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Lean Manufacturing Competitive Scheme
Under
National Manufacturing Competitiveness Programme
Development Commissioner
(Micro Small and Medium Enterprises)
Ministry of Micro, Small and Medium Enterprises
Government of India
Objective & Requirement
Manufacturing is the Primary growth engine of
the Economy. Presently contributes only 15%
of the GDP with a growth target of up to at
least 25%.
This Can only be achieved by improving
Competitiveness
Objectives
To implement various Lean Manufacturing
Techniques
- Reduction of Waste – In turn Increasing
Productivity
- Introducing Innovative Practices
- Inculcating good Management Systems
- Imbibing a culture of continuous improvement
Main LM Techniques:
1. 5S System
2. Visual Control
3. SOP
4. JIT
5. KANBAN
6. Cellular Layout
7. VSM
8. Poka Yoke
9. SMED
10.TPM
11.Kaizen
Process of Implementation of the Scheme
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The general approach involves the engagement of a Lean Manufacturing
Consultant (LMC) to work with selected MSME’s in the approved Cluster
with financial support by the Government,
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The Scheme will be implemented in Mini clusters of 10 MSME’s (Minimum
6), preferably manufacturing similar products,
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This Mini Cluster shall form an SPV under a Trust as per the Trust Act
1882, OR a Private Limited Company, 1956 OR as a Society under the
Societies Act, 1860,
Continued
-
Process of Implementation of the Scheme - Continued
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The MSME’s would be required to sign an MOU amongst
themselves as per the standard format,
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National Monitoring and Implementing Unit (NMIU) would be
responsible for facilitating and monitoring of the Scheme,
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NIMU will monitor every stage of the Program on behalf of the
Development Commissioner (MSME)
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NPC & QCI are two national level organisations acting as
NMIU
Implementation of the Scheme
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Project will be implemented in 5 Phases/Milestones
Each milestone is validated by an Audit by NMIU
1st Milestone :
 Complete Cluster specific Diagnostic Study Report (DSR) covering :
5S, Workplace safety, health, energy conservation, SMED, Total Productive
Maintenance, Inventory, Organisation structure,, layout, Process of
Manufacturing etc.
 Phase Wise Action Plan For Each Member after Discussion
 Qualitative, quantitative monetary benefits likely to be achieved at the end of
the Project
2nd/3rd/4th/5th/Milestones
 Incremental Improvements to next stage on a Scale of 1 - 10
 The LMC in close co-ordination with the Cluster will document before
and after status of various parameters
 Various Documents to be submitted to the Office of the Development
Commissioner and MSME from time to time
 The 1st, 3rd and the the 5th Milestone Based Reports (MBR), to be
audited jointly by NMIU and the DC through field Officers
 The implementation time of the Project will be a maximum of 18
months
Funding
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The Scheme will be implemented through 500 MC’s during the 12th 5 year Plan
with the total Project cost of Rs 240 Crs (Rs 204 Crs by GOI & Rs 36 Crs by the
beneficiaries)
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Payment to LMC will be up to a maximum of Rs 36 Lacs per Cluster
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The payment to the Consultant by the SPV would be on a milestone basis in 5
tranches of 20% each
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After MBR1, the SPV(Clusture Members) will pay its contribution of 20% Fee to
the Consultant (LMC)
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The subsequent four tranches will be paid to the LMC out of the Scheme Funds
by NMIU through the SPV, representing 80% of the Governments contribution to
the Scheme outlay.
PQR Consultants
 Productivity, Quality , Reliability
 Empanelled with NPC with approved
Consultants
 Presently implementing LMCS for Mini
Clusters in Eastern India
 Conducting In-houseTraining Programmes
for various Corporates
 Profile