Objective

The scheme aims to enhance the manufacturing competitiveness of Micro, Small and Medium Enterprises (MSMEs) by facilitating the adoption of Lean Manufacturing techniques. It focuses on reducing waste, improving quality, and increasing productivity through structured consultancy and training interventions.

Implementation Framework

The scheme is implemented through a cluster-based approach. A Special Purpose Vehicle (SPV) is formed comprising a minimum of 6 and a maximum of 10 Udyam-registered manufacturing MSMEs. The SPV engages an empanelled Lean Manufacturing Consultant (LMC) to implement lean tools such as 5S, Kaizen, Value Stream Mapping, Total Productive Maintenance (TPM), and Kanban over a defined project period.

Funding Pattern

The Government of India provides financial assistance up to 80% of the consultant fees for the first three interventions (Awareness Programme, Training, and Implementation). The remaining 20% is contributed by the beneficiary MSMEs. For subsequent interventions, the government share reduces to 60%. The maximum government assistance per cluster is capped as per prevailing guidelines.

1. Formation of a Special Purpose Vehicle (SPV) by 6-10 Udyam-registered manufacturing MSMEs and registration of the SPV as a legal entity.
2. Selection of an empanelled Lean Manufacturing Consultant (LMC) from the list available on the DC(MSME) portal.
3. Preparation of a Detailed Project Report (DPR) by the LMC in consultation with the SPV.
4. Submission of the application along with the DPR, SPV registration documents, Udyam certificates, and bank details to the nearest MSME Development Institute (MSME-DI) / MSME Development and Facilitation Office (MSME-DFO).
5. Scrutiny and recommendation by the MSME-DI/DFO and forwarding to the Office of DC(MSME) for approval.
6. Sanction of the project and release of the first installment of government grant to the SPV's dedicated bank account.
7. Implementation of lean interventions by the LMC under the monitoring of the MSME-DI/DFO.