LEAN MANUFACTURING

COMPETITIVENESS SCHEME
A COMPONENT OF NATIONAL MANUFACTURING
COMPETITIVENESS PROGRAMME
A BUSINESS INITIATIVE BY O/O D.C. MSME, MINISTRY OF
MSMES

OBJECTIVES OF LEAN MANUFACTURING SCHEME

Reducing Waste

Increasing Productivity

Introducing Innovative Practices for Improving

overall Competitiveness

Inculcating Good Management Systems

Imbibing a culture of continuous

improvement

Elimination of Waste is prime goal of lean

Over Production, Waiting Time, Transportation within the
units, Over Processing , Inventory ( Raw Material, Finished
Goods, Finished Goods), Motions, Defects
Cycle time of products, Cost of Product ( Labour Cost,
Material Cost, Overhead Cost), Energy Conservation
( Electricity, Fuel ( Coal/ Oil), Productivity Space Utilization,
Machine Utilization, No. of Accidents, Green Productivity
( Pollution Control, Pollution Prevention)
New Process, New Technology, New product(s), New
Management practices etc.)

Company level governance, business management,

functional management, quality management system,
environnent, occupational health & safety or any other
parameter related to good management system
culture of continuous improvement is the aim of
implementation of lean tool in the organization. Culture of
continuous improvement helps the organization in long
term for sustained growth and development of the
organization.

 A systematic approach
to identifying and
eliminating waste (nonvalue-added activities)
through continuous
improvement by flowing
the product at the pull
of the customer in
pursuit of perfection.

WHAT IS LEAN???

Need for Lean

Manufacturing

MSME units are so

engaged in their day to
day management
issues that they dont
have time and
resources to dedicate a
strategic understanding
of the need and
acquiring means of
various techniques
which would help them
in enhancing their
productivity and hence
being competitive in
the world market.

For the same reason

Office of the
Development
Commissioner ( Micro,
Small and Medium
Enterprises), Ministry of
MSME has launched the
National Manufacturing
Competitiveness
Programme to improve
the competitiveness of
Micro, Small and
LEAN
Medium Enterprises
(MSME
) Sector.
MANUFACTURING

COMPETITIVE
SCHEME

Kaizen
Blitz or
Rapid
Improve
ment
Process

5s

Single
Minutes
Exchang
e of Dies

TPM

Poka
Yoke or
Mistake
Proofing

Visual
Control

LEA
N
TOO
LS

Standard
Operatin
g
Procedur
es (SOPs)

Just in
Time (JIT)

Cellular
Layout
Value
Stream
Mapping

KANBAN
System

FORMATION OF CLUSTER
Mini Cluster is a group of preferably 10 MSMEs located within an identifiable and as far as practicable,
contiguous area and manufacturing same/ similar products.
MINI CLUSTER

The cluster form SPECIAL PURPOSE VEHICLE (SPV) ; The MSMEs would be required to sign a MoU among
themselves.
FORMATION OF Appointment of a nodal officer amongst them to be the authorized signatory and single point of contact.
SPV

In Principle approval be given to the selected SPV.

IN PRINCIPLE Lean Manufacturing Consultant were selected by the SPV through bidding process.
APPROVAL & Separate joint Bank Account will be opened in a National Bank for receiving the funds from NMIU.

SELECTION OF
LMC

FUNDING PATTERN
Each Cluster Total Project Cost is Rs.36Lac. (80% to be funded by
Goverenment & 20% by SPV).
Rs. 28.8 Lac will be paid by the Govt. and Rs. 7.2 Lac will be paid by the
Cluster.
Each Manufacturing Unit will have to pay Approx.Rs. 72000/- over 18
months i.e. Rs 4000/- per month.

IMPLEMENTATION PERIOD

The implementation Period will be maximum 18 months in each Mini Cluster to complete
Diagnostic Study Report , implement the action plan, , verify the incremental stages,
submission of final reports.
Performance of Implementation of LM Techniques will be divided in to 5 Milestones
1st Miles Stone Completion of Cluster Specific Diagnostic Study Report (DSR). DSR
includes
Existing Status ( 5s, workspace management, Safety, health, energy conservation,
Single Minutes of Exchange of Dies, TPM, Reduction in inventory, Organization
Structure, Layout , process of Manufacture, visual base line survey, identification of 7
wastes, inventory practices, top chronic problems etc.)
Time Bound targets for achieving Incremental Improvements. Paramters are rated on a
scale of 1- 10.
Phase wise Action Plan.
Qualitative , Quantitative, monetary benefits likely to be achieved
2nd, 3rd, 4th and 5th Milestones Incremental Improvements to next stage on the scale
of 1 -10.

For more information login to www.msme.gov.in

Or mail at mail@kntresearch.com
K&T Research and Development is an Pan India empanelled consultant
Organisation for LMCS.