ZED Certification and its Necessity for MSMEs in India

Q: What inspired SGM to focus on helping MSMEs with ZED certification?

 It has been observed that GOI is focusing on sustainable development and waste reduction in the process. In Assam, many MSMEs struggle with the complexities of quality and environmental management due to limited resources. During college time, working in the field of environment management in association with various NGO's, motivated and inspired working in this field.

Q: How important of ZED certification to an MSME?

The importance of ZED (zero defect zero effect) certification to an MSME that is unfamiliar with it involves highlighting its benefits in a clear and relatable way. 

Improved Quality: ZED certification focuses on “zero defect,” meaning it helps your business improve the quality of your products. 

Environmental Benefits: The “Zero Effect” part of ZED certification emphasizes minimizing the environmental impact of your operations. 

Market Competitiveness:  Achieving ZED certification can differentiate your business from competitors. It signals to customers and partners that you are committed to quality and sustainability. Implementing ZED practices often involves streamlining processes, improving workflows, and adopting better management systems.

Q: What benefits can MSMEs expect after obtaining ZED certification?

ZED Certification offers a wide variety of benefits to the MSME’s. It includes both internal operational and financial benefits. Improved product quality, reduction in waste, improved employee morale, visibility, and brand recognition. A number of financial benefits are also offered by financial institutes and state governments, which include reimbursement of certification charges, inclusion of ZED certification in state industrial policies, concessions in interest rates, and processing fees.

Q: How does ZED certification enhance the global competitiveness of Indian MSMEs?

 ZED certification enhances the global competitiveness of Indian MSMEs by promoting "zero defect, zero effect" manufacturing practices, which leads to high-quality products, reduced waste, improved environmental sustainability, and increased productivity, thereby allowing them to compete effectively in the international market. It is also attracting more customers due to their commitment to quality and responsible production practices; essentially, it signifies a commitment to producing top-notch products with minimal environmental impact, making them more attractive to global buyers.

Q: What common challenges do MSMEs face when pursuing ZED certification? How does SGM assist MSMEs in overcoming these challenges?

Pursuing a ZED (zero defect, zero effect) certification can present several challenges for MSMEs. Lack of awareness and understanding, resource constraints both in financial and human resources, process implementation due to operational changes in product management, skill gap, and customer and market pressure to deliver the material. To overcome these challenges, MSMEs can seek support from consultants or industry experts, leverage government incentives or programs, and invest in training and development. Developing a clear plan and engaging employees in the process can also help address these challenges effectively.

SGM is a consulting firm that helps in creating awareness and educates the MSMEs about Lean Sigma management, helping the MSME’s obtain certifications. Our trained facilitators visit the units and guide them in obtaining ZED Bronze certificates. 

Q: Are there specific sectors within MSMEs that find it harder to meet ZED standards? If so, why?

The micro-units find it difficult to meet ZED standards due to a lack of resources, training & development, and record-keeping. The District Industry Centers have to play a vital role in creating awareness and providing initial handholding support to the units and also to the consulting organizations.

Q: What are the key assessment areas in the ZED certification process, and how does SGM assist in these areas?

The Zero Defect Zero Effect certification process involves a comprehensive assessment across several key areas to ensure that a business meets the standards for quality and environmental sustainability. It includes 3 different certification levels: Bronze, Silver, and Gold. Each process has different parameters to meet. The parameters include leadership, Swachata, occupational safety, HR management, environment management, energy management, material management, etc.

Our team helps the MSME’s in obtaining ZED Bronze certification by implementing the minimum 5 parameters like leadership, timely delivery of goods, occupational workplace safety, etc. SGM Consultancy Services also provides and makes the units aware of the benefits of implementing the QMS in the process of production.

Q: How does SGM tailor-make its services to meet the specific needs of different MSMEs?

It involves a personalized approach that considers the unique characteristics, challenges, and goals of each business. We have been into industrial and environmental consultancy services for the last 7 years, and our team is trained and dedicated to providing handholding support to the different needs of the MSME’s in the region.

Q: How has ZED certification impacted the efficiency and sustainability of MSMEs?

