The government of India recently announced a revised MSME Competitive (LEAN) scheme to make it more favourable for firms and stakeholders. This scheme aims to provide support to Micro, Small, and Medium Enterprises (MSMEs) in reducing their manufacturing costs through efficient people management, rational inventory management, shortened engineering time, and other methods. In this essay, we will discuss the features and significance of the MSME Competitive (LEAN) scheme.
Features of MSME Competitive (LEAN) Scheme
Under this scheme, MSMEs will adopt lean manufacturing techniques with financial support, primarily to cover the costs of consultants (80% paid by the Government of India and 20% by the beneficiaries).
Lean manufacturing is a production process based on an ideology of maximizing productivity while simultaneously minimizing 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. Some of the features of the MSME Competitive (LEAN) scheme are as follows:
- The center will now contribute 90% of the implementation costs for hand-holding and consulting expenses, instead of the prior 80%.
- 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.
- 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.
- MSMEs will receive help in lowering their manufacturing costs through efficient people management, rational inventory management, shortened engineering time, and other methods.
Significance of MSME Competitive (LEAN) Scheme
The MSME Competitive (LEAN) scheme is significant in several ways. Firstly, it 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. Other significance of the MSME Competitive (LEAN) scheme includes:
- It will promote the adoption of lean manufacturing techniques, which will help MSMEs to become more competitive and efficient.
- It will encourage MSMEs to improve their product quality, which is essential for increasing customer satisfaction and building a positive reputation in the market.
- It will provide financial support to MSMEs, which will enable them to hire the services of trained and competent LEAN consultants.
- It will help MSMEs to reduce their manufacturing costs, which will increase their profit margins and improve their overall financial performance.
MCQs about Revised MSME Competitive (LEAN) Scheme in India
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What is the main objective of the MSME Competitive (LEAN) Scheme?
A. To provide financial support to MSMEs
B. To improve product quality
C. To reduce manufacturing costs
D. All of the above
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What is the eligibility criteria for MSMEs to participate in the programme?
A. Only small and medium-sized businesses
B. Only micro and small businesses
C. Only businesses registered under MSME Act
D. Any nationwide unit meeting Micro, Small, or Medium classification under the MSME Act
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What is the role of LEAN consultants under the MSME Competitive (LEAN) scheme?
A. They will provide financial support to MSMEs
B. They will provide training and guidance on lean manufacturing techniques
C. They will provide raw materials for manufacturing
D. They will conduct market research for MSMEs
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