2014-05-19

Lean manufacturing to help improve MSMEs competitiveness

The Quality Council of India (QCI) and the National Accreditation Board for Education and Training (NABET) have been appointed as the National Monitoring and Implementing Units (NMIU) for the government\\\'s ambitious project of improving the competitiveness of micro, small and medium enterprises (MSMEs) through a programme called \\\'Lean Manufacturing Competitiveness Scheme\\\' (LMCS).

Lean manufacturing to help improve MSMEs competitiveness

The Quality Council of India (QCI) and the National Accreditation Board for Education and Training (NABET) have been appointed as the National Monitoring and Implementing Units (NMIU) for the government's ambitious project of improving the competitiveness of micro, small and medium enterprises (MSMEs) through a programme called 'Lean Manufacturing Competitiveness Scheme' (LMCS).

 

The scheme will be implemented in 500 mini clusters across the country during the 12th Plan period, according to a news bulletin issued by Knowledge & News Network or KNN, a media platform for MSMEs.

 

Under the scheme, MSMEs will be assisted in reducing their manufacturing costs through proper personnel management, better space utilisation, scientific inventory management, improved process flows and reduced engineering time through the application of LM techniques. The scheme is basically aimed at reducing "waste" in manufacturing.



The government's basic rationale for undertaking lean manufacturing is to enhance MSMEs' productivity and competitiveness through the application of techniques like reduction of wastage in manufacturing processes, inventory management, space management and energy consumption.

 

The ministry of micro, small and medium enterprises development commissioner (MSME-DC) has conceived a three-tier structure, including a screening and steering committee (SSC), NMUI, implementing agency and mini cluster/DPG/sub-group/special purpose vehicle to implement the scheme.

 

With competition in the manufacturing sector becoming more intense, enterprises need to adopt efficient practices. While big companies usually have the resources for funding innovation and improving efficiency, SMEs have little time or resources for this activity.

 

LM techniques also lead to reduced rejection rates, standardisation of processes and better layout of machines. Implementation of LM techniques has spin-off benefits in terms of training of labour, creation of knowledge, increased labour productivity, lower input costs to other industries, introduction of new production equipment and methods of manufacturing, and the development of a superior work culture.

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