Recently, it has been reported that 23,948 Micro, Small and Medium-sized Enterprises (MSMEs) have registered their interest to adopt the principles of the Zero Defect Zero Effect Scheme (ZED). This initiative was launched in 2016 by the Ministry of MSME with an aim to boost productivity, quality, energy efficiency, and pollution reduction among these businesses, thereby creating ‘ZED’ culture in India.
Understanding the Zero Defect Zero Effect Scheme
The ZED scheme is an exhaustive and integrated certification programme designed to assess several parameters including productivity, quality, pollution mitigation, energy efficiency, financial status, human resource, and technological depth in both products and processes. The scheme’s mission is to foster a ‘Zero Defect & Zero Effect’ culture within Indian MSMEs.
Defining ‘Zero Defect’ and ‘Zero Effect’
The ‘Zero Defect’ concept in the ZED scheme emphasizes customer satisfaction achieved through zero non-conformance or non-compliance and zero waste. ‘Zero Effect’, on the other hand, emphasizes environmental sustainability through zero air pollution, liquid discharge, solid waste, and wastage of natural resources.
ZED Certification/Rating
The ZED rating is a weighted average of the scores obtained on each parameter during the assessment of the MSME. The enterprises will be ranked as Bronze, Silver, Gold, Diamond, or Platinum based on their performance. The ZED Maturity Assessment Model consists of 50 parameters for ZED rating and an additional 25 parameters for ZED Defence rating.
Scheme Objectives
The primary objectives of the ZED scheme are fostering an ecosystem for Zero Defect Manufacturing in MSMEs, promoting the adoption of quality tools/systems and energy-efficient manufacturing, enabling MSMEs to manufacture quality products, and encouraging them to upgrade their quality standards constantly.
Implementation Agency
Quality Council of India (QCI) has been designated as the National Monitoring & Implementing Unit (NMIU) for the implementation of ZED. QCI is a non-profit organization registered under the Societies Registration Act of 1860.
Other Initiatives Supporting MSMEs
The government has rolled out several other initiatives to boost the MSME sector such as the Prime Minister’s Employment Generation Programme, Scheme of Fund for Regeneration of Traditional Industries, A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship, Interest Subvention Scheme for Incremental Credit to MSMEs, and Credit Guarantee Scheme for Micro and Small Enterprises.
MSMEs: Growth Accelerators of Indian Economy
MSMEs contribute about 30% of India’s GDP and about 48% of overall exports, employing about 110 million people across the country. Moreover, MSMEs have deep roots in rural India with more than half of these enterprises operating in this region. Thus, MSMEs play a crucial role in ensuring the economic growth and stability of the country.
