Quality Council of India

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1 Industry Awareness Programme Venue: Financial Support to MSMEs in ZED Certification Scheme Date: Workshop ID: Quality Council of India

2 Objectives of today s programme Objectives: Introduce ZED scheme to participants Introduce ZED Rating & Certification Process Broad overview of the ZED Maturity Assessment Model Answer queries if any Source: 2

3 The Scheme Name FINANCIAL SUPPORT TO MSMEs IN ZED CERTIFICATION SCHEME The Scheme is an extensive drive of the Government of India to enhance global competitiveness of MSMEs by providing them financial support in assessment, rating and handholding of its manufacturing processes on Quality and Environment aspects 3

4 A few basic facts (1/2) This scheme is applicable to Micro, Small & medium Enterprises Manufacturing Sector only Definitions of Micro, Small & Medium Enterprises is in accordance with the provision of MSMED Act, Manufacturing Enterprises are enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are definedintermsof investment in Plant & Machinery. 4

5 A few basic facts (2/2) The model for Service Sector is under validation and the pilot is under consideration by the Ministry Though Large industries are not covered in this scheme, the model is applicable across all sectors and size An MSME must be registered under the UAM (Udyog Aadhaar Memorandum) to avail the benefits under the ZED scheme. Registrations under UAM are free. It may be noted that the Ministry has not appointed any representative for Udyog Aadhaar Registration. UAM is a one page simple registration form for online filing of UAM which replaces the filing of Entrepreneur s Memorandum Part I & II. The filing of UAM can be done on Registration is online and user friendly UAMcanbefiledonself declaration basis No documentation required No Fee for filing File more than one Udyog Aadhaar with same Aadhaar Number. 5

6 Roadmap PILOT PROJECT (Completed in Jan, 2016) National Rollout Scale up Pilot Project to test ZED Model Evolve an ecosystem around ZED Test existing value proposition and reveal deficiencies Financial Support through subsidy by MoMSME Assess, rate and handhold 22,222 MSMEs units in the next 2 3 years Finalize value proposition for the ZED Scheme Build Capacities and capabilities to Scale up the model Target to cover 1.25 mn MSMEs in the next 5 7 years 6

7 Agenda for today session Introduction to ZED scheme 7

8 INTRODUCTION TO THE SCHEME Our manufacturing should have ZERO DEFECT so that our products should not be rejected in the global market. We must also keep in mind that our manufacturing is done with ZERO EFFECT so that it does not have any negative impact on our environment. - August 15, 2014 The Government has decided to implement the ZED Certification Scheme for 22,222 MSMEs unit with a total budget of Rs. 491 Crores (including Government of India contribution of Rs. 365 Crores) during the 12th Five Year Plan 8

9 Objectivities and activities under ZED scheme Objectives Activities To create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED rating To drive manufacturing with adoption of Zero Defect production processes without impacting the environment (Zero Effect) To encourage MSMEs to constantly upgrade their quality standards in products and processes To support Make in India campaign Industry awareness programs, regional/state/national workshops, training of officials of DIs, TCs, DICs Accreditation of Assessment & Consulting agencies, Training and certification of Assessors & Consultants Online systems including e platform for assessment and e content for awareness & training Assessment, Rating & Certification of MSMEs Gap analysis & Handholding for improving rating of MSMEs International Benchmarking 9

10 Methodology Awareness and training Third party site assessment Third party consultancy (gap analysis and handholding) Through Implementing Agencies like QCI, NPC, Chambers, MSME DIs, MSME Technology Centers, Industry Associations, BEE, etc. To develop e learning modules for capability building Assessments by Certified Assessors of accredited Credit Rating Agencies, and other accredited agencies etc. Online auto allocation of assessors and monitoring of Assessment process Tab based Site Assessments Consultancy by Certified Consultants of accredited Consulting Agencies/Bodies, and Certified Individual Consultants Online auto allocation of consultants and monitoring of Consulting process Tab based reporting of Site Visits Certification Final Rating and Certificates to be issued by QCI 10

11 Scheme governance Routine functionalities SSC chaired by Development Commissioner of MSME to guide, review, monitor and provide overall direction for implementation of the scheme Quality Council of India (QCI) to function as the NMIU for the scheme Overall guidance and direction Screening and Steering Committee (SSC) Chaired by DC MSME Facilitation, Implementation, Coordination and Monitoring National Monitoring and Implementing Unit (NMIU) QCI Implementing Agencies Rating & Other Agencies Consultants & Consulting Bodies 11

