ZED Facilitator Training PDF

## ZED Facilitator Training: Comprehensive Guide for MSMEs Part - 1 ### Chapter The article discusses the ZED (Zero Defect, Zero Effect) certification scheme aimed at enhancing the quality standards of Micro, Small, and Medium Enterprises (MSMEs) in India. Dr. Shukla, the Senior Director of the Qu...

## ZED Facilitator Training: Comprehensive Guide for MSMEs Part - 1 ### Chapter The article discusses the ZED (Zero Defect, Zero Effect) certification scheme aimed at enhancing the quality standards of Micro, Small, and Medium Enterprises (MSMEs) in India. Dr. Shukla, the Senior Director of the Quality Council of India, emphasizes the importance of manufacturing products without defects, ensuring high quality, and avoiding negative environmental impacts during production. The initiative was introduced by the Prime Minister and aims to transform MSMEs into competitive national and international champions. Quality Council of India serves as the implementing agency for this scheme, promoting accreditation and quality standards through various boards and divisions under the Ministry of Commerce and Industries. The vision behind the scheme is to continuously improve MSMEs by supporting them in adopting sustainable practices and achieving excellence in quality, making them capable contributors to the economy. Understanding this vision is crucial for those involved in the certification process, as it guides their objective to assist and uplift MSMEs instead of merely serving as surveyors or resources for certification. ### Chapter Dr. Shukla highlights the pivotal role of each facilitator in the ZED initiative, emphasizing that their responsibility extends beyond simply assisting MSMEs with certification. They are tasked with improving manufacturing systems and processes, ensuring that these enterprises become national and international champions. This necessitates consistent engagement with MSMEs to promote the adoption of zero-defect and zero-effect practices, fundamentally transforming their operations for greater sustainability and self-reliance. Facilitators must target manufacturing MSMEs specifically, such as those producing tangible products like nuts, bolts, or food items, as these are the entities eligible for the certification program. The discussion also clarifies that businesses providing services, like tailors or restaurants, do not fall within the manufacturing category for ZED certification. Proper identification of qualifying MSMEs is critical; those involved in producing goods should be encouraged to register on the Udhyam portal to obtain the necessary Udhyam registration number, which allows them to participate in the ZED certification program. The scheme is being implemented in phases, with the current focus strictly on the manufacturing sector. Given the fine line between manufacturing and service provision, facilitators must be diligent in their assessments. They are encouraged to consult with their organizations to clarify any uncertainties regarding an MSME's classification. Specific examples illustrate the distinction, such as packaged goods from a manufacturer being eligible for the scheme while the same products sold in a restaurant fall into the service sector. This understanding is crucial for ensuring the success of the zero defect, zero effect initiatives in fortifying the MSME landscape. ### Chapter Facilitators must be vigilant in identifying eligible MSMEs to avoid erroneous registrations. For instance, a boutique shop qualifies as manufacturing, whereas a tailor providing services does not. Understanding these distinctions is essential for accurate participation in the ZED program. It is crucial to remember that facilitators are not assessors or consultants, and should never claim to be affiliated with QCI or the ministry. Their primary role is to assist MSMEs in understanding the ZED certification process, explain its benefits, and help them navigate registration and documentation procedures. Facilitators work as part of organizational partners designated by QCI, and when questioned about their affiliation, they should clarify that they operate under a partnering agency for ZED promotion rather than representing QCI or the ministry directly. This honesty earns them greater respect and trust in their role. Any actions taken by facilitators may directly impact the perception of the program, which is why maintaining integrity and adherence to proper practices is imperative. Facilitators should take pride in contributing to an important national initiative aimed at strengthening MSMEs. Their responsibilities include registering MSMEs on the ZED portal, assisting with certification applications, and ensuring that the appropriate documentation and evidence are uploaded correctly. Their engagement should lead to five specific outcomes, ensuring that beyond the mere act of registration, they foster a deeper understanding of the ZED initiative among MSMEs. This productive interaction aims for profound positive changes in the capacity and quality of MSMEs, aligning them with national goals for sustainable manufacturing excellence. ### Chapter Facilitators must ensure that MSMEs understand the details of the ZED certification scheme, including its aims of zero defects and zero effects. There are three certification levels—bronze, silver, and gold—that MSMEs should be aware of, along with the specific requirements and benefits associated with each level. It is essential for MSMEs to recognize how ZED certification provides advantages such as access to government incentives, enhancing their market position and operational standards. Facilitators are also responsible for guiding MSMEs to download the ZED MSME mobile app, which streamlines the documentation process, allowing them to upload required photographs easily. Educating MSMEs on the importance of this app is crucial since it enables them to log in at any time and track all communications related to their certification. Facilitators have specific responsibilities in ensuring that the number of certifications achieved matches the number of downloads initiated by MSMEs, reinforcing accountability. They should maintain clarity about several "don'ts" in their role. For example, facilitators must never engage in financial transactions with MSMEs or seek favors of any kind. They cannot install fire extinguishers themselves; instead, each MSME should have its own installed as per safety regulations. Furthermore, they must not allow any manipulation of evidence, such as uploading photographs that do not accurately reflect the MSME's compliance. Proper attire is also crucial; facilitators should dress professionally to represent the national