MSME Competitive Lean Scheme: Launched, Benefits & Eligibility

MSME Competitive Lean Scheme

MSME Competitive Lean Scheme (LEAN) 2024: Hello Friends welcome to everyone to in this my blog in this blog I am going to inform you about the MSME Competitive Lean Scheme On March 10, 2024, the Indian central government launched a revised version of the MSME Competitive (LEAN) Scheme to encourage micro, small, and medium-sized companies (MSMEs) to adopt specific manufacturing techniques. On Friday, the Union Minister for Small and Medium Businesses, Narayan Rane, unveiled the revamped MSME Competitive (LEAN) program, which has been modified to provide greater advantages for businesses and stakeholders. Under the new system, the government’s share for handholding and consulting fees will be 90% of the implementation cost, up from 80% in the previous scheme. Additionally, the government has eliminated the requirement for a special-purpose vehicle in each cluster. For more detailed information on the MSME Competitive (LEAN) Scheme, including its highlights, objectives, features, benefits, assistance, and application process, please refer below.

MSME Competitive Lean Scheme 2024

The MSMEs will be provided support to reduce their production costs through various measures such as effective staff management, optimized space utilization, scientific inventory management, improved process flows, reduced engineering lead times, and other similar initiatives under the plan. The Lean Manufacturing Competitiveness Scheme (LMCS) not only enhances product quality but also reduces prices, making it essential for MSMEs to compete in both domestic and foreign markets. Despite its advantages, MSMEs have not typically utilized such programs as they are unaware of their benefits, and skilled Lean Manufacturing Counselors or Consultants are challenging to find and expensive to hire. As a result, the majority of MSMEs cannot afford LMCS. The scheme has been approved as a pilot project for implementing lean techniques in 100 mini-clusters.

key highlights of the MSME Competitive Lean Scheme

The objective of the MSME Competitive Lean Scheme

The main objective of the Lean Manufacturing Competitiveness Scheme (LMCS) is to enhance the manufacturing competitiveness of the MSME sector. Lean techniques, such as Total Productive Maintenance (TPM), 5S, Visual Control, Standard Operating Procedures, Just in Time, Kanban System, Cellular Layout, Poka Yoke, and others, are employed to identify and eliminate waste, streamline the system and ensure the smooth running of the entire process, rather than just specific processes. The scheme also emphasizes empowering workers to be more productive.

Features and Benefits of the MSME Competitive Lean Scheme

Some of the key features and benefits of the MSME Competitive Lean Scheme are as follows:

• Along with attempting to increase quality, productivity, and performance, the plan also aims to alter manufacturers’ perspectives.
• This program is an extended effort to raise MSMEs’ understanding of LEAN manufacturing techniques, motivate and reward them for doing so, and encourage them to become MSME champions.
• MSMEs have the potential to significantly decrease waste, boost productivity, enhance quality, work safely, grow their market reach, and ultimately become competitive and profitable.
• To achieve LEAN levels such as basic, intermediate, and advanced, MSMEs will adopt LEAN manufacturing technologies such as 5S, Kaizen, KANBAN, visual workplace, and Poka Yoka under the capable leadership of trained and competent LEAN consultants.
• The government would cover 90% of the implementation costs for coaching and consulting fees to support MSMEs.
• The MSMEs that are a member of SFURTI clusters, owned by women, SC, or ST, and situated in NER will receive an additional 5% contribution, the government noted.
• MSMEs that register through Industry Associations/Overall Equipment Manufacturing (OEM) groups after passing all levels will receive an extra contribution of 5%.

MSME Competitive Lean Scheme Approach

The strategy for implementing the MSME Competitive Lean Scheme (LMCS) involves hiring Lean Manufacturing Consultants (LMCs) to assess the current manufacturing system of the Mini Cluster member units and provide specific step-by-step schedules and processes for implementing lean approaches. A Special Purpose Vehicle (SPV) will be established in each cluster, and MSMEs are expected to continue the Scheme at their expense from the second year after realizing the benefits and cost savings resulting from LM approaches. The implementation structure comprises three tiers, with a group of approximately ten MSMEs (SPV) at the local level, a Lean Manufacturing Screening and Steering Committee (SSC) under DC(MSME) at the top level, and the National Monitoring and Implementing Unit (NMIU) at the intermediate level, responsible for facilitating the Scheme’s implementation and supervision. The National Productivity Council (NPC) is envisioned to serve as the NMIU for the Pilot phase of 100 Micro Clusters.

Eligibility criteria for MSMEs to participate in the LEAN Scheme

All MSMEs registered with the UDYAM registration portal of the Ministry of MSME are eligible to participate in the MSME Competitive Lean Scheme Program and avail any associated incentives. The benefits under this scheme are also available to Common Facilities Centers (CFCs) under the Micro and Small Businesses-Cluster Development Program (MSE-CDP) and SFURTI (Scheme of Financing for Regeneration of Traditional Industries) schemes.

Financial assistance under the MSME Competitive Lean Scheme

MSMEs are eligible for a 90 percent subsidy on implementation costs and consultant fees. MSMEs located in the Northeast region, owned by women or people from minority communities – scheduled tribe (ST) and scheduled caste (SC), and a part of SFURTI clusters, will receive an additional 5 percent contribution.

In addition, MSMEs that register through industry associations or overall equipment manufacturing (OEM) groups after completing all levels will receive an extra 5 percent assistance. To encourage OEMs and industry organizations to promote participation in this initiative by their supply chain vendors, a special feature has been included. After completing all stages of lean intervention, OEMs or associations will receive US$6088 per MSME.

MSME Competitive Lean Scheme Assistance

For each Mini Cluster, the Indian government will contribute money equal to up to 80% of the consultant expenses. The recipients’ MSME units are responsible for generating the remaining 20%.

MSME Competitive Lean Scheme Application Process

The National Productivity Council (NPC), Utpadakta Bhawan, Lodhi Road, New Delhi-110003 accepts applications in the prescribed format from interested industry associations or groups of approximately 10 MSME units that meet the requirements of the MSME-Development Act, 2006 and wish to form SPVs (Mini Clusters).

सारांश (Summary)

जैसा कि आर्टिकल लेख में हमने आपसे MSME Competitive Lean Scheme 2024 से संबंधित सभी जानकारी साझा की है, यदि आपको इन जानकारियों के अलावा कोई अन्य जानकारी चाहिए तो आप नीचे दिए गए कमेंट सेक्शन में जाकर मैसेज करके पूछ सकते है। आपके सभी सवालों के जवाब अवश्य दिए जायेंगे। आशा करते है आपको हमारे द्वारा दी गयी जानकारी से सहायता मिलेगी।

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Posted by Amar Gupta