Zed Certification

The Zero Defect Zero Effect (ZED) Certification Scheme was launched by the Ministry of Micro, Small and Medium Enterprises (MSME) under the Government of India in October 2016. This initiative aims to empower and facilitate Micro, Small, and Medium Enterprises (MSMEs) to adopt ZED practices, encouraging them to achieve certification. The scheme is designed to motivate MSMEs to become champions in their fields while significantly improving manufacturing culture and productivity across the nation.

Core Principles of ZED Certification

The ZED certification is built on two fundamental principles:

  1. Zero Defect: This principle emphasizes the creation of production mechanisms that ensure products are defect-free, leading to enhanced quality and customer satisfaction.
  2. Zero Effect: This principle focuses on implementing production processes that do not have adverse environmental or ecological impacts, promoting sustainable manufacturing practices.

Financial Incentives

To encourage participation, the ZED Certification Scheme provides subsidies to MSMEs based on their size:

  • Micro Enterprises: 80% subsidy
  • Small Enterprises: 60% subsidy
  • Medium Enterprises: 50% subsidy

Additionally, there is an extra 10% subsidy for MSMEs owned by women, SC/ST businessmen, or those located in North-Eastern regions, Himalayan areas, or aspirational districts. MSMEs involved in the SFURTI or Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) can also receive an additional 5%.

Comprehensive Certification System

The ZED Certification Scheme is an integrated and comprehensive system that evaluates various factors, including:

  • Productivity
  • Quality
  • Pollution Mitigation
  • Energy Efficiency
  • Financial Status
  • Human Resources
  • Technological Depth, including design and Intellectual Property Rights (IPR)

The certification process is structured into two phases:

  • Phase I: Focuses on including manufacturing MSMEs and guiding them through the ZED journey.
  • Phase II: Aims to include service sector MSMEs, ensuring the integration of both sectors and aligning ZED Certification with international standards for global recognition.

Levels of Certification

There are three levels of ZED Certification:

  • Gold
  • Silver
  • Bronze

MSMEs registered with the UDYAM portal are eligible to participate in the ZED Certification process.

Objectives of the ZED Certification Scheme

The ZED Certification Scheme aims to achieve several objectives:

  1. Creating an Ecosystem: Foster an environment for Zero Defect Manufacturing in MSMEs.
  2. Promoting Quality Tools: Encourage the adoption of quality management systems and energy-efficient manufacturing practices.
  3. Recognizing Efforts: Acknowledge MSMEs that successfully adopt ZED practices.
  4. Manufacturing Quality Products: Empower MSMEs to produce high-quality goods.
  5. Graded Incentives: Motivate MSMEs to strive for higher levels of certification.
  6. Continuous Upgradation: Encourage ongoing improvement in quality standards.
  7. Public Awareness: Increase awareness about the importance of ZED-compliant products.
  8. Sustainable Manufacturing: Drive manufacturing processes that maintain environmental integrity.
  9. Support for Policies: Assist the government in identifying improvement areas and prioritizing investments.
  10. Developing Professionals: Cultivate expertise in ZED manufacturing and certification.

Benefits of ZED Certification

Obtaining ZED Certification offers numerous advantages for MSMEs:

  1. Access to Loans: Certified MSMEs can more easily secure loans for business expansion, as banks are encouraged to consider ZED certification in their loan processes.
  2. Credible Vendor Database: The ZED Certification Scheme helps create a reliable vendor base, boosting confidence among companies investing in India.
  3. Environmental Responsibility: By adopting ZED practices, MSMEs become responsible manufacturers, reducing their environmental impact.
  4. Awards and Recognition: High-performing ZED units are nationally recognized by the Ministry of MSME, providing opportunities for global visibility.
  5. Alignment with Best Practices: MSMEs gain access to benchmark studies, allowing them to learn and implement global best practices.
  6. Global Competitiveness: ZED certification enhances the competitiveness of MSMEs, positioning them favorably in both domestic and international markets.
  7. Brand Visibility: The ZED Mark signals quality to customers, enhancing brand recognition and trust.
  8. Enhanced Product Quality: Certified MSMEs typically produce higher-quality products, leading to increased customer satisfaction and retention.
  9. Boosting Start-up Culture: ZED Certification fosters an environment conducive to innovation and entrepreneurship, supporting the overall growth of the MSME sector.

