VIBRATION ALARM FOR ELECTRICAL

APPLIANCES
Project Report 2010-2011

Submitted by
C.M.BENEESH - Reg.No . 29316666
M.GOPALAKRISHNAN - Reg.No . 29316668
R.JAYAVEL - Reg.No . 29322976
M.SURESHKUMAR - Reg.No . 29322995
M.SWAMINATHAN - Reg.No . 29322987

Under the Supervision and Guidance of

K.Kumar.B.E
Lecturer
Submitted in Partial Fulfillment of the requirement for the
award of

DIPLOMA IN ELECTRICAL AND ELECTRONICS ENGINEERING

of State Board of Technical Education, Chennai.

KOTTAI MARIYAMMAN POLYTECHNIC COLLEGE

Minnampalli (PO), Karipatti (Via),

Salem – 636 106.

DEPARTMENT OF ELECTRICAL & ELECTRONICS ENGINEERING

KOTTAI MARIYAMMAN POLYTECHNIC COLLEGE
 SALEM.

DEPARTMENT OF ELECTRICAL AND ELECTRONICS ENGINEERING

Project Report 2010-2011

CERTIFICATE

Certified that this is the bonafide report of the project work entitled “VIBRATION
ALARM FOR ELECTRICAL APPLIANCES ”

Submitted by

Name :……………………………

Reg.No :…………………………….

During the year 2010-2011

Project Guide Head of the Department

Submitted for the Board Practical Examination in Project Work, Entrepreneurship,

Environment and Disaster Management and Viva Voice Held on…………………………

Internal Examiner External Examiner

DECLARATION
 Submitted by

C.M.BENEESH - Reg.No . 29316666

M.GOPALAKRISHNAN - Reg.No . 29316668
R.JAYAVEL - Reg.No . 29322976
M.SURESHKUMAR - Reg.No . 29322995
M.SWAMINATHAN - Reg.No . 29322987

We declare that the Project on “VIBRATION ALARM FOR

ELECTRICAL APPLIANCES is the work done by us, and to the best of our

knowledge. A similar work is submitted to the “DEPARTMENT OF

ELECTRICAL AND ELECTRONICS ENGINEERING”.

This project is submitted on the partial fulfillment for the award of

“Diploma in Electrical and Electronics Engineering”

STATION:

DATE :
 ACKNOWLEDGEMENT

First and foremost we wish to divulge our heart felt thanks to our beloved Chairman

Thiru. K.Palaniyappan, beloved Secretary Thiru.K.Chettiyannan and other trust members

for providing all the facilities made to develop our project successfully.

We are intensely obliged to our deep sense of gratitude to our beloved Principal

Tmt.N.Thillaikarasi M.E., MIE, PGDHRM for her patronage and excellent facilities made

available to accomplish this project successfully.

We express our profound gratitude and thanks to our Head of the Department Thiru.

S.Sabarinathan.AMIE who has provided necessary & valuable guidance and

encouragement to complete this project.

We are highly indebted to express our thanks to our guide Thiru.K.Kumar.B.E for his

valuable and continuous guidance, suggestion, constructive critics & encouragement, which

contributed immensely in completing this project successfully.

We have to express our thanks to all staff members, lab assistants and friends for their kind

co-operation and constant encouragement rendered to make our project successful.

Last but not least, we are acutely belated in thanking out beloved parents and family for this

virtuous support.
VIBRATION ALARM

ABSTRACT
Abstract

Industrial vibration alarm is a measurement tool used to identify, predict, and prevent
failures in rotating machinery. Implementing vibration analysis on the machines will improve
the

reliability of the machines and lead to better machine efficiency and reduced down time
eliminating mechanical or electrical failures.

Vibration analysis programs are used throughout industry worldwide to identify faults
in

machinery, plan machinery repairs, and keep machinery functioning for as long as possible
without failure.
INTRODUCTION
 INTRODUCTION

Typical machines include motors, pumps, fans, gear boxes, compressors, turbines,
conveyors, rollers, engines, and machine tools that have rotational elements. The rotating
elements of these machines generate vibrations at specific frequencies that identify the
rotating elements. The amplitude of the vibration indicates the performance or quality of
machine. An increase in the vibration amplitude is a direct result of failing rotational
elements such as bearings or gears. Based on the machine speed, the rotational frequencies
can be calculated and compared to the measurements to identify the failure mode.
BLOCK DIAGRAM
BLOCK DIAGRAM
 POWER UNIT

Vibration
Sensor LED Indicator

Pre-Amp
Driver

COMPARATOR
Buzzer

CIRCUIT DIAGRAM
POWER SUPPLY

+ 1 2 V

4 X 1 N 4 0 0 7 1 3
I C 7 8 0 5 + 5 V

2
+ +
A C 2 2 0 V - +
1 0 0 0 M F D \ 05 .0 1 V M D F 1 0 0 M F D \ 2 5 V

1 2 V / 5 0 0 m A
Microcontroller
 V C C ( + 5 V )

0 . 1 m 1f 0 M F D
1 0 K
1 0 k

4
3
+ 1 V C C

2
1
2
-
B U
2 . 2 M 1 0 11 0 KL M 3 2 4

8 B C 5 4 7
4 . 7 K

P IC 1 6 F 6 7 6
V i b r a t i o n
S e n s o r 9
5 6 0 LE E D

1 0
1 4 5 6 0 LE E D

INTRODUCTION FOR EMBEDDED SYSTEM

INTRODUCTION

WHY WE ARE USING EMBEDDED SYSTEM?

