Zero Defect, Zero Effect Model

Micro, Small and Medium Enterprises (MSMEs) constitute backbone of any economic system and work as engine of growth for developing nations, as these enterprises focus on manufacturing quality products. Successive governments in India have concentrated on uplifting this sector on global standards; and now as every sector and industrial unit is stakeholder in strengthening the system, this vital sector of economy has to fully realize its potential as manufacturing sector under “Make in India” Programme.

Zero Effect, Zero Defect Model is related to the Micro, Small and Medium Enterprises (MSMEs) of India which stipulate measures to encourage MSMEs to produce and manufacture goods in the country with “zero defects” and ensure that the manufacturing  of  goods have “zero effect” on the environment. The scheme is, in effect, an integrated certification system taking into consideration the dimensions of quality, productivity, energy efficiency, pollution mitigation, financial status, human resource and technological depth, including design and IPR in products as well as processes. Parameters on which future programme will be finalized subsume all aspects of the existing schemes of Ministry of MSME viz : Quality Management System (QMS) / Quality Technology Tools (QTT), Lean Manufacturing Competitiveness Programme (LMCS), Design Clinic and Technology and Quality Upgradation (TEQUP), and Building Awareness on Intellectual Property Rights (IPR).

Elaborating on the Zero effect and Zero Defect Model, Prime Minister Narendra Modi, while addressing the nation on India’s 68th Independence Day, stated, “We should manufacture goods in such a way that they carry zero defects and that our exported goods are never returned to us. We should manufacture goods with zero effect that they should not have a negative impact on the environment”.

In order to achieve the target of zero effect zero defect in goods, Ministry of MSME is implementing a number of Schemes and Programmes to encourage local manufacturing in the MSME sector which include:

  1. National Manufacturing Competitiveness Programme
  2. Support for Entrepreneurial and Managerial Development of SMEs through Incubators
  3. Cluster Development Programme
  4. Credit Guarantee Scheme
  5. Credit Linked Capital Subsidy Scheme and Marketing Assistance Scheme.

Among these schemes National Manufacturing Competitiveness Programme (NMCP) requires our attention as it aims at reduced scientific inventory management, improved process flows, reduced manufacturing costs through better space utilization, engineering time so that competitiveness of Indian manufacturing sector etc. is enhanced. Through effective implementation, scheme’s emphasis has been laid on:  

  • upgradation of technology
  • creating infrastructure,
  • providing collateral free credit
  • making available capital subsidy
  • providing marketing assistance

The objective of host of initiatives launched is to create high quality local manufacturing. The scheme can be summed up as –‘where the concept has been shifted from a tool for compliance to a source of competitiveness, thus operationally evolving from a total dependency on inspection of the final product to correct defects, to a proactive process of improving processes like quality planning, product and process designing, optimum processes, efficient resource management, effective outsources activities and breakthrough outcomes. What is curious and makes the scheme a matter of pride, is its concern of embracing the cause of environment; it is now imperative and essential for MSMEs in addition to targeting quality of products and services, they should eliminate impact on the environment through adequate planning at product and process design, pre-production (start-up activities), production and maintenance activities, post production (disposal after use) and outcome of environment performance. By enforcement of this scheme, idea of sustainable development has to be achieved and realized.

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