MSME Competitive LEAN Scheme Launched, Benefits

MSME Competitive LEAN Scheme – Narayan Rane, the union minister for small and medium businesses, introduced the MSME Competitive (LEAN) program on Friday. The government modified the MSME Competitive (LEAN) Scheme to make it more advantageous for businesses and stakeholders. The Center’s share will be 90% of the implementation cost for handholding and consulting fees under the revised system, up from 80% under the old one. The obligation to place a special-purpose vehicle in each cluster has also been eliminated by the government. Read below to check the detailed information related to MSME Competitive (LEAN) Scheme like Highlights, Objectives, Features, Benefits, Assistance, Application Process, and much more.


MSME Competitive (LEAN) Scheme 2024

Under the Plan, MSMEs will receive support to lower their production costs through effective staff management, better space use, scientific inventory management, enhanced process flows, shorter engineering lead times, and other measures. LMCS also improves product quality and reduces prices, two factors necessary for competing in both domestic and foreign markets. To stay competitive, larger businesses in India have been using LMCS, but MSMEs have typically avoided such programs because they are largely unaware of the advantages. In addition, skilled and efficient Lean Manufacturing Counselors or Consultants are hard to find and expensive to hire, hence the majority of MSMEs cannot afford LMCS. The scheme has been accepted as a pilot project for the use of lean techniques in 100 mini clusters.

Raising and Accelerating MSME Performance Scheme

MSME Competitive (LEAN) Scheme Details in Highlights

Name MSME Competitive (LEAN) Scheme
Introduced by Narayan Rane, the union minister for small and medium businesses
Introduced on 10-March-2023, Friday
Objective The MSME Competitive (LEAN) plan was changed by the government to be more beneficial to enterprises and stakeholders.

MSME Competitive (LEAN) Scheme Objective

Increasing manufacturing competitiveness in the MSME Sector is the primary goal of the Lean Manufacturing Competitiveness Scheme (LMCS). To find and get rid of waste and streamline a system, lean manufacturing uses lean techniques (such as Total Productive Maintenance (TPM), 5S, Visual control, Standard Operation Procedures, Just in Time, Kanban System, Cellular Layout, Poka Yoke, etc.). Making the entire process run smoothly is the main goal, not just a few specific processes. The effort also places a strong emphasis on worker empowerment.

Features and Benefits of the MSME Competitive (LEAN) Scheme

Some of the key features and benefits of the MSME Competitive (LEAN) Scheme are as follows:

  • Along with attempting to increase quality, productivity, and performance, the plan also aims to alter manufacturers’ perspectives.
  • This program is an extended effort to raise MSMEs’ understanding of LEAN manufacturing techniques, motivate and reward them for doing so, and encourage them to become MSME champions.
  • MSMEs have the potential to significantly decrease waste, boost productivity, enhance quality, work safely, grow their market reach, and ultimately become competitive and profitable.
  • To achieve LEAN levels such as basic, intermediate, and advanced, MSMEs will adopt LEAN manufacturing technologies such as 5S, Kaizen, KANBAN, visual workplace, and Poka Yoka under the capable leadership of trained and competent LEAN consultants.
  • The government would cover 90% of the implementation costs for coaching and consulting fees to support MSMEs.
  • The MSMEs that are a member of SFURTI clusters, owned by women, SC, or ST, and situated in NER will receive an additional 5% contribution, the government noted.
  • MSMEs that register through Industry Associations/Overall Equipment Manufacturing (OEM) groups after passing all levels will receive an extra contribution of 5%.

Udyog Aadhaar MSME Registration

MSME Competitive (LEAN) Scheme Approach

The strategy entails hiring Lean Manufacturing Consultants (LMCs) to evaluate the current manufacturing system of the Mini Cluster member units and to specify specific step-by-step timetables and processes for putting lean approaches into practice. In each cluster, a Special Purpose Vehicle (SPV) will be created. It is anticipated that MSMEs will continue the Scheme on their dime starting in the second year after learning about the advantages and cost reductions that result from LM approaches. There is a three-tier implementation structure in place, with a group of about ten MSMEs (SPV) at the lowest local tier and a Lean Manufacturing Screening and Steering Committee (SSC) under DC(MSME) at the top tier. The National Monitoring and Implementing Unit (NMIU), which belongs to the intermediate tier, is in charge of easing the Scheme’s implementation and oversight. The National Productivity Council (NPC) is envisioned to serve as the NMIU for the Pilot phase of 100 Micro Clusters.

MSME Competitive (LEAN) Scheme Assistance

For each Mini Cluster, the Indian government will contribute money equal to up to 80% of the consultant expenses. The recipients’ MSME units are responsible for generating the remaining 20%.

MSME Competitive (LEAN) Scheme Application Process

The National Productivity Council (NPC), Utpadakta Bhawan, Lodhi Road, New Delhi-110003 accepts applications in the prescribed format from interested industry associations or groups of approximately 10 MSME units that meet the requirements of the MSME-Development Act, 2006 and wish to form SPVs (Mini Clusters).

Contact Details

For further details or in case of any query or complaint related to the MSME Competitive (LEAN) Scheme, feel free to contact at the below-given details:

S. No. Name Designation Phone Number
Mr. Subrata Pal Director, NPC 9953850301, 011-24607316
Mr. Jaipal Singh Deputy Director, Office of the DC(MSME), 011-23061461


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