News Highlight
Union Minister for MSME launches MSME Competitive (LEAN) Scheme under MSME Champions Scheme.
Key Takeaway
- LEAN has the potential to become a national movement to provide a roadmap to global competitiveness for the country’s MSMEs.
- The goal is to increase quality, productivity, performance, and capability to change manufacturers’ mindsets and transform them into world-class manufacturers.
MSME Competitive (LEAN) Scheme
- About
- The Scheme is a business programme to reduce “waste” in the manufacturing industry.
- It calls for increasing awareness of lean manufacturing processes in MSME clusters.
- As well as cost sharing of consultant costs with MSME units that choose to participate in such interventions.
- The Centre’s contribution under the scheme will be 90% of the implementation cost for handholding and consultation costs, up from 80%.
- Objective
- MSMEs may significantly cut waste, enhance productivity, improve quality, operate safely, and grow their markets.
- And eventually become competitive and profitable by following the LEAN journey.
- Tools
- Under the initiative, MSMEs will use LEAN manufacturing tools such as 5S, Kaizen, KANBAN, Visual Workplace, Poka Yoka, and others, with the help of educated and professional LEAN Consultants.
Government Assistance
- The government will cover 90% of the implementation costs, including handholding and consulting fees.
- MSMEs that are members of SFURTI clusters, owned by women/SC/ST.
- It is located in the Northeast region and would receive an additional 5% contribution.
- After completing all levels, MSMEs that register through Industry Associations/Overall Equipment Manufacturing (OEM) groups will receive an additional 5% contribution.
- This is a one-of-a-kind feature designed to encourage Industry Organizations and OEMs to urge their supply chain vendors to join in this scheme.
Lean Manufacturing
- About
- Lean Manufacturing or Lean Production, abbreviated as LEAN, is a manufacturing practice considering resource spending for any aim.
- To be wasteful and should be eliminated apart from developing value for the end client.
Principles of Lean Manufacturing
- Identify Value
- Determine what value implies in the eyes of the customer.
- Understanding what the customer wants, needs, and is willing to pay for is part of this.
- Map the Value Stream
- Make a value stream map, the sequence of steps to create a product or service.
- This aids in the identification of waste and inefficiency.
- Create Flow
- Establish a continuous flow of work through the value stream.
- This entails removing bottlenecks and disruptions that delay the operation.
- Implement Pull
- Create a pull system where things are produced only as needed, based on customer demand.
- This aids in the reduction of inventory and waste.
- Strive for Perfection
- Strive for perfection continuously by discovering and reducing waste, optimising procedures, and maintaining quality.
Pic Courtesy: 4C Consulting
Content Source: PIB