 Cost of production is very low.

 It is an advanced and latest technology.
 Production time is very less.
 It improves the efficiency of the host machine tremendously.

WHAT IS EMBEDDED SYSTEM?

Embedded System is a small computer system that is generally hidden inside

equipment [machine, electrical appliances, or electronic gadget] to increase the intelligence
of the equipment for better or more efficient functionality. This kind of system always
involves both the software and the hardware co-development.

Embedded Systems are often easier understood in terms of Smart devices, intelligent
or automated equipments. Embedded Systems do not need a complete operating system, but
only the basic functionalities of an operating system. Hence Embedded System can be
defined as follows:

 It is embedding or inserting human intelligence by means of software into a

Microcontroller chip and designing hardware for the purpose.
 It is a combination of software and hardware with automatic working without user
interface.
 It performs specific functions in host systems like satellites, remote controllers,
televisions, robotic vehicles, ATMs, pagers, laser printers, missile launch systems, etc.
 It is a closed loop system i.e., change in the input will not affect the output.
EMBEDDED SYSTEM
EMBEDDED SYSTEM

An embedded system is a combination of computer hardware, software and additional

mechanical parts, designed to perform a specific function .An embedded system is designed
to do a specific task within a given time frame, repeatedly, without human interaction.
Embedded system do not need a complete operating system, but only the basic functionalities
of an operating system in a real-time environment, that is, a real time operating system.
(RTOS). Frequently, embedded system does not have a user interface.

Application Area of embedded system include aerospace/defense systems,

telecommunication equipments and switches, mobile computing, broadcast, automotives,
industrial process control and monitoring, medical electronics, consumer electronics, etc.
Main hardware components of an embedded system are microprocessor or micro controller,
and supporting ICs. The combination of micro-controller and ICs are application specific.
Commonly used microprocessors include the following. Motorola 680XX series, IBM
PowerPC series processors, MIPS processors, Intel 386 and compatible CPUs, ARM
processors, Sun SPARC series, etc. Embedded systems need memory for storing programs
and data, and usually programs are stored in ROM or EPROM. Often these systems have a
serial port network interface, I/O interface for interacting with sensors and actuators in the
case of process controlling systems.
MICROPROCESSOR Vs MICROCONTROLLER
MICROPROCESSOR Vs MICROCONTROLLER

Microcontroller is a general-purpose device which has an in-built CPU, Memory

and peripherals, which make it, function as a mini computer.

Both Microcontroller and microprocessor can be employed for designing products or

applications in Embedded System. But Microcontroller has its own advantages over
microprocessor. They are as follows:

 For transfer of data from external memory to the CPU, microprocessor needs
many operational codes. But in Microcontroller, one or two codes are enough.
 Microcontrollers have many bit-handling instructions, but microprocessors have only one
or two.
 Microcontrollers have built-in peripherals whereas microprocessors lack in-built
peripherals.
 Microcontroller work faster than microprocessor because of rapid movement of bits
within the chip.
 Microcontrollers have simple circuit structure compared to microprocessor.
 Microcontrollers have only 35 instructions whereas microprocessors have 75.
 Microcontrollers are costly when compared with microprocessor.
 Microcontroller can function as a mini computer without any additional parts.
 Microcontroller instructions are simple, single word instructions.

PIC
PIC (PERIPHERL INTERFACE CONTROLLER)

PIC stands for Peripheral Interface Controller as coined by Microchip Technology,

USA. MCU overview and Roadmap Microchip PIC micro MCUs combine high-performance,
low-cost and small package size, offering the best price/performance ratio in the industry.
More than 1.5 billion of these devices are shipped to customers worldwide since 1990.
 PIC (Peripheral Interface Controller) is the IC which was developed to control the
peripheral device, dispersing the function of the main CPU.
When comparing to the human being, the brain is the main CPU and the PIC shares the part
of which is equivalent to the automatic. However, the threw out, the memory capacities are
not big. It depends on the kind of PIC but the maximum operation clock frequency is about
29 MHZ and the memory capacity to write the program is about 1k to 4k words. It is possible
to make the compact circuit when using PIC.

The point which the PIC is convenient for the calculation part, the memory, the
input/output part and so on are incorporated in to one piece of the IC.

The efficiency and the function are limited but can compose the control unit only by
the PIC even if it does not combine the various IC’s. So the circuit can be compactly.

Microchip offers five families of MCUs to best fit your application needs:

 PIC12CXXX 8-pin 12-bit/14-bit program word

 PIC16C5X 12-bit program word
 PIC16CXXX 14-bit program word
 PIC17CXXX 16-bit program word
 PIC18CXXX enhanced 16-bit program word

ADVANTAGES IN USING PIC

ADVANTAGES IN USING PIC

 Microchip is the world’s first largest chip Manufacturer.

 Focus on high performance cost-effective, field-programmable embedded control

Solutions.

 Microchip is the first Manufacturer of 8 pin RISC MCU.

 Variety of end-user Application-specific Standard Products (ASSP) & Application-

Specific Integrated Circuits (ASIC).

