Post by: Renu Suresh in Business Startup Government Initiatives

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ZED Certification Scheme

Last updated : December 17th, 2019 04:52 pm

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.

Vision

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.

Mission

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

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

ZED 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 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:

MSMEs Registration

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.

Desktop Assessment

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.

Site Assessment

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.

Zed Rating

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.