LEAN MANUFACTURING COMPETITIVENESS SCHEME (LMCS)

The National Manufacturing Competitiveness Programme (NMCP) of Government of India

focuses on increasing the competitiveness of Micro, Small and Medium Enterprises (MSMEs)

through Productivity Improvement, Quality Improvement, Infrastructure Development, Skill Up-

gradation etc. through various schemes and policies.

Lean Manufacturing Competitiveness Scheme (LMCS) is a part of this NMCP and aims at

improving the overall productivity of MSMEs by reduction of wastes with the help of Lean

Manufacturing techniques. Despite being the backbone of Indian economy, the potential of

Indian MSMEs have not been utilized to their fullest. The Indian MSMEs face a huge challenge

of developing into world class manufacturing facilities. The LMCS scheme aims to up-grade the

Indian MSMEs through various lean manufacturing tools and techniques so that they become

globally competitive and their contribution to GDP is increased from the present 15 % to 25%.

The scheme was launched in July 2009 on pilot basis covering 100 clusters across the country

and owing to the success of the pilot phase, the scheme has been up-scaled for 500 more

clusters and this number may further be increased in future. A summary of results obtained in

pilot phase is shown below:

No. of Clusters started implementing LM 89 No. of Clusters successfully completed 55 No. of SMES participating in LMCS 900 Annual Saving from LM Rs. 60 CrSalvage Value of Scrap from %S implementation Rs. 3 Cr Increase in Production capacity without CAPEX 10% Space reclaimed for productive work 10% Increase in Inventory turnover 25% Reduction in Manufacturing Lead Time 5-30% Improvement in OEE (Model Machines) 15% No. of Kaizens generated >7500

National Productivity Council (NPC) was assigned the role of National Monitoring and

Implementation Unit (NMIU) for the pilot phase and has again been entrusted with the task of

Monitoring and Implementation agency for the up-scaled scheme.

ACTIVITIES UNDERTAKEN IN LMCS: UP SCALED SCHEME

A one day workshop on Lean Manufacturing was organized on 6th February, 2014 by Ministry

of Micro, Small & Medium Enterprises. The day may be considered as the formal inauguration

of the second phase of LMCS scheme. A compendium of selected case studies from the pilot

phase was released during the event. The compendium was prepared by National Productivity

Council.

National Workshop on Lean Manufacturing on 6th February 2014 presided over by Shri Madhav Lal, Secretary, MSME

AWARENESS PROGRAMMES

Awareness Programmes are being conducted for various clusters by NPC for broader publicity

of the scheme highlighting the importance of lean manufacturing tools and techniques for

MSME sector and the success gained by the scheme along with its participating units during the

pilot phase.

These programs give an insight to the participants about Lean Manufacturing Competitiveness

Scheme (LMCS), its guidelines, SPV/DPG formation, etc. They also get a first-hand Knowledge

about Lean Manufacturing Tools & its benefits on shop floor.

LMCS Programme at Kanpur on 17-2-14 presided over by Shri Harbhajan Singh, IAS, DG, NPC

As on date 41 awareness programmes have been conducted by NPC in collaboration with

various industry associations and MSME-DI offices.

EMPANELMENT OF CONSULTANTS

NPC published an advertisement for empanelment of Lean Manufacturing Consultants in

Economic Times of 27th January 2014. Till date, around 75 applications have been received both

from individuals and Organizations. The process of Evaluation and empanelment is underway.

The list of empanelled consultants will be published in the successive newsletters.

CLUSTERS APPROVED TILL DATE

NPC offices all over the country have been contacting various Industry Associations, OEMs,

clusters etc. for participating in the scheme. A total of 105 clusters have been approved by O/o

DC-MSME till date. These clusters (given in table 1) are being followed up for SPV/DPG

formation and subsequently for lean implementation.

