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by Rajen Kumar

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Focus

Embrace Lean Management Practices and Improve Productivity to Survive: Dinesh Rai Exhorts Entrepreneurs

SME WORLD Bureau
Mar 2010

This is the time when the SMEs in India should brace up to face new challenges of the modern times. Time has since significantly changed from the high tariffs and reserved 108 items for small scale industries to only 21 reserved items and hardly any tariffs that too only 10-12% which may eventually come down very soon.

It means SMEs have to compete with the large industries and MNCs. So, the SMEs have no choice but to improve both in quality and standards as well as costing and pricing to survive. Lean Manufacturing Practices can help them to become more competitive.

These are the excerpts of the address of Dinesh Rai, Secretary, Ministry of MSME, Government of India at a workshop on 'Lean Manufacturing Practices in SMEs' organized by the SME WORLD in New Delhi on February 18.

The workshop was organised in association with Central Council for Research in Yoga & Naturopathy, Quality Council of India and ASSOCHAM.

Reducing Waste Through Lean

“Government of India attaches lots of importance to the MSMEs. Under Lean Manufacturing Program (LMP), MSMEs will be assisted in reducing the cost through proper personal management, better space utilization, scientific inventory management, improve process flows, reducing engineering time and so on. With the application of the lean manufacturing techniques, it will possible to reduce so called waste in manufacturing and also reduce unnecessary pile-up of the waste. LMP has also brought about improvement in the quality of the products and lowers cost which is essentials for competing both at national as well as international levels,” Rai said.

At the workshop different experts shared their views with the entrepreneurs about the importance of lean manufacturing practices. The Government understands the value of adopting different measures and new techniques like lean manufacturing specifically for SMEs.

Awareness Programmes for Clusters

Emphasizing about the government's initiatives towards the Lean Manufacturing Competitiveness Scheme Dinesh Rai said, “Initially we have started with 100 clusters first and then we will see how the things workout and I am happy to note that out of these 100 clusters, 72 awareness programs have been held, 13 SPVs have been formed and they are auto components cluster in Pune and Faridabad, Aurangabad, Gurgaon, Chennai, Jamshedpur foundry cluster at Ludhiana, electrical and electric fan cluster in Hyderabad, food processing at Vadodara, Guwahati, engineering and fabrication at Bhopal, readymade garments at Ludhiana.”

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