initiative appropriately, avoiding casual wear and maintaining a polished appearance. Upholding these standards reinforces their professionalism and the integrity of the ZED certification process, ensuring that each interaction with MSMEs is conducted with respect and dedication to the program’s values. ### Chapter MSMEs must navigate a standardized process for obtaining certification under the ZED scheme, which includes registering, making a compliance undertaking, and uploading evidence such as photographs. After these steps, an assessor evaluates the submission. If photographs are incorrectly uploaded, MSMEs receive a 30-day window to rectify the non-conformance, with up to five attempts allowed to resolve any issues. For silver and gold certifications, the process remains largely the same, but it incorporates an on-site assessment where assessors visit the MSME's unit for direct evaluation. In these cases, MSMEs are granted 60 days to address any non-conformance issues, also with five attempts allowed for correction. The assessment duration varies, with silver assessments requiring two days—one for desk review and one on-site—while gold assessments extend to four days total, including three days on-site and one day for desktop evaluation. The number of required parameters also increases with certification level: bronze certification consists of five parameters, focused on essential practices like leadership and occupational safety, while silver requires 14 parameters and gold 20. This tiered approach allows MSMEs to aim for compliance that matches their aspirations and operational capabilities. Importantly, there is no strict requirement for MSMEs to attain bronze certification before moving to higher levels; they can apply directly at any certification level they believe they can fulfill. Being able to target the certification that best aligns with their readiness empowers MSMEs in their continuous improvement journey. ### Chapter MSMEs can apply for certification at any level, but opting for bronze offers immediate benefits, including a zero-cost certification process. The certification can be obtained within 24 hours if correct photographic evidence is provided, which promotes efficiency for both MSMEs and assessors. The advantages of certification need to be effectively communicated to encourage MSMEs to pursue it. For those already holding certain certifications, like ISO 45001 for workplace occupational safety, there are further incentives. If an MSME applies for silver certification, the assessment will be on only 13 parameters instead of 14, thus providing a waiver on occupational safety compliance. It's essential to clarify that holding ISO certification is not mandatory for ZED certification; however, having it does yield minor advantages, specifically waivers, which can influence decision-making for MSMEs. The certification comes with various benefits, including enhanced quality, which aligns with the zero-defect goal, and reduced negative environmental impacts, promoting responsible enterprise recognition. One significant advantage is the visibility that certified MSMEs gain through their names being published on the government website, which enhances brand credibility and can lead to increased business opportunities. Therefore, it's crucial to highlight these aspects when discussing certification with potential applicants. This array of incentives creates a compelling case for why MSMEs should pursue ZED certification, leading to improved operational standards and market positioning. ### Chapter Visibility on a government website significantly enhances an MSME's credibility, making them more attractive to larger companies seeking suppliers. This increased trust can lead to more business opportunities. The costs associated with certification vary: bronze certification costs ₹10,000, silver ₹40,000, and gold ₹90,000, all inclusive of taxes. Notably, for women entrepreneurs, certification across all levels is free, providing a significant incentive to engage with the process. Additional subsidies are available for micro, small, and medium enterprises, with the government covering 80% of costs for micro enterprises, 60% for small, and 50% for medium. Thus, a micro-enterprise could secure silver certification for as little as ₹8,000 after subsidies, making it accessible. Those belonging to certain categories, such as SC/ST enterprises or those involved in specific government schemes, may qualify for further discounts, potentially leading to complete subsidization and obtaining certification for only ₹2,000. The validity of all certifications—bronze, silver, and gold—is three years, during which the MSME remains listed on the government website, boosting visibility and recognition. It's advisable for facilitators to ask if MSMEs already possess any ISO certifications or undergo product testing through accredited labs, as these can streamline their certification process and possibly allow for a reimbursement of up to 75% or ₹50,000 for incurred expenses. Additionally, for those uncertain about progressing from bronze to silver or gold, consultancy support is available to assist in training employees and establishing necessary systems. This guidance can make the transition smoother and more manageable, further encouraging MSMEs to pursue higher levels of certification. ### Chapter Consultants play a crucial role in guiding MSMEs through the certification process for silver and gold levels. They assist with the necessary processes to meet requirements while also providing hand-holding support for a fee. The government subsidies can significantly reduce costs, making it easier for MSMEs to proceed with certification. If an MSME wishes to transition to higher certification levels, they should first ensure they meet the requirements outlined in the ZED standards. However, starting with bronze certification is encouraged, which can be obtained swiftly, typically within 24 hours. Furthermore, if consultants recommend that an MSME invest in zero-effect solutions, such as pollution control devices or energy-efficient equipment, the MSME can receive reimbursement up to ₹1 lakh against expenses incurred. This financial incentive, combined with the ability to receive up to ₹55 lakhs in total financial benefits from the certification, makes it an attractive option for MSMEs. Additionally, those operating multiple units under one enterprise can reap these benefits for each unit, reinforcing the appeal of ZED certification. MSMEs engaged in transporting goods with the railways may also receive concessions, while several banks offer reduced processing fees and interest rates for certified enterprises. State governments, particularly