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Lean Manufacturing Competitiveness for MSMEs

Ministry of Micro, Small and Medium Enterprises

Under the Scheme, MSMEs will be assisted in reducing their manufacturing costs, through proper personnel management, better space utilization, scientific inventory management, improved processed flows, reduced engineering time and so on. LMCS (Lean Manufacturing Competitiveness Scheme) also brings improvement in the quality of products and lowers costs, which are essential for competing in national and international markets. The larger enterprises in India have been adopting LMCS to remain competitive, but MSMEs have generally stayed away from such Programmes as they are not fully aware of the benefits. Beside these issues, experienced and effective Lean Manufacturing Counsellors or Consultants are not easily available and are expensive to engage and hence most MSMEs are unable to afford LMCS.

Scheme Benefits & Highlights
  • Financial assistance is provided for implementation of lean manufacturing techniques, primarily the cost of lean manufacturing consultant (80% by GoI and 20% by beneficiaries). 
  • Lean manufacturing consultants (LMCs) will raise bills for services provided to Special Purpose Vehicle (SPV). SPV will, in turn, pay the first installment of 20% to the LMC and will obtain reimbursement from the NMIU. Thereafter, Ministry of MSME will transfer funds to the NMIU. SPV payments to LMC will be on a milestone basis in 5 tranches, each of 20% of the amount fixed.

Lean Manufacturing Consultant: 

An Individual or a Consultancy Firm duly registered with or certified by a reputed certification agency in the field of manufacturing technology, quality control etc., would be an eligible entity to participate in the Scheme as a LMC. SSC would reserve the right of considering reputed consultants with requisite qualification and exemplary track record in the field of LM consultancy as an eligible entity.

 

For more details: http://www.dcmsme.gov.in/schemes/leanmanfucturing10.pdf

Eligibility

The Scheme is open to all the units throughout the country which qualify as Micro, Small or Medium as per the definition of the MSME Act. (The Micro, Small and Medium Enterprises Development Act, 2006.) The units are required to form a Mini Cluster (These units would work with the assigned LMC to implement the specific LM techniques) of 10 or so units by signing among themselves a Memorandum of Understanding (MoU) to participate in the Scheme. MCs are required to formalize their association by forming a SPV, whose form could be any of the following:

(a) “Trust” as per the Indian Trust Act, 1882 or any similar Trust Act or

(b) A private limited company incorporated as per Indian Companies Act, 1956 or

(c ) A “society” under The Societies Registration Act, 1860 (including any of its State equivalent) or

(d ) Any similar entity as approved by SSC from time to time

For more details, kindly refer to the scheme guidelines.

Registration Process

A group of SMEs can apply for the scheme. Either a recognised SPV can apply on its own, or a mini cluster can be formed by a group of 10 or more such units.

The SPV can apply to the National Monitoring and Implementing Unit (National Productivity Council for the Scheme) in the given format under the application form head: http://www.dcmsme.gov.in/schemes/leanmanfucturing10.pdf

JDC (LEAN), O/o DC, MSME

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