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July 7, 2022

What is ZED Certification and How Can it Benefit MSMEs?

    • July 7, 2022
    • By Team Kinara
    • < 1 mins read

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    MSME manufacturers are an integral part of the Indian economy. MSME manufacturers constitute around 90% of industrial units all over India. To help MSME manufacturers sustainably scale businesses and maximise production output with reduced wastage, the Indian government introduced Zero Defect Zero Effect (ZED) Certification to create awareness around sustainable manufacturing and reduce environmental impact. This scheme aims the MSMEs of India to manufacture products and goods with ‘zero defects’ with ‘zero effect’ on the environment providing a sustainable development. ZED planning is mainly to promote two things that are “National Quality Mission '' and “Make in India” products and processes to ensure continuous improvement. In this blog, we will learn more about ZED certification and benefits of this scheme.

    What is ZED Certification?

    The Ministry of Micro, Small and Medium Enterprises launched this scheme in 2016, ZED scheme refers to the Zero Defect Zero Effect. The ZED scheme includes a ZED maturity assessment model where the enterprises continuously strive to improve the business process in order to move up the model from Bronze, Silver, Gold, Diamond and Platinum. It mainly accounts for productivity, implementation of quality systems and tools, increase in energy, financial efficiency, improved human resource and technological depth including design and intellectual property rights in both products and processes.

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    ZED Certification Eligibility Criteria

    All MSMEs registered with the Ministry of MSME or UDYAM registration portal or any other government agencies are eligible to apply for this certification.

    Rating System of Zed Certification Scheme

    ZED Certification scheme has 5 rating levels depending on the quality of the manufacturing that is Bronze, silver, Gold, Diamond and Platinum. So better the quality, better the ratings.

    • Bronze: Rating of 2.2 to 2.5.
    • Silver: Rating of 2.5 to 3.5.
    • Gold: Rating of 3.0 to 3.5.
    • Diamond: Rating of 3.5 to 4.0.
    • Platinum: Ratings from 4.0 to 5.0.

    How Can it Benefit MSMEs?

    • Increase in production capacity of the MSME sector.
    • The Ministry of MSMEs conducts industry awareness programs and workshops to help small businesses understand this scheme
    • ZED certification scheme helps in improving the quality of the product resulting in a reduction of the product rejection, especially for MSME exports
    • Promotes the upgradation of technology and increasing the productivity of the business
    • MSMEs need not pay any participation fee, also financial assistance is provided to attain ZED certification
    • MSMEs are provided with a chance to learn new methods of production and management.
    • Helps to develop Zero Defect manufacturing environment for the MSMEs
    • With the Zero Effect vision it protects the environment creating awareness about sustainability
    • Certification of ZED manufacturing is encouraged
    • Lastly, this initiative has increased revenue for the MSME sector

    Subsidies for the MSME sector in ZED certification

    The government has provided the following subsidies under this scheme:

    • Micro enterprises: 80%
    • Small enterprises: 60%
    • Medium enterprises: 50%
    • An additional subsidy of 5% is provided in the SC/ST category that are owned by women.

    Along with this many states have included this scheme in their industry policy.

    Registration Process for ZED

    The process of registration is as follows

    • The registration can be done using either the web or mobile application
    • Registration is to be done online which is free of cost using a valid phone number and email
    • Provide valid UDYAM number for verification purpose
    • This is followed by the desktop assessment, if selected there will be site-assessment
    • Further ZED pledge is taken and lastly ZED certificate is provided

    ZED Certification Scheme includes the following Major Activities

    • Training and Awareness
    • Under the ZED Certification scheme eight activities have been planned
    • Programs related to industry awareness
    • Workshops at regional, state and national levels
    • Onsite training for enterprise capacity building for industrially backward and remote areas
    • Training of officials of MSME- DIs, MSME-Testing Centre, Technology Centres, IPFC, etc.
    • Consultants training, assessors training & master trainers training.
    • International benchmarking, foreign travels, international trainings relating to ZED including QMS, QTT and productivity etc

    Conclusion

    MSMEs will get an opportunity to benchmark their systems and processes to learn the best practices across the globe, this also enhances the global competitiveness giving visibility and brand recognition. ZED certification will encourage MSMEs to improve their performance and ease the business process with reduction in defects and negative impact on the environment.

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    Written by
    Team Kinara
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    • Zero Defect Zero Effect (ZED) Certification
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