 Global network of manufacturing and customer support facilities.

 Non-Volatile memory.
HARDWARE COMPONENTS OF PIC16F676

This powerful yet easy-to-program (only 35 single word instructions) 8-bit

microcontroller packs Microchip's powerful PIC architecture into an 14-pin package and is
upwards compatible with the PIC16C5X, PIC12CXXX and PIC16C7X devices. The
PIC16F676 features, self programming, an ICD, 2 Comparators, 8 channels of 8-bit Analog-
to-Digital (A/D) converter, 2 additional timers, the synchronous serial port can be configured
as either 3-wire Serial Peripheral Interface (SPI™) or the 2-wire Inter-Integrated Circuit
(I2C™) bus and a Universal Asynchronous Receiver Transmitter (USART). All of these
features make it ideal for more advanced level A/D applications in automotive, industrial,
appliances and consumer applications.

PIN DIAGRAM OF PIC16F676

PIN DIAGRAM OF PIC16F676
PIC16F676 BLOCK
PIC16F676 BLOCK
 The PIC16F676 has 14 pins. These 28 pins can be connected to different ports like
PORTA and PORTC. Apart from these it can be used for transmitting and receiving different
analog signals. Oscillators, Capacitors, Resistors of varying value can be used with this. The
ports in this can be configured as either an output port or as an input port .If it is configured
as output port either LED’s or LCD’s or Seven segment displays can be used to view the
output. If the ports are configured as input then signals can be received by using keys. These
ports have 3-8 pins. Supply of +5v are used in pins 1 and 20 where a resistor of 1K is used in
pin 1.Similarly pin 14 is used as ground. This IC is particularly used for storing values in its
memory. RTC (Real Time Clock) is an added feature. When there is a need to use three ports
or lesser than five ports we can always go for 72 since it gives us an advantage to use
EEPROM, RTC and different types of input and output.

Oscillators

There are 4 common oscillator modes that are available on most PICmicro devices. HS,
XT, LP and RC.

These modes support crystals, canned oscillator modules, some resonators or the use of
an external resistor and capacitor as a clock source. When using a crystal or resonator, other
components such as capacitors may be needed. The XT mode stands for “Crystal” mode and
will produce a medium drive level. It is designed to be used with crystals and resonators of
about 1 to 4 MHz. XT mode has moderate power consumption since its drive level is lower
than that of HS mode, and because a lower clock speed is produced. Remember, as a rule: the
faster the clock used, the more current the application will require.

Master Clear Resets (MCLR)

Resets can be caused by a signal on the MCLR pin, by powering up the device,
by a Watchdog timer timeout, by a Brown-Out voltage Reset (BOR), by a software reset
instruction, or by a stack overflow or underflow reset. The MCLR pin can be used to generate
a reset. On most PICmicro® devices the MCLR pin is always active. When the MCLR
function of the pin is enabled, it is an active low Schmitt trigger input. This means that to
ensure a reset, the voltage on the pin must be lower than the maximum input low voltage
specified.
CIRCUIT EXPLANATION
POWER SYSTEM
 Every electronic system we need low voltage DC power supply in different electronic
circuits operated in different power supplies, the ratings depending upon load current and
voltage. The load current depending on load resisistance i.e load current is inversely
proportional to load resistance. So the matched designation of power supply is very important
to every electronic circuit.

In this circuits we need two power supplies .All ICs are worked on regulated DC
power 5v with GND. Relay derive worked on dc 12v with GND .This unit consist of
transformer, rectifier, filter & regulator. AC voltage typically 230v RMS is connected to a
transformer which steps that AC voltage down to the level of the desired Ac voltage .A Diode
rectifier then provides a bridge rectified voltage that is initially filtered by a simple capacitor
filter to produce a DC voltage. This resulting DC voltage usually has some ripple or Ac
voltage variations. A regulator circuit can use this DC input to provide DC voltage that not
only has much less ripple voltage but also remains the same DC value even the DC voltage
varies some what,. OR the load connected to the output DC voltages changes.

BLOCKDIAGRM:

Transformer Rectifier Filter Regulator

TRANSFORMER:

A Transformer is a static (or stationary) piece of which electric power in one circuit is
transformed into electric power of the same frequency in another circuit. It can raise or lower
the voltage in a circuit but with a corresponding decrease or increase in current. It works with
the principle of mutual induction. In our project we are using step down transformer for
providing a necessary supply for the electronic circuits .In our project we are using a (12-0)
v/500mA.

RECTIFIER:

The Dc level obtained from a sinusoidal input can be improved 100% using a process
called full wave rectification. It uses 4 diodes in a bridge configuration. From the basic bridge
configuration. we see that two diodes (say D2 &D3) are conducting while the other two
diodes (D1&D4) are in “off” state during the period t = 0 to T/2.Accordingly for the negative
of the input the conducting diodes are D1&D4.Thus the polarity across the load is the same.

FILTER:

The filter circuit used here is the capacitor filter circuit where a capacitor is connected
at the rectifier output, and a DC is obtained across it .The filtered wave form is essentially a
dc voltage with negligible ripples, which is ultimately fed to the load.
REGULATOR:

The output voltage from the capacitor is more filtered and finally regulated. The
voltage regulator is a device, which maintains the output voltage constant irrespective of the
changes in supply variations, load variation and temperature changes. Here we use one fixed
voltage regulator namely LM7805.The IC 7805 is a+5 voltage regulator.

