In his August 2014 speech, PM Modi envisioned the ‘zero effect and zero defect’ (ZED) model and said ZED would primarily look at “making our product which has ‘zero defect’ so that it does not come back (get rejected) from the world market and ‘zero effect’ so that the manufacturing does not have an adverse effect on our environment.”
The ZED Maturity Assessment Model has been conceived and structured to offer graded benchmark levels of an organisation’s performance through a set of standard enabler and outcome parameters focusing on quality and environmental performances. It aims to rate and handhold all MSMEs to deliver top-quality products using clean technology.
A recent report by the Quality Council of India has concluded that 72 per cent of Micro, Small and Medium enterprises don’t even qualify to be rated on standards. Only 28 per cent of companies received bronze, silver and gold markings. Not even a single enterprise qualified to be rated in the diamond or platinum category.
The finding is the outcome of a pilot report prepared by QCI to assess the condition of MSMEs in the country for implementation of zero effect and zero defect (ZED) excellence in the sector.
During the pilot project, 64 companies were prepared for the ZED process and a final rating was given to them for assessment.
The report said that most of the companies are in such poor shape that majority of them even do not meet basic parameters to even appear on the rating charts.
Feedback from the companies revealed that these industries, which are the backbone of ‘Make in India’, are still plagued with problems like outdated technologies and Inspector Raj.
About 55 per cent of MSMEs reported unskilled workforce as the major problem. Similarly, 53 per cent of the industries singled out outdated technology as the next big problem. Thirty eight per cent felt funding procedures were not easy. They also said that interest rates should be more competitive. About 30 per cent of MSMEs said that government regulations should be more friendly and streamlined and Inspector Raj should be reduced.
