Zed MSME

Zero Defect – Zero Effect. Empowering MSME’s by having a Zero Defect Zero Effect Certification Strengthening Overall Business Operations.

The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification with the following objectives:
1. To promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
2. To encourage MSMEs to constantly upgrade their quality standards in products and processes.
3. To drive manufacturing with adoption of Zero-Defect production processes and without impacting the environment.

The major activities under the ZED Certification Scheme are:
• Industry awareness programs, Workshops
• Training of officials of implementing agencies
• International Benchmarking, Learning Best Practices, International Trainings relating to
• ZED including QMS/QTT, productivity, travels related to IAF/PAC foreign visits by delegations etc.
• Training of Master Trainers, Assessors & Consultants.
• Onsite Training for Enterprise Capacity Building for NER, J&K, industrially backward and remote areas etc.
• MIS (Online systems including e-platform for assessment and e-content for awareness & training).

Assessment, Rating, Certification and Re-rating:
 » Desktop Assessment & analysis
 » Assistance to MSME sector for Consultancy, Gap Analysis, Handholding & to move towards Zero Effect solutions by Consultants through NMIU/IAs.
 Assistance to MSME sector for pilot-project implementation with available/developed technologies by Central/State Government bodies to move towards zero effect manufacturing and for acquisition of cleaner/efficient technologies to support MSMEs.
 Site Assessment and Rating by QCI accredited and empanelled Rating Agencies, Certification Bodies etc.

 Additional rating for Defence i.e. Assessment by empanelled Rating Agencies, Certifications Bodies etc for ZED-Defence
 Re-Assessment/Re-Rating by QCI accredited empanel led Rating Agencies, Certification Bodies etc.
 Surveillance Assessment
 Reporting of periodic effect on the environment of the MSME after implementation of ZED Scheme
 Market Research and Analysis and validation of reasonable sample of total certification with reports for each half year on trends and other important findings by NMIU.

ZED offers a wide variety of benefits to the MSMEs. This ZED Model is applicable to MSMEs who are seeking to improve their internal management and operational systems.
Benefit to MSMEs Internal:
• Improved processes leading to higher revenues: Adoption of ZED in true spirit will result in superior quality of products manufactured, reduced rejection, reduced waste/scrap and hence resulting in higher revenues & profits.
• Credible & reliable vendor database: ZED will ensure that the companies investing in India have a ready-made & reliable vendor-base to support their activities, in the form of ZED rated MSMEs.
• Reducing negative effect on the environment: Enhanced environment consciousness will make MSMEs "Responsible Manufacturers".
• Awards & Rewards: High performing ZED units will be recognized nationally by the Ministry of MSME and QCI through an award & reward system which will help them to showcase themselves globally.
• Aligning with best practices: MSMEs will get an opportunity to benchmark their systems and processes and learn the best practices across the globe under the ambit of ZED Certification Scheme.
• Global Competitiveness: Enhanced competitiveness of MSMEs will improve their visibility in the global marketplace.
• Visibility & brand recognition: A "ZED Mark" to enable an MSME to be seen as a company with a leverage over non-rated MSME units.
Benefits by Financial Institutions & State Governments
• Various State Governments have included ZED in their respective industrial policies.
• Banks are also coming forward to extend benefits to ZED rated MSMEs in the form of concession in interest rates and processing fee.
Details on these benefits are listed on: https:/Ized.org.in/benefits-to-rnsmes

Udyam Certification Registration is mandatory by MSME. All MSMEs registered under MSMED Act, 2006 as amended from time to time and also, to MSMEs which are included as par executive orders issued by AS&DC(MSME) consistent with MSMED Act from time to time.

Bronze, Silver, Gold, Dimond and Platinum.

Site-assessments will be allocated to Rating Agencies which have been accredited by Quality Council of India. The assessments will be carried out by Assessors from these accredited
rating agencies, who have undergone and passed a ZED Assessors training program.

The NMIU will allocate assessors to MSMEs for site-assessments and will closely monitor their activities.

The ZED certification will be issued by Quality Council of India after reviewing the
site-assessment report.

