Lean Manufacturing Scheme

On July 29, 2009, The Government of India has launched ‘Lean Manufacturing Scheme’ for the micro, small and medium enterprises (MSMEs).
What is This Scheme?
  1. Under this scheme , Micro, Small & Medium Enterprises will be assisted in reducing their manufacturing costs,through proper personnel management, better space utilization, scientific inventory management, improved processed flows, reduced engineering time and so on.
  2. The main objective of the Lean Manufacturing Programme (LMP) is to bring the manufacturing competitiveness in the MSME Sector. Lean Manufacturing involves applying Lean Techniques to identify and eliminate waste and streamline a system.
  3. The focus is on making the entire process flow, not improving only a few operations. Worker empowerment is also emphasized throughout the effort.
  4. This scheme also brings improvement in the quality of products and lowers costs, which are essential for competing in national and international markets. The larger enterprises in India have been adopting Lean manufacturing Scheme to remain competitive, but MSMEs have generally stayed away from such Programmes, as they are not fully aware of the benefits. Besides, experienced and effective Lean Manufacturing Counsellors or Consultants are not easily available and are expensive to engage and hence most MSMEs are unable to afford ‘Lean Manufacturing Scheme’
  5. The scheme would be implemented initially in 100 MSME clusters on a pilot basis in the next 12 months. Govt. has made a provision of Rs. 31 crore that will be later enhanced to cover more such clusters.
  6. The scheme would enable these industries to become more competitive in the local and international markets, the Minister said and urged all industries and associations to derive the maximum advantages from these schemes in the period of recession.

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