EFFECTIVENESS OF 5S IMPLEMENTATION ON ORGANIZATIONS PERFORMANCE

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1 Volume 5, Issue 1 (January, 2016) Online ISSN Published by: Abhinav Publication Abhinav International Monthly Refereed Journal of Research in EFFECTIVENESS OF 5S IMPLEMENTATION ON ORGANIZATIONS PERFORMANCE Priyanka Rai Research Scholar, SNDT University, Mumbai, India priyanka_rai23@yahoo.com ABSTRACT 5S is a TQM technique used by organizations comes from five Japanese words; Seiri (sort), Seiton (set in order), Seiso (shine), Seiketsu (standardize), and Shitsuke (sustain). This system helps to organize a workplace for efficiency and decrease wasting and optimize quality and productivity via monitoring an organized environment. It also provides useful visual evidences to obtain more firm results. There is a real need for empirical studies in field of new management systems and their impact on company s performance. As importance role of continuous improvement in today s organizations, and lack of sufficient evidence to show the positive impact of 5S on organizational performance, this paper aims to identifying the effectiveness of 5S implementation on organizational as well employees performance and their attitude towards 5s. Surveying method is used and data collection is done by distributing questionnaire among general employees of the organizations which have implemented 5S techniques. The target organizations are chosen from different industries and diverse field of work. The results show that 5S is an effective tool for improvement of organizational performance, regardless of organization type, size, its production or its service. Consequently, 5S techniques would strongly support the objectives of organization to achieve continuous improvement and higher performance. Keywords: 5S; Performance; Total Quality Management; Productivity INTRODUCTION Nowadays in this dynamic and technological world, the secret of surviving for any kind of organization is to be competitive and pioneer in its products or services. One of the main parts of this way to succeed is continuous improvement and increasing the quality of product or service. Usually, this improvement has been achieved through implementation of best practices which are chosen to meet a particular objective. With increasing of the competition in the world, two major challenges are in front of organizations managers: Firstly, in this competitive environment, managers have to make the best decisions and choose the best methods to achieve their objectives and not to lose very finite opportunities. Secondly, lack of knowledge is one of the most important problems of managers about familiarity with an appropriate method to successfully improve the performance of organization. In addition, the quality of performance also is vital to be evaluated and recognized. Such an evaluation can help managers to identify the improvement of performance. 5S is a way to improve the performance and organize the whole system which has been used first time by Japanese. It comes from five Japanese words start with S which is translated into English words to give the best explanation for them. As it will be discussed later, using 5S as a total quality management method is very effective and efficient for improvement of whole organization. It has dramatic impact on safety and environmental issues, loss of resources and many others that this study is going to investigate and prove( Arash Ghodrati, Norzima Zulkifli 2013). Available online on 1

