MSME Competitive (LEAN) Scheme

MSME Competitive (LEAN) Scheme
 

News: Recently, Ministry of MSMEs launched the MSME Competitive (LEAN) Scheme to provide a roadmap to global competitiveness for the MSMEs of India.
 

What is Lean Manufacturing?
 Lean Manufacturing or Lean Production, known simply as LEAN, is a production practice that considers the expenditure of resources for any goal, other than the creation of value for the end customer, to be wasteful and hence should be eliminated.
 Principles of Lean manufacturing are I) Define Value II) Map Value Stream III) Create Flow IV) Establish Pull and V) Pursuit Perfection
 Lean manufacturing includes a set of principles that lean thinkers use to achieve improvements in productivity, quality, and lead-time by eliminating waste through kaizen.
 

About Scheme:
 Objective - Through the LEAN journey, MSMEs can reduce wastage substantially, increase productivity, improve quality, work safely, expand their markets, and finally become competitive and profitable.
 Tools - Under the scheme, MSMEs will implement LEAN manufacturing tools like 5S, Kaizen, KANBAN, Visual workplace, Poka Yoka etc under the able guidance of trained and competent LEAN Consultants to attain LEAN levels like Basic, Intermediate and Advanced.
 The government will contribute 90% of implementation cost for handholding and consultancy fees. There will be an additional contribution of 5% for the MSMEs which are part of SFURTI clusters, owned by Women/SC/ST and located in Northeast region.
 There will be an additional contribution of 5% for MSMEs which are registering through Industry Associations/ Overall Equipment Manufacturing (OEM) organizations after completing all levels. This is a unique feature to encourage Industry Associations and OEMs for motivating their supply chain vendors to participate in this scheme.
 

What steps have been taken to support MSME’s in India?
 PM Employment Generation Programme - The scheme, implemented by the KVIC, aims to generate employment opportunities in rural and urban areas by setting up new self-employment ventures/projects/micro enterprises.
 Credit Linked Capital Subsidy Scheme - Its objective is to facilitate technology upgrade among MSEs (Micro and Small) by providing capital subsidy.
 Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) - It provides collateral-free credit to the micro and small enterprise sector.
 Raising and Accelerating MSME Performance (RAMP) - The scheme aims at strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships and improving access of MSMEs to market and credit, technology upgradation and addressing issues of delayed payments and greening of MSMEs.
 Mudra Loan Scheme
 Special Credit Linked Capital Subsidy Scheme (SCLCSS) – It will help enterprises in the services sector meet various technology requirements. It also has a provision to grant 25% capital subsidy for procurement of plant & machinery and service equipment’s through institutional credit to MSMEs owned by SC/ST entrepreneurs without any sector specific restrictions on technology upgradation.
 A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship (ASPIRE) - The objectives of this scheme are to create new jobs, promote entrepreneurship culture in the country, promote innovation in the MSME sector.
 Scheme of Fund for Regeneration of Traditional Industries (SFURTI) - The objectives are to organise traditional industries and artisans into clusters to make them competitive and provide support for their long-term sustainability, enhance marketability of products of such clusters, build innovative products, improve technologies.
 Financial support to MSME’s in Zero Defect and Zero Effect (ZED) certification. It encourages MSME’s to upgrade their quality standards.
 Government initiatives such as the Digital Saksham and the interlinking of the Udyam, e-Shram, National Career Service (NCS), and Atmanirbhar Skilled Employee-Employer Mapping (ASEEM) portals show the promise of targeted digitalisation schemes.