3-Terminal Positive Voltage Regulators

The LM341 and LM78MXX series of three-terminal positive voltage regulators

employ built-in current limiting, thermal shutdown, and safe-operating area protection which
make them virtually immune to damage from output overloads. With adequate heat sinking,
they can deliver in excess of 0.5A output current. Typical applications would include local
(on-card) regulators which can eliminate the noise and degraded performance associated with
single-point regulation.

 Internal thermal overload protection

 Internal short circuit current-limiting
 Output transistor safe
 ea compensation
 Available in TO-220, TO-39, and TO-252 D-PAK packages
 Output voltages of 5V, 12V, and 15V
 Output current in excess of 0.5A
BUZZER
PIEZOELECTRIC SOUNDER AND BUZZER

Buzzer or beeper is a signaling device, usually electronic, typically used in

automobiles, household appliances such as a microwave oven, or game shows.

A piezoelectric element may be driven by an oscillating electronic circuit or other

audio signal source. Sounds commonly used to indicate that a button has been pressed are a
click, a ring or a beep. Electronic buzzers find many applications in modern days.

It most commonly consists of a number of switches or sensors connected to a control

unit that determines if and which button was pushed or a preset time has lapsed, and usually
illuminates a light on the appropriate button or control panel, and sounds a warning in the
form of a continuous or intermittent buzzing or beeping sound. Initially this device was based
on an electromechanical system which was identical to an electric bell without the metal gong
(which makes the ringing noise). Often these units were anchored to a wall or ceiling and
used the ceiling or wall as a sounding board.

Another implementation with some AC-connected devices was to implement a circuit to

make the AC current into a noise loud enough to drive a loudspeaker and hook this circuit up
to a cheap 8-ohm speaker. Nowadays, it is more popular to use a ceramic-based piezoelectric
sounder like a Sonalert which makes a high-pitched tone. Usually these were hooked up to
"driver" circuits which varied the pitch of the sound or pulsed the sound on and off.

VIBRATION SENSOR
 VIBRATION SENSOR

A piezoelectric sensor is a device that uses the piezoelectric effect to measure

pressure, acceleration, strain or force by converting them to an electrical signal.
Applications

Piezoelectric sensors have proven to be versatile tools for the measurement of various
processes. They are used for quality assurance, process control and for research and
development in many different industries. Although the piezoelectric effect was discovered
by Curie in 1880, it was only in the 1950s that the piezoelectric effect started to be used for
industrial sensing applications. Since then, this measuring principle has been increasingly
used and can be regarded as a mature technology with an outstanding inherent reliability. It
has been successfully used in various applications, such as in medical, aerospace, nuclear
instrumentation, and as a pressure sensor in the touch pads of mobile phones. In the
automotive industry, piezoelectric elements are used to monitor combustion when developing
internal combustion engines. The sensors are either directly mounted into additional holes
into the cylinder head or the spark/glow plug is equipped with a built in miniature
piezoelectric sensor.

The rise of piezoelectric technology is directly related to a set of inherent advantages.

The high modulus of elasticity of many piezoelectric materials is comparable to that of many
metals and goes up to 10e6 N/m²[dubious – discuss]. Even though piezoelectric sensors are
electromechanical systems that react to compression, the sensing elements show almost zero
deflection. This is the reason why piezoelectric sensors are so rugged, have an extremely high
natural frequency and an excellent linearity over a wide amplitude range. Additionally,
piezoelectric technology is insensitive to electromagnetic fields and radiation, enabling
measurements under harsh conditions. Some materials used (especially gallium phosphate or
tourmaline) have an extreme stability even at high temperature, enabling sensors to have a
working range of up to 1000°C. Tourmaline shows pyroelectricity in addition to the
piezoelectric effect; this is the ability to generate an electrical signal when the temperature of
the crystal changes. This effect is also common to piezoceramic materials.

Sensor design

Based on piezoelectric technology various physical quantities can be measured; the

most common are pressure and acceleration. For pressure sensors, a thin membrane and a
massive base is used, ensuring that an applied pressure specifically loads the elements in one
direction. For accelerometers, a seismic mass is attached to the crystal elements. When the
accelerometer experiences a motion, the invariant seismic mass loads the elements according
to Newton’s second law of motion F = ma.

The main difference in the working principle between these two cases is the way
forces are applied to the sensing elements. In a pressure sensor a thin membrane is used to
transfer the force to the elements, while in accelerometers the forces are applied by an
attached seismic mass.

Sensors often tend to be sensitive to more than one physical quantity. Pressure sensors
show false signal when they are exposed to vibrations. Sophisticated pressure sensors
therefore use acceleration compensation elements in addition to the pressure sensing
elements. By carefully matching those elements, the acceleration signal (released from the
compensation element) is subtracted from the combined signal of pressure and acceleration to
derive the true pressure information.

Vibration sensors can also be used to harvest otherwise wasted energy from
mechanical vibrations. This is accomplished by using piezoelectric materials to convert
mechanical strain into usable electrical energy.

