Economy

MSMEs urged to adopt lean manufacturing practices, use govt sops

Our Bureau Chennai | Updated on October 30, 2019 Published on October 30, 2019

Micro, Small & Medium Enterprises (MSMEs) that have adopted lean manufacturing practices have shown tremendous results in terms of empowering their workers to take independent decisions, ability to focus on new business opportunities and increasing the time availability to work with more people, a senior government official said here on Wednesday.

“This (lean manufacturing) is the way forward if you are adopting to Industry 4.0. I request you to kindly adopt to lean manufacturing and also make use of the subsidies provided by our government for this purpose,” said Sudhir Garg, Joint Secretary, Ministry of Micro Small and Medium Enterprises.

He was delivering the inaugural address at the MSME Tech Summit titled ‘Vision for the Future – Moving from Want to Need for Transformation’, organised by the Confederation of Indian Industry, Southern Region.

Garg said the Ministry is offering 80 per cent subsidy to micro units and 60 per cent to small units that adopt lean manufacturing practice.

Highlighting that the practice (of lean manufacturing) is not restricted only to manufacturing industries, Garg shared feedback received from an electronics industry player who was able to bring down the cost of production by 30 per cent and improve the design capability of his team after adopting lean manufacturing practices.

“The Ministry of Micro, Small & Medium Enterprises is laying a lot of emphasis on new technologies like lean manufacturing, design improvements, setting up of common facility centres and digitisation,” he added.

Listing out the government initiatives to enhance manufacturing technologies, Garg said India currently has 18 Technology Centres (TCs) and the government has recently added another 15 TCs at a cost of ₹3,000 crore.

TCs, earlier known as Tool Rooms, offer support to MSMEs by providing access to advanced manufacturing technologies, skilling manpower with technical know-how and providing business and technical advisory support to MSME entrepreneurs.

Garg also said the government is adding 120 more centres, of which 20 will be large with an investment of ₹200 crore each and 100 small district centres at an investment of ₹20 crore each.

The high-end design centres will also have facilities such as reverse engineering, testing, standardisation and consulting.

Earlier, in his special address, Ashok Reddy, President-Corporate Affairs and Infra, Cyient Ltd, said: “Technology and innovation are no longer an option for MSMEs but have now become a key necessity.”

Published on October 30, 2019
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