Competitiveness Scheme Presentation By:- Boon Management Consultants Pvt. Ltd. ON Lean Manufacturing Competitiveness Scheme (LMCS) PPT. No.010615 Page 1

Lean Manufacturing Competitiveness Scheme Scheme Name Lean Manufacturing Competitiveness Scheme (LMCS) Launched by Ministry of MSME, Govt. Of India Target Clients Manufacturing units having registration with MSME (Investment in plant and machinery less than 10 Crores) and having EM-2 Certificate. MSME’s not having EM-2 can apply online and obtain EM-2 within 30 – 60 days, easily. Objective To improve the competitiveness of Micro, Small and Medium Enterprises (MSME) Sector by increasing productivity, upgrading technology and conserving energy in manufacturing processes, enhancing domestic and global market share of Indian MSME products and increase exports from India. Page 2

What is Lean Manufacturing Projected Advantages through Lean Implementation What is Lean Manufacturing A set of proven and time tested techniques that helps in reducing cost and hence increase productivity and competitiveness. Some of the advantages of implementing LMP are as under: 1 Better Utilization of Manpower 2 Better Utilization of Space 3 Less Inventory 4 Improvement in Quality 5 Better Utilization of Machines 6 Lesser Breakdown / Down Time of Machines 7 Reduction in Wastages 8 Improvement in Productivity 9 Better Utilization of Funds / Resources 10 Feedback from Clients / Employees – Satisfaction 11 Tools for improvement in HR Activities Page 3

Projected Advantages through Lean Implementation – contd.. 12 Tools for improvement in Sales 13 Improvement in Profitability 14 Monitoring of Improvements done through Lean at every stage (Stage 1 to Stage 5) by QCI / MSME ADDITIONAL ACTIVITIES / BENEFITS (OVER & ABOVE NORMAL LMP ACTIVITIES / BENEFITS) 1 Software to Manage processes / activities (optional at extra cost) 2 MIS to provide all information easily (optional at extra cost) and save your time for further growth / family life 3 Workshop on capacity building on any selected topic 4 Seminar on awareness and implementation of LMCS(If minimum 10 clients agree to place order for LMCS) Page 4

1. Screening & Steering Committee Three tier arrangement done for LMCS Implementation 1. Screening & Steering Committee Provide overall direction to the scheme and will be headed by the Development Commissioner (MSME) 2. National Monitoring & Implementation Unit Responsible for facilitating, implementation and monitoring of the scheme. Quality Council of India (QCI) has been given the responsibility of NMIU The group of of 6 – 10 MSME Manufacturing Units shall be called as Mini Cluster & would work with assigned Lean Manufacturing Consultant to implement the specific Lean Manufacturing techniques 3. Mini Cluster & consultant Page 5

QCI/MSME Guidelines for fees As per QCI/MSME guidelines the maximum fees of implementation at one client is Rs. 3.5 lakhs Rs 2.8 lakhs(80%) shall be paid by QCI/MSME subject to Rs. 70,000/- (20%) paid by client till completion of stage 1. The project shall be done in 5 stages. Before completion of stage I, 20% of project cost shall be paid by the client and after stage 2, 3,4,5, the Govt. shall pay 20% after each stage through SPV. The payment shall be subject to successful completion of each stage and approval of progress of work by QCI. The LMP consultant who shall do the consultancy and receive the funds from government through SPV has to produce bank statement and proof of receipt of stage 1 payment. Also the bank account details of cluster/SPV has to be sent to Govt. after each stage. Page 6

FREQUENTLY ASKED QUESTIONS ( FAQ’s) 1/3 Q1 Would there be inconvenience to company if MSME/ QCI experts visit our company for inspection? A-1 The intention of MSME/QCI experts is to verify the progress and suggest further improvements if any. They are very professional in approach and do not behave like fault finding inspectors. Q2 Would LMP ensure confidentiality of my secret raw materials/processes? A-2 YES. The consultants are professional and maintain confidentiality. However if any raw material/process is very critical/confidential then in such cases the company may not give the exact names/details and mark it as A,B,C etc. Further, if the company is still not sure then the company should exclude that portion from disclosing it to LMP consultant and cover rest of the processes. Page 7

FREQUENTLY ASKED QUESTIONS ( FAQ’s) 2/3 Q3 Is it mandatory for company to make changes proposed by LMP consultant if it requires major expenses? A-3 NO. The LMP consultant shall give recommendations only. If the client finds them useful then the client can take decisions which are suitable to them. Q4 Would LMP get into Financial transactions of the company ? A-4 NO. LMP consultant does not get into financial costing, purchase/sale bills or profitability of any material or products unless the client wishes to share the same. Q5 Would LMP be beneficial for Micro and Small Companies? A-5 YES. If the recommendations given by LMP consultant are adopted by the company then the improvements shall certainly happen depending upon the level of implementation. Further, SPC is giving assurance to its clients for improvements if the client decides not to take refund and instead take 10 additional man days. The minimum improvement shall be 2% increase on existing profitability or Rs. one Lac per annum, which shall be year after year. Page 8

FREQUENTLY ASKED QUESTIONS ( FAQ’s) 3/3 Q6 Would any certificate be awarded after completion of LMP? A-6 YES. BMCPL shall issue a certificate to each client who shall complete LMP successfully. The certificate shall carry a unique certificate number and hologram and these details shall be uploaded on BMCPL website for verification/authenticity. Q7 Would there be any additional advantage by implementing LMP? A-7 Various government departments are instructed to procure 20-40% of goods from MSME’s. Many departments are considering giving additional weightage to those companies who have implemented LMP and some departments are likely to make it mandatory to meet eligibility conditions. Q8 Where can we see the project details as given by MSME and QCI? A-8 The details of LMCS project can be seen on Govt. Of India MSME website www.dcmsme.gov.in. Further details can be seen on QCI website www.qcin.org . The verification of BMCPL as authorized consultant can be done through QCI. Page 9

Brief about Boon Mangement Consultants Pvt Ltd (BMCPL) Boon management consultants private limited (BMCPL) is a consultancy organization that specializes in providing services for Lean Manufacturing Tools, improvement of systems including capacity building and ISO 9001:2008 quality management systems. BMCPL is providing consultancy and training services to its clients all over India through its offices located at Mumbai, Chennai, Delhi and Kolkata. Besides many private and service sector clients, we are providing services to government / semi-government organizations. Some of our government clients are 33 ZILLA PARISHADS, RURAL DEVELOPMENT DEPARTMENT- GOVERNMENT OF MAHARASHTRA, MAHARASHTRA STATE OBCFDC, DRDA, OFFICE OF GOVERNOR OF MAHARASHTRA ETC. Page 10

Brief about Boon Mangement Consultants Pvt Ltd (BMCPL) Boon Management Consultants Pvt. Ltd. has over 100 qualified professionals having vast experience in implementation of above said services in various sectors. While providing services for Lean Manufacturing Practices, improvement of systems and capacity building, we ensure that the systems meet the requirements which are best in the industry. Page 11

Chief Minister Shri. Vilasrao Deshmukh felicitated Boon Management for the work done at Rural Development Department, Govt. of Maharashtra Page 12

Rural Development Department, Govt Rural Development Department, Govt. of Maharashtra was given national award by Union Minister Shri. Oscar Fernandes THANK YOU Page 13