Sensing materials

Two main groups of materials are used for piezoelectric sensors: piezoelectric
ceramics and single crystal materials. The ceramic materials (such as PZT ceramic) have a
piezoelectric constant / sensitivity that is roughly two orders of magnitude higher than those
of single crystal materials and can be produced by inexpensive sintering processes. The
piezoeffect in piezoceramics is "trained", so unfortunately their high sensitivity degrades over
time. The degradation is highly correlated with temperature. The less sensitive crystal
materials (gallium phosphate, quartz, tourmaline) have a much higher – when carefully
handled, almost infinite – long term stability.
SOFTWARE
 MPLAB

INTRODUCTION

MPLAB is a Windows program package that makes writing and developing a program
easier. It could best be described as developing environment for some standard program
language that is intended for programming a PC computer. Some operations which were done
from the instruction line with a large number of parameters until the discovery of IDE
"Integrated Development Environment" are now made easier by using the MPLAB. Still, our
tastes differ, so even today some programmers prefer the standard editors and compilers from
instruction line. In any case, the written program is legible, and well documented help is also
available.

MPLAB CONSISTS OF

• Grouping the projects files into one project (Project Manager)

• Generating and processing a program (Text Editor)
• Simulator of the written program used for simulating program
• Function on the microcontroller.

REQUIREMENTS

• PC compatible computer 486 or higher

• Microsoft Windows 3.1x or Windows 95 and new versions of the Windows
Operating system

• VGA graphic card

• 8MB memory (32MB recommended).
• 20MB space on hard disc
• Mouse

HITECH C

INTRODUCTION

The HI-TECH C Compiler is a set of software, which translates programs

written in the C language to executable machine code programs. Versions are available
which compile programs for operation under the host operating system, or which produce
programs for execution in embedded systems without an operating system.

FEATURES

Some of HI-TECH C's features are:

1. A single batch file or command file will compile, assemble and link entire programs.

2. The compiler performs strong type checking and issues warnings about various
constructs which may represent programming errors.

3. The generated code is extremely small and fast in execution.

4. A full run-time library is provided implementing all standard C input/output and other
functions.

5. The source code for all run-time routines is provided.

6. A powerful general purpose macro assembler is included.

Programs may be generated to execute under the host operating system, or

customized for installation in ROM.

ADVANTAGES
 ADVANTAGES

• It’s one type of preventive maintenance.

• To avoid major accidents.

• Maintenance free operation.

• Efficient & Economy.

• Highly reliable.

• Long life.

APPLICATION
 APPLICATION

 All industrial applications.

 Spinning mills.

 Paper mills.

 Atomic power plant.

BIBILIOGRAPHY
 BIBILIOGRAPHY

WEBSITE REFERENCE

www.datasheetarchive.com

www.microchip.com

www.google.com
 BOOK REFERENCE

1. Microprocessor by Nagoor Kani

2. Programming In ANSI C by Balagurusamy

3. Embedded C by jerk

CONCLUSION
Conclusion

The project designed mainly for industrial applications by preventing the accidents
during loosing of parts.

Dynamic Vibration Analysis or Process Vibration Alarms will provide a proven

technology to predict failures in rotating machinery and improve machine reliability.

In this technology is used to prevent collisions while the operator is using the cruise
control on the machines. In future, we can guide the industrial procedure through speech
circuit with the project.

ENTREPRENEURSHIP
ENTREPRENEURSHIP

Basics of Entrepreneurship

It is a well-known fact that the scope of for absorbing the ever increasing number of
unemployment in government departments is very much restricted on account of various
factors. Absorption of unemployment people government service takes place either on
account of retirement of the existing staff or due to launching of development programs. The
employment so generated covers only a segment of the unemployed. The private sector is
also offering very little opportunity to the young unemployed people due to various reasons.
In such adverse situation the Indian youth has to wage a bitter fight to solve the problem of
unemployment.

The plan document of our country lays emphasis on self-employment to reduce

unemployment in the country. We are a developing country and there is a wider scope for the
development of self employment to all types of job. Industrial development in a country
depends greatly upon the type of human resources the country possesses. A country may be
rich in material resources and capital, but if entrepreneurship is lacking, the utilization of
resources would not be as expected. The developing economics of resources would not be as
expected.

Concept

Entrepreneurship prevails environment in a country. Entrepreneurship being an

innovator who introduces something new into the economy, a method of protection not yet
tested by experience in the branch of manufactured concerned, a product with which the
consumes are not familiar, a new source or raw materials, or a new market higher exploited
and similar other innovations. An entrepreneur is one who starts an industrial venture or a
business of his own. Entrepreneurship would include undertaking manufacturing activities,
business or crafts etc., Entrepreneurship is also associated with a risk assuming function.

Entrepreneur

An entrepreneur is said to be a person who organizes, manages and issue the risk for a
business or enterprise. Commonly entrepreneur is understood to be those persons who start
build their own enterprise rather than taking up a job. Entrepreneurship is the trait taking up
own enterprises.

Role of entrepreneurship

An entrepreneur is a part of industrial society. He is responsible for not only making

his own source of live hood but also for creating avenues of employment for others and
making additions to the gross national product. If a larger number of entrepreneurs set up
enterprise of their own, there is a great deal of transformation of an area. The industrial
entrepreneurs are thus the agents of charge in removing back wardens and disparities of an
area. An entrepreneur has a great social responsibility.

