MSMEs (Micro, Small and Medium Enterprises) form a substantial part of India’s economy. The government has long recognized their potential to boost economic growth, promote innovation, create employment, and aid in poverty reduction. Recently, the Ministry of MSMEs launched the MSME Competitive (LEAN) Scheme specifically to elevate the global competitiveness of India’s MSMEs.
Lean Manufacturing: A Roadmap to Global Competitiveness
Lean manufacturing or lean production, simply known as LEAN, is a practice that aims at minimizing the waste of resources while maximizing value for the end consumer. It involves a set of principles that steer to improvements in productivity, quality, and lead-time by eliminating waste through an approach called kaizen – a Japanese philosophy of continuous improvement.
The five principles of lean manufacturing are:
Identify Value: Define what value means from the viewpoint of the customer.
Map the Value Stream: Map out the sequence of steps involved in producing a product or service. This helps identify areas of waste and inefficiency.
Create Flow: Create a smooth, unhindered flow of work through the value stream by eliminating bottlenecks and interruptions.
Implement Pull: Instigate a pull system that only produces products as and when they are needed, based on customer demand. This helps in reducing inventory and waste.
Strive for Perfection: Continually strive for perfection by identifying and eliminating waste, improving processes, and ensuring quality.
The MSME Competitive (LEAN) Scheme: Key Points
The objective of the LEAN scheme is to assist MSMEs in reducing wastage considerably, enhancing productivity, improving quality, working safely, expanding their markets, and ultimately becoming competitive and profitable.
MSMEs will implement lean manufacturing tools like 5S, Kaizen, KANBAN, Visual workplace, Poka Yoka etc. under the guidance of trained and competent LEAN Consultants. They will attain LEAN levels like Basic, Intermediate, and Advanced.
Government support includes a 90% contribution to the implementation cost for handholding and consultancy fees. An additional contribution of 5% is applicable for MSMEs which are part of SFURTI clusters, owned by Women/SC/ST, located in the Northeast region, or registering through Industry Associations or Overall Equipment Manufacturing organizations after completing all levels.
Recent Government Initiatives Related to MSMEs
In addition to the LEAN scheme, the government also introduced several other initiatives aimed at bolstering the MSME sector:
– Raising and Accelerating MSME Performance (RAMP) Scheme
– Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)
– Interest Subsidy Eligibility Certificate (ISEC)
– A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
– Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
– Zero Defect & Zero Effect (ZED)
Each of these schemes contributes distinctively to the growth and development of the MSME sector in their unique ways.
Examining Past UPSC Civil Services Examination Questions
A look at previous year’s questions from the UPSC Civil Services Examination reveals the emphasis on the government’s policy initiatives towards promoting the growth of the manufacturing sector and facilitating inclusive growth. For instance, the 2012 question focused on policy initiatives like the setting up of National Investment and Manufacturing Zones, providing the benefit of ‘single window clearance’ and establishing the Technology Acquisition and Development Fund to bolster the manufacturing sector. Similarly, the 2011 question highlighted the role of promoting Self-Help Groups, MSMEs and implementing the Right to Education Act to further inclusive growth. These indicate the significance of understanding government initiatives and policies related to the manufacturing sector and MSMEs in particular, for potential civil service aspirants.
