The Scheme :-
Under the Scheme, MSMEs will be assisted in reducing their manufacturing costs, through proper personnel management, better space utilization, scientific inventory management, improved processed flows, reduced engineering time and so on. LMCS also brings improvement in the quality of products and lowers costs, which are essential for competing in national and international markets. The larger enterprises in India have been adopting LMCS to remain competitive, but MSMEs have generally stayed away from such Programmes as they are not fully aware of the benefits. Besides, experienced and effective Lean Manufacturing Counsellors or Consultants are not easily available and are expensive to engage and hence most MSMEs are unable to afford LMCS.
Scheme has been approved as a pilot project in 100 Mini Clusters for implementations of Lean Techniques.
The main objective
of the Lean Manufacturing Competitiveness Scheme
(LMCS) is to bring the manufacturing competitiveness
in the MSME Sector. Lean Manufacturing involves
applying Lean Techniques (e.g. Total Productive
Maintenance (TPM), 5S, Visual control, Standard
Operation Procedures, Just in Time, Kanban System,
Cellular Layout, Poka Yoke, TPM, etc.) to identify
and eliminate waste and streamline a system. The
focus is on making the entire process flow, not
improving only a few operations. Worker empowerment
is also emphasized throughout the effort.
The approach involves
engagement of Lean Manufacturing Consultants (LMCs)
to assess the existing manufacturing system of member
units of the Mini Cluster(s) and stipulate detailed
step by step procedures and schedules for implementing
and achieving of lean techniques.
A Special Purpose
Vehicle (SPV) will be formed in each cluster. It
is expected that once MSMEs are introduced to the
benefits and savings that accrue from LM techniques,
they would themselves continue the Scheme from the
second year onwards at their own expense. A three
tier implementing structure is in place with a group
of 10 or so MSMEs (SPV) at the lowest local-tier
and a Lean Manufacturing Screening and Steering
Committee (SSC) under DC(MSME) at the highest tier
The intermediate tier,
National Monitoring and Implementing Unit (NMIU)
is responsible for facilitating implementation and
monitoring of the Scheme. For the Pilot phase of
100 Mini Clusters, it is envisaged that NPC (National
Productivity Council) function as NMIU.
A financial support
by the Government of India upto a maximum of 80%
of the Consultant fees for each Mini Cluster will
be provided. Remaining 20% is to be brone by the
beneficiaries MSME units.
Who can apply:-
associations / Group of approx. 10 MSME units which
qualify under MSME-Development Act, 2006 willing
to form SPV (Mini Cluster) can submit application
in prescribed format to the National Productivity
Council (NPC), Utpadakta Bhawan, Lodhi Road, New
For any further information and clarification, pleaser
1. Mr. Subrata Pal, Director,
NPC, Mb: 9953850301, Ph: 011-24607316.
2. Mr. Jaipal Singh, Deputy
Director, Office of the DC(MSME), Ph:011-23061461.