MSME Competitive (LEAN) Scheme [UPSC Notes]

The government announced the revised MSME Competitive (LEAN) scheme to make it more favourable for firms and stakeholders. In this article, you can read about the MSME Competitive Lean Scheme and its significance for the IAS Exam GS Paper II.

MSME Competitive (LEAN) Scheme

The government launched the MSME Competitive (LEAN) scheme in order to make it more helpful to businesses and stakeholders. As opposed to the prior 80 percent, the centre will now contribute 90% of the implementation costs for hand-holding and consulting expenses.

Know more about MSMEs in the linked article.

LEAN Scheme for MSME Features

• MSMEs will receive help in lowering their manufacturing costs through efficient people management, rational inventory management, shortened engineering time, and other methods.
• Lean manufacturing techniques are used with financial support, primarily to cover the costs of consultants (80% paid by the GoI and 20% by the beneficiaries).
  • Lean manufacturing is a production process based on an ideology of maximising productivity while simultaneously minimising waste within a manufacturing operation. The lean principle sees waste as anything that doesn’t add value that the customers are willing to pay for.
  • The benefits of lean manufacturing include reduced lead times and operating costs and improved product quality.
• Lean manufacturing consultants (LMCs) will charge Special Purpose Vehicles (SPV) for services rendered.
• Any nationwide units that meet the MSME Act’s Micro, Small, or Medium classification are eligible for the programme.
• In order to achieve LEAN levels such as Basic, Intermediate, and Advanced, MSMEs will adopt LEAN manufacturing tools such as 5S, Kaizen, KANBAN, Visual workplace, Poka Yoke, etc. under the capable leadership of trained and competent LEAN Consultants.

MSME Competitive (LEAN) Scheme Significance

• Lean Manufacturing Competitiveness Scheme (LMCS) decreases costs and improves product quality, two factors necessary for competing in both domestic and foreign markets.
• The programme will make an effort to alter manufacturers’ perspectives in addition to attempting to increase quality, productivity, and performance.

Conclusion: The MSME Competitive (LEAN) Program is a component of the government’s initiatives to support the MSME sector, which is a crucial supporter of India’s economic expansion.

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