Zero effect, zero defect' model to anchor 1 m sm es

1. `Zero Effect, Zero Defect'
Model to Anchor 1M SMEs
TASK AHEAD Cos will be taken through a process to be upgraded to
ZED standard; they will be assigned star ratings on a scale of 1 to 5
based on various levels on 61 parameters

2. Contd..
The government is set to launch a ‘Zero Effect, Zero Defect’ model to
rate and handhold one million small and medium enterprises over the
next three to five years to deliver top quality products using clean
technology. The move is in line with the Prime Minister’s pitch for high
quality local manufacturing and Make in India campaign.
Deriving its name from Narendra Modi’s speech, zero-effect, zero
defect, the ‘ZED maturity model’ is being jointly worked out by the
Ministry of Micro, Small and Medium Enterprises; the Department of
Industrial Policy and Promotion (DIPP) and Quality Council of India
(QCI), and is expected to be finalised within a month.

3. Contd..
The aim is to help SMEs evolve and grow by providing them with adequate
training and funding to move up the value chain and produce quality
products. “We will sensitise SMEs to give importance to packaging and
branding and at the same time train them to deliver quality products with
zero defect, hence zero rejection,” said a DIPP official.
“The idea is that Indian products must be perceived as top quality products
by the world, which will help move up the value chain and draw buyers from
the West.” MSMEs contribute nearly 8% to the country's gross domestic
product, 45% to manufacturing output and 40% to exports. In his recent
speeches, the Prime Minister has called for a globally recognised “Brand
India“, famous for “zero defect, zero effect“ manufacturing free from
defects, and with no adverse impact on the environment. “With Make in
India, we will see foreign companies coming and establishing manufacturing
in the country, who would have certain benchmark for quality.

4. Contd..
Therefore it is important that SMEs improve processes and systems in such a
way that quality is assured and there is no rejection,“ said a QCI official.
Enterprises will be taken through a process from the present status to the
ZED standard, which will mean that a will mean that a particular company is
at par with any international product unit. The process will involve manual
skilling, technology upgrade and automation, among others. Companies will
be assigned star ratings on a scale of 1 to 5 based on their levels of
competence, technology and quality on 61 parameters.
Along with that, there will be categories for each parameter ranging from
bronze to silver, gold and diamond. A bronze one star will be the lowest
rating, and diamond five star the highest. The parameters include
infrastructure, quality of machines, waste disposal system, provisions to deal
with smoke and fuel use. “Once you reach the diamond category, you are at
par with an international unit”, said the official.

5. Contd..
Clean energy will be a very important aspect of the model.
“Enterprises will be encouraged and hand held to adopt clean technology to attain
sustainable growth trajectory.
Manufacturing should also not have an adverse impact on the environment,” said
the official.
There will be sector-specific parameters for each industry, such as food processing,
textiles, leather, auto parts, etc., for assessment.
While the Japan Plus team – a group set up by India to facilitate investment
proposals from Japan – will be roped in for performance assessment of SMEs, the
World Bank and the MSME ministry will likely to provide funding for the model.
India has close to 35 million MSMEs with 95% employing less than 10 people.
The rest 5% employs 10 to 100 people. Under the proposed programme,
unemployed youth will be trained to become quality professionals.

7. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother )
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015