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:

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