An enterprise consists of not only those who manage it but a host other segments of society,
workers, consumers, the state and the surrounding community.

Some of the qualities are inherent but the others are mostly acquired. Broody speaking
four qualities are the most important one, e.g. intelligence, motivation, knowledge and
opportunity. While the first one is inherent, a continuous process generally gains the
knowledge, the qualities of entrepreneurs further be sub-divided as under

 Capacity to take risk

 Capacity to work hard
 Desire for deferred consumption
 Capacity to take advantage of an external situation
 Imagination
 Emulation
 Initiative
  Sociability and flexibility
 Inventive ability and
 Knowledge, both informative and technical.
Expectation

 Increase number of industries is expected from the entrepreneurs that

they will help to.
 Increase production
 Earn foreign exchange through exports
 Develop the underdeveloped parts of the country.
 Develop economy

Small – scale industries facilitate production of consumer goods locally and help
reduction of prices. Some of the important measures of assistance now available are briefly
noted below:

1. Technical assistance: complete technical, economic and managerial

consultancy services are provided to SSO through Small Industries Services
Institute (SISI) and Industrial Extension centers.
2. Assistance for obtaining raw materials: small – scale units are helped to obtain
controlled indigenous raw materials through state director of industries and
imported raw materials through State Trading Corporation of India (STC).
3. Supply of machinery Hire Purchase: The National Small Industries
Corporation (NSIC) is giving assistance to small scale units by supplying
machinery to them on deferred credit basis.
4. Marketing assistance: SS units are helped to market their products through
Trade centers and by participating in government’s Stores Purchase
Programme.
5. Assistance to small entrepreneurs: Entrepreneurial Development programmer
is conducted by SSI and Small Industries Development Organization (SIDO)
to give necessary training to young entrepreneurs. District Industries Centre
(DIC) provides under a single – roof all the services and support required by
the small and village industries at pre – investment, investment, investment
 and post investment stages.
6. Financial assistance : SS units are helped by providing various financial
assistance like loans, subsides, and hire – purchase scheme through various
agencies like State Finance Corporation NSIC, State Directorates of
Industries, commercial banks, Industrial Development Bank of India (IDBI) ,
and National Bank for Agricultural and Rural Development (NABARD) .
7. Special incentives : Special inducements like the following are offered by the
government for development of entrepreneurship.
a. Capital subsidy up to 15% in backward areas
b. Income Tax exemption for five years.
c. Exemption from Central excise duty.
d. Deduction of depreciation from net profit.
e. Concessions in Stamp duty.
f. License to import raw material.

Self-employment schemes

The following are the four important government schemes for prompting self-
employment.

i. District Manpower Planning and Employment Generation Council

The Council prepares a list of investment opportunities in the self-
employment in the district. The major objective of the council is to remove the
handicaps and difficult faced by the youth in entering self-employment project.

ii. Employment Exchange

A special Vocational Guidance Unit functioning in every Employment
Exchange with the object of giving guidance and motivation to unemployed
persons to take up self employment ventures. In addition to furnishing information
on self-employment projects, until also helps in obtaining loans from the banks.

iii. The Prime Minister Scheme for providing self-employment to educated

 Unemployed youth.
The objective of the scheme is to encourage the educated unemployed
youth to undertake self-employment ventures in industry, service and business
through provision of a package of assistance.

The scheme covers all unemployed youth who are matriculates and above, and in
the age group of 18 to 35 years. District Industries Centers (DIC) are assigned the
operational responsibility of the scheme.

iv. Self employment scheme for TRYSEM – trained youth

TRYSEM stands for “Training of Rural Youth for Self-Employment”,
It is a scheme by which rural youth are trained in semi engineering trades in
Industrial Training Institutes and Polytechnics. lThey youth are provided wit5h
financial and other assistance from Government I the form of subsidy drawn from
Integral Rural
Development Program (RDP) and as credit from commercial banks RS.3000 to
Rs.10,000.

The Scheme is implemented by a Task Force under the Chairmanship of District

Collector and with District Employment Officer as Member Secretary and Project officer
(DRDA). DDO and Lead Bank Manager as members.

Product Selection

A prospective entrepreneur should first prepare a shore list of product lines that he
wants to establish. Then, he should select the product to be manufactured based upon market
survey and demand survey, financial implementations involved, technical know-how
available, and his own experience in the line.

Market survey involves the following:

• Study similar product available in the market that can be probable

 Competitors.
• Analyze them in regards to their utility, quality and cost.
• Check whether it is a seasonal product or needed through out the year.
• Find the probable extend of the market.
• Find whether the product can be exported.
• Explore the possibility of manufacturing in collaboration with a foreign
company.
• A demand survey is made to determine
 Whether survey demand for the product is or inelastic.
 The trend of the demand.
 The composition and pattern of the potential users.

Site Selection

The important factors to be considered in selecting the site for an industry are given
below.

