Lean manufacturing programme on anvil to improve competitiveness

The Quality Council of India (QCI) and the National Accreditation Board for Education and Training (NABET) have been appointed as the National Monitoring and Implementing Units (NMIU) for the government's ambitious project of improving the competitiveness of micro, small and medium enterprises (MSMEs) through a programme called 'Lean Manufacturing Competitiveness Scheme' (LMCS).

The scheme will be implemented in 500 mini clusters across the country during the 12th Plan period, according to a news bulletin issued by Knowledge & News Network or KNN, a media platform for MSMEs.

Under the scheme, MSMEs will be assisted in reducing their manufacturing costs through proper personnel management, better space utilisation, scientific inventory management, improved process flows and reduced engineering time through the application of LM techniques. The scheme is basically aimed at reducing "waste" in manufacturing.

The government's basic rationale for undertaking lean manufacturing is to enhance MSMEs' productivity and competitiveness through the application of techniques like reduction of wastage in manufacturing processes, inventory management, space management and energy consumption.

The MSME ministry has launched LMCS because, with competition in the manufacturing sector becoming more intense, enterprises need to adopt efficient practices. While big companies usually have the resources for funding innovation and improving efficiency, SMEs have little time or resources for this activity.

The ministry of micro, small and medium enterprises development commissioner (MSME-DC) has conceived a three-tier structure, including a screening and steering committee (SSC), NMUI, implementing agency and mini cluster/DPG/sub-group/special purpose vehicle to implement the scheme.

At the highest level, SSC will guide, review, monitor and provide overall direction for implementation of the scheme and will be headed by the MSME-DC. NMIU will be responsible for facilitating, implementation and monitoring of the scheme.

NMIU will be required to deal with a number of mini clusters and their technical issues, take decisions on matters of productivity, preparation of reports, recommendations of clusters for approvals and progress.

Apart from other responsibilities as NMUI in the scheme, QCI will also be responsible for empanelment of lean manufacturing consultants for the scheme and it is seeking partnership from eligible individual consultants and consulting organisations.

The MSME ministry has launched LMCS because, with competition in the manufacturing sector becoming more intense, enterprises need to adopt efficient practices. While big companies usually have the resources for funding innovation and improving efficiency, SMEs have little time or resources for this activity.

LM techniques also lead to reduced rejection rates, standardisation of processes and better layout of machines. Implementation of LM techniques has spin-off benefits in terms of training of labour, creation of knowledge, increased labour productivity, lower input costs to other industries, introduction of new production equipment and methods of manufacturing, and the development of a superior work culture.