Lean Manufacturing Competitiveness Scheme (LMCS) is a part of National Manufacturing Competitiveness Programme (NMCP) under Ministry of MSME and it aims at improving the overall productivity of MSMEs by reduction of wastes with the help of lean manufacturing concepts. This scheme was started in 2009 as a pilot project in 100 clusters and based on its success; this scheme has been up-scaled for 500 more clusters.

 National Productivity Council has been associated with this scheme since inception as National Monitoring and Implementation Unit (NMIU).  Till-date 200 MSME Clusters have been formed encompassing sectors such as Automobile, Engineering, White Goods, Handicrafts, Diamond Processing, Food Processing, Readymade Garments & Textile Cluster etc. The beneficiary MSMEs has witnessed an average increase in productivity level in the range of 20 to 25%.  Besides, depending upon the type of clusters, the average increase in inventory turnover has been reported as 25% and the achievement in respect of reduction in manufacturing lead time in the range of 5 to 30%.  National Productivity Council organized a media interface with 10 MSME beneficiaries during which they actively participated to share their achievements accruing from implementing Lean Manufacturing Tools and Techniques. Majority of beneficiary units have reported manifold monetary savings during each stage of the implementation. The other intangible benefits that accrued were safer workplace management, improved quality environment-friendly production capacities, business opportunities and high morale of workforce. During the interaction DG,NPC Mrs Kalpana Awasthi said the scheme has also been able to build the capacity of the beneficiary units to contribute to Make in India initiative of Govt. of India.She said the Overall response from the MSMEs has been very encouraging as regards the implementation of the scheme by NPC as well as its effectiveness towards ease of doing business for their sector as a whole.

Lean manufacturing scheme improves MSME productivity and efficiency through waste reduction and capacity building. The Lean Manufacturing Competitiveness Scheme (LMCS) is a productivity programme for MSME clusters that applies lean tools to reduce waste, enhance productivity, increase inventory turnover and shorten manufacturing lead times. Implemented and monitored by the National Productivity Council as the National Monitoring and Implementation Unit, the scheme combines cluster formation, process interventions and capacity building, yielding both measurable operational gains and ancillary benefits such as safer workplaces, improved quality, environmental improvements and enhanced business opportunities.