Zero Defect Zero Effect Scheme

• 30 Nov 2021

Why in News

According to the recent data, as many as 23,948 Micro, Small and Medium-sized Enterprises (MSMEs) had registered with intent to adopt the principle of the Zero Defect Zero Effect Scheme (ZED).

Key Points

• About the Scheme:
  
  • Launched in 2016 by the Ministry of MSME, the scheme is an integrated and comprehensive certification system.
  • The scheme accounts for productivity, quality, pollution mitigation, energy efficiency, financial status, human resource and technological depth including design and IPR in both products and processes.
  • Its mission is to develop and implement the ‘ZED’ culture in India based on the principles of Zero Defect & Zero Effect.
  • Zero Defect:
    
    • The Zero defect concept is focusing on the customer.
    • Zero non-conformance or non-compliance
    • Zero waste
  • Zero Effect:
    
    • Zero air pollution, liquid discharge, solid waste
    • Zero wastage of natural resources
• ZED Certification\Rating:
  
  • The Rating is a weighted average of the marks obtained on each parameter.
  • The MSMEs will be assessed & rated on defined enabler & outcome parameters on operational level indicators and organisational level indicators at the operational level.
  • Based on the assessment, the MSME will be ranked as Bronze-Silver-Gold-Diamond-Platinum enterprises.
  • There are 50 parameters for ZED rating and additional 25 parameters for ZED Defence rating under ZED Maturity Assessment Model.
• Objective of the Scheme:
  
  • To develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
  • To promote adaptation of quality tools/systems and energy efficient manufacturing. Enable MSMEs for manufacturing of quality products.
  • To encourage MSMEs to constantly upgrade their quality standards in products and processes.
  • To develop professionals in the area of ZED manufacturing and certification.
  • To support the 'Make in India' campaign
• Implementation Agency of the Scheme:
  
  • Quality Council of India (QCI) has been appointed as the National Monitoring & Implementing Unit (NMIU) for implementation of ZED.
    
    • The Quality Council of India (QCI) is a non-profit organization registered under the Societies Registration Act of 1860.
• Other Initiatives to Promote MSMEs Sector:
  
  • Prime Minister’s Employment Generation programme (PMEGP)
  • Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
  • A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
  • Interest Subvention Scheme for Incremental Credit to MSMEs
  • Credit Guarantee Scheme for Micro and Small Enterprises
  • CHAMPIONS portal

MSMEs & Indian Economy

• They are the growth accelerators of the Indian economy, contributing about 30% of the country’s Gross Domestic Product (GDP).
• In terms of exports, they are an integral part of the supply chain and contribute about 48% of the overall exports.
• MSMEs also play an important role in employment generation, as they employ about 110 million people across the country.
• Interestingly, MSMEs are intertwined with the rural economy as well, as more than half of the MSMEs operate in rural India.

Source: PIB