As the MSMEs are amongst the strongest drivers of economic development, innovation and employment, it becomes imperative to strengthen their ecosystem. The Government of India envisioned the Zero Defect Zero Effect (ZED) initiative to enhance MSME competitiveness, make them sustainable and transform them as National and International Champions.

MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate & incentivise them for ZED Certification while also encouraging them to become MSME Champions. Through the journey of ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc. MSMEs will also be motivated to adopt best practices in work culture, standardisation of products, processes, systems etc. in order to enhance their global competitiveness and sustainability. The ZED Certification aims at enhancing the competitiveness of an MSME through assessment, handholding, managerial and technological intervention etc., hence it is not just a Certification.


Objective:

The primary goal of the ZED Certification Scheme is to create awareness among MSMEs about Zero Defect Zero Effect (ZED) practices.

It encourages MSMEs to adopt these practices (Best Practices Like 5S, Kaizen, Lean) and motivates them to achieve ZED Certification.

Additionally, the scheme aims to transform MSMEs into (Zed bronze, Zed Silver, Zed Gold) champions by promoting excellence in quality, productivity, and sustainability.

Components:

The ZED Certification Scheme takes into account various factors, including:

Productivity: Assessing the efficiency and output of MSMEs.

Quality: Ensuring products meet high-quality standards.

Pollution Mitigation: Encouraging environmentally friendly practices.

Energy Efficiency: Focusing on energy-saving measures.

Financial Status: Evaluating financial stability.

Human Resources: Considering workforce management.


Phases:

The scheme has two phases:

Phase 1: Targeted at manufacturing MSMEs.

Phase 2: To include MSMEs from the service sector.

Certification Level:

1.       Zed Bronze

2.       Zed Silver

3.       Zed Gold


Incentives:

MSMEs that achieve ZED Certification can benefit from various incentives provided by different entities:

Ministry of MSME: Offers incentives through its schemes.

States/UTs: Provide additional incentives.

Financial Institutions (Banks): Extend support.


Impact:

The adoption of ZED principles leads to credibility, recognition, sustainability, and competitiveness for MSMEs.

It results in superior quality, reduced rejections, and increased social benefits.


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