Lean Manufacturing Competitiveness Scheme (LMCS)

The Lean Manufacturing Competitiveness Scheme (LMCS) is an initiative launched by the Government of India to enhance the manufacturing competitiveness of Micro, Small, and Medium Enterprises (MSMEs) of India.

The scheme aims to promote the adoption of lean manufacturing techniques, which focus on reducing waste, improving quality, and increasing productivity.

Background

The LMCS was introduced in 2009 by the Ministry of Micro, Small, and Medium Enterprises (MSME) as part of the National Manufacturing Competitiveness Programme (NMCP). The scheme is implemented by the National Productivity Council (NPC) and the Quality Council of India (QCI).

Objectives

• Reduce waste and improve resource utilization in the manufacturing process.
• Enhance the productivity and competitiveness of MSMEs through the adoption of lean manufacturing techniques.
• Provide consultancy and training support to MSMEs for implementing lean manufacturing practices.
• Promote a culture of continuous improvement in the MSME sector.

Key Features

• Cluster Approach: The scheme follows a cluster-based approach, targeting groups of MSMEs in specific industrial sectors and geographical areas.
• Lean Consultancy: Qualified lean consultants are assigned to MSME clusters to provide guidance and support in implementing lean manufacturing techniques.
• Training and Workshops: The scheme conducts training programs and workshops to educate MSME entrepreneurs and employees about lean principles and practices.
• Financial Assistance: MSMEs can avail financial assistance up to 80% of the total project cost, subject to a maximum of Rs. 36 lakhs per mini-cluster of 10 MSMEs.

Impact and Achievements

Since its inception, the LMCS has supported numerous MSME clusters across India in adopting lean manufacturing practices. As of 2021, the scheme has covered over 500 MSME clusters, benefiting more than 5,000 enterprises. The implementation of lean techniques has resulted in significant improvements in productivity, quality, and cost reduction for participating MSMEs.

Current Developments

In 2020, the Government of India announced the expansion of the LMCS under the Aatmanirbhar Bharat Abhiyan (Self-Reliant India Campaign). The scheme’s coverage is being extended to more MSME clusters, with a focus on sectors such as pharmaceuticals, textiles, and automotive components.

The government has also allocated additional funds to support the scheme’s implementation and to provide incentives for MSMEs to adopt lean manufacturing practices.