ZED Certification Scheme
ZED Certification Scheme
The Ministry of Micro, Small and Medium Enterprises, Government of India has introduced the Financial Support to MSMEs in ZED Certification Scheme for the benefit of the Micro, Small and Medium Enterprises (MSMEs). This scheme is an extensive drive to create proper awareness in MSMEs about the Zero Defect Zero Effect (ZED) manufacturing and motivate the entrepreneur for assessment of their enterprises for ZED and support them. As part of this scheme, All MSMEs in India need to manufacture goods with zero defects and to ensure that the goods have zero effects on the environment. In this article, we will look at the processes required for an MSME to participate in ZED Certification Scheme.
ZED – Zero Defect Zero Effect
The ZED scheme is an integrated and comprehensive certification system that will account for productivity, quality, pollution mitigation, energy efficiency, financial status, human resource and technological depth including design and IPR in both products and processes.
The vision of ZED is to enable the advancement of our industry to a position of reputation in the global marketplace and leverage India’s emergence as the world’s supplier through the Made in India mark.
Its mission is to develop and implement the ‘ZED’ culture in India based on the principles of Zero Defect & Zero Effect
- The Zero defect concept is focusing on the customer.
- Zero non-conformance or non-compliance
- Zero waste
- Zero air pollution, liquid discharge, solid waste
- Zero wastage of natural resources
Objective of the ZED Certification Scheme
The ZED Certification scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for the certification with the following objectives:
- To promote the adaptation of quality tools and energy efficient manufacturing
- Developing an ecosystem for zero defect Manufacturing in the MSMEs
- To enable MSMEs for the manufacture of quality products.
- To encourage MSMEs to upgrade their quality standards in products and processes constantly
- To drive manufacturing with the adoption of Zero Defect production processes and without impacting the environment
- To support the Make in India campaign
- To develop the professionals in the area of ZED manufacturing and certification
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 fifty parameters on which the MSMEs are assessed and rated.
- The MSME applicant is needed to comply with identified 20 essential parameters and at least ten other parameters. Thus, the MSME will be rated on a minimum of thirty parameters.
- MSMEs can seek ZED rating on more than 30 parameters as per the processes and systems available at the MSME.
- Each parameter has five levels.
- The Rating will be based on the weighted average level
- The company will be encouraged, handheld and trained to achieve the higher level for each parameter and thus elevate itself in the maturity models.
The rating provided will be valid for four years. The surveillance audit will be carried out by QCI.
Benefits for ZED rated MSMEs
The benefits for ZED rated MSMEs is explained in detail below:
- The ZED rated MSME will get 0.5% interest rate on the concession on loans
- The ZED rated MSME will also get 50% concession in processing fee
- The Government provides Rs.25 lakhs for adopting technology
- The Government provides Rs.25 lakhs for setting up of new ETP
- Rs.10 lakh for domestic patent and Rs.20 lakhs for international patent registration
- Rs. 5 lakhs for purchase of testing equipment
- Rs.10 lakhs for ZED certification and handholding
- Extra 80%, 60%, and 50% subsidy on the cost of ZED certification in addition to the subsidy provided by the Government of India
Note: These are specific incentives by the Government of India, State Governments and Banks.
Zed Process Flow – Get ZED Certificate
The process to get the ZED certificate under the ZED certification scheme is explained in detail below:
Access the home page of ZED, from this click on register now option. The link will redirect to the registration page.
Provide the email Address and Mobile Number after that click on verify option. OTP will be sent to the entered mobile number. Please enter the OTP for validation.
The MSME registration page will be displayed. Provide the following details for registration:
- Name of Entrepreneur
- Social Category
- Any special category of Entrepreneur:
- Name of Enterprise:
- Date of Commencement of Enterprise
- UAM/EM 2/SSI Registration Number
- Contact Information
- National Industry Classification (NIC) Code
- Category of the unit as per the Central Pollution Control Board (CPC)
- Persons Employed:
- Type of MSME as on Date
- Supplier to defence
- Member of Chamber/Association
- Member of Chamber/Association
The applicant also uses this application to get the ZED Id.
Get ZED ID
The Applicant needs to click on the submit button to register. After the registration, an email will be sent to the registered email address; it will contain the ZED ID and a Password. Using these credentials, the Applicant can then proceed to Online Self-Assessment.
Online Self Assessment
From the home page, select the self-assessment option. In the new page, provide the ZED ID and password for login.
Using the online self-assessment, the applicant can know their manufacturing unit’s present status of systems and processes on the ZED scale.
From the home page, select the desktop assessment option. In the new page, provide the ZED ID and password for login.
The Desktop Assessment process will be evaluated by the online self-assessment exercise undertaken by the applicant MSME.
- Payment of relevant fee Rs. 10,000 by the applicant MSME
- Submission of relevant evidence as advised in the self-assessment stage
- Evaluation by the desktop assessors of the self-assessment vis evidence submitted.
Two assessors will assess and evaluate the existing systems and the manufacturing unit process on the parameters selected during the online self-assessment and collect additional relevant evidence
This assessment report will be evaluated by the NMIU which will result in a Certification as appropriate.
An amount of Rs. Eighty thousand will be payable by the applicant MSME for this process. Note: This cost also includes the Certification fee.
After the assessments and evaluation, the final rating is provided to the MSME which is valid for four years.
Get SED Certificate
QCI will award the ZED certification to the respective companies as per the site assessment conducted.
Major Activities under the ZED Certification Scheme
Major activities under the ZED Certification Scheme is explained in detail below:
- Awareness and Training
- Eight activities have been planned as part of the ZED Certification Scheme:
- Industry Awareness Programme:
- Regional, State, National Workshop
- Onsite Training for Enterprise Capacity Building for J&K, NER, Industrially backward and remote areas
- Training of officials of MSME- DIs, MSME-Testing Centre, Technology Centres, Design Incubation Centres, IPFC, etc.
- Consultants Training, Assessors Training & Master Trainers Training
- International benchmarking and learning best practices, Foreign Travels, International Trainings relating to ZED including QMS, QTT, productivity etc.
The applicant can apply for this training and awareness programme. Access the home page of ZED, from this click on register now option. The link will redirect to the registration page.
List of Industry Awareness Programmes will be displayed. Click on the Registration option to apply for the programmes.
By following the same method, the applicant can apply for Training Programs.