Table 1: Clusters approved by O/o DC-MSME till date

Cluster Name Nos Cluster Name Nos Auto components cluster, Uttarakhand *(Hardrwar-2,1 Rudrapur-2)

4 Plastic / Rubber components Cluster, Hosur 1

Machine components cluster, Uttarakhand 1 Press Components Cluster, Hosur 1 Light Engineering cluster, Uttarakhand 1 Precision Machine Cluster, Bangalore 1 Light Engineering cluster, Kashipur 1 Energy Saving Products Cluster, Hosur 1 Auto components cluster, Lucknow 1 Auto Components Cluster, Chennai 1 Auto components cluster, Mohali 1 Light Engineering Cluster, Coimbatore 1 Engineering Cluster, Mohali 1 General Engineering Cluster Coimbatore 1 General Engineering, Mohali 1 White Goods Cluster, Puducherry 1 Machine Tools Cluster, Ludhiana 1 Metal Work Cluster, Chennai 1 Machine Tools Cluster, Gurgaon 2 Light engineering Cluster, Chennai 1 Auto Components Cluster, Gurgaon 2 Machine Tool Cluster, Chennai 1 Foundry Cluster, Agra 1 Auto Components Cluster, Chennai 1 Textile Cluster, Maharastra, Gujarat, Tamil Nadu *(Surat-2,Surendra Nagar-1, Ahmedabad-2, Mumbai-1 ,Vasai-1 Kolhapur-2, Daman-1,Bangalore-1 and Coimbtore-4)

15 Diesel engines/Motor & Pumps Cluster, Coimbatore 1

1

Engineering Cluster, Porbandar 1 Machining & Press Parts Cluster, Pune 1 Food Processing Cluster, Vadodara 2 Light Engineering Cluster, Pune 1 Brass Parts Cluster, Jamnagar 1 Auto components Cluster, Pune 1 Cold Rolled Steel Cluster, Vadodara 1 Auto Upholstery Parts, Nashik 1 Dyes & chemicals Cluster, Ahmedabad 1 Sheet Metal Pressed Components Cluster,

Nashik 1

Foundry cluster, Belgaum 2 Light Engineering, Nashik 1 Electronics cluster, Bangalore 1 Garment Cluster, Noida 1 Engineering cluster, Kerala 1 Garment Cluster, Okhla 2 Machine Tools Cluster, Bangalore 1 Garment Cluster, Jaipur 1 Bearing Cluster, Jaipur 1 Food Processing Cluster, Kanpur 1 Leather Cluster, Kanpur 1 Foundry cluster, Bhopal 1 Engineering Cluster, Faridabad 5 Engineering cluster, Chennai 1 Foundary Cluster, Shimoga (Karnataka) 1 Foundary Cluster, Rajkot (Gujrat) 1 Bicycle Parts Manufacturers Cluster-1&2, Ludhiana

2 Truck Body Builders Cluster 1&2, Nammakkal

2

Engineering Cluster, UCAL Vendors, Chennai 1 Die Casting Cluster, Chennai 1 Light Engineering Cluster, Bokaro 1 Auto Component, Jamshedpur 1 Auto Servicing Cluster, Bhubaneshwar 1 Granite Processing, Chitoor 1 Safety Matches, Chitoor 1 Achampet Raw Rice Clusters 1&2, Andhra

Pradesh 2

Kalwakurthi Raw Rice Cluster 1&2, Mehboob Nagar, Andhra Pradesh

2 Deverakonda Boiled Rice mill Cluster, Nalgonda, Andhra Pradesh

1

Chintepalli Raw rice mill Cluster, Nalgonda, Andhra Pradesh

1 Electrical Cluster, Hydearbad 1

Biscuit Manufacturing Cluster, Hyderabad 1 Ginning mill Cluster, Guntur, A.P. 1 Animal Feed Cluster, Hyderabad 1 Engineering Cluster 6 & 7, Faridabad 2 Footwear Components Manufacturing Cluster, Kanpur

1 Auto Component Cluster, Lucknow 1

Food Processing (Biscuit), Kanpur 1 Packaging(corrugated boxes), Kanpur 1

SNAPSHOT OF THE SCHEME (Till Date)

No. of Awareness Programmes 41 No. of Clusters approved 105 No. of SPV/DPG formed 6 No. of LMC applications received 75No. of Consultants Empanelled 19No. of Seminars Conducted 5