Govt launches 'Lean Manufacturing Scheme' for MSMEs

The government today launched 'Lean Manufacturing Scheme' for the micro, small and medium units to enhance the manufacturing competitiveness of the sector, battling the global demand recession.

The objective of this scheme is to enhance the manufacturing competitiveness of the micro, small and medium enterprises (MSMEs) by applying lean techniques to identify and eliminate waste in the manufacturing process.     

"The scheme would be implemented initially in 100 clusters (in the industries having potential for improvement in competitiveness and productivity) on pilot basis in one year," Minister of State, Independent Charge, MSME, Dinshaw Patel said.     

He said, initially, under this scheme the government has made a provision of Rs 31 crore.     

The clusters, each a group of about 10 units, would be selected from different parts of the country and would undergo lean interventions for about a year, MSME Secretary Dinesh Rai said.     

During the end of the first year, an impact assessment study would be carried out for these 100 clusters and the outcome of the report will form the basis for upscaling this programme to cover another 300-500 clusters in the subsequent year, Rai said.  

Consultants would be deployed to identify cluster- specific needs who will suggest specific lean techniques for intervention in the selected mini-clusters.     

As engaging consultants is quite expensive for MSME units, the government will contribute up to 80 per cent of this fee while the remaining charge will have to be borne by the beneficiary units as part of the scheme, Rai said.     

The purpose of the lean techniques would be to assist MSME units in reducing their manufacturing costs through proper personnel management, better space utilisation, scientific inventory management, improved process flows and reduced engineering time.

Lean Manufacturing Programme will also lower costs and improve the quality of products, which will enable these products to compete in national and international markets, Rai added.     

There are about 13 million MSME units in the country which employ over 42 million people. The sector contributes over 45 per cent to the country's industrial production and 40 per cent to the total exports.