Lean manufacturing system for medium size manufacturing enterprises: an Indian case

Abstract Competitive market is forcing big organizations to utilize the untapped potential of Medium Size Manufacturing Enterprises (MSME). In the era of outsourcing, MSMEs are the important links in the supply chain, making it more effective and efficient. The new competition is in terms of reduced cost, improved quality products with higher performance, a wider range of products and better services, all delivered simultaneously to enhance value to the customer. MSMEs play an important role in Indian economy and with the liberalization facing tremendous challenges, but their strength lies in the competitiveness of their products in the world market. Lean manufacturing system (LMS) is characterized by shorter product development and manufacturing lead-time, team based work organizations, low setup/changeover times, multifunctional workers and JIT deliveries from few reliable suppliers. But the concepts of LMS are not well adopted in MSMEs. LMS as a manufacturing strategy can help a MSME to improve its processes and align it to the requirements of its customers. LMS has a set of tools and techniques; the choice is situation specific. MSMEs have the required structure for implementing Lean Manufacturing System. This paper discusses the issues of MSMEs and presents a case to demonstrate the improvements achieved in an Indian mid size auto component’s manufacturing unit after the implementation of LMS.

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