The Gap analysis and handholding activity in the scheme will be allocated to Consulting Organizations which have been empanelled by Quality Council of India. The handholding will be carried out by consultants from these empanelled Organizations, who have undergone and passed a ZED Consultant training Programmer.

The shortlisting of a Consulting Organization will be done by NMIU in consultation with the applicant MSME and the concerned MSME-DI, only from the list of empanelled consulting organizations.

The ZED Scheme is being governed by a Programme Monitoring and Advisory
Committee (PMAC), which provides an overall guidance & direction. At the highest level, PMAC provides overall direction to the Scheme headed by the Development Commissioner
(MSME). NMIU will be responsible for facilitating, implementing and monitoring of the scheme across the country. QCI, NPC, Field Offices & Autonomous Bodies of DC (MSME), Central Govt, State Govts, and their institutions, Industry Chambers and Associations will act as Implementing Agency.

Bronze Zed Certification require 5 parameters; Silver require 14 parameters and Gold Zed Certification require 20 parameters.

Each parameter has 5 maturity levels. Each level corresponds to the existing state of systems and processes in the manufacturing unit which is being assessed. These levels range
from Learner which is level 1, to Beginner, Organized and Achiever that correspond to level 2, 3 & 4 respectively. The topmost level is World Class at level 5.

The ratings provided in the maturity model are:
• If the MSME's score is above 2.2 and up to 2.5, then the rating is Bronze
• If the MSME's score is above 2.5 and up to 3.0, then the rating is Silver
• If the MSME's score is above 3.0 and up to 3.5, then the rating is Gold
• If the MSME's score is above 3.5 and up to 4.0, then the rating is Diamond
• If the MSME's score is above 4.0 and up to 5.0, then the rating is Platinum
• In case an MSME scores 2.2 or lower, then No Rating is provided

ZED Maturity Assessment Model will evaluate an MSME's manufacturing unit on process based enablers and performance-based outcome parameters at the operational level,
within the following disciplines:
• Quality Management
• Production Management
• Environment Management
• Energy Management
• Safety Management
• Natural Resource Management
• Intellectual Property Management
• Human Resource Management
• Design Management
• Over all Company Performance (Financial)
For more details on ZED parameters please visit www.zed.org.in/www.dcmsme.gov.in

SCHEME PROCESS FLOW:
a) Online ZED Registration
b) Online Self-Assessment
c) Desktop Assessment & Analysis:
d) Site-Assessment and Rating/Certification OR Gap Analysis, Handholding & assistance in moving towards Zero Effect manufacturing
e) Re-Assessment
Note: After Desktop Analysis, the MSME will have an option for either Site-assessment/Rating or for Consultancy (gap analysis and handholding). The MSME will also be provided financial support for adopting Zero Effect technologies.

To access detail guidelines of the scheme follow or click on: www.zed.org.in

Please follow or click on: www.zed.org.in

ZED Certification is a voluntary scheme which will provide the MSMEs a road map to global competitiveness.

The ZED Certification Scheme covers only, the MSME sectors belonging to all
manufacturing.

Yes. The parameters related to safety of processes are covered in the ZED Maturity
Model. For more details, please visit www.zed.org.in.

After the desktop assessment, ZED assessor(s) from an accredited rating agency will be appointed to conduct a site-assessment of the MSME that has applied. The MSME unit will be
informed well in time for a site-assessment date.

This process will typically be for about 6 months.

The NMIU has taken steps to ensure the confidentiality of the entire process. A Non- Disclosure Agreement will be signed between the parties involved. All data is stored on a secure
server with limited access.

Total 2 Lakh rupees to be given as hand holding amount to the MSMEs.

Yes. All MSMEs which are registered with Ministry of MSME (UAM/EM-II) can avail
scheme benefits irrespective of the certifications they may have.

ZED Certification is independent of Certifications like ISO etc. MSMEs are free to obtain any other certifications simultaneously, however, it may be noted that merely having any such certificate will have no bearing or impact on the outcome of the ZED site assessment process.