Documents Required for ZED Certification

To apply for ZED Certification, MSMEs must provide the following documents:

  • Photos of products
  • Name of entrepreneur/businessman
  • Social category
  • Special category (if applicable)
  • Name of business/enterprise
  • Date of commencement of business/enterprise
  • Registration number
  • Contact information
  • National Industry Classification (NIC) Code
  • Pollution Control category
  • Number of persons employed
  • Details of shop floor
  • Fire safety systems in place
  • Product labeling and descriptions
  • Type of MSME
  • Status as a supplier to defense (if applicable)
  • Undertaking document

Procedure for Obtaining ZED Certification

The process to obtain ZED Certification involves the following steps:

  1. ZED Pledge: The applicant must take a ZED pledge, committing to adhere to the principles of Zero Defect and Zero Effect.
  2. Application for Certification: The MSME can apply for any certification level (gold, silver, or bronze) based on their capabilities.
  3. Conformity Requirements: The applicant must meet all requirements relevant to the certification level applied for.
  4. Submission of Documents: Relevant information and necessary documents must be submitted along with an undertaking.
  5. Addressing Non-Conformity: If any non-conformities are identified, the applicant will be given a specified time frame to rectify them before certification can be granted.
  6. Final Certification: The final ZED Certification is issued based on the findings and recommendations from Accredited Assessment Agencies.

The ZED Certification Scheme stands as a transformative initiative aimed at enhancing the productivity and sustainability of MSMEs in India. By adopting Zero Defect and Zero Effect principles, MSMEs not only improve their operational efficiency but also contribute to a more sustainable manufacturing environment. Through this certification, the government seeks to create a strong ecosystem that supports MSMEs, encourages quality manufacturing, and drives economic growth. By taking part in this scheme, MSMEs can unlock numerous benefits, positioning themselves as competitive players in the global market while ensuring responsible and eco-friendly manufacturing practices.

Have Queries? Talk to us!

  

Frequently Asked Questions

ZED Certification stands for Zero Defect Zero Effect Certification, aimed at improving the manufacturing quality and environmental sustainability of Micro, Small, and Medium Enterprises (MSMEs) in India.

Any registered Micro, Small, or Medium Enterprise (MSME) in India can apply for ZED Certification. They must be registered on the UDYAM portal to participate.

Benefits include easier access to loans, recognition as a credible vendor, reduced environmental impact, awards for high performance, and enhanced global competitiveness.

Required documents include product photos, entrepreneur details, business registration information, NIC code, employee details, and an undertaking document, among others.

Subsidies are as follows: 80% for micro businesses, 60% for small businesses, and 50% for medium businesses. Additional subsidies are available for specific categories, such as women-owned businesses.

The process involves taking a ZED pledge, applying for a certification level (gold, silver, or bronze), submitting necessary documents, addressing any non-conformities, and receiving final certification from accredited agencies.

There are three certification levels: Gold, Silver, and Bronze. Each level has specific requirements that MSMEs must meet to achieve certification.

ZED Certification promotes production processes that minimize waste and pollution, encouraging responsible manufacturing practices that have no adverse environmental effects.

Yes, the scheme aims to align ZED Certification with international standards to enhance global recognition and competitiveness for certified MSMEs.

An MSME can start by taking the ZED pledge, then submitting an application for the desired certification level along with the required documents. They must also ensure compliance with all relevant requirements.

© 2016 - 2024 Compliance Calendar LLP. See Terms of Use and Privacy Policy for more information. Unless otherwise indicated, all materials on these pages are copyrighted. No part of these pages, either text or image may be used for any purpose. Please see About Us to learn more about our firm. Please visit Refund Policy to learn about our refund and cancellation policy.

About Us | Meet The Team | Vision & Mission | Values & Culture | Career Opportunities | Satisfaction Guarantee | Learning & Resources | Sitemap

Made With heart gif Compliance Calendar ®