zed implementation case study - effortsconsulting.com · efforts for excellence ` efforts...

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Efforts Consulting | www.effortsconsulting.com 1

ZED Implementation

Case Study

Efforts Consulting Pvt. Ltd. 508, Palladium Business Centre, Opp. 4D Square Mall, Near IIT Engg. College, Gandhinagar Road, Ahmadabad – 382424 (+91) 9879391004 www.effortsconsulting.com [email protected]

Efforts for Excellence

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Introduction of ZED: Ensuring competitiveness of India's MSME is critical as it will contribute to the overall growth of the manufacturing sector and the country's economy. International companies competing in global markets focus on their competitive strengths of costs acceptable to the market, technology, innovation, service delivery, lean manufacturing, and defect free products for Zero Defect and Zero Effect (ZED). We must quickly set the pace for the template of industrialization and export fuelled growth to make a mark in global markets and improve our GDP. At present our GDP (14%) is only a little below the average for lower middle-income countries (15.80%) and significantly below the average for upper middle-income economies (23.05%). We must set up market linkages and create intermediaries to develop the capacity of MSMEs to facilitate their technology, marketability, backward and forward linkages etc. Worldwide, Micro, Small and Medium Enterprises (MSMEs) have been accepted as the engine of economic growth and equitable development. MSMEs constitute over 90% of the total number of enterprises in most economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. ZED has presented a model where the concept of quality has a holistic change from a tool for compliance to a source of competitiveness. Operationally, it is meant to evolve 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. Along with a focus on quality of products and services, there is an equal emphasis on the elimination of 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. Overall, the net result is sustainable development.The ZED scheme is an integrated and holistic certification system that will account for quality, productivity, energy efficiency, pollution mitigation, financial status, human resource and technological depth including design and IPR in both products and processes. The parameters of the scheme will cover all aspects of the existing schemes of Ministry of MSME: Quality Management System (QMS) / Quality Technology Tools (QTT), Lean Manufacturing Competitiveness Programme (LMCS), Design Clinic and Technology and Quality Up-gradation (TEQUP), and Building Awareness on Intellectual Property Rights (IPR). ZED was thus born! The ecosystem around ZED model is calibrated to make aware, assess, rate, counsel, handhold, re-assess & certify MSMEs and ensure that they rise up the ZED ladder, thus enhancing their competitiveness in the global marketplace and making them an important cog in the wheel in the “MAKE-IN-INDIA” campaign. It also, as a consequence, provides career opportunities for the youth in India. Benefits of ZED Certification: INTERNAL BENEFITS ZED offers a wide variety of benefits to an organization. The quality standards are applicable to companies which come under the section of MSME's or Sector who are seeking to improve their internal management and operational system. The government of India recommended that companies who are seeking to increase their profits in accordance to the environmental consciousness should seek for this certification.

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Benefit to MSMEs

• - Credible & reliable vendor database: ZED will ensure that the companies investing in India have a ready-made & reliable vendor base to support their activities the MSMEs rated under ZED Certification Scheme

• - Reducing negative effect on our environment: Enhanced environment consciousness making them “Responsible Manufacturers”

• - Awards & Rewards: High performing ZED units will be recognized nationally by the Ministry of MSME and QCI through an award & reward system which will help them to showcase themselves globally

• - Aligning with best practices: MSMEs will get an opportunity to do benchmark study and learn the best practices across the globe under the ambit of ZED Certification Scheme

• - Global Competitiveness: Enhanced competitiveness of the vendors in the global marketplace so that goods manufactured have no defects and thus leveraging the benefits of quality & cost optimization.

