Relevance of lean manufacturing for MSME sector

The aftermath of globalization has seen a radical change in technology vis a’ vis intense global business competitions over the years. Ever changing customer’s expectations, fluctuating demand and competition in the market has posed challenges of competitiveness and survival to all the constituents of the economy, especially for a developing country like India, where many organizations are struggling to conform to the world class standards. The philosophy of lean management has evolved over the years and is based on a set of fundamental tools and techniques that is recognized as one of the best methods of removing this waste, reducing costs and transforming business performance. In the past, due to financial restraints, this has been seen as a tool purely for large organizations. While larger entities have the budget and resources to work on removing this process ‘waste’,MSMEs often don’t have access to the same resources feeling the pinch and impact of every cost. However, using new tools and methodologies, MSMEs can now leverage lean improvement in a manner specifically tailored for their needs and within a realistic cost bracket. In this article, the author has intended to showcase the relevance and applicability of Lean Manufacturing concepts to the MSMEs for achieving competitiveness and sustainable business growth.