Skip to main content

MSME Competitive Lean Scheme Launched, Benefits & Eligibility

MSME Competitive Lean Scheme (LEAN) 2024: Hello, everyone, welcome to my blog. In this blog post, I will provide you with information about the MSME Competitive Lean Scheme. On March 10, 2024, the Indian central government introduced an updated version of the MSME Competitive (LEAN) Scheme aimed at encouraging 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 revised MSME Competitive (LEAN) program, which has been revised to offer 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, an increase from 80% in the previous scheme. Additionally, the government has removed the requirement for a special-purpose vehicle in each cluster. For more detailed information about the MSME Competitive (LEAN) Scheme, including its key features, objectives, benefits, assistance, and application process, please read below.

MSME Competitive Lean Scheme 2024

MSMEs will receive assistance in lowering their production costs through various strategies like efficient staff management, optimized space utilization, scientific inventory management, improved process flows, reduced engineering lead times, and similar initiatives outlined in the plan. The Lean Manufacturing Competitiveness Scheme (LMCS) not only boosts product quality but also decreases prices, becoming crucial for MSMEs to compete effectively in both local and global markets. Despite its benefits, MSMEs have traditionally underutilized such programs due to a lack of awareness regarding their advantages and the difficulty and cost associated with hiring skilled Lean Manufacturing Counselors or Consultants. Consequently, a large portion of MSMEs cannot afford to implement LMCS. The scheme has been sanctioned as a pilot project to introduce lean techniques in 100 mini-clusters.

The objective of the MSME Competitive Lean Scheme

The primary goal of the Lean Manufacturing Competitiveness Scheme (LMCS) is to boost the manufacturing competitiveness within the MSME sector. It achieves this by implementing lean techniques like Total Productive Maintenance (TPM), 5S, Visual Control, Standard Operating Procedures, Just in Time, Kanban System, Cellular Layout, Poka Yoke, and others. These techniques help identify and eliminate waste, streamline operations, and ensure the efficient functioning of the entire process rather than focusing solely on individual processes. Additionally, the scheme places importance on empowering workers to enhance productivity levels.

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:

In addition to enhancing quality, productivity, and performance, the initiative aims to transform manufacturers' mindsets. This initiative represents a concerted effort to elevate MSMEs' knowledge of LEAN manufacturing techniques, incentivize and recognize their adoption, and inspire them to become LEAN champions within the MSME sector. MSMEs have the potential to significantly reduce waste, increase productivity, improve quality, ensure safety at work, expand their market reach, and ultimately become competitive and profitable.

To progress through LEAN levels, which include basic, intermediate, and advanced stages, MSMEs will integrate LEAN manufacturing technologies such as 5S, Kaizen, KANBAN, visual workplace, and Poka Yoke under the guidance of trained and competent LEAN consultants. The government will cover 90% of the implementation costs for coaching and consulting fees to assist MSMEs.

The government also noted that MSMEs belonging to SFURTI clusters, owned by women, SC, or ST, and located in NER (North Eastern Region), will receive an additional 5% contribution. Moreover, MSMEs registering through Industry Associations or Overall Equipment Manufacturing (OEM) groups after successfully completing all levels will receive an extra contribution of 5%.

MSME Competitive Lean Scheme Approach

The approach to implementing the Lean Manufacturing Competitiveness Scheme (LMCS) involves engaging Lean Manufacturing Consultants (LMCs) to evaluate the current manufacturing systems of member units within the Mini Clusters. These consultants then provide detailed step-by-step plans and processes for implementing lean methodologies. Each cluster will have a Special Purpose Vehicle (SPV) established, with MSMEs expected to sustain the Scheme independently starting from the second year, once they have experienced the benefits and cost savings from implementing lean practices.

The implementation structure is structured into three tiers:

Local level: a group of around ten MSMEs forming the SPV.

Top level: a Lean Manufacturing Screening and Steering Committee (SSC) under DC(MSME).

Intermediate level: the National Monitoring and Implementing Unit (NMIU) responsible for facilitating and overseeing the Scheme's implementation.

The National Productivity Council (NPC) is slated to function as the NMIU during the Pilot phase for 100 Micro Clusters, aiding in the efficient execution and supervision of the Scheme.

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) 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 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

✔️ What is Lean Manufacturing Competitiveness Scheme?

The Scheme is basically a business initiative to reduce “waste” in manufacturing. Description. The Pilot Phase of Lean Manufacturing Competitiveness Scheme (LMCS) as a component of NMCP was approved on 08.07. 2009 for 100 Mini Clusters. Nature of assistance.

