Today in Know your MSME scheme, we are going to talk to you about Lean Manufacturing Competitiveness Scheme (LMCS) for Micro Small and Medium Small Enterprises (MSME).
The Scheme: Under the LMCS, various MSMEs will be helped to reduce their manufacturing cost. This will be done through adequate personnel management, better space utilization, inventory management, reduced engineering time. The scheme also aims to improve the quality of the products and lower their cost. MSMEs have usually stayed away from such schemes, but larger enterprises in India have been making use of these schemes in order to remain competitive. Since most of these schemes are expensive and not easily available, many MSMEs try to avoid them.
Objectives of the scheme: The primary objective of LMCS is to bring manufacturing competitiveness to the MSME sector. The scheme involves application of lean techniques in order to identify and eliminate waste and channelize a proper system. The idea is to improve the overall process, not just a few operations. Another objective of the scheme is to empower the worker.
Method: The method involves engagement of Lean Manufacturing Consultant (LMCs) to assess the existing system of units of Mini Clusters and make a detailed plan of schedules for implementing and achieving of lean techniques. A Special Purpose Vehicle (SPV) will also be formed in each cluster. After say about one year after the implementing the scheme, the MSMEs will themselves continue the scheme at their own expense. The National Monitoring and Implementing Unit (NMIU) will be responsible for implementing and monitoring of the scheme. In the first phase, the National Productivity Council will be acting as the NMIU.
Financial assistance will be given by the Government of India up to 80%. The remaining 20% will be borne by the beneficiaries of the MSME units.
Who can apply? MSME units which qualify under the MSME Development ACT, 2006 and are willing to form SPV (Mini Cluster) can submit an application in a prescribed format to the National Productivity Council (NPC).
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