Benefits of Lean Manufacturing to SME/MSME

The Micro, Small, and Medium Enterprises (MSMEs) are a vital part of the Indian economy contributing to over 45% of industrial production and around 40% of the total exports, forming 8% of GDP and employing over 50 million people. The problems MSMEs are facing today; are to catch up with the competitive market, lack of adequate capital, poor infrastructure, and access to modern technology.

Lean Manufacturing (LM) is a very important technique of minimizing waste without sacrificing productivity. LM involves applying Lean Techniques (e.g. Total Productive Maintenance (TPM), 5S, Visual control, Just in Time, etc.) to identify and eliminate waste and streamline a system. The focus is on eliminating wastage in the production/manufacturing/service process, not just improving only a few operations.


Reduced cost of production – Creating a flow by sorting the materials, tools, supplies, and equipment required for production and eliminating any wastage can result in reduced inventory space (WIP up to 70%) and increased available work area. Identifying waste in 5M(Man, Machine, Method, Material, and Management) and eliminating them results in reduced cost.

Increased Productivity – Setting up the necessary things in order, i.e organizing tools, materials, machinery, and workstation as per the production procedure creates a course in the work area. This eliminates misspend in production, resulting in increased productivity and efficiency up to 30% – 40%. Human interference in production can also be eliminated /reduced by the proper organization.

Increased quality – A clean workplace results in a hygienic environment for the laborers, can avoid contamination and habitual maintaining can increase the life of the machinery. This can result in enhanced quality of the product.

Reduced Capital Requirements – The ability to implement these improvements periodically in the manufacturing process results in reduced engineering time, waste materials, and labour. Strategic planning of production can eliminate any wastage resulting in the requirement of lesser capital.

Who should you reach out to?

Lean Manufacturing Consultants – After the analysis of a manufacturing system, they find the loopholes (MUDA) in the system and suggest solutions to resolve the issues/increase productivity. They train the staff accordingly in a simple yet efficient way to escalate growth. They also serve specific process needs like:-

Engineering Consultants –  Primarily offer independent technology-based intellectual services in the market for efficient manufacturing, educating the manufacturers to improve their process design of engineering departments to make them more competitive.

Industrial Consultant – An industrial consultant can help offer the best solutions to inefficient use of industrial equipment and components to comply with customer’s highest quality needs.

Benefits by the Government of India

Since MSMEs are indispensable, the government has undertaken tasks such as Lean Manufacturing Competitiveness Scheme (LCMS) to eliminate their problems in order to ease production.

The Government provides up to 80% subsidy in consultant’s fees for each mini-cluster leaving the participant to bear just 20% of the fee. An MSME and holder of a Udyog card are eligible for the subsidy.

SolutionBuggy is an exclusive and dedicated platform for the Manufacturing Sector in India. It has been a pioneer in connecting Lean management consultants to the manufacturing sector. It connects SMEs and Large Scaled Industries with Industrial Consultants/ Experts and Industrial Product Suppliers over the internet for collaboration and success, where industries can share their issues/ problems and post requirements; consultants/ experts can showcase their capabilities and offer services and solutions and suppliers can list their products to match the industry requirements.

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