Union Minister Narayan Rane has launched the MSME competitive lean scheme to
boost the manufacturing industry in India by improving quality, productivity,
performance and capability of manufacturers.
The objective of MSME competitive
lean scheme is to provide a roadmap to global competitiveness for the MSMEs of
India. This scheme also aims to transform MSMEs into world class manufacturers by
changing the mindsets of manufacturers.
PM Shri Narendra Modi informed that this
scheme is a part of government’s efforts to strengthen the MSME sector, which is a
key pillar of India’s economic growth. Read the complete blog to know how MSME
competitive lean scheme will boost the manufacturing industry.
Important Highlights of MSME Competitive Lean Scheme:
- The government has encouraged manufacturing industries to implement
LEAN manufacturing tools like Kaizen, KANBAN, 5s, Poka, Visual
workplace and Yoka.
- The government will contribute 90% of implementation cost for
handholding and consultancy fees to get guidance from trained and
competent LEAN consultants.
- The main goal of this scheme is to help manufacturing industries in
reducing wastage, increase productivity, and finally become profitable.
- There will be an additional contribution of 5% for the manufacturing
industries that are owned by SC/ST and Women entrepreneurs.
- There will be an additional contribution of 5% for the MSMEs located in
the North east region in India.
- There will be an additional contribution of 5% for MSMEs which are
registering through OEM organisations.
- MSME competitive lean scheme also helps manufacturing industries to
improve work safety, expand their markets and quality to become
Implementation of MSME Competitive Lean Scheme:
The implementation duration of this MSME competitive lean scheme was earlier
marked as 1.5 years. But now the scheme is divided into 3 phases: basic,
intermediate and advanced. The scheme will first cover the manufacturing sector
and then services sector.
The revamped MSME Competitive LEAN scheme helps
enterprises and stakeholders as the government will contribute 90% of lean
implementation cost as against 80 per cent previously.
The MSME ministry informed that the scheme will play a vital role in creating
awareness among industries about LEAN manufacturing practices and motivate and
incentivize them to attain LEAN levels to become MSME champions.
What Is Lean Manufacturing?
Lean Manufacturing is a set of tools and techniques that aim to eliminate waste and increase
efficiency in manufacturing industries. The ultimate goal of Lean Manufacturing is to deliver
value to customers by producing high quality products in the shortest possible time at the
lowest possible cost.
In Lean Manufacturing waste refers to any activity that does not add
value to the product or the process and thus should be eliminated or minimised. Lean
manufacturing uses a variety of tools such as value stream mapping, 5S, Kaizen,
Just-in-Time (JIT) production, Kanban and Total Productive Maintenance (TPM).
These Are The Seven Types Of Waste Identified In Lean Manufacturing:
- Overproduction: producing more than what is needed or producing too early
- Waiting: delays in the process
- Transportation: unnecessary movement of materials
- Processing: unnecessary steps in the process
- Inventory: excess raw materials or finished goods
- Motion: unnecessary movement of people or equipment
- Defects: errors or mistakes that require rework
What Are The Benefits of Lean Manufacturing:
1. Cost Reduction: Lean Manufacturing helps companies to reduce costs by eliminating
waste and optimising production processes. By reducing waste, companies can
reduce expenses associated with materials, labour and overhead.
2.Increased Efficiency: Lean Manufacturing enables companies to optimise their
production processes which increases efficiency and reduces lead times. This allows
companies to produce goods more quickly and cost effectively resulting in higher
3.Improved Quality: it emphasises the importance of quality which leads to fewer
defects, fewer customer complaints and higher customer satisfaction. Improved
quality also reduces rework and waste.
4. Improved Safety: Lean Manufacturing includes safety as a key component which
helps to identify and eliminate safety hazards. This leads to a safer work
environment, fewer injuries and reduced costs associated with accidents.
5.Improved Morale: it gives importance to employee involvement and engagement
which leads to improved morale and job satisfaction. This results in a more
productive workforce and lower turnover rates.
6.Increased Flexibility: Lean Manufacturing enables companies to be more flexible and
responsive to changing customer demands. By reducing lead times and improving
efficiency, companies can quickly adjust production to meet changing market
7. Improved Communication: It emphasises the importance of communication and
collaboration which improves the flow of information and reduces errors. This results
in fewer mistakes, less rework and improved productivity.
8. Improved Inventory Management: Helps companies to optimise inventory levels
which reduces inventory carrying costs and frees up capital for other investments.
9. Improved Customer Service: Assists industries to improve customer service by
reducing lead times, improving quality and increasing flexibility.
10. Competitive Advantage: It gives competitive advantage by improving efficiency,
reducing costs, improving quality and increasing customer satisfaction. This results in
higher profits and a stronger market position.
What Are The 5 Principles In Lean Manufacturing:
1.Value: This helps in understanding what the customer wants and needs and working
to provide it in the most efficient way possible.
2. Flow: This helps in reducing bottlenecks and interruptions in the production process
to ensure that everything flows smoothly from one stage to the next.
3. Pull: It will aid in producing products in response to customer demand rather than
producing products in anticipation of demand. This helps to reduce excess inventory
4. Perfection: The 4th principle is to strive for perfection in everything that you do. This
means continually improving processes and eliminating waste even if it means
making small changes to the way things are done.
5. Respect: This will provide them with the training, tools, and resources that they need
to do their jobs effectively and recognize their contributions to the success of the
Are You Interested To Implement Lean Manufacturing Tools in Your Manufacturing Industry?
SoutionBuggy has specialisation in helping manufacturing industries to implement lean
manufacturing tools. Our main objective is to assist clients in identifying areas of waste and
inefficiencies in their operations and developing strategies to eliminate them. SolutionBuggy has a
team of experienced consultants with a deep understanding of the principles and practices of
lean manufacturing, who work closely with clients to tailor solutions to their unique needs
and circumstances. We will also provide guidance to get MSME competitive Lean scheme to
boost your manufacturing industry.
Our approach to implementing lean manufacturing tools typically involves a multi stage
process. In the first stage we conduct a comprehensive assessment of the client’s operations
to identify opportunities for improvement. We use a range of tools and techniques including
value stream mapping, 5S and Kaizen. Based on our findings we develop a customised
roadmap for the implementation of lean manufacturing tools that aligns with the client’s
In the second stage of the process, we work closely with the client’s team to implement the
roadmap. This may involve training employees on lean manufacturing principles, introducing
new processes and developing new performance metrics to monitor progress.
this stage we provide ongoing support and guidance to ensure that the implementation is
proceeding smoothly and that the desired results are being achieved. Finally in the third
stage of the process we help the client to institutionalise the new practices and tools
embedding them in the organisations culture and ensuring that they are sustained over the