Financial Support to MSMEs in ZED Certification Scheme

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 Financial Support to MSMEs in ZED Certification Scheme A scheme by

Financial Support to MSMEs in ZED Certification Scheme A scheme by

INTRODUCTION TO THE SCHEME “ “Our manufacturing should have ZERO DEFECT so that our

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 12 th Five Year Plan” 2

THE ZED JOURNEY ZED model conceptualized Sep ‘ 14 Release of Funds for Pilot

THE ZED JOURNEY ZED model conceptualized Sep ‘ 14 Release of Funds for Pilot Project by DIPP SFC Meeting conducted Mar ‘ 15 Jan ‘ 15 Dec ‘ 15 May ‘ 15 First draft of the Ministry of Pilot Project ZED Model MSME initiated Completed prepared Scheme approval process Pilot Project Scheme report released NOTIFIED Feb ‘ 16 Jan ‘ 16 Jun ‘ 16 Guidelines prepared by Mo. MSME 11 -Jul ‘ 16 22 -Aug ‘ 16 First SSC meeting 3

The Scheme Name FINANCIAL SUPPORT TO MSMEs IN ZED CERTIFICATION SCHEME The Scheme is

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 4

A Message from Shri Kalraj Mishra, Hon’ble Minister of Mo. MSME 5

A Message from Shri Kalraj Mishra, Hon’ble Minister of Mo. MSME 5

A Message from Shri Giriraj Singh, Hon’ble Minister of State, Mo. MSME 6

A Message from Shri Giriraj Singh, Hon’ble Minister of State, Mo. MSME 6

A Message from Shri Haribhai Parthbhai Chaudhary, Hon’ble Minister of State, Mo. MSME 7

A Message from Shri Haribhai Parthbhai Chaudhary, Hon’ble Minister of State, Mo. MSME 7

Roadmap (Completed in Jan, 2016) • Pilot Project to test ZED Model • Evolve

Roadmap (Completed in Jan, 2016) • Pilot Project to test ZED Model • Evolve an ecosystem around ZED • Test existing value proposition and reveal deficiencies Scaleup National Rollout PILOT PROJECT • Financial Support through subsidy by Mo. MSME • Build Capacities and capabilities to Scale-up the model • Assess, rate and handhold 22, 222 MSMEs units in the next 2 -3 years • Target to cover 1. 25 mn MSMEs in the next 5 -7 years • Finalize value proposition for the ZED Scheme 8

Guidelines of the Scheme – An overview Scheme budget ▪ Objectives ▪ ▪ Activities

Guidelines of the Scheme – An overview Scheme budget ▪ Objectives ▪ ▪ Activities ▪ ▪ ▪ “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 12 th Five Year Plan” 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 Training and certification of Assessors & Consultants Online systems including e-platform for assessment and e-content for awareness & training Assessment, Rating & Certification Gap analysis & Handholding for improving rating International Benchmarking The ZED Scheme will allow MSMEs to avail many tangible and intangible benefits 9

Methodology ▪ Through Implementing Agencies like QCI, NPC, Chambers, MSME-DIs, MSME Technology Centers, Industry

Methodology ▪ Through Implementing Agencies like QCI, NPC, Chambers, MSME-DIs, MSME Technology Centers, Industry Associations, BEE, etc. ▪ To develop e-learning modules for capability building ▪ Only through ZED Certified Assessors of accredited Credit Rating Agencies, Certification Bodies, etc. ▪ Online auto-allocation of assessors and monitoring of Assessment process ▪ Tab based Site-Assessments ▪ Only through ZED Certified Consultants of accredited Consulting Agencies/Bodies, etc. ▪ Online auto-allocation of consultants and monitoring of Consulting process ▪ Tab based reporting of Site-Visits ▪ Final Rating and Certificates to be issued by QCI Awareness & Training Third Party Site. Assessment Third Party Consultancy (Gap Analysis & Handholding) Certification 10

Scheme Governance ▪ Routine functionalities ▪ SSC (Screening and Steering Committee) chaired by Development

Scheme Governance ▪ Routine functionalities ▪ SSC (Screening and Steering Committee) 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 (National Monitoring and Implementing Unit) for the scheme Overall guidance and direction Screening and Steering Committee (SSC) Facilitation, Implementation, Coordination & Monitoring National Monitoring and Implementing Unit (NMIU) Rating & Implementing Other Agencies O/o DC-MSME QCI Consultants & Consulting Bodies QCI, NPC, Chambers, Associations, Field Offices and Autonomous Bodies of DC (MSME), BEE, etc will act as Implementing Agencies 11

What is ZED Certification Rating obtained on ZED Maturity Assessment Model ▪ ▪ The

What is ZED Certification Rating obtained on ZED Maturity Assessment Model ▪ ▪ The ZED Model has 50 parameters and the Unit will be assessed on a minimum of 30 parameters, including 20 mandatory parameters Additional 25 parameters for MSMEs supplying to Defence Sector Each parameter comprises of 5 Maturity levels Level 1 Struggler Level 2 Beginner Level 3 Organized Level 4 Achiever Level 5 World Class An MSME will be rated on a scale of 5 For example, after the site-assessment, if the weighted average score obtained by an MSME is 78 on 30 parameters, then the average weighted score is 78/30 which equals 2. 60. This score corresponds to the rating of Silver as explained. PLATINUM >4. 0 DIAMOND GOLD to 3. 5 p u & >3. 0 SILVER BRONZE pto >3. 5 u 4. 0 pto 3 u & 5. >2 upto & 2. 2 > 2. 5 <2. 2 No rating 12