12 ZED certification ZED is a Maturity Assessment Model Assessment of a Unit on minimum 30 out of 50 parameters, including 20 mandatory parameters Additional 25 parameters for MSMEs supplying to Defense Sector Each parameter comprises of 5 Maturity levels Level 1 (0 Marks) Struggler Level 2 (2 Marks) Beginner Level 3 (3 Marks) Organized Level 4 (4 Marks) Achiever Level 5 (5 Marks) World Class 12

13 How does ZED rating system work? 5 levels of ZED rating system An example Company X is being rated on 30 parameters Of these 30 parameters On 4 parameters the MSME is at Level 5 On another 8 parameters it is at Level 4 On remaining 18 parameters it is at Level 3 <2.2 No rating Hence, the scores will be calculated as Company X Rating Parameters Level Marks Total 106 (Total points/applicable parameters): 106 / 30 = 3.53 COMPANY X is rated as: ZED DIAMOND 13

14 The ZED Disciplines ENABLER FOR PROCESS QUALITY Process Design for Quality Pre production or start up activities Production & maintenance activities Product Design for Quality Post Production activities Enablers for resource management Facility Human Resource Enabler on outsourced activity Selection control and improvement of outsourced organizations. ENABLERS FOR EMISSION, EFFLUENT & WASTE DISPOSAL ACTIVITIES Process Design for Environment Management Pre production (startup activities) for Environment Management Production and Maintenance activities Product Design for Environment Post Production activities Outcomes parameters Outcomes for quality performance Outcomes for Process Performance Outcomes for environmental performance Outcome for overall company performance 14

15 ZED Defence Model To cater the need of defence industries, QCI has developed a holistic ZED defence Model. QCI has integrated another 25 parameters specifically designed to measure MSME performance in defence sector. These 25 parameters will be additional to 30 parameters from the generic ZED model. Additional Disciplines for ZED Defence Defence Outreach Technology specific to defence Risk Assessment Defence Quality System Financial Discipline Security, Safety & Confidentiality Post delivery and customer feedback Design Discipline 15

16 Quality Council of India

17 Sector specific sectors Since each sector focuses on its unique operating conditions, we have developed sector specific models that address these conditions. These sectors are: Machinery and equipment Food processing Chemical Pharmaceuticals Electronics Thermal Power / Renewable Energy Textiles Wearing Apparel Wood & Furniture Metal & Foundry Defence These sectors are aligned with Ministry of MSME sectors as well as sectors under the Make in India initiative 17

18 Benefits of ZED Scheme for MSMEs Credible recognition for international investors seeking investment in India Part of supply chain of national & international OEMs Streamlined operations and lower costs Superior quality, reduced rejection and higher revenues Increased environmental consciousness and social benefits ZED Mark to enable an MSME to be seen as a company with a difference Other benefits expected to be announced by the Government in the near future 18

19 ZED Awareness Module The Awareness Video 19

20 Q&A? 20

21 WORKSHEET 1 Instructions: The following set of questions is just to test your understanding of the information disseminated to you through the video and presentation module Each question has exactly one correct answer. Use tick mark to choose Do not overwrite and the time to complete each set is 5 minutes Source: 21

22 Worksheet 1 Answers (1/2) 1. During which event was the ZED Pilot Report released? a. Make In India Week b. Start up India Week c. National Quality Conclave d. Skill India Week 2. What is the target number of MSME for next 5 7 years? a. 22,222 b. 50,000 c. 1,00,000 d. >1 million 3. What is the overall budget of the scheme? a. 461 crore b. 471 crore c. 391 crore d. 491 crore 4. Who are the implementing agencies for the scheme? a. QCI, Associations, Chambers, Credit Rating Agencies b. QCI, Chambers, MSME DIs, Credit Rating Agencies c. QCI, Associations, MSME DIs, Credit Rating Agencies d. QCI, Associations, Chambers, MSME DIs 5. Who will be conducting Gap Analysis/Consulting? a. ZED Certified Assessors b. ZED Certified Consultants c. Both d. None Source: 22

