ALL YOU NEED TO KNOW ABOUT ZED | Zero Defect Zero Effect

October 5, 2020 By Manish Dabkara

India’s roadmap to global competitiveness

To address the ecological and quality aspects and to cater to the needs of domestic and overseas customers of India’s manufacturing sector, Prime Minister envisaged a vision of ZED (Zero Defect Zero Effect) manufacturing in India.

The key aspect to ZED is to enhance the global competitiveness of MSMEs (Micro, Small and Medium Enterprises) by providing them financial support in assessment, rating and handholding of its manufacturing process on quality and environment aspects. MSMEs are the flagbearers of our economy and their entrepreneurial spirit combined with global competitiveness will play a pivotal role in enhancing and shaping our manufacturing.

The ZED Journey

The Department of Industrial Policy and Promotion under the Ministry of Commerce and Industry sanctioned a pilot project to Quality Council of India to bring about a system of ZED maturity assessment model.  It aimed to test the value proposition and locate the defects before it could be launched on a full scale. It would cover 22,222 MSMEs over the next 3 years, which should escalate to a million in the next 5 years.

Key Points

·  In its initial phase it would cover 22,222 MSMEs units.

·  The total budget is ?491 crores of which the Government of India would contribute about ? 365 crores.

·  It is part of 12th Five year plan

·  The scheme aims to encourage MSMEs to constantly upgrade their quality standards in products and processes and support make in INDIA initiative.

Roadmap to Implementation –

Carry out activities at ground level as industry awareness programmes, roll out workshops and training with certifications, with the help of master trainees and councillors.

Benchmarking international practices and would be implemented through agencies like Quality Council of India, National Productivity Council, Confederation of Indian Industries, FICCI, and ASSOCHAM.

Outline, monitoring, and guidance for a continuous period of 6 months

The MSMEs should have no tolerance for product defect, environmental hazards and safety lapses.

ZED evaluation

The model is designed to rate MSMEs on the basis of process and performance at operational levels.

ZED certification is related to processes related all these factors, which in turn decides the level of manufacturing –  

·  Production Management

·  Quality Management

·  Design Management

·  Safety Management

·  Environmental Management

·  Energy Management

·  Natural resource Management

·  Human Resource Management

·  Intellectual Property Management

·  Performance Management

Why have ZED system?

·  Credible recognition of the industry for international customers seeking investment in India

·  Streamlined operations and lowering costs at all levels

·  Superior quality, reduced rejection, and higher revenues

·  Raise quality levels in unregulated MSMEs, which drives almost 38% of the nation’s GDP and around 110 million employees.

·  Increased environmental "consciousness"

·  Additional employment generation

·  Other benefits as announced by the Government from time to time


This is one pivotal scheme which would be a milestone in turning India into a global manufacturing hub, generating jobs and increasing incomes. 

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