Top Background

MSME Lean Scheme

MSME Lean Scheme banner
Lean MSME Scheme

MSME Competitive (Lean) Scheme

MSME (Micro, Small & Medium Enterprises) forms and integral part of the supply chain and manufacturing sector, contributing to more than 45% of the country’s total manufacturing output & and almost 30% of the national GDP. (As per RBI’s 2023 Report) Recognizing the importance of this and improve MSME’s Productivity, Competitiveness and Resource Optimization, Ministry of Micro, Small & Medium Enterprises and Government of India, has introduced the MSME Competitive LEAN Scheme.

MSME Competitive (Lean) Scheme is an extensive drive and continuous effort for enhancing the competitiveness of UDYAM Registered MSME through implementation of Lean Tools and Techniques.

The Lean Scheme optimizes the use of resources—materials, manpower, and machinery—to maximize output and minimize waste, while enhancing the quality of products and services to exceed customer expectations. It incorporates Lean principles to solidify a high standard of operations.

Adopting Industry 4.0 technologies, the scheme aids MSMEs in transitioning to digital operations, enhancing efficiency through automation and data analytics. It also promotes skill development and a culture of continuous improvement, crucial for adapting to evolving market demands.

Under MSME Lean Scheme, organizations will be provided with Industry Awareness Programmes/Workshop along with Handholding support for implementing Lean Tools and Techniques at three different levels – Basic, Intermediate, and Advanced. Completion of each stage is verifiable by end term assessment or assessment by Implementation Agency along MSME -DFOs.

balloon vector

The MSME Competitive Lean Scheme integrates a series of Lean tools designed to enhance operational efficiency and reduce waste across various industries. These tools are critical for transforming traditional business practices into
highly efficient, productive operations.

Some of the Key Lean Tools

  • 5S
  • Kaizen
  • Value Stream Mapping
  • Poka-Yoke
  • Just in Time (JIT)
  • SMED (Single Minute Exchange of Dies)
  • Gemba Walk
  • Andon
  • Jidoka
  • Takt Time
  • Heijunka
  • Visual Factory

Basic Level

The initial stage, MSMEs embark on their Lean journey which lasts for 2 months. This level offers free introductory training, providing the foundational knowledge of Lean concepts and tools. It is designed to get participating enterprises acquainted with the basics of Lean, setting the stage for more advanced practices.

Intermediate Level

After completing the Basic Level, MSMEs progress to the Intermediate Level, a more intensive six-month phase of Lean implementation. Here, they receive a subsidy covering up to 90% of consultancy fees, with a cap of ₹1,20,000. This financial support is intended to help MSMEs dive deeper into Lean strategies and tools, thereby enhancing their operational efficiencies.

Advance Level

The highest tier in the Lean Scheme is the Advanced Level, which involves a twelve-month, in-depth program focusing on advanced Lean methodologies. At this stage, MSMEs benefit from substantial support, receiving a subsidy that covers 90% of consultancy fees up to ₹2,40,000. This level is aimed at empowering MSMEs to fully integrate and sustain advanced Lean practices, ensuring they can maintain their competitiveness in the market.

Implementing Lean principles offers substantial advantages for micro, small, and medium enterprises (MSMEs), primarily by optimizing operational processes and reducing overhead costs. Lean strategies streamline operations and cut waste, which not only improves productivity but also contributes to greater financial efficiency

Lean principles also nurture a proactive workplace culture and bolster the overall resilience of a business. Engaging staff in continuous improvement initiatives fosters a sense of involvement and empowerment, elevating both morale and output.

Key Befefits of MSME Lean Scheme

  • Enhanced Operational Efficiency
  • Significant Cost Reductions
  • Improved Quality of Products and Services
  • Increased Employee Engagement and Productivity
  • Space Optimization
  • Improve workplace safety

All Manufacturing MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Competitive (Lean) Scheme.

Scheme is also open to Common Facilities Centers (CFCs) under SFURTI (Scheme of Fund for Regeneration of Traditional Industries) and Micro & Small Enterprises - Cluster Development Program (MSE-CDP) Schemes.

Lean Clients

Arvind Smartspaces Ltd.
Olam Agro India Limited
Goa Glass Fibre Limited
E-Con Packaging Private Limited
Daramic Battery Separator india pvt. Ltd.
Petrotec- Retail Petroleum Equipment (India) Private Limited
Adani Transmission
Adani Solar

LEAN Training

Our team of NPC Certified MSME Lean consultants will provide a customized training program on Lean Tools & Techniques for

Lean Tools

Lean Tools

Awareness Training on Lean Tools

Lean Tools

Lean Tools

Implementation Training on Lean Tools

Our Insightful Knowledge

balloon vector

Frequently Asked Questions on MSME Lean Scheme

MSME Lean Scheme is divided into three levels where handholding subsidy is provided to implement Lean Tools for the organization. In Intermediate Level an organization can get a subsidy upto ₹ 1,20,000 + Taxes on handholding/consultation fees per unit of implementation, and for Advance Level this subsidy ranges upto ₹ 2,40,000 + Taxes per unit. Additional subsidy for 5% per unit will be provided for organizations registering through Industry Association/OEM, MSMEs which are part of SFURTI Clusters, Woman/SC/ ST owned, NER located MSMEs. Moreover ₹ 5000/ per MSME shall be given to OEM/ Association after completing all stages of lean intervention.

Organization after sucessful implementation for MSME Lean Scheme will be getting Lean E-Certification by MoMSME. Certification will be provided after every level of implementation for Basic Level, Intermediate Level, and Advanced Level.

All Manufacturing MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Competitive (Lean) Scheme

Scheme is also open to Common Facilities Centers (CFCs) under SFURTI (Scheme of Fund for Regeneration of Traditional Industries) and Micro & Small Enterprises - Cluster Development Program (MSE-CDP) Schemes.

Every organization registering for MSME Lean Scheme has to proceed as per the implementation level of Basic, Intermediate, & Advance. MSME's can apply for basic scheme as an individual unit but for Intermediate and Advance level, MSME's have to opt in for Handholding support. MSMEs would be required to form a Group of Enterprises (GoE) for applying for Handholding Support. A Group of Enterprises will comprise at least 4 and up to 10 MSMEs located within an identifiable, and as for as practicable, contiguous area and manufacturing same/similar products.

balloon vector

Empower your business with 4C

  • Team 4C has NPC certified Lean Consultant's for Consulting Services having 15+ years of experience
  • Our team of Lean Consultants had successfully implemented 200+ Lean, 5S, VSM projects in across India.
  • 8000+ Hours Lean training and 20000+ Hours Consulting
  • Hands on experience of Team 4C in implementing Lean Tools such as 5S, Kaizen, Kanban, VSM, Poka-Yoka, JIT, etc.
  • Worked with more than 50 International & National Certification Bodies
connect today