Lean Manufacturing Competitive Scheme Under National Manufacturing Competitiveness

Lean Manufacturing Competitive Scheme Under National Manufacturing Competitiveness Programme Development Commissioner (Micro Small and Medium Enterprises) Ministry of Micro, Small and Medium Enterprises Government of India

Objective & Requirement Manufacturing is the Primary growth engine of the Economy. Presently contributes only 15% of the GDP with a growth target of up to at least 25%. This Can only be achieved by improving Competitiveness

Objectives To implement various Lean Manufacturing Techniques - Reduction of Waste – In turn Increasing Productivity - Introducing Innovative Practices - Inculcating good Management Systems - Imbibing a culture of continuous improvement

Main LM Techniques: 1. 5 S System 2. Visual Control 3. SOP 4. JIT 5. KANBAN 6. Cellular Layout 7. VSM 8. Poka Yoke 9. SMED 10. TPM 11. Kaizen

Process of Implementation of the Scheme - - - The general approach involves the engagement of a Lean Manufacturing Consultant (LMC) to work with selected MSME’s in the approved Cluster with financial support by the Government, The Scheme will be implemented in Mini clusters of 10 MSME’s (Minimum 6), preferably manufacturing similar products, This Mini Cluster shall form an SPV under a Trust as per the Trust Act 1882, OR a Private Limited Company, 1956 OR as a Society under the Societies Act, 1860, Continued

- Process of Implementation of the Scheme - Continued - The MSME’s would be required to sign an MOU amongst themselves as per the standard format, National Monitoring and Implementing Unit (NMIU) would be responsible for facilitating and monitoring of the Scheme, NIMU will monitor every stage of the Program on behalf of the Development Commissioner (MSME) NPC & QCI are two national level organisations acting as NMIU - - -

Implementation of the Scheme - Project will be implemented in 5 Phases/Milestones Each milestone is validated by an Audit by NMIU 1 st Milestone : Ø Complete Cluster specific Diagnostic Study Report (DSR) covering : 5 S, Workplace safety, health, energy conservation, SMED, Total Productive Maintenance, Inventory, Organisation structure, , layout, Process of Manufacturing etc. Ø Phase Wise Action Plan For Each Member after Discussion Ø Qualitative, quantitative monetary benefits likely to be achieved at the end of the Project

2 nd/3 rd/4 th/5 th/Milestones Ø Incremental Improvements to next stage on a Scale of 1 - 10 Ø The LMC in close co-ordination with the Cluster will document before and after status of various parameters Ø Various Documents to be submitted to the Office of the Development Commissioner and MSME from time to time Ø The 1 st, 3 rd and the 5 th Milestone Based Reports (MBR), to be audited jointly by NMIU and the DC through field Officers Ø The implementation time of the Project will be a maximum of 18 months

Funding - - - The Scheme will be implemented through 500 MC’s during the 12 th 5 year Plan with the total Project cost of Rs 240 Crs (Rs 204 Crs by GOI & Rs 36 Crs by the beneficiaries) Payment to LMC will be up to a maximum of Rs 36 Lacs per Cluster The payment to the Consultant by the SPV would be on a milestone basis in 5 tranches of 20% each After MBR 1, the SPV(Clusture Members) will pay its contribution of 20% Fee to the Consultant (LMC) The subsequent four tranches will be paid to the LMC out of the Scheme Funds by NMIU through the SPV, representing 80% of the Governments contribution to the Scheme outlay.

PQR Consultants ü Productivity, Quality , Reliability ü Empanelled with NPC with approved Consultants ü Presently implementing LMCS for Mini Clusters in Eastern India ü Conducting In-house. Training Programmes for various Corporates ü Profile