Micro and Small Enterprises (MSEs) have potential to improve both productivity and quality. MSEs can adapt any change easily because of their dynamic nature. Productivity and Quality improvement programs in Medium and Large Manufacturing Units have proved their significance. In India, MSEs play a vital role for economical growth of the country. But micro and small industries have limited resources to implement development programs. Process improvement principles and philosophy applicable to medium and large industries are so universal that these can be applied with or without modification in their inherent character to Micro and Small Enterprises. The purpose of this paper is to identify the areas of improvement in small process industry of producing Exercise Notebook by analyzing its batch production so that productivity and quality enhancement programs can lead to financial benefits. Some tools and techniques such as Benchmarking, Standardization, Kaizen, 5S, Lean Practices, Time-Motion study and Low cost automation has been considered to site operational improvements in this labour intensive industry.