The ZED Model (1/2) The organization shall have a policy of no tolerance for

The ZED Model (1/2) The organization shall have a policy of no tolerance for any non-compliance with statutory and regulatory requirements related to product quality, environment and safety. An MSME WILL NOT BE ELIGIBLE to go for ZED Certification if the legal & regulatory compliances are not followed. ZED maturity assessment model will evaluate an MSME’s manufacturing unit on process based enablers and performance based outcome parameters at the operational level ENABLER FOR PROCESS QUALITY ENABLERS FOR EMISSION, EFFLUENT & WASTE DISPOSAL ACTIVITIES Process Design for Quality Process Design for Environment Management Pre-production or start-up activities Pre-production (startup activities) for Environment Management Production & maintenance activities Production and Maintenance activities Product Design for Quality Product Design for Environment Post Production activities 13

The ZED Model (2/2) Enablers for resource management Outcomes parameters Facility Outcomes for quality

The ZED Model (2/2) Enablers for resource management Outcomes parameters Facility Outcomes for quality performance Human Resource Outcomes for Process Performance Outcomes for environmental performance Enabler on outsourced activity Selection control and improvement of outsourced organizations. Enabler on innovation, creativity & safeguarding Trademark Industrial Design Copyright Patent Outcome for overall company performance Additional Disciplines for ZED Defence Outreach Technology specific to defence Risk Assessment Defence Quality System Financial Discipline Security, Safety & Confidentiality Post delivery and customer feedback Design Discipline 14

An Example of an enabler parameter and assessment levels Systems for abatement of Effluent,

An Example of an enabler parameter and assessment levels Systems for abatement of Effluent, Emission and Solid Waste This parameter comes under the enabler of Process Design for Environmental Management and assesses the design plant & equipment and processes as an integral part of manufacturing or service delivery systems 15

An Example of an outcome parameter and assessment levels Safety Score This is a

An Example of an outcome parameter and assessment levels Safety Score This is a parameter which comes under the outcome for overall Company performance 16

Process flow for ZED rating Broad activities 1 Registration 2 Online Self-assessment 3 Desktop

Process flow for ZED rating Broad activities 1 Registration 2 Online Self-assessment 3 Desktop assessment 7 Steps towards ‘Excellence’ 4 Site assessment 5 ZED rating & certification Gap analysis & 6 handholding 7 Surveillance ▪ Online Registration by MSMEs ▪ MSMEs to self-assess based on ZED parameters ▪ Assessment based on documents submitted by MSMEs ▪ On-site assessment of only MSMEs, selected in Desktop Assessment ▪ Final ZED rating and certificate (valid for 4 years) ▪ Option to avail services of gap analysis & handholding ▪ On-site surveillance 2 times in a cycle 18

Benefits of ZED Scheme for MSMEs Credible recognition for international investors seeking investment in

Benefits of ZED Scheme for MSMEs Credible recognition for international investors seeking investment in Ind 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 19

Financial Support to MSMEs by Government Micro: 80%, Small: 60%, Medium: 50% Total Cost

Financial Support to MSMEs by Government Micro: 80%, Small: 60%, Medium: 50% Total Cost Registration & Assessment 1 Registration & Online Self-assessment Micro No Cost Small No Cost Medium No Cost 2 Desktop assessment Rs. 10, 000/- Micro Rs. 2000/- Small Rs. 4000/- Medium Rs. 5000/- Micro Rs. 16000/- Small Rs. 32000/- Medium Rs. 40000/- Micro Rs. 8000/- Small Rs. 16000/- Medium Rs. 20000/- TOTAL ASSESSMENT COST to MSME Rs. 26000/- Rs. 52000/- Rs. 65000/- Gap analysis & 5 handholding (optional) Rs. 1, 90, 000/- Micro Rs. 38000/- Small Rs. 76000/- Medium Rs. 95000/- Micro Rs. 8000/- Small Rs. 16000/- Medium Rs. 20000/- Site assessment 3 Rs. 80, 000/4 Consulting & Re. Assessment • • Cost to MSMEs according to its Type 6 Additional Defence Rating Rs. 40, 000/- Re-assessment/Re-rating Rs. 40, 000/- Additional Subsidy of 5% for MSMEs owned by SC/ST/Women & MSMEs located in NER and J&K Certification Costs are included in Site-assessment, Defence Rating and Re-assessment components • Surveillance Fee to be paid by MSMEs will be decided in due course 20

Online Registration – 2 Step Process Register free on the online portal of ZED,

Online Registration – 2 Step Process Register free on the online portal of ZED, www. zed. org. in, using the following link: http: //assessment. zed. org. in/Assessment_Before. Login. aspx using a valid (Indian) mobile number and email address. Step 1 Step 2 Email: Mobile: Proceed Enter OTP: Name of Enterprise: Name of Entrepreneur: Address: EM-I/EM-II/SSI/UAM/Other Registration Number Type of MSME: Submit Email Confirmation Thank you for registering with ZED. Your unique ZED ID is ZEDQCI 00000 x 21

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A roadmap to global competitiveness n . i g r o. ww zed@qcin. org

A roadmap to global competitiveness n . i g r o. ww zed@qcin. org ed z. w 011 -23321273 ZED_QCI 23