MSME Competitive (LEAN) Scheme


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    • The Union Minister for Micro, Small and Medium Enterprises launched the MSME Competitive (LEAN) scheme.


    • The Scheme is a business initiative to reduce “waste” in manufacturing.
    • It provides for building awareness of lean manufacturing practices in MSME clusters as well as cost sharing of consultant’s fees with MSME units who opt for such interventions. 
    • Under the scheme, the Centre’s contribution will be 90 per cent of the implementation cost for handholding and consultancy fees as against 80 per cent previously.
    • Lean Manufacturing Techniques are adopted with the objective of
      • reducing waste, 
      • increasing productivity, 
      • introducing innovative practices for improving overall competitiveness, 
      • inculcating good management systems and imbibing a culture of continuous improvement.
    • The Pilot Phase of Lean Manufacturing Competitiveness Scheme (LMCS) was approved in 2009 for 100 Mini Clusters. 
    • Under the scheme, MSMEs will implement LEAN manufacturing tools like 5S, Kaizen, KANBAN, Visual workplace, Poka Yoka etc under the guidance of trained and competent LEAN Consultants to attain LEAN levels like Basic, Intermediate and Advanced. 
    • Nodal Agency: National Productivity Council (NPC)
    • Eligibility: The Scheme is open to Micro, Small or Medium as per the definition of the MSME Act. (The Micro, Small and Medium Enterprises Development Act, 2006.) 
    • The units are required to form a Mini Cluster of 10 or so units.


    • Under the Scheme, MSMEs are assisted in reducing their manufacturing costs, through proper personnel management, better space utilization, scientific inventory management, improved processed flows, reduced engineering time and so on.
    • LMCS (Lean Manufacturing Competitiveness Scheme) also brings improvement in the quality of products and lowers costs, which are essential for competing in national and international markets.


    • The larger enterprises in India have been adopting LMCS to remain competitive, but MSMEs have generally stayed away from such programs as they are not fully aware of the benefits. 
    • Besides these issues, experienced and effective Lean Manufacturing Counsellors or Consultants are not easily available and are expensive to engage and hence most MSMEs are unable to afford LMCS.

    Source: PIB