Empanelment of Consultant as LMC by ashrafp



1.0   Background
1.1   Development Commissioner, Ministry of Micro, Small & Medium Enterprises (DC-
      MSME), Government of India has proposed to implement Lean Manufacturing
      Competitiveness Programme (the Programme) under Public Private Partnership (PPP)
      Mode, for the benefit of MSMEs during 11th Plan Period. DC-MSME would act as the
      Sponsoring Authority for the Programme. The objective of the Programme is to enhance
      the manufacturing competitiveness of MSMEs through the application of various Lean
      Manufacturing (LM) Techniques. The general approach proposed is to work in clusters
      with initial financial requirement contributed by the Government. In the first year, the
      Programme would cover 100 Mini Clusters (approximately 10 MSMEs per cluster)
      spread all over the country.
1.2   The Programme would involve assistance in the form of grant towards the cost of
      implementation of the LM practices.
1.3   The Scheme is open to all the units through out the country which qualify as Micro,
      Small or Medium as per the definition of the MSME Act. (The Micro, Small and Medium
      Enterprises Development Act, 2006.).
1.4   The units are required to form a MC of 10 or so units by signing among themselves a
      Memorandum of Understanding (MoU) to participate in the Scheme. MCs are required to
      formalize their association by forming a SPV, whose form could be any of the following:-
      (a)     “Trust” as per the Indian Trust Act,1882 or any Trust Act or
      (b)     A private limited company incorporated as per Indian Companies Act, 1956 or
      (c)     A “society” under The Societies Registration Act, 1860         (including any of its
              State equivalent) or
      (d)     Any similar entity as approved by SSC from time to time.
1.5   The Implementation Framework shall require each tier responsible for reporting to its
      next higher level tier and shall include::
      a)      Screening cum Steering Committee (SSC) shall form the top tier, Tier III,
              headed by DC-MSME and would have wide representation from various
              stakeholders, industry experts, nominees of bodies like, Central Manufacturing
              Technology Institute (CMTI), NMCC, ILO, DGFASLI, and SPVs concerned,
              NMIU and a representative of the Finance Wing of MSME.
      b)      National Productivity Council (“NPC”) has been identified as National Monitoring
              and Implementing Unit (hereinafter referred to as “NMIU”) under the Scheme.
              This would constitute Tier II of the implementation structure.
      c)      The MC in the form of SPV, would form the bottom most tier, Tier I, of the
              Implementation structure.

2.0   Introduction
2.1   Under the Scheme, MSMEs will be assisted in reducing their manufacturing costs,
      through proper personnel management, better space utilization, scientific inventory
      management, improved process flows, reduced engineering time and so on with the
      application of LM techniques. The Scheme is basically a business initiative to reduce
      “waste” in manufacturing. The Scheme envisages improvement in the quality of products
      and lowering of cost, which is essential for competing in national and international
2.2   The general approach of the scheme involves engagement of Lean Manufacturing
      Consultants (LMC) to work with selected MSME’s in the chosen clusters with financial
      support by the Government. A maximum of 80% of the project cost for each cluster will
      be borne by the Government and the rest 20% has to be contributed by the SPV. The
      assistance would be limited to the first year of the Scheme.
2.3   An Individual or a Consultancy Firm duly registered with or certified by a reputed
      certification agency in the field of manufacturing technology, quality control etc would be
      an eligible entity to participate in the Scheme as a LMC.
2.4   Incase the individual / organization is not registered, as above, it shall get itself
      empanelled with the National Productivity Council by sending the consultant profile along
      with other details in the prescribed format as given on the website at http://lmcs-
      npc.gov.in or http://npcindia.org.

3.0   Invitation to Consultants
3.1   As a “Monitoring and Implementation Unit (NMIU)”, the National Productivity Council
      invites Expression of Interest (EoI) from the qualified consultants who are interested to
      offer their services and get empanelled as an LMC. SSC would reserve the right of
      considering reputed consultants with requisite qualification and exemplary track record in
      the field of LM consultancy as an eligible entity.

4.0   Purpose of the Assignment
4.1   The objectives of assignment are to increase the competitiveness of the MSME sector
      through the adoption of LM techniques with:

      i)     Reducing waste;
      ii)    Increasing productivity;
      iii)   Introducing innovative practices for improving overall competitiveness;
      iv)    Inculcating good management systems; and
      v)     Imbibing a culture of continuous improvement.

