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Lean Manufacturing Competitiveness Scheme - Need and its Benefits
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(December 11, 2018)


Worldwide, micro, small and medium enterprises (MSMEs) have been accepted as the engine of economic growth and for promoting equitable development. MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and export. Scenario of Indian economy is not different from the economies of rest of world. Micro, Small and Medium Enterprises are the backbone of the Indian economy. MSME is the second largest employment generation sector after Agriculture. The Micro, Small and Medium Enterprises (MSMEs) are a vital part of the Indian economy contributing to over 45% of Industrial production and around 40% of the total exports. MSMEs are the largest contributor in terms of employment generation in the manufacturing sector. MSMEs are present as part of the value chain in almost all distinguished industry sectors like automotive industry, garments and textile industry, leather industry etc. Recognizing the importance of overall economic growth of a country and the need for enhancing its productivity, competitiveness and employment generation, many countries have initiated institutional mechanism for a national approach on manufacturing. The Development Commissioner, Ministry of Micro, Small and Medium Enterprises (DCMSME), Govt. of India is implementing the Lean Manufacturing Scheme for the benefit of Micro, Small and Medium Enterprises. The objective of the scheme is to enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) Techniques. The general approach involves engagement of Lean Manufacturing Consultant (LMC) to work with selected MSMEs in the chosen clusters with financial support by the Government.

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