Lean Manufacturing Competitive Scheme

Micro, Small, and Medium Enterprises (MSME’s) have been the catalyst of economic growth not only in India, but the world over. In India, MSME’s are one of the largest generators of employment, second only to agriculture. Given the innovative nature of our budding entrepreneurs, MSME’s in India have spread their wings in almost all the varied industrial sectors. Lean Manufacturing Competitive Scheme was introduced to make the manufacturing sector of the MSME’s more competitive by using various Lean Manufacturing (LM) Techniques. National Productivity Council and Quality Council of India have been chosen as National Monitoring and Implementing Units (NMU’s) for the scheme. The scheme strives to aid the MSME’s in reducing manufacturing costs through proper space management, efficient utilization of space, scientific inventory management, improved process flow and the likes of it.

What is Lean?

Lean is a systematic approach that helps in identifying and eliminating waste, or in other words ‘non-value added activity’. Non-value added activity refers to those activities which are time-consuming, and drains a lot of resources and space, but does not add to the value of the product or service. The following are some of the benefits of lean:

Quality performance
Fewer Machine and Product Breakdowns
Reduced Inventory levels
Greater levels of Stock Turnover
Effective utilization of space
Increased efficiency
Improved delivery performance
Greater Customer Satisfaction
Improvement in the morale of the employees
Improved supplier relations
Higher profits

Lean Manufacturing involves application of lean techniques such as Total Productive Maintenance (TPM), Visual Control, Standard Operating Procedures, Just in Time, Kanban System, Cellular Layout etc. The objectives of using these techniques include reduction of wastage, enhancement of productivity, launching innovative practices for improving overall competitiveness, inculcating good management systems and imbibing a culture of continuous improvement.

Subsidy

With respect to consultant fee for implementation of lean manufacturing systems, 80% of the cost of implementing lean tools and techniques are borne by Ministry of Micro, Small and Medium Enterprises, while the remaining 20% is funded by the unit.

Lean Manufacturing Consultants

Lean manufacturing consultants could be an individual or Ccnsultancy firm that has been registered with or certified by a reputed certifying agency in the field of manufacturing technology, quality control etc; would be considered an eligible entity to be an LMC. The following are the responsibilities of an LMC:

Access the existing system of each member unit of the concerned Mini Cluster (MC).
Specify the procedures and schedules for the implementation of the LM techniques.
Fix the targets to be achieved by each unit in quantified parameters.
Co-ordinate with each of the units to access and then implement LM techniques.
Respond to specific queries raised by SPV or NIMU on its performance.

Who can apply?

MSME units that satisfy the norms of MSME-Development Act, 2006 are considered eligible to be a part of the scheme, subject to the satisfaction of the following conditions:

The unit has MSME or Udyog Aadhaar registration.
The units are required to form a mini-cluster of approximately 10 units by mutually signing a Memorandum of Understanding (MOU).
The group must form a Special Purpose Vehicle (SPV), who can take the form of a trust, private limited company, Society according to the Societies Registration Act, 1860o or any other approved entity.

The interested units must submit an application to the National Productivity Council (NPC), which is based at Delhi.

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Frequently Asked Questions

Common questions about Lean Manufacturing for MSMEs in India.

The Lean Manufacturing Competitive Scheme is an initiative introduced by the Government of India to help micro, small, and medium enterprises (MSMEs) in the manufacturing sector become more competitive by adopting various Lean Manufacturing (LM) techniques. The scheme aims to reduce manufacturing costs, improve efficiency, and enhance overall competitiveness through proper space management, efficient utilization of resources, scientific inventory management, and improved process flow.

The article outlines several benefits of implementing Lean Manufacturing techniques, including improved quality performance, fewer machine and product breakdowns, reduced inventory levels, greater stock turnover, effective utilization of space, increased efficiency, improved delivery performance, greater customer satisfaction, improved employee morale, better supplier relations, and higher profits.

Under the Lean Manufacturing Competitive Scheme, the Ministry of Micro, Small and Medium Enterprises bears 80% of the cost of implementing lean tools and techniques, while the remaining 20% is funded by the participating MSME unit.

According to the article, a Lean Manufacturing Consultant (LMC) can be an individual or consultancy firm registered or certified by a reputed certifying agency in the field of manufacturing technology or quality control. LMCs are responsible for assessing the existing systems, specifying implementation procedures, setting targets, coordinating with units, and responding to queries from the National Monitoring and Implementing Units (NMIUs).

To be eligible for the scheme, MSME units must satisfy the norms of the MSME Development Act, 2006, have an MSME or Udyog Aadhaar registration, form a mini-cluster of approximately 10 units by signing a Memorandum of Understanding (MOU), and establish a Special Purpose Vehicle (SPV) in the form of a trust, private limited company, society, or other approved entity.

The article does not provide specific details about the responsibilities of the Special Purpose Vehicle (SPV) under the Lean Manufacturing Competitive Scheme. However, it mentions that the interested MSME units must submit their application to the National Productivity Council (NPC) through the SPV they have formed.

The National Productivity Council (NPC) and Quality Council of India have been chosen as the National Monitoring and Implementing Units (NMIUs) for the Lean Manufacturing Competitive Scheme. Their role is to oversee and facilitate the implementation of the scheme across participating MSME units.

The article mentions several Lean Manufacturing techniques, including Total Productive Maintenance (TPM), Visual Control, Standard Operating Procedures, Just-in-Time, Kanban System, and Cellular Layout. These techniques aim to reduce waste, enhance productivity, improve management systems, and promote a culture of continuous improvement.

According to the article, the implementation of Lean Manufacturing techniques can help MSME units in reducing manufacturing costs, enhancing productivity, launching innovative practices for improving overall competitiveness, inculcating good management systems, and imbibing a culture of continuous improvement.

The primary objective of the Lean Manufacturing Competitive Scheme is to make the manufacturing sector of MSMEs more competitive by using various Lean Manufacturing (LM) techniques. The scheme aims to aid MSMEs in reducing waste, enhancing efficiency, and improving overall competitiveness through the adoption of lean principles and practices.