Globalization and market liberalization have mixed results for small and medium sized enterprises. On one hand, they offer an opportunity for these companies to expand globally and compete for a large customer base in the global market. On the other hand, they make these enterprises prone to severe competition from large and international companies which offer high quality products at reduced prices. Just like any other country, the Indian electrical sector is very competitive and SMEs rely on innovation and technology to survive in the market. As put forward by Wong, Wong and Ali (522), the 21st global industry forces managers to implement low cost competitive manufacturing systems in order to improve their competitiveness. However, the biggest question asked is whether SMEs have any consideration for lean manufacturing principles to give and sustain competitive advantage. One of the advantages of lean manufacturing is to ensure that there is less wastage of resources (Kumar, Antony & Singh 408). Due to high competition in the electrical sector, Indian SMEs have to look for ways of improving their competitive advantages and implementation of lean principles is one of them. The figure below shows the role of lean manufacturing for organization in three processes.