Zero Defect and Zero Effect

Objectives of ZED

• Maturity Model
• Compliance to Excellence Model

• Graded Improvements
• Vertical and Horizontal

• Enablers
E bl and
d Results
R lt
 The ‘ZED’ mark

• Zero Defect (Focus on Customer)

• Zero nonconformance/ non-compliance
• Zero Waste

• Zero Effect (Focus on Society)

• Zero Air Pollution/ Liquid Discharge (ZLD)/ Solid Waste

• Zero wastage of natural resources

Applicability

• Applicable for all sectors of

manufacturing
g and service industry
y

• Focus on MSME/ small businesses.

• Address quality and ecological needs,

domestic and overseas customers,
society, employees, partners,
regulators and investors
 Zero Defect Zero Effect
Focus Areas

“ZED” is a maturity model with 5 levels

“ZED” is not only a certifiable standard but a journey

toward excellence in the area of Zero defect and zero effect

“ZED” is generic model implementable to every type of

manufacturing and service industry

“ZED” provides Empowerment to workers through

Trainings

“ZED” focusses on Health, Safety And Environment - Zero

Effect

ZED IMPLEMENTATION

a) Promote “Make in India” campaign

b) Drive manufacturing without impacting environment
c) Bring down rejection rate and deliver quality products
d) Creating employment in manufacturing
e) Creating a self-sustained ecosystem for ZED

g 1 million SMEs over the next 3 -5 y

• Target years
• To be assessed on 61 parameters including technology, fuel
usage, waste disposal system, manpower skilling etc.
• Ecosystem for ZED being developed
 Ecosystem for ZED certification
• Training and Awareness
Training for SMEs to be conducted
SMEs
through
Chambers/NPC/other
Capacity
Advocacy
Building partners

• Capacity Building for

Lean Manufacturing
ZED
• Creating assessor database
Collaborate
with A
Assessor through Online portal
Partners

• Partners – ASQ, Japan

Plus, Mckinsey, ANSI etc.

Awards Go & See • Advocacy for Public

procurement.

Achieving Zero Effect

‘Pollution is, more often than not, mis-utilisation of
resources and raw materials’

Keeping this in view, the focus needs to be on:

•Enhancing efficiency
•Minimizing wastes
•Optimizing use of resources

Through –
•Use of environment management tools
•Intensive auditing processes
 Parameters
Sl. Sub
Enablers Main Parameters
No. Parameter
Process Design for Quality 6
Pre-production (startup activities) 3
1 Enablers for Product Quality Production & maintenance activities 6
Product Design for Quality 3
Post production activities 4
Process Design for Env. Control 4
Pre-production (startup activities)
2
Enablers for Emission, effluent environmental control
2 Production & maintenance activities 2
& waste disposal activities
Prod ct Design for Environment
Product En ironment 2
Post production activities 1
Facility 3
Human Resource 3
Enablers for resource
3
management Outsourced activities 1

Innovation & Creativity 4

Parameters
Sl. Sub
Results Main Parameters
No. Parameters

Outcomes for Quality Performance 3

Outcomes for Process Performance 5

1 Outcomes Outcomes for Environmental

4
Performance

Outcomes for overall Company

5
performance
 ZED Parameters

ENABLERS 14 Main 44 Sub Parameters

RESULT 4 Main 17 Sub Parameters

TOTAL 18 Main 61 Sub Parameters

Each parameter has 5 levels

Total weightage points 61X5 = 305 points

Grading ZED Companies

GRADE LEVEL TYPE
Bronze Above 3.0 to Less than 3.5 Commitment to ZED

Sil
Silver Ab
Above 3.5 to Less
L than
h 4.0 ZED company

Gold Above 4.0 to Less than 4.5 Excellence in ZED

Diamond Above 4.5 to 5.0 World Class

Calculation of Spread
Less than 34 parameters No Star
34 – 40 parameters * (Single star)
41 – 46 parameters ** (Two stars)
47 – 52 parameters *** (Three stars)
53 – 58 parameters **** (Four stars)
59 – 61 parameters ***** (Five stars)
 Example

Company A – measured on 34 parameters

• 20 parameters 5 level : 20 X 5 = 100
• 10 parameters 4 level : 10 X 4 = 40
• 4 parameters 3 level : 4 X 3 = 12

Total points = 152

LEVEL = Total points/ applicable parameters

= 152 / 34 = 4.47

So Company is graded: GOLD * (one star)

Make in India: ZED

• Skill Assessment
• Assessment & Certification of skilled artisans (skill
development already undertaken) on the lines of ISO
17024
• Standardization of processes
• Initiating Lean Manufacturing and QMS/QTT in
processes of MSMEs
• Develop rating parameters of MSMEs as per ZED model
• Technical Upgradation
pg funding
g
• Any funding scheme can be based on ZED parameters so
that a “targeted funding approach” may be adopted for
optimal utilization of funds
 Make in India: ZED

• Fiscal Incentives
• Such incentives can be based on ZED ratings as well as scope
of improvement of MSMEs.
MSMEs Apart from motivating MSMEs, MSMEs
this will ensure transparent utilization of allocation of funds
for incentives.
• Scaling of Technology & Investment
• Identification of MSMEs (for scaling of operations &
technology and investment) through current certified ZED
rating so that they may improve from their standard (Silver
to Gold,
Gold Gold to Diamond etc.)
etc )
• FTAs
• Finally, for any Free Trade Agreement, the importing
Country will look for a product that is certified as per Global
Standards. ZED certification will ease this barrier and will
instill confidence in the importer.