Bhoomika Singh
Union Minister for MSME Narayan Rane launched the MSME Competitive (LEAN) Scheme on March 10, 2023. Speaking on the occasion Rane said that LEAN has the potential to become a national movement and that it aims to provide a roadmap to global competitiveness for the MSMEs of India.
He added that LEAN will not only attempt to improve quality, productivity & performance but also can change the mindsets of manufacturers and transform them into world-class manufacturers. Union MoS, MSME Bhanu Pratap Singh Verma also addressed the gathering.
This scheme is an extensive drive to create awareness amongst MSMEs about LEAN Manufacturing practices and motivate and incentivize them to attain LEAN levels while also encouraging them to become MSME Champions.
Under the scheme, MSMEs will implement LEAN manufacturing tools like 5S, Kaizen, KANBAN, Visual workplace, Poka Yoka etc under the able guidance of trained and competent LEAN Consultants to attain LEAN levels like Basic, Intermediate and Advanced.
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Lean Manufacturing or Lean Production, which is often known simply as LEAN, is a production practice that considers the expenditure of resources for any goal, other than the creation of value for the end customer, to be wasteful, and thus, a target for elimination.
Lean manufacturing includes a set of principles that lean thinkers use to achieve improvements in productivity, quality, and lead-time by eliminating waste through kaizen.
Kaizen is a Japanese word that essentially means “change for the better” or “good change.” The goal is to provide the customer with a defect free product or service when it is needed and, in the quantity, it is needed.
Speaking on the development, Jayanth Murthy, Joint Managing Director South Asia and Africa, Kaizen Institute said “The revamped version of the MSME Lean Manufacturing scheme distinguishes itself from two key factors. First, it has been made considerably systematic in its approach, whether it’s the intervention timeline for MSMEs or its phased implementation.”
“Secondly, it has come at a very ripe time for Indian MSMEs, as they seek to export more in an increasingly slowing global market. Therefore, lean-interventions can play a key role in enhancing their product and cost competitiveness. However, benefits-realization will be critically dependent on the roll-out and implementation,” he added.
Kaizen Institute has had a legacy of advising organizations globally and in India on operational efficiency and LEAN Management and were also one of the partners in the previous phases of the MSME Lean Scheme.
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Through the LEAN journey, MSMEs can reduce wastages substantially, increase productivity, improve quality, work safely, expanding their markets, and finally becoming competitive and profitable.
To support MSMEs, Government will contribute 90 per cent of implementation cost for handholding and consultancy fees. There will be an additional contribution of 5 per cent for the MSMEs which are part of SFURTI clusters, owned by Women/SC/ST and located in NER.
In addition to the above, there will be an additional contribution of 5 per cent for MSMEs which are registering through Industry Associations/ Overall Equipment Manufacturing (OEM) organizations after completing all levels. There is a unique feature to encourage Industry Associations and OEMs for motivating their supply chain vendors to participate in this scheme.