• Nearness to raw material: It will reduce the cost of transportation of raw

materials to the factory.
• Nearness to market: It will reduce transportation cost of the finished products
and also help to catch the share of the market.
• Easy availability of labor: If highly skilled workmen are required, it is better to
locate the plant near a large town.
• Availability of power and fuel: Electrical power and fuel required for the plant
should be easily obtainable in the area, Reliability of power supply must be
ensured.
• Availability of water: Water for drinking and for other purposes should be
easily available. If the process requires large quantity of water, then the plant
should be located near a major water source.
• Land-topography: Cost, probability of floods. Earthquakes, etc are to be
considered.
• Industrial areas: Notified industrial areas will be advantageous due to the
availability of ready infrastructure and other benefits.
• Other major factors: Presence of related industries, facilities for expansion,
housing facilities, and nearness of public amenities like hospitals and schools,
 security problems, local and attitude of local people.

Plant Layout

Plant layout means the disposition of the various (equipments, material, manpower,
etc) and services of the plant within the area of the site selected. Plant layout begins with the
design of the factory building and goes up lathe location and movement of a worktable. All
the facilities like equipments, raw material, machinery, tools fixtures,

Workers, etc, are given a proper place. In deciding the place for equipment, the supervisors
and workers who nave to operate them should be consulted.

There are three types of plant layout:

1. Process Layout (functional layout) in which all machines or process of the

same types is grouped together in the same area.
2. Product Layout (line layout) in which equipments regardless of process is
arranged as per the sequence of operations in which a given product will be
manufactured.
3. Layout by fixed position (static product layout) in which the product is too big
(e.g. ship, airplane) or too heavy to be moved from one place to another and is
consequently fixed in one place, and men and machines are brought to the
product to perform the required operations. Whatever by the type required,
certain basic principles must be observed. While preparing the plant layout.

These are:

1. Placement of facilities in a logical and balanced manner.

2. Minimum movements for workers and materials
3. Smooth and continuous flow of operations
4. Optimum space utilization.
5. Flexibility
i. Private Limited Company
ii. Public Limited Company
Each one has its own advantages and disadvantages. An entrepreneur’s choices of the
type of the organization will primary depend upon the nature of the business to be started and
his own preferences together with the amount of capital he can contribute.
Registration

The prospective entrepreneur in the small – scale sector need not obtain any Industrial
Licenses, provided the item of manufacture is not governed by special regulations. However,
to facilitate identification, the Directorate of Industries (through District Industries Center -
DIC) issues certificates registering a unit as a Small Scale / Ancillary / Tiny Unit.

Registration is done is two stages, Via, provisional and permanent. The issue of
Provisional certificate almost automatic, with Unit / ail validity of 6 months and with a
further extension for another 6 months.

Financial Assistance

With a view to ensure adequate of funds, the small scale Industrial frame work for the
flow of Financial Assistance to small

scale sector comprises of banks (Commercial Banks, Co-Operative banks, Regional rural
banks). State Financial Corporation, National Small Industries Corporation INSIC and State
Small Industries Corporations (SSIDCS).

The NSIC and SSID’S provide Financial Assistance in the form supply of Machinery and
hire purchase basis.

A National Bank of Agriculture and Rural Development (NABARD) has recently

been setup to meet the financial requirements of artisans, Small Scale Industries, Industries
those engaged in the field of Handicraft and other rural craft.

Commercial Banks

The Reserve Bank of India issued instructions that no worth wile proposals of the
Small scale unit should be rejected merely on the ground that these are not supported by
adequate security. The commercial Banks have been advised by the Reserve Bank of India to
give special Attention to the needs of the priority sector borrowers, particularly of the weaker
section.

Small scale Industrial units also being charged lower rates of interest on their
borrowings from commercial Banks.
State Financial Corporations

Provide medium and long-term Loans to Small Scale Industries, granting Loans raised
by Industrial undertakings and differed payments and subscribing to stocks, Shares and bonds
of an Industrial Concern.

Lead Banks

The Scheme is designed to enable the bank to work effectively as an Instrument of

development. Under the scheme, the district in the country have allocated to different
commercial banks each of whom is expected to act as a consortium and as a leader of the
financial institutions operating in allotted districts in matters relating to deposit mobilization,
identifying of prospective avenues for financial assistance and ensuring adequate credit flow
for the various development programs of the districts.

Institutional support

The success of Small Scale industries depends solely on the well – established
institutional setup. In order to accelerate the small industries development, government at the
central and state levels has setup a number of development agencies / institutions. Functions
of some these are mentioned.

1. District Industries Center (DIC)

Each district has a DIC at its headquarters. The main responsibility of DIG is to act as
the chief coordinator or multi functional agency in; respect of various governments
can get all assistance from DIC for setting up and running the industry in rural areas.
Each DIC has one General Manager in the rank of Joint Director of industries as the
head and seven managers each looking after separate functional area.

• Identification of Entrepreneurs.
• Selection of Projects
• Provisional registration under SSI
• Purchase of fixed Assets
• Clearances from Various Departments.
• Assistance of Raw Material supplies.
 • Interest – Free Sales Tax Loan
• Subsidy Schemes.
• Training Programs
• Self – employment for Unemployed Educated Youth.
District Industries Centers are supposed to provide pre – investment and post –
investment assistance to entrepreneurs under one roof.

2. Small Industries Development Organization

SIDO is a policy-making, co-ordination and monitoring agency for the development
of small – scale entrepreneurs. It maintains a close liaison with government, financial
institutions and other agencies, which are involved in the promotion and development
of small-scale units.

