ZED Model to Enable Indian MSMEs Join Global Value Chain

“Micro Small and Medium Enterprises (MSMEs) are the prime beneficiaries of Government of India’s ambitious Make in India programme and they can improve their export performance only by upgrading their quality standards. MSMEs can join the global supply chain by supplying ancillary goods to multinational companies (MNCs). In order to become the preferred supplier to MNCs, MSMEs must adhere to strict quality standards and good corporate practices. In this regard, the National Accreditation Board for Education & Training (NABET), under Quality Council of India (QCI), is implementing the ZED Maturity Assessment Model for rating the quality and environmental performance of MSMEs. The entire process for applying for this rating is made simple and paperless,” said Mr. Jagmohan S. Bhogal, Cdr. (Retd)., Senior Director, NABET at an awareness workshop for industry associations and MSMEs. The workshop was jointly organized by the All India Association of Industries (AIAI), World Trade Centre Mumbai and QCI.

During the workshop, Mr. Bhogal explained the key features and importance of ZED (Zero Defect Zero Effect) rating model, Lean Manufacturing Competitiveness Scheme and accreditation for Business Membership Organizations (BMO).Mr. Bhogal informed that the Lean Manufacturing Competitiveness Scheme has so far been implemented in 150 MSME clusters across India and in future more clusters would be encouraged to adopt it.

Mr. Bhogal emphasized the importance of accreditation for Business Membership Organisations (BMO). He said BMOs play an important role in linking MSMEs with the government. In future, Government of India would implement most of its policies for MSMEs through accredited BMOs.

In her remarks, Ms. Vanita Yadav, Director, NABET informed that an accredited BMO has many advantages over an unaccredited entity. Some of the advantages are availability of concessional financial assistance from IDBI and SIDBI, credible recognition from international organizations, better performance and improved service quality for their member organizations.

Earlier in his welcome address, Mr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Vice Chairman, World Trade Centre Mumbai said, “We need a simplified and paperless procedure to apply for accreditation and quality standard services. Quality standards have assumed lot of importance in the context of the announcement of the policy on Intellectual Property Rights (IPR) by the Government of India. MSMEs must adhere to strict quality standards in order to improve the market share for their goods and services globally. Many companies became uncompetitive in the global market because of their inability to maintain quality standards. World Trade Centre Mumbai is happy to organize this workshop and we can plan similar events in other parts of Maharashtra, Goa, Jaipur, Bhubaneshwar to create awareness about quality standards among MSMEs in these regions,”