Govt. Launches MSME Competitive Lean (Scheme), Aims to Reduce Waste in Manufacturing Process

The MSME (LEAN) scheme has been revamped in order to reduce wastage in manufacturing process in the MSME sector. The measures adopted by the government with an increased subsidy limit to 90% from earlier 80% on implementation cost of the consultant fees for MSME’s and stage wise segregation of the implementation of lean manufacturing techniques.

The scheme, however, is not mandatory for MSMEs and is currently available for manufacturing units in its first phase of launch.

The aim of the Lean scheme has the potential to become a national movement and it aims to provide a roadmap to global competitiveness for the MSMEs of India,” said MSME Minister Narayan Rane during the launch of the scheme.

The minister further said with several improvements to make the scheme (Lean) simple and beneficial for MSMEs and other stakeholders.

The government’s contribution to trained and qualified new consultants has been enhanced to 90% apart from other benefits,” he said.

• The new scheme will provide an additional subsidy of 5% to MSMEs which are part of the government’s SFURTI clusters, those owned by women or SC-ST entrepreneurs and the ones located in the northeast region.
• MSMEs registering through various industry associations or Overall Equipment Manufacturing (OEM) organizations will have another 5% additional subsidy on the implementation cost of the consultant fees.
• The scheme essentially aims at promoting the adoption of lean manufacturing techniques and methodologies by Udyam-registered MSMEs to reduce rejection rates and production cost along with optimization of space utilisation and resources such as water, energy, natural resources etc
• This in turn will enhance quality in product and processes, production and export capabilities, and overall profitability, according to the scheme’s revised guidelines.
• Under the scheme, MSMEs will be provided handholding towards the implementation of lean tools at three levels – basic, intermediate, and advanced.
• Completion of each stage will be verified through an end-term assessment or assessment by the scheme’s implementation agencies like the National Productivity Council and Quality Council of India along with MSME –DFOs (Development and Facilitation Offices).

According to the guidelines, the basic level, which can be implemented in two months.

These principles include conceptual knowledge on the lead time, Takt Time (the rate at which one completes a product to meet customer demand), resource wastage, value-addition, non-value-added activities, concepts such as 5S, kaizen, visual management, value stream mapping, and introduction of other concepts related to industry 4.0 and lean six sigma.

MSMEs will have access to online technical support in case of doubts at the basic level.

After successful completion of the online assessment examination, units will be eligible for the basic level certification.

The intermediate level will be of six months wherein MSMEs will have to form a Group of Enterprises (GoE) to achieve it.

MSMEs will implement lean tools and techniques with onsite handholding available while the cost of implementation would be up to Rs 1.2 lakh per unit.

The monitoring of the implementation of lean tools will be done by the implementing agencies online for the first four months followed by physical assessments during the last two months, the guidelines noted.

The cost of implementation of the advanced level will be up to Rs 2.4 lakh per unit. The monitoring of the implementation of lean tools will be done by the implementing agencies online for the first seven months followed by physical assessments during the next five months.

Following the completion of the advanced level, MSMEs will be awarded Lean Certificate valid for three years subject to surveillance audit.

MSMEs will have to apply afresh to continue availing of the scheme’s benefits.  During the second phase, the scheme will be available for MSMEs in the service sector as well.

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