp://www.floorit.info/index.php/organization/organization/small-business/671-objective-of-small-scale-industries

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gramme Evaluation and Review Technique (PERT)

RT was first developed as a Management Aid for completing Polarl l i s t i c M i s s i l e P r o j e c t i n U S A i n O c t o b e r 1 9 5 8 . I t w o r k e d w e l l i n e xp ed itin g t he

mpletion of the project from 7 years to 5 years. Since then, PERT has become very popular techniqueed for project planning and con tro l . In nut she l l , i t sch edu les the seq uen ce of act ivi t ie s to bempleted in order to accomplish the project within a short period of time. It helps reduce both the time and cost of theoject.eps Involved in PERT e fol lowing steps are involved in PERT technique:Th e ac ti vi ti es i nv o lv e d i n th e pr oj ec t ar e dr aw n up i n a s eq u en ti al r e l a t i o n s h i p t o s h o w

h a t a c t i v i t y f o l l o w s w h a t . 'The time required for completing each activity of the project is estimated and noted on network.

T h e c r i t i c a l a c t i v i t i e s o f t h e p r o j e c t a r e d e t e r m i n e d .The var iabi lit y o f t he proj ect dur atio n a nd prob abi lit y o f t he pro ject completion in a given time period areculated.vantages of PERT: RT technique bears the following advantages:1. It determines the expected time required for completing activity.2. Itps complete the project within a given period of time.3. It helps management handle uncertainties involved in the

oject and thus, reduce the 'risk element in the project.4. It enables management to make optimum allocation of limitedources.

It presses for the right action, at the right point and at the right time in the organization.mitations of PERT:

RT suffers from the following limitations:1. PERT network is mainly based on time estimates required forch activity. On account of wrong time estimates, the network is bound to become highly unrealistic.2.is technique also does not consider the resources required at different stages of the project.3. For effective control

a project by using PERT technique requirq uen t upd atin g and rev isin g the PER T calc ula tio ns. But, this prov es quite a costly affair for the

ganization.tical Path Method (CPM) e Cr i t ica l Pa th Metho d (CPM) was f i r s t deve loped in USA b y the E. I.Dupont Nemours & Co. in56 for doing periodic overhauling and maintenance of a chemical plant. It resulted in reducing the

ut down period from 130 hours to 90 hours and saving the company $ 1 million. The CPM differentiates betweenanning and scheduling of the project. Wha n n i n g r e f e r s t o d e t e r m i n a t i o n o f a c t i v i t i e s t o b e a c c o m p l i s h e d , scheduling refers to theroduction of time schedule for each activity of the project. The duration of different activities in CPM iserministic. There is a precise known time that each activity in the project will take.

vantages of CPM: e important advantages of CPM technique are

I t h e l p s i n a s c e r t a i n i n g t h e t i m e s c h e d u l e o f a c t i v i t i e s h a v i n g sequentiationship.It makes control easier for the management.I t i den t i f i e s t he mos t c r i t i ca l e l emen t s i n t he p ro j ec t . Thus , t hemanagemen t i s kep t a l e r t and

epared to pay due attention to the critical activities of the project.It makes better and detailed planning possible.mitations of CPM: e main limitations of the CPM are:1. CPM operates on the assumption that there is a precise known time that eachivity in the project will take. But, it may not be true in real practice.2. CPM time estimates are not based on statisticalalysis.3.It cannot be used, as a controlling device for the simple reason that any change introduced willange the entire structure of network. In other words, CPM cannot be used as a dynamic controlling device.

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In projects that allow for a longer period of time for completion and which are difficult toestimate like in research, PERT is suitable; while in conventional projects with predictable

activities and tasks, CPM is suitable.

Summary:

1.The Program Evaluation and Review Technique (PERT) is a project managementtechnique or tool which is suitable for projects that have unpredictable activities while the

Critical Path Method (CPM) is a project management tool which is suitable for projects thathave predictable activities.

2.CPM uses a single estimate for the time that a project can be completed while PERT usesthree estimates for the time that it can be completed.

3.CPM is a deterministic project management tool while PERT is a probabilistic projectmanagement tool.

4.CPM allows project management planners to determine which aspect of the project tosacrifice when a trade-off is needed in order to complete the project while PERT does not.

A.

PERT is measured in days whereas CPM uses weeks or months.

B.

PERT addresses only time whereas CPM also includes cost and resource availability.

C.

PERT requires three time estimates whereas CPM requires one time estimate.

D.

PERT is used for construction projects whereas CPM is used for R & D.

E.

PERT requires computer solutions whereas CPM is a manual technique.