Lean Manufacturing Competitiveness for MSMEs

The Government of India upscaled the Lean Manufacturing Competitiveness Scheme or the LMCS for Micro, Small and Medium Enterprises (MSMEs). This initiative saw the light of the day to reduce wastage in the manufacturing process and thereby enhance the global competitiveness in the MSME sector. 

What are the most possible outcomes of implementing the LMCS on MSMEs?

  • Definite cost reduction in production per unit
  • Increase in the productivity of MSMEs
  • Better competitiveness in domestic and overseas markets
  • Creating a demonstration effect for the betterment of MSMEs
  • Standardization of processes for more streamlined procedures to be undertaken
  • Better layout of machines thereby reducing the transportation processes and costs incurred due to logistics. 

Salient features of the LMCS

The Lean Manufacturing Competitiveness scheme was initiated as a pilot process. It was launched during the 11th Five Year Plan. The national productivity Council was selected as the National Monitoring and Implementing unit (NMIU) for the thorough implementation and monitoring of the scheme. 

The Lean Techniques started in 89 Mini clusters and was successfully undertaken in 59 mini clusters. The scheme was re-implemented in September 2013 while the recommendations of the evaluation report conducted by the Quality Council of India were considered. 

The evaluation report on the pilot process of the LMC Scheme recommended the continuation of the scheme as the units were able to achieve better benefits with 20% increased productivity. 

NPC and QCI were selected as National Monitoring and Implementing Units for the Up-scaled scheme.

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