• - Visibility & brand recognition: A “ZED Mark” to enable an MSME to be seen as a company with a leverage over non-rated MSME units. BENEFITS BY STATE GOVERNMENTS Gujarat: State Govt. of Gujarat has announced the following for ZED rated MSMEs:

Assistance in quality certification: 50% of all charges incurred up to a maximum amount of Rs.5 lakhs paid for the WHO GMP, Hallmark Certification and others national and international certification approved by Quality Council of India Notification: https://ic.gujarat.gov.in/assistance-for-quality-certification.aspx BENEFITS BY BANKS

- State Bank of India (SBI) has decided to offer concessions in Pricing/processing fees for MSMEs having better ZED ratings. Gold ZED rated MSMEs are being offered 25% concession in processing fees. Diamond and Platinum ZED rated MSMEs are being offered 25% concession in processing fees and 0.25% interest concession over the extant card rates.

SBI is also considering incorporating ZED rating as a parameter in its Bank’s internal rating system. Press Release: https://www.sbi.co.in/portal/web/home/press-releases SBI - QCI MoU: https://zed.org.in/uploads/SBI_MoU.pdf

- YES Bank has proposed to offer preferential pricing to ZED rated MSME to the tune of 0.5% on the applicable Rate of interest and 0.5% on Processing Fee on the standard program pricing.

Yes Bank - QCI MoU: https://zed.org.in/uploads/Yes_Bank.pdf - ZED Rating information included in the “Collateral free Loan application form” across all nationalised and private banks Link: http://iba.org.in/advertisement1.asp

*Above are subject to change without prior notice

(Click the link for further details - https://zed.org.in/benefits-to-msmes)

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Introduction to ZED Assessment Process: Assessment process understanding: ZED has total 50 parameters. Out of which 36 are enablers (Which helps to achieve certain outcome) and 14 are outcome (Outcome is the desired result). Every company is assessed atleast for 30 parameters. Out of which 20 are mandatory parameters and 10 are optional& selected by organization.For defense sector, 25 additional parameters are available. These parameters are segregated in various check point like Process Quality, Emission, Effluent, Waste Disposal Activities, Resource Management, Outsourced Activities, Innovation, Creativity& Safeguarding and overall performance of the company. Maturity Levels: Unlike other grading system, ZED has various maturity levels and company is getting evaluated based on specified criteria for each level. The Five maturity levels are – Struggler (Bronze), Beginer (Silver), Organised (Gold), Achiever (Dimond) and World Class (Platinum) Assessment Flow: ZED has defined process flow which needs to be followed by each company. Step 1: Self Assessment – It is an online process and purpose of the same is choose the applicable parameter and assessing self on those parameters Step 2: Desktop Assessment – It is done by QCI appointed auditor and it’s a screening process of the evidence verification of selected parameters, Technical review, Deciding maturity level based on site assessment and avail clearance for site assessment (only if rating >2.2, Struggler (Bronze) rating starts from above 2.2 ranking) Step 3: Site Assessment – A comprehensive physical assessment done by certified auditors for 3 to 4 man-days. Company is getting evaluated on ZED Criteria, Parameter selected, evidences produced and physical verification Step 4: Report Preparation – Based on Site assessment Report is prepared by assessor and submit it to the core committee Step 5: Certification Decision – Committee takes decision for the certification based on Report. Case Study: We, at Efforts Consulting, are assisting various companies for the execution of ZED, strengthening the process and system and getting the desired maturity level certificate. One such company, Duke pipes Pvt. Ltd. , in Gujarat ,has gone through the process of ZED - Gold Category Certification.

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STEP 1: To divide all the 50 parameters of ZED in following way.

1. Enablers – QEROI

* Enabler – Enabler are the parameters which help company to produce desired results/outcome. i.e “Swachh Workplace” is enabler to help Quality, Process and Environment Performance.

2. Outcome – QPEC *Outcome – It is the actual results of the various activities across the company. i.e. Rejection or Timely Delivery is the outcome of the processes Efforts team provides ZED awareness training to create positive momentum to achieve maximum ranking and improve the QPEC with safety awareness.

