Ensuring competitiveness of India's MSME is critical as it will contribute to the overall growth of the manufacturing sector and the country's economy. International companies competing in global markets focus on their competitive strengths of costs acceptable to the market, technology, innovation, service delivery, lean manufacturing, and defect free products for Zero Defect and Zero Effect (ZED). We must quickly set the pace for the template of industrialization and export fuelled growth to make a mark in global markets and improve our GDP. At present our GDP (14%) is only a little below the average for lower middle-income countries (15.80%) and significantly below the average for upper middle-income economies (23.05%).
ZED has presented a model where the concept of quality has a holistic change from a tool for compliance to a source of competitiveness. Operationally, it is meant to evolve from a total dependency on inspection of the final product to correct defects, to a proactive process of improving processes like quality planning, product and process designing, optimum processes, efficient resource management, effective outsources activities and breakthrough outcomes. Along with a focus on quality of products and services, there is an equal emphasis on the elimination of impact on the environment through adequate planning at product and process design, pre-production (start-up activities), production and maintenance activities, post production (disposal after use) and outcome of environment performance. Overall, the net result is sustainable development.
The ZED scheme is an integrated and holistic certification system that will account for quality, productivity, energy efficiency, pollution mitigation, financial status, human resource and technological depth including design and IPR in both products and processes. The parameters of the scheme will cover all aspects of the existing schemes of Ministry of MSME: Quality Management System (QMS) / Quality Technology Tools (QTT), Lean Manufacturing Competitiveness Programme (LMCS), Design Clinic and Technology and Quality Up-gradation (TEQUP), and Building Awareness on Intellectual Property Rights (IPR).
Quality Council of India is the implementing agency for this rating system and EDII-TN is a partner of QCI in its implementation in Tamil Nadu.
Benefits of ZED
Credible recognition of the industry for international customers seeking investment in India
Streamlined operations and lower costs
Superior quality, reduced rejection and higher revenues
Increased environmental & social benefits
Additional employment generation
Other benefits as announced by the Government from time to time