Through the journey of ZED Certification, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc. Overall, ZED certification helps MSMEs enhance their operational efficiency and sustainability by promoting best practices in quality management and environmental stewardship. This not only leads to immediate operational benefits but also supports long-term growth and resilience.

Q: How does ZED certification influence market perception and business growth for MSMEs?

ZED certification positively impacts market perception and business growth by enhancing reputation, providing competitive advantage, fostering strong stakeholder relationships, and supporting long-term strategic goals. It helps MSMEs build credibility, attract and retain customers, and position themselves for sustainable growth and success in the marketplace.

Q: How does SGM work with QCI and other government bodies to streamline the certification process for MSMEs?

 QCI is playing a vital role in implementing the ZED certification scheme. From creating the ZED model to the empanelment of assessors and consulting organizations are the functions of QCI. The Ministry of MSME and Industry & Commerce departments of state governments also play a major role in creating awareness among the industrial units. QCI has engaged SGM as an organizing consulting agency they are still looking for support from state industry and commerce departments.

Q: What trends are you noticing in the demand for ZED certification among MSMEs?

The trend in Assam is not so demanding. Due to a lack of awareness to adopt QMS and fear of new certification and documentation, the industries are pushing back to obtain ZED certification. About 1700 units have obtained ZED bronze, and only 3 units obtained Gold level certificates in Assam.

Q: What is the role of ZED certification changing in the future?

Addressing the nation on India's 68th Independence Day, Hon'ble Prime Minister Shri Narendra Modi urged the industry to manufacture goods in the country with "zero defects" and to ensure that the goods have "zero effect" on the environment.

"We should manufacture goods in such a way that they carry zero defects and that our exported goods are never returned to us. We should manufacture goods with zero effect so that they should not have a negative impact on the environment." Keeping in view of this, the ZED certification has been implemented.

The role of MSME (sustainable) ZED certification is likely to evolve in response to several trends and developments in the global market, technology, and regulatory environments. Here’s how I foresee the role of ZED certification changing in the future: Increased Emphasis on Sustainability, Integration with Industry 4.0 (Automation & Smart Technology), Increased Focus on Supply Chain Management, Broader Global Adoption, etc.

Q: Are there any new initiatives or changes in the ZED certification process that MSMEs should know about?

The ZED certification process itself is new for the MSME sector of India. There are no recent changes in the process of Zed Certification. An MSME can apply for certificates without the help of a facilitator or consulting organization through the ZED app.

Q: What are SGM's goals for the next five years?

As a consulting firm, setting clear and strategic goals for the next five years is crucial for growth and impact. While specific goals can vary based on market conditions, here are some common strategic objectives that SGM Consultancy Services might focus on expanding service offerings and diversification, enhancing market presence in terms of geographical presence, investing in talent development, enhancing service quality and client satisfaction, fostering strategic partnerships, By setting these goals, SGM Consultancy Services can position itself for sustained growth, enhanced client satisfaction, and continued leadership in the consultancy industry. These objectives provide a roadmap for strategic planning and help ensure that the firm remains aligned with its mission and vision over the next five years.

Q: What improvements are recommended for the ZED certification process?

The ZED certification process is simple, and it can be implemented easily in an industrial unit. Rather, the number of financial benefits needs to be more specific and attractive. For example, after certification, a unit will get a reduction in bank loan interest and processing fee, but due to a lack on both sides, actual benefits are not passing on to the units.

Q: What motivates the mission to help MSMEs achieve ZED certification?

Personal motivation in helping MSMEs achieve ZED certification often stems from a blend of professional values, personal fulfilment, and broader societal goals. Pride for success, Leveling of ground for MSMEs, Contributing to a broader positive impact on society by supporting businesses in their efforts to reduce defects and environmental effects, and personal and professional growth.

Q: What has been the most rewarding aspect of working in this field?

The most rewarding aspect of working in the field of helping MSMEs achieve ZED certification often comes down to seeing a tangible impact on businesses. Hearing success stories from clients who have benefited from achieving ZED certification, such as increased market competitiveness, cost savings, and improved customer satisfaction, provides a deep sense of accomplishment. Successfully navigating the challenges and complexities of the certification process and finding innovative solutions is highly rewarding. The process of overcoming obstacles and achieving results provides a deep sense of satisfaction and fulfilment.

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