QEROI

Process Quality

Emission, Effluent &

Waste

Resource Management

Outsourced Activities

Innovation, Creativity & Safeguard

- Design - Pre Prod

Start up - Production - Maintenance - Product

Design for Quality

- Post Production

- Activity

- Process Design for Env Mgmt

- Pre Prod for Env mgmt

- Production - Maintenance - Product

Design for Env

- Post Production

- Activity

- Facilities - Human

Resource

- Selection - Control - Improvement

- Trademark - Industrial Design - Copyright - Patent

QPEC

Quality Performance

Process Performance

Environmental Performance

Overall Company’s

Performance

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STEP 2: Based on Company’s current capability and practices, Company selected 10 optional parameter and evaluated through Self Assessment Criteria designed by ZED. Parameter selection is the most important function to achieve maximum certification targets ranking as well as improve organization Productivity, Quality, Service, Safety, Morale and Culture development

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Efforts team provides assistance to elect the optional parameters with respect to organization current needs of improvements and provide training and assistance for same.

5’S Workplace

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STEP 3: After Assessment, devised improvement plan and categorized all the parameters

in Impact & Effort Analysis

TPM-Abnormality

Tagging

Kanban-Inventory

Management

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IMPACT – EFFORTS Analysis Matrix

- To assist team in documentation for all the parameter, creating documentation system to sustain it forever without help of consultant

- Training & Handholding to implement 5S, visual management, TPM-Autonomous maintenance, process capabilities etc. lean manufacturing tools with respect to mandatory and optional parameters

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STEP 4: Devised Action Plan for improvement, Execute it and Avail evidences

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- Execution of action plan - Review improvements - Collect Evidences - Improve the processes

performance

Perform mock audit to compile document work as well as on floor improvements and sustenance on actual basis, Guidelines provide to team for how to perform audit and its important to team.

• Educate the team for the audit. • Assign audit responsibilities to each parameter to team member. • Make effective use of resources during the audit. • Organize and direct audit team members. • Prevent and resolve conflicts during the audit. • Prepare and complete the audit documents file • Audit awareness on floor training of all the workers, supervisors, in charges

STEP 5: Upload Evidences of improvement on ZED Portal, Apply for Physical Assessment

and get all the parameter assessed and certified.

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How We can Assist?

Option 1: Documentation, Formats and Offline support

- We avail formats for all the Mandatory parameters - We avail formats for all the optional parameters (upto 10 only) - Advise on the documentation and filing process - Offline assistance on Mock trial - Company has to go through physical assessment on its own

Option 2: Handholding and Consultation Self Assessment:

- Assisting company for selection of optional parameter by reviewing current condition Desktop Assessment:

- To prepare team on various aspect of ZED and hand hold for deploying the same to get desired result (ie. Swachh Workplace, TPM, Quality, Cost, Delivery, Safety, DWM and Productivity)

- To assist team in documentation for all the parameter, creating documentation system to sustain it forever without help of consultant

- Uploading relevant documents for desktop assessment and assessing self to optimize chances forhigher maturity Level

Desktop Assessment GAP Analysis:

- Assisting team for bridging GAP of desktop assessment - Train the team on continual basis

Physical Assessment

- Conducting two mock trials with team before actual physical assessment - Assisting companies during audits for all interaction and assessment with assessors

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Effo

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Our Services

Consulting Coaching/training Connecting

• Operation Excellence

• Production Norms

Designing

• ZED and Certification

• Enterprise Management

System

• Marketing Excellence

• Material Flow Cost

Accounting

• Six Sigma (White belt) • Six Sigma (Black Belt) • Six Sigma (Yellow

Belt) • Six Sigma (Green Belt) • Minitab Basics • Problem Solving

• Lean Foundation • Diploma in Lean

Management • Five (5) S • Flow management • Total productive

maintenance • Quality Management • Service management • Value Stream Mapping • Inventory Management

Certification in Six Sigma Lean Management

Efforts Consulting Pvt. Ltd. 508, Palladium Business Centre, Opp. 4D Square Mall, Near IIT Engg. College, Gandhinagar Road, Ahmadabad – 382424

Phone: (+91) 9879391004 Mail: info@ effortsconsulting.com Web: www.effortsconsulting.com

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Efforts For Excellence

zed implementation case study - effortsconsulting.com · efforts for excellence ` efforts...

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