✔️ Which company first introduced the Lean concept?

The story of Lean really begins with Henry Ford who set up a very productive organization around the “Flow” that started with raw materials and ended when the customer left with his car. Ford was the first to actually implement some of the following Lean concepts (before the word Lean was invented).

What are the 5 steps of lean manufacturing?

The five principles are considered a recipe for improving workplace efficiency and include: 1) defining value, 2) mapping the value stream, 3) creating flow, 4) using a pull system, and 5) pursuing perfection. The next sections provides a detailed overview of each principle.

✔️ How many MSMEs India have?

Micro, Small and Medium Enterprises (MSMEs) form the cornerstone of the Indian economy. The MSME sector in India has exhibited a strong performance and protected the economy from global adversities and shocks. It is estimated that there are 633.9 lakh MSMEs in India.

✔️ Which Indian state has highest MSMEs?

The total number of MSMEs in India was more than 63 million in financial year 2016. About nine million enterprises were from the state of Uttar Pradesh, accounting for 14 percent of the total MSMEs in the south Asian country.











Comments

Popular posts from this blog

UIDAI Aadhaar Services – How To Generate Virtual ID Number at uidai.gov.in

 The Unique Identification Authority of India (UIDAI) has introduced a valuable offering known as the 16-digit Virtual Identity (VID) Number for all residents. With this development, individuals will no longer be required to divulge their 12-digit Biometric Identification Number or Aadhaar Number in various situations. Instead, they can easily generate or retrieve their VID through the UIDAI Portal and utilize it for any necessary purposes. The Virtual ID will serve as a replacement for the Aadhaar Number in processes involving authentication and Know Your Customer (KYC) requirements. This innovative UIDAI Aadhaar Service is designed to enhance the privacy and security of the Aadhaar Database, providing individuals with added confidence in their personal information. The 16-digit Virtual ID serves as a protective barrier within the Aadhaar Database, addressing the privacy apprehensions of the populace. Individuals can employ this Aadhaar Service for activities such as acquiring a new S

ई-बुक क्या है? eBook कैसे लिखे और बनाये? Information About eBook In Hindi

  eBook क्या होता है? What is an eBook? दोस्तों जैसे की नाम से ही पता चलता है। कि ये एक बुक होती है। लेकिन ये कैसी बुक होती है। eBook का पूरा नाम  electric book होता है। आप इसे pdf भी कह सकते है। इस तरह की book एक इलेक्ट्रोनिक book होती है , जिसे केवल आप मोबाइल या कंप्यूटर पर ही पढ़ सकते है। ई-बुक की कोई print कॉपी नहीं होती है। लेकिन यदि आप चाहे तो ऐसे प्रिंट भी कर सकते है।  जिस तरह बुक का कोई न कोई लेखक और owner होता है। उसी तरह ई-बुक का भी कोई लेखक और कोई न कोई owner होता है। ईबुक बिलकुल बुक की तरह ही होती है। यहां पर मैं आपको बता दूं कुछ लोग पीडीऍफ़ और ई-बुक में भ्रमित रहते है। वो समझते है कि ई-बुक और पीडीऍफ़ अलग अलग होती है। लेकिन ये सच नहीं है। पीडीऍफ़ और ई-बुक दोनों एक ही चीज़ होती है  computer और मोबाइल का use दिन पर दिन बढ़ रहा है। जिससे eBook की भी डिमांड बढ़ती जा रही है। इस्ससे आपको ये फायदा है कि आपको भरी भरकम किताब धोना नहीं पड़ता है। और न ही उनकी सुरक्षा ही करनी होती है। और आप जब चाहे जहा चाहे वहां पर eBook रीड कर सकते है। ई-बुक क्या है? eBook कैसे लिखे और बनाये? Information Abou

mahacmletter.in – Maha CM Letter Registration / Upload Selfie

 Maharashtra students are engaged in a unique initiative led by the Chief Minister (CM). Over 2 million students in the state's schools have received a letter from the CM, inviting them to participate. Students are encouraged to capture a photo with their parents and school supplies, and then share it online. To participate, students should visit www.mahacmletter.in and upload their photos, along with a brief, ten-word motto. The submission period is from February 17th to February 25th, 2024. Registration on the website is required for participation. Maha CM Letter Registration @ mahacmletter.in Students in Maharashtra who got the Chief Minister’s (CM) letter need to take a selfie with their parents. They also need to write a short, 10-word slogan about education. All of this gets uploaded to a special website for a chance to win a prize! Feature Description Purpose Project by Maharashtra’s Chief Minister to boost education in the state Target Audience 2.11 crore students in Mahara