23 Worksheet 1 Answers (2/2) 6. Who will be allotting the consultants? a. QCI b. M/o MSME c. Consulting Organizations d. Assessment Organizations 7. Who is the chair of Screening and Steering Committee of ZED? a. Secretary, MSME b. ADC, MSME c. DC MSME d. QCI 8. Who is the NMIU for the scheme a. M/o MSME b. QCI c. ZED d. MSME DI 9. Who will be providing the final certification? a. ZED certified assessor b. QCI c. M/o MSME d. MSME DIs 10. What is the number of maturity levels in ZED Maturity Assessment Model? a. 4 b. 3 c. 5 d. 6 Source: 23

24 WORKSHEET 2 Instructions: The following set of questions is just to test your understanding of the information disseminated to you through the video and presentation module Each question has exactly one correct answer. Use tick mark to choose Do not overwrite and the time to complete each set is 5 minutes Source: 24

25 Worksheet 2 Answers (1/2) 1. What is the number of overall parameters and mandatory parameters? a. 60 Overall, 25 Mandatory b. 60 Overall, 20 Mandatory c. 50 Overall, 25 Mandatory d. 50 Overall, 20 Mandatory 2. What are the two kinds of parameters in the ZED Model? a. Enabler & Outcome b. Enabler & Process c. Outcome & Performance d. Process & Performance 3. What is the number of additional defense parameters? a. 20 b. 25 c. 30 d What kind of parameter is Safety Score? a. Outcome b. Process c. Enabler d. Quality 5. What are the various tools encompassed by ZED? a. Lean b. Six Sigma c. Kaizen d. All of the above Source: 25

26 Worksheet 2 Answers (2/2) 6. Which of the below is a ZED Rating? a. Brass b. Titanium c. Copper d. Platinum 7. What is covered under ZED Model? a. Quality parameters b. Environment parameters c. Both d. None 8. What is the target for assessment in next 3 years(till FY 19) a. 20,000 b. 22,000 c. 22,222 d. 21, The company opting for defense rating would have to be assessed on 50 Parameters a. True b. False 10. Who is the Hon ble Union Minister of MoMSME? a. Shri Giriraj Singh b. Shri K.K. Jalan c. Shri Kalraj Mishra d. Shri Haribhai Parthibhai Patel Source: 26

27 WORKSHEET 3 Instructions: The following set of questions is just to test your understanding of the information disseminated to you through the video and presentation module Each question has exactly one correct answer. Use tick mark to choose Do not overwrite and the time to complete each set is 5 minutes Source: 27

28 Worksheet 3 Answers (1/2) 1. What would MSMEs need to register for ZED Scheme via ZED Portal? a. Mobile Number b. Mobile Number and ID c. Mobile Number and PAN Card d. Only (B) 2. What is the sequence of 3 stages of assessment? a. Online Self Assessment, Site Assessment, Desktop Assessment b. Desktop Assessment, Online Self Assessment, Site Assessment c. Desktop Assessment, Site Assessment, Online Self Assessment d. Online Self Assessment, Desktop Assessment, Site Assessment 3. MSMEs can go for re rating without consulting a. True b. False 4. When would be the subsidy applicable during re rating? a. When the rating remains same b. When the rating goes down c. When the rating goes up d. Subsidy remains the same irrespective of the rating 5. What is the duration of certificate validation? a. Till FY 19 b. 4 years c. 3 years d. 2 years Source: 28

29 Worksheet 3 Answers (2/2) 6. What should be the minimum rating for availing consulting under the scheme? a. No rating is required b. Silver c. Bronze d. Gold 7. Who will select the parameters for site assessment? a. NMIU b. Ministry of MSME c. MSMEs d. Site Assessor 8. What would happen to an MSME not getting any rating post site assessment? a. A certificate would be issued and MSME applies again b. A certificate is issued with 2 year validity c. MSME undergoes desktop assessment d. No certificate will be issued 9. What is the number of man days allotted for site assessment? a. 2 b. 4 c. 6 d Which of the below is true? a. 2 surveillance audits would be done between 2 certifications of MSMEs b. 1 surveillance audits would be done between 2 certifications of MSMEs c. 0 surveillance audits would be done between 2 certifications of MSMEs d. 3 surveillance audits would be done between 2 certifications of MSMEs Source: 29

30 Next Steps Next Steps 1. Register yourself at 2. If there are still any queries, kindly mail them to: 30

31 31

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