Most MSMEs with a manufacturing unit face several obstacles like their profits declining, lack of updated machines and complaints of late product delivery. This is where the Lean Manufacturing Competitiveness scheme for MSMEs comes into picture.

The Lean Manufacturing Competitiveness (LMC) scheme is offered by the Development Commissioner, Ministry of Micro, Small, and Medium Enterprises (DC – MSME), Government of India.


What does Lean Manufacturing (LM) mean? :

Lean Manufacturing or Lean Production is a systematic method for the elimination of waste.

LM helps in:

  • Making your customers happier
  • Designing better products
  • Improving your supplier quality
  • Factory management

What are the main LM techniques?

  • 5S system
  • Visual control
  • Standard operating procedures (SOPs)
  • Just in time (JIT)
  • KANBAN system
  • Cellular layout
  • Value stream mapping
  • Poka Yoke or mistake proofing
  • Single minute exchange of dies or quick changeover (SMED)
  • Total productive maintenance (TPM)
  • Kaizen Blitz or rapid improvement process


How does an MSME benefit from this scheme?

An MSME can benefit from this scheme in the following ways:

  • Cost reduction
  • Cycle time reduction
  • Waste minimisation
  • Elimination of non-value-added activities
  • Resulting in a more ‘lean’, competitive, agile, and market-responsive company
  • This scheme offers a subsidy of up to 80% of the consultant’s fees for each mini cluster. The remaining 20% can be shared by the participating units of the cluster.

* What’s a cluster? A mini-cluster is a group of minimum 6 and ideally 10 MSMEs who want to participate in the scheme. An MSME would need to form a mini cluster. It would help if all MSMEs are in the same business line. Then the MSMEs need to sign a MoU with the other MSMEs in the cluster.

Eligibility Criteria:

What is the eligibility criteria for this scheme?

The eligibility criteria for this scheme is as follows:

  • The scheme is open to all MSMEs throughout the country.
  • You need to have an Udyog Aadhar


  • An MSME can submit the MoU here

Documents Required:

Which documents are required to apply for this scheme?

The documents required to apply for this scheme are:

  • MoU
  • Power of attorney
  • Special purpose vehicle

For more information on this scheme, click here.