How MSME can get ahead in business with Lean Manufacturing Competitiveness Scheme

How MSME can get ahead in business with Lean Manufacturing Competitiveness Scheme

Different plans from the DC-MSME were carried out during the eleventh arrangement time frame, including Lean Manufacturing Competitiveness Scheme for MSMEs to profit the MSME sector in India. The plan expects to apply lean assembling procedures to improve the assembling units of MSMEs. Thus, this would intend to build profitability. 


In this endeavor, the public authority will surrender monetary help to 80% of the undertaking cost while restricting it to the principal year. Moreover, the plan tries to help or cover 100 Mini bunches the nation over. Endeavoring to lessen the loss in the plan was affirmed on 08 July 2019.


Objectives of the Lean Manufacturing Competitiveness Scheme

The fundamental objective embraced by Lean Manufacturing Competitiveness Scheme is to improve the assembling profitability of the MSME area. It’s accomplished by expanding the intensity among the groups. Further, efficiency is upgraded by the use of modern lean procedures, that is: 


  • Lessening waste 
  • Commencement of Innovative practices 
  • Increment the intensity 
  • Increment in general creation 
  • Influencing great association frameworks 
  • Developing nonstop improvement 
  • Teaching lean procedures, for example, 
  • All out profitability the executives 
  • 5S-Sort, set all together, Shine, Standardize, and Sustain 
  • Visual substance 
  • Standard Operating Procedures (SOPs) 
  • Without a moment to spare (JIT) 
  • KANBAN framework 
  • Cell Layout 
  • Worth Stream Mapping 
  • Poka-Yoke/Mistake planning 
  • Single Minutes Exchange of Dies 
  • Kaizen barrage/Rapid improvement measure

Features of the Lean Manufacturing Competitiveness Scheme

  1. Initially, the pilot period of the plan was executed with 89 units. Out of which 59 Mini bunches have effectively finished the task with a cost of Rs 16.17 crore. 

  2. Following the report created by the Quality Council of India, the plan was upscaled in 2013 with an expansion in project cost to Rs 240.94 crore. 

  3. A three-level design has been embraced in the plan. 

  • Little bunch 

  • Public Monitoring and Implementing Unit 

  • Screening and Steering Committee 

  1.  Advisors with Special Purpose vehicles are accessible for a year and a half. 20% of the expense of employing a consultant is borne by SPVs, while the rest is repaid by means of NMIUs. 

  2.  Spreading attention to make smaller than normal bunches containing 6-10 units.

  3. The Lean Manufacturing Competitiveness Scheme was begun as a pilot stage in 2009 for 100 Mini Clusters (10 or so producing MSME units) in the eleventh Five Year Plan. The Public Productivity Council (NPC) was chosen as the National Monitoring and Implementing Unit (NMIU) for encouraging execution and checking of the Scheme. Mediation of Lean Techniques began in 89 Mini Clusters and effectively. Work finished in 59 Mini Clusters with consumption of Rs 16.17 cr under the Pilot period of LMCS. 


  1. The Scheme was up-scaled in September 2013 considering the suggestions of the assessment report directed by the Quality Council of India (QCI). The assessment report on the Implementation of pilot LMCS has suggested the continuation of the Scheme, keeping in see benefits adding up to about 20% expanded inefficiency to the units. The up-scaled Scheme affirmed with a Total Project cost of Rs 240.94 cr. (GOI commitment Rs 204.94 cr.) for twelfth Five Year Plan for 500 Mini Clusters. Public Productivity Council and Quality Council of India have been chosen as National Monitoring and Implementing Units (NMIUs) for the up-scaled plan.


Assistance of The Lean Manufacturing Competitiveness

MSME is qualified to benefit from the monetary help of the greatest Rs 36 lakhs for each small bunch. This would be for a time of year and a half. In that, the proportion borne by the Government and Units is 80:20 that is Rs 28.8 lakh by the Government of India, while the units contribute Rs 7.2 lakhs.


Eligibility for Lean Manufacturing Competitiveness Scheme 

All enlisted Micro, Small, and Medium having UAM numbers are qualified to select under the plan. Advantages qualified for undertakings associated with assembling exercises. It is obligatory to frame a relationship with SPV by the accompanying methods: 


  • Trust as per the Indian trust Act, 1882 
  • Joining private restricted organization as per the Indian Companies Act, 1956 
  • Society, under the Society Registration Act, 1860 
  • Elements endorsed by SSC.


Application Process for Lean Manufacturing Competitiveness Scheme


  1. It is critical to approve yourself with the Udyog Aadhar number at the beginning of the application interaction. 
  2. Notice the accompanying plan related subtleties: 
  • Organization subtleties 
  • The lean assembling Technique that will be applied 
  • Public observing and carrying out Unit chose 
  • SPV name 
  • Act and the year 
  • At last, it is important to transfer the essential archives.


To further know the details of the Lean Manufacturing Competitiveness Scheme for MSMEs, you can visit


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