The office of DC (MSME) along with QCI are actively pursuing this and discussions are in process to establish recognition/preference to ZED certified units among CPSUs, OEMs, Large buyers etc. A few OEMs/Large Enterprises in India have already commenced integration of ZED in their supply chain.

Typically, an MSME can apply for re-rating/re-certification after 6 months of initial certification. However, the subsidy on the cost of the re-certification component will be given to
those MSMEs only which achieve a higher level in rating from the initial/previous rating. For example, if the previous rating of an MSME unit was Bronze, then subsidy will be extended only if re-certification rating of that MSME unit is minimum Silver.

Zed Certification is valid for 3 Years.

ZED certification provides roadmap for enhancing business and greatly cutting down the cost. Though this is a voluntary scheme, the implementation of ZED will not be a burden but a boon to the MSMEs. The Government of India will be providing financial support on various components of the scheme.

No. ZED certification is independent of an ISO or any other Certification.

Yes. A Udyam Certificate registered MSME, irrespective of any other Certification, can avail the subsidies as applicable in the ZED Scheme guidelines provided, they undergo all applicable steps & Processes as mentioned in the Scheme.

No, as of now the site-assessment allocation will be done by the NMIU through a pre- defined process.

Due consideration will be given to ensure that language does not become a constraint or a barrier in assessment or consulting processes.

Yes. In case an MSME or the NMIU is not satisfied with the progress of the
implementation by the consulting organization, the agreement with them will become null and void and the beneficiary may be allocated a new consulting organization with appropriate approvals as mentioned in the scheme guidelines.

The applicant MSME will select the optional parameters for site-assessment. Necessary assistance will be provided if needed.

The scheme is designed to assess, rate, and handhold Indian MSMEs involved in manufacturing. To avail applicable financial support, an MSME needs to be registered under the
Udyog Aadhaar Memorandum (UAM).

No, at present this scheme is designed only for the manufacturing MSMEs in India.

Only, Udyam Certificate registered MSMEs can avail financial support under this scheme. Udyam Certificate registrations can be done by visiting http://udyamregistration.gov.in
MSMEs which are not registered in UAM will not be eligible to avail any financial support and will have to pay the fee in full.

The scheme is applicable for all States/UTs of India.

The Ministry of MSME, Government of India, will provide a subsidy of 80% to Micro enterprises, 60% to small enterprises & 50% to medium enterprises. An additional 5% subsidy
shall be extended to MSMEs owned by SC/ST/Women & MSMEs located in NER and J&K.

For more detail about the scheme you can download the guidelines of the scheme by following this link: www.dcmsme.gov.in.

No. Only applicable beneficiary contribution needs to be paid by the applicant MSME.

No. All payments are online and only through the ZED portal at www.zed.org.in. You will be guided accordingly after you register.

To apply, an MSME first needs to register and then undertake Online Self-Assessment through the website. Registration process is very simple and takes only a few minutes. Please visit www.zed.org.in and click on "REGISTER NOW".

Please keep the following ready when registering for ZED certification:
i) Valid email and mobile number
ii) Address and registration number of the unit.

Online registrations are open round the year. Please visit www.zed.org.in

The ZED Maturity Assessment Model has been conceived and structured to offer graded benchmark levels of an MSME's performance through a set of standard enablers and outcomes focused on quality and environmental performances.
• There are various parameters on which the MSME will be assessed and certified. The composition of parameters may change as per sector of operation of the applicant MSME. In addition to 50 assessment parameters there would be additional 25 parameters for obtaining ZED-Defence Certification. Complete details of all ZED parameters will be made available on www.dcmsme.gov.in / www.zed.org.in.
• The MSME applicant is required to be assessed on identified 20 mandatory parameters and at least 10 other parameters (as per the MSME's NIC Code, i.e., sector of operation and type of industry). Hence, the MSME will be rated on a minimum of 30 parameters.
• MSMEs may seek ZED rating on more than 30 parameters as per the processes and systems available at the MSME.
• Each parameter has 5 maturity levels.

For queries, please contact:
1. Mr. Ved Prakash Sharma, Mobile No.: 9329931672
2. Mr. Raaj Kumar Rathod, Mobile No.: 9201856868