Lean Manufacturing Competitiveness Scheme

The Government of India (GoI) has upscaled the Lean Manufacturing Competitiveness Scheme (LMCS) for Micro, Small, and Medium Enterprises (MSMEs) to reduce waste in the manufacturing process and improve global competitiveness in the MSME sector. The outcome of implementing lean manufacturing technologies in the MSME sector will lead to:

Cost reduction production per unit
Increase in the productivity of the MSMEs
Enhanced competitiveness in domestic and overseas markets
Better working environment, adding more experts to the firm and managerial competencies
Creating a demonstration effect
Result in rejection
Standardization of process and
Better layout of machines reducing the transportation process

Objectives of the Scheme

To enforce Lean manufacturing techniques for creating healthy global manufacturing competitiveness among MSMEs
To increase productivity by reduction of wastage in the manufacturing process
To achieve the highest level in quality of products with very low operational expenditure
To enhance Inventory management for a better flow of goods from manufacturers to warehouses
To create better Space management
To create better management systems to eliminate direct waste and
To create a culture of continuous improvement through innovative practices

Salient Features

The Lean Manufacturing Competitiveness Scheme was initiated as a pilot process during 11th Five Year Plan. National Productivity Council was selected as National Monitoring and Implementing Unit (NMIU) for facilitating implementation and monitoring of the Scheme. The Lean Techniques started in 89 Mini Clusters and successfully completed work in 59 Mini Clusters. The Scheme was again vigorontly implemented in September, 2013 considering the recommendations of the evaluation report conducted by Quality Council of India. The evaluation report on pilot process of LMC Scheme has recommended the continuation of the Scheme as the units was able to acheive benefits with 20% increased in productivity. NPC and QCI have been selected as National Monitoring and Implementing Units (NMIUs) for the up-scaled scheme. GoI along with Lean Manufacturing Consultants (LMC), work with MSMEs to provide educational and financial support for better productivity and to create more awareness across the country. GoI has started programmes and allotted funds to promote LMCS; they are:

S. No.	Topic	Title/Allotted Members	Funds allotted
1	Awareness Programme (one day)	For mobilization of MSMEs and other stakeholders	Upto Rs.70,000/per programme
2	National Workshop (one day)	On Lean Manufacturing for all stakeholders	Upto Rs.5 lakhs/per workshop
3	Residential Training (3 days)	For implementing agency officials	Upto Rs.3 lakhs/per programme
4	Orientation/Training Programmes	For Lean consultants	Upto Rs.2 lakhs /per programme
5	Visiting clusters	For IAs/NMIU/SSC	Upto Rs.10 lakhs/per visit

Other programmes include:

Collaborations with various International Institutions for Consultants specialized inputs for MSME-Dos, NMIU, Consultants, Mini Clusters, International Training/Study of Global Best Practices, etc.
Newsletters, Web site, Publications, Best Practices, publicity, etc.

The following institutions will implement LMCS:

National Monitoring and Implementation Unit (NMIU)
Project Monitoring and Advisory Committee (PMAC)
Implementing agencies (IA) identified by MSME ministry

Eligibility Criteria for the Scheme

All MSMEs as per MSME Act 2006
MSMEs included as per executive orders issued by the office of AS&DC (MSME)
Approval of PMAC, NMIU, and IA

Implementation

The LMC Scheme is implemented through the agencies similar to PMAC, NMIU, and IA by following methods:

Awareness programmes and workshops are being organized to create awareness among the entrepreneurs and motivated to form mini clusters comprising of 6 to 10 units.
Lean Management consultants will work with the specially formed team Special Purpose Vehicle (SPV)/Distinct Product Group (DPG) for Lean Management in the unit for 18 months.
The 80% of hiring cost of LMC is reimbursed through NMIUs to SPVs/Units and 20% of the cost has to be borne by the SPVs/units.