Introduction
ZED certification, under the MSME Sustainable (ZED) Certification Scheme, is a government initiative in India aimed at promoting Zero Defect Zero Effect (ZED) practices among Micro, Small, and Medium Enterprises (MSMEs). It encourages MSMEs to adopt practices that minimize defects in their products and minimize their environmental impact and become globally competitive and sustainable, aligned with the vision of Aatmanirbhar Bharat. The scheme provides financial support and guidance to help MSMEs improve their quality and sustainability.
MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate & incentivise them for ZED Certification while also encouraging them to become MSME Champions. Through the journey of ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc. MSMEs will also be motivated to adopt best practices in work culture, standardisation of products, processes, systems etc. in order to enhance their global competitiveness and sustainability. The ZED Certification aims at enhancing the competitiveness of an MSME through assessment, handholding, managerial and technological intervention etc., hence it is not just a Certification.
Through the ZED Journey, MSMEs can:
- Reduce waste and increase productivity
- Enhance environmental consciousness
- Save energy and optimize resources
- Expand into global markets
- Standarize systems and processes
- Access assessment, handhloding, and technology support to build competitiveness
Advantages of ZED Certification
ZED Certification Levels
The MSME Sustainable (ZED) Certification is a simple, transparent and affordable program offered in three levels: Bronze, Silver, and Gold. Each level represents increasing levels of commitment to quality and sustainability. To achieve each level, MSMEs need to fulfill the requirements outlined for that specific level, which are based on well-defined parameters of quality, safety, production, cleanliness, energy, environment and more.
Bronze
The entry-level certification, focusing on initial adoption of ZED principles.
Requires evaluation against 7 parameters
Silver
A higher level indicating more comprehensive adherence to ZED practices.
Requires evaluation against 14 parameters
Gold
The highest level, demonstrating excellence in Zero Defect Zero Effect practices.
Requires evaluation against 20 parameters
ZED Handholding
The ZED handholding service is financial and technical support provided to MSMEs under the Zero Defect Zero Effect (ZED) Certification scheme, helping them improve processes, adopt cleaner technologies, and move toward sustainable manufacturing.
Features:
- Part of the ZED Certification Scheme: The Government of India launched the Zero Defect Zero Effect (ZED) initiative to strengthen Micro, Small, and Medium Enterprises (MSMEs) by promoting quality manufacturing with minimal environmental impact.
- Eligibility: MSMEs that achieve at least Bronze-level certification under ZED are eligible to apply for handholding support.
- Purpose: To guide MSMEs in adopting best practices, reducing waste, saving energy, and upgrading technology for sustainable growth.
How It Helps MSMEs:
- Gap Analysis: Identifies areas where MSMEs need improvement in processes, quality, and sustainability.
- Consultancy Support: Provides expert guidance to implement Zero Defect (quality improvement) and Zero Effect (environmental sustainability) practices.
- Technology Upgradation: Encourages adoption of cleaner, more efficient technologies to reduce pollution and resource wastage.
- Global Competitiveness: Helps MSMEs become more competitive in international markets by aligning with global standards.
In short, ZED handholding service is a structured support system combining consultancy and financial aid to help MSMEs transition toward sustainable,
globally competitive manufacturing practices.
Handholding Support
Each ZED certification level requires evaluation against a defined number of parameters specific to it. Evaluate has a trained teams of assessors who verify the required compliance following a structured, milestone-based handholding model aligned with ZED Scheme guidelines. The Handholiding process is divided into three milestones:
- Milestone 1 (Week 0–3): Submission of BDSR & Action Plan - Evaluate submits the Baseline Diagnostic Study Report and a detailed Handholding Action Plan. The MSME team is oriented on the improvement roadmap, documentation needs, and implementation strategy. Consultants and Technical Experts are assigned for execution.
- Milestone 2 (Week 4–9): Implementation & Progress Review 1 - Initial ZED requirements are implemented through on-site visits and handholding. Evaluate supports the MSME in developing SOPs, registers, (5S activities, Gemba Walk, Kaizen, Kanban, Lean, Poka Yoke, TOC) etc safety practices, and compliance documentation. A structured progress review is conducted to assess the first phase of improvement.
- Milestone 3 (Week 10–16): Implementation, RCA–CAPA Training & Progress Review 2 - This phase focuses on closing remaining ZED parameters with deeper technical execution. Evaluate provides RCA (Root Cause Analysis) and CAPA (Corrective & Preventive Action) training to the MSME team, enabling systematic problem-solving. Evidence preparation, gap closure, and readiness for certification are ensured. A second progress review validates overall progress.
The engagement concludes with a Completion Report. All evidence documents are verified, and the MSME is confirmed ready for the ZED Certification Assessment.