in regions like Uttar Pradesh, Punjab, Haryana, and Tamil Nadu, have introduced specific incentives for ZED-certified MSMEs. Knowing the benefits available from both the central and state governments is crucial for convincing MSMEs to pursue certification. All relevant information can be accessed on the ZED website, which includes details about certificates and available state incentives. It's advisable for facilitators to download brochures and understand the specific incentives of the states they are working in to effectively communicate these benefits to MSMEs, boosting their confidence in pursuing ZED certification. The application process can be initiated online or through mobile applications, and registration requires an associated Udyam registration number and mobile number. MSMEs with multiple units need to register each one under different addresses to ensure compliance, preventing any issues with the registration process. ### Chapter It is critical for MSMEs to register multiple units under different addresses to ensure compliance within the registration process. Care should be taken to confirm the exact names of each unit during registration, as inaccuracies can lead to complications. If the name on the Udyam registration doesn’t match what appears on the signage of the unit, registration should be paused until corrections are made. Facilitators must also scrutinize the National Industry Classification (NIC) code to ensure it reflects the accurate industry of the MSME. If there is a mismatch, like a food-related code listed for a textile manufacturer, it should be corrected prior to proceeding with registration. This NIC classification document is readily available on the Udyam portal for reference. When registering, the MSME needs to provide a valid and operational email address. This email must belong to the MSME and should be verified to ensure receipt of important communications, including passwords and registration information. Facilitators should emphasize that fake or personal email addresses should not be used, stressing the need for a legitimate MSME email account. If the MSME does not have an email, facilitators can assist in creating one, ensuring the account is accessible for future correspondence. MSMEs operating in the service sector, such as sweet shops, bakeries, and tailoring services, are not eligible for ZED certification and should not be registered under this framework. It’s important for facilitators to clarify the difference and guide applicants accordingly. Facilitators are responsible for uploading photographs and ensuring all data is accurately represented during the registration process. They should also inform MSMEs about the zero-defect, zero-effect principles and the related benefits, highlighting the importance of adherence to these standards for successful certification. The Udyam website offers resources for registration, and facilitators can guide MSMEs through the process, ensuring all information is correct before proceeding. Any units listed with generic names like "N/A" or placeholder texts should not be registered until proper names are provided, underscoring the importance of accurate identification in the registration procedure. ### Chapter MSMEs must ensure that the names and addresses of their units are distinct for registration purposes. If an MSME uses the same address for different units, the facilitator should only register one unit and confirm the correct names. The email address provided must be verified as valid and associated with the MSME, rather than using personal or facilitator-created addresses. After inputting the email, a summary will be generated for the MSME to review; accuracy is crucial before proceeding. Facilitators have a responsibility to guide MSMEs through the ZED pledge, emphasizing the importance of understanding its commitment to zero defects and zero effects. This pledge should be explained in simple terms to ensure the MSMEs comprehend its significance. Once the pledge is acknowledged, it can be printed, serving as a reminder of their commitment. After this, facilitators should assist MSMEs in logging into the ZED application using their credentials. It's essential to instruct MSMEs to download the necessary mobile application from the online source, as this platform will be the primary method for further processes. The ZED ID and password will be sent to the verified email, and facilitators should stress the importance of keeping this information for future reference. Required documentation includes photos of the MSME's site and a third-party financial audit confirmation. Facilitators should guide MSMEs in ensuring compliance with all necessary requirements for certification, making sure they understand the implications and responsibilities that come with it. This understanding fosters a stronger connection to the certification process and encourages fuller participation. Clarification about what type of photographs are necessary is crucial; they should focus on the exterior of the site rather than selfies or internal pictures. By following these steps, MSMEs can move forward confidently in their certification journey. ### Chapter Manufacturers must upload product photos along with descriptions, labels, and brochures to provide clear information about their offerings. Questions related to domestic and international customers, as well as the use of raw materials, require straightforward yes or no answers. If raw materials are imported, there will be additional text fields for input. Facilitators should help MSMEs navigate these options smoothly. In terms of site documentation, it is critical to capture two types of photos for the exterior: one close-up of the name board and another wider shot that includes the entire building. The name board must be properly displayed; simply printing on paper and affixing it will not be acceptable. Correct address details corresponding to the registered name must be maintained, and the pictures should clearly showcase this information. For product photos, the actual product must be visible, and accompanying descriptions are vital for assessors to understand the product’s purpose. If specifications or brochures are not available, MSMEs can write details on their letterhead and upload that documentation. Failure to accurately depict products could lead to non-conformity issues, wasting the MSMEs' efforts. The cleanliness of the workplace is another requirement, and photographs should illustrate proper organization and tidiness. A minimum of three and a maximum of five photos should be uploaded from different angles, showcasing machines and personnel at work. If the area is untidy, facilitators should advise MSMEs to