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Revised guidelines for implementation of Lean Manufacturing Competitiveness Scheme under CLCS-TUS

Updated: Sep 11, 2019 11:20:47am

Revised guidelines for implementation of Lean Manufacturing Competitiveness Scheme under CLCS-TUS

New Delhi, Sep 11 (KNN) For the Implementation of Lean Manufacturing Competitiveness Scheme under Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS-TUS), the Ministry of MSME has come out with the revised guidelines which would help the MSMEs in enhancing their productivity and hence being competitive in the world markets.

The Development Commissioner, Ministry of Micro, Small & Medium Enterprises (DCMSME), Govt. of India, will implement up-scaled (2019) ‘Lean Manufacturing Competitiveness Scheme (LMCS)’, a component of CLCS-TUS for the benefit of MSMEs till the financial year ending 2019-20.

The general approach involves engagement of Lean Manufacturing Consultants (LMC) to work with selected MSMEs in the chosen clusters with financial support by the Government.

Under the Scheme, MSMEs will be assisted in reducing their manufacturing costs through proper personnel management, better space utilization, scientific inventory management, improved process flows, reduced engineering time and so on with the application of LM techniques. The Scheme is basically a business initiative to reduce “waste” in manufacturing, according to Ministry of MSME guidelines.

The scheme will be implemented in 300 mini clusters with the total Project Cost of Rs 218.60 crores (Govt. of India Contribution amounting to Rs. 197.00 cr. and beneficiaries’ contribution of Rs 21.60 cr.) including expenditure on to left over activities of remaining part of the pilot phase and up-scaled (2013) of the scheme.

The basic rationale of the Government support to MSMEs for undertaking lean manufacturing (LM) is to enhance their productivity and competitiveness by reduction of wastage in manufacturing processes, inventory management, space management, energy consumption, etc.

The LM techniques also result in reduction in rejection, standardization of processes, better layout of machines resulting in reduced transportation of products during manufacturing, etc. The implementation of LM techniques leads to cost reduction for MSMEs.

It also has lot of social benefits in terms of training of labour, creation of knowledge, increased labour productivity, lower input costs to other industries, and introduction of new production equipment / methods in manufacturing and development of work culture in society.

The implementation of lean manufacturing technologies in the enterprises will lead to increasing return to scale. Simultaneously it also leads to increased expertise in the firm in respect of better work culture, managerial competencies, etc. The scheme also leads to ‘demonstration effect’.

Explaining the need of the scheme, Ministry of MSME said “Ever changing globalized environment has been posing challenges of competitiveness and survival to all the constituents of the economy. It has been more so for MSMEs in the manufacturing sector.”

It has been noticed that units are so engaged in their day-today management issues that they don’t have time and resources to dedicate for a strategic understanding of the need and acquiring means of various techniques which would help them in enhancing their productivity and hence being competitive in the world markets.

Lean Manufacturing is a set of techniques, which have evolved over a long period and are based on various minor to major breakthroughs that help in reducing cost and hence increase productivity and competitiveness.

The objectives of the Scheme is to enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) techniques by reducing waste; increasing productivity introducing innovative practices for improving overall competitiveness; inculcating good management systems; and imbibing a culture of continuous improvement.



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