Functions

The main functions of the SIDCD are co-ordination, industrial development and
industrial extension service. Some important functions are:

a. To assess the requirements of indigenous and imported raw materials and components
for the small-scale sector and to arrange their supplies.
b. To collect data on consumer items, which are imported and encourage the setting up
of new units giving them coordinate assistance.
c. To prepare model schemes, projects reports and other Technical literature for
prospective entrepreneurs.
d. To assist and advise the Controller of Capital issues in regard to the issue of import
licenses and the imposition of import restrictions on various products whose
manufacture has already been undertaken indigenously be the existing or new units.
e. To secure reservations of certain products for the SSIS.

3. National Small Industries Corporation Limited (NSIC)

The NSIC was setup in 1955 with the objective of supplying machinery and
equipment to small enterprise on a hire-purchase basis and assisting them in procuring
government orders for various items of stores. The corporation’s head office is at
Delhi and it has four regional officers at Delhi, Bombay, Madras and Calcutta, and
 eleven branch offices. It has one central liaison office at Delhi and depots and sub-
centers.

3. The main functions of NSIC are

• To develop small scale units as ancillary units to large scale industries.

• To provide SSIS with machine on hire-purchase basis
• To assist small enterprises to participate in the stores purchase Programme of the
Central Government.
• To assist small industries with marketing facilities.
• To distribute basic raw materials through their depots
• To import ad distribute components and parts actual small scale users in specific
industries and
• To construct industrial estates and establish and run prototype production-cum-
training centers.

4. Directorates of Industries of the State Governments

The small-scale industries are a state subject and, therefore, the development and
implementation of the schemes of assistance to SSIS is the primary responsibility of the State
Government Directorates of Industries of Industries in each State do the work relating to the
development of industries in general and small scale industries in particular. Each directorate
is staffed with administration and small scale industries in particular. Each directorate is
staffed with administration and technical officers at State staff in each district.

Forms of Business Enterprise Topics

• Sale Proprietorship
• Partnership
• Private Limited
• Public Limited
• Co-operatives
• State enterprise
Sole Proprietorship

• Ownership when applied to an industrial enterprise means title to and possessions of

the assets of the enterprise, the power to determine the policies of operation, and the
right to receive and dispose of the proceeds.
• It is called a single ownership when an individual exercise and enjoys these rights in
his own interest.
• A business owned by one man is called single ownership.
• Single ownership does well for those enterprises, which require little capital and lend
themselves readily to control by one person.
• Examples of enterprise run by single owner are printing press, auto retail trades,
service industries and small engine forms.
• In single ownership, one person contributes the original assets to start the business,
maintains and controls business operation, reaps full benefits in terms of profit and
full liable for all debts associated with the business.

Partnership

• A single owner becomes inadequate as the size of the business enterprise grouse. He
may not be in a position to do away with a1 the duty and responsibilities of the grown
business.
• At this stage the individual owner may associate with him more persons who have
either capital to invest or possess special skill and knowledge to make the existing
business still more profitable.
• Such a combination of individual traders is called partnership.
• Partnership may be defined as the relation between persons who have agreed to share
the profits of a business carried on by all or any of them acting for all. Individuals
with common purposes join and partners and they put together their property, ability,
skill, knowledge, etc, for the purpose of making profits.
• In brief, partnership is an association of two or more (up to 20) persons to carry an as
co-owners of a business for profit.
• Partnerships are based upon a partnership agreement which i.e. generally reduced to
writing.
• It should cover all areas of disagreement among the partners. It should define the
authority, right and duties of each partner.
It should specify how profit and losses will be divided among the partners, etc.

Private Limited

• The capital is collected from the private partners; some of them may be active while
others are sleeping.
• Private limited restrict the right to transfer shares, avoids public to take up shares or
debentures.
• The number of members is between two and 50, excluding employee and ex-
employee, share holders.
• The company need not file document such consent of directors, list of directors, etc.
the register of joint stock companies.
• The company need not obtain from the register, a certificate of commencement of
business.
• The company need not circulate the balance sheet, profit and loss account etc, among
its members, but it should hold its annual general meeting and place such financial
state rents in the meeting.
• A private company must get its accounts audited.
• A private company has to send a certificate along with the annual return to the register
of joint stock companies stating that it does not have shareholders more than 50
excluding the employee and employee shareholders.
• Actually, a private joint stock company resumes much with partnership and has the
advantage that big capital can be collected than could be done so in partnership.

Public Limited

• In public limited company, the capital is collected from public by issuing shares
having small face value (Rs. 50,20,10).
• The number of share holders should not be less than 7, but there is no limit to their
maximum number.
Co-operatives

• The main aim of the co-operative is to eliminate profit and provide goods an services
to the members of the co-operative cost.
 • Members pay fees or buy shares the co-operative, and profits are periodically
redistributed to them.
• Since each member has only one (unlike in joint stock companies), this avoid the
concentration of control in few hand.
• In a co-operative, there are share holders, a board of directors and elected officers
similar to the corporation.
• There are periodic meetings of share also.
• Special laws deal with the formation and taxation of co-operatives.
• Co-operative organization is a kind of voluntary, demo craft ownership formed by
some motivated individuals for obtained necessities of everyday life at rat.es less than
the market. The principle behind the co-operative is that of co-operation and self.

DATASHEETS