5.0   Scope of Work
5.1   Once appointed, LMC would be responsible for tasks given below:
      i)     Assess the existing system at each member unit of the concerned MC;
      ii)    Stipulate detailed step by step procedures and schedules for implementation of
             the LM techniques (pre-defined milestones);
      iii)   Identify the end targets in quantified parameters to be achieved by each unit at
             the end of the Scheme;
      iv)    Work in close co-operation with each of the units to assess and then achieve the
             LM techniques implementation;
      v)     Assess and undertake the training and other such implementation requirements;
      vi)    Prepare specific reports for such implementation activities undertaken by it in
             each of the units.
6.0   Roles and Responsibilities of LMC
6.1   LMC would appoint a Nodal Officer for the Purpose of single point of contact for the
      implementation of the Programme. However, in the case of Individual Consultant, it is
      assumed that the consultant will be the single point of contact.
6.2   Based on its assessment, LMC would provide plan for implementation of LM practices,
      which would comprise, inter alia, pre-defined milestones for implementation progress,
      the detailed step by step procedures, and time lines for implementation;
6.3   LMC would provide the end targets in quantified parameters to be achieved by each
      unit by the end of the Programme;
6.4   LMC would work in close co-operation with each of the units to achieve the LM
      practice and raise periodic bills/invoices against the achievement of pre-defined
      milestones to the units in a MC/SPV;
6.5   LMC would undertake periodic reporting as stipulated by NMIU for the Scheme;
6.6   LMC would also respond to specific queries raised by NMIU on its performance; and
6.7   In case of any disputes, the LMC would adhere to the procedure as will be detailed in
      the Dispute Redressal Procedures of the Tripartite Agreement to be signed at the time
      of award of contract.

7.0   Approach to be adopted
7.1   The NMIU would attach an LMC to each MC/SPV. The LMC would work in cooperation
      with individual units of a MC/SPV.
7.2   The LMC shall study the units for the possible interventions through undertaking various
      activities e.g. Enterprise-wide Value Stream Assessment, Training need – Lean
      principles and tools: for moving ahead on the Lean journey etc.
7.3   The LMC shall undertake detailed study of all the units comprising the Mini-cluster to
      identify the interventions required and submit a detailed diagnostic report along with an
      action plan, at the end of the first month, after the award of the assignment.
7.4   The LMC shall submit periodical progress report during the duration of the assignment.
7.5   The LMC shall take videos in the beginning of the interventions as well as at different
      stages of implementation and submit to NMIU along with the periodical progress reports.
7.6   The LMC shall prepare case study and closing report for each SPV handled.
7.7   The deliverables shall be linked with the project duration based on the submitted action

8.0   Competencies of Consultants and Eligibility Criteria
8.1   The scope and comprehensiveness of this assignment requires engagement of a
      qualified and experienced consultant or firm /institution.
8.2   An individual LMC is expected to work with not more than 2/3 SPVs in and around the
      same location. Whereas a Consultancy Firm participating in the Scheme would allocate
      maximum 2 MCs per eligible personnel. The consultant should operate from office
      located in and around the same location of the SPV. This is to ensure effective
      implementation at the unit level. There should be dedicated resource reserved for each
      SPV. However, looking at the shortage of LMCs at a particular location the requirement
      could be relaxed by the competent authority (SSC).
8.3   The consultants should have professionals dedicated to this study with the following
      relevant qualifications, skills and experience between them: a) at least an Engineering
      Graduate with knowledge of Lean Manufacturing Concepts & tools and techniques; b)
      proven and demonstrated experience in Implementation of such techniques preferably in
      small units/MSME clusters; c) project/programme management; d) professional writing;
      e) sound understanding of relevant Financial and Information Technology concepts; and
      f) Fluency and proficiency in written and spoken English and local language.

9.0   Procedure for Empanelment
9.1   The consultant may fill in the appropriate questionnaire (individual or organization) and
      send/mail to the following address as mentioned below super scribing the envelope as
      “Empanelment as Lean Manufacturing Consultant (LMC)” :

      Director & Group Head (Process Management),
      National Productivity Council,
      5-6, Institutional Area,
      Lodi Road,
      New Delhi-110003,
      Tel. 91-11-24607316
      Email: nmiu.npc@gmail.com, nmiu.cell@npcindia.org

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