2 OBJECTIVES OF THE STUDY There are many practices in the world to improve the quality of products/services and performance of organizations, but generally companies looking for the best practice to implement and utilize for achieving their organizational goals and objectives easier, sooner and with less expenses. This study aims to investigate the impact of 5S practices on employees as well as organizations performance. Accordingly, the main objective of the research of this research is: 1. To find out whether organisations following 5s TQM technique in their organisation. 2. To understand the benefits of 5s TQM implementation with respect to employee job performance. 3. To identify effectiveness of 5S implementation on the organization performance. HYPOTHESIS FOR THE STUDY H1: Implementation of 5s technique in organizations enhance systematic working process of organizations which leads to defect/error free products process and services. LITERATURE REVIEW 5s in HRM- Dr. D.S. Uma and Mr. Aadharsh Kannan Oct-Dec 2010 highlighted in their article that 5s is required to be followed in HRM for the organization to reach the pinnacle of glory at the same time care should be taken so as not to impose it very rigidly on the employees. We are talking about an organization of professionals and not battalion of soldiers. Flexibility and freedom are the virtues that bring peace in a work atmosphere. Employers and managers must understand that and learn the art of deploying 5s in a more fun to do way so as to achieve the ultimate goal; Continual Improvement. 5s Model For Hotels- Dilek Acar Gürel (22 July, 2013) mention that in order to achieve quality and value objectives, hotels should integrate 5S components within a formal business model and thus take the synergistic advantageous. 5S enables all employees and managers, independent of the job title, to gain value-oriented thinking. Further, 5S supports the organizational integration quite essential for hotels. Based on quality pillars, 5S forms a robust ground for advanced quality systems and various innovations. This conceptual study offers an insight into 5S as a valuable business model with regard to hotels requirements. 5S model is analyzed as one of the methods which will satisfy the quality and value oriented management requirement of the hotels in place of the traditional applied practices. 5S Technique In The Activity Of Post-Sale Services In The Knowledge-Based Organization- Mihail Aurel Titu; Constantin Oprean and Daniel Grecu (January 2010) revealed that 5S technique represents a fundamental technique which allows the enhancement of efficiency and productivity, while ensuring a pleasant organizational climate. After the interpretation of the results obtained in the Kaizen 5S workshops, it has been confirmed that the implementation and application of the Kaizen concepts need no investments or major expenses, but only more attention paid to details and practical means to work intelligently. Philip B. Crosby introduced the concepts of Do it right first time and Quality is free according to which everything must be well done the first time and every time and respectively quality costs nothing what costs is lack of quality. The Use of 5S in Healthcare Services- Fanny Y. F. Young September 2014 propose that 5S can be applied to healthcare services with beneficial effects such as cleaner, organized, efficient workplaces for enhanced safety and increased productivity; reduction of inventory and supply costs and recapturing of valuable spaces and minimizing overhead costs. Sustain is a key to success. 5s implementation and its effect on physical workload- Ayush Khandelwal, Prathik R., Rahul P. Kikani, Vigneshwaran Ramesh (September 2014) in his study indicated that the time consumed and energy expenditure was drastically reduced after the implementation of this methodology, which in turn had a positive effect on productivity. The analysis of the time consumed and energy expenditure for both the subjects after implementing the 5S organisational methodology clearly shows that this tool VOL. 5, ISSUE 1 (January 2016) 2

3 has potential to deliver a positive impact on productivity. The results of the time study show that proper organisation and efficient material handling saves a considerable amount of time. The results of the energy analysis indicates to us that for a given work 5S methodology plays a vital role in saving energy, that is, after its implementation the energy required to carry out a particular activity would be less than the energy consumed before adopting 5S. The morale of the workers has been bolstered after the changes have been made, which certainly is a major factor for improvement in productivity. Implementation of 5S management method for lean healthcare at a health center in Senegal: a qualitative study of staff perception- Shogo Kanamori, Seydou Sow, Marcia C. Castro5 Rui Matsuno, Akiko Tsuru and Masamine Jimba (April 2015) study participants indicated that, despite resource constraints and other demotivating factors present at the health center, the 5S program created changes in the work environment, including fewer unwanted items, improved orderliness, and improved labeling and directional indicators of service units. These efforts engendered changes in the quality of services (e.g. making services more efficient, patient-centered, and safe), and in the attitude and behavior of staff and patients. A Study on Employee Opinion towards 5S Implementation in PGC Textile Corporation (P) Ltd, Tirupur- J. Shanmuganathan, S. Thiriveni Sripriya, A. S. SathishKumar (February 2014) conducted the study on 5s practices implemented in PCG Textile Corporation (p) Ltd, Tirupur. PGC Textile Corporation (P) Ltd is a garment manufacturing company which exports its products to national and international market especially to European countries. The company is more concern with quality standards and already got ISO 9000, ISO and SA 8000 related certification. At present, the company aims to improve productivity through quality improvement technique called 5S (Housekeeping method). 5S practice is one of the continuous improvement technique used to improve housekeeping, work efficiency, productivity and provide health and safety environment which leads to quality workplace. The five pillars of 5S commonly referred as (Sort, Set in order, Shine, Standardize, and Sustain). 5S is a process of carrying the work place systematically and gradually implementing housekeeping procedure to maintain structure and standardization in an organization. A well-organized workplace motivates people, in all levels of management to utilize various resources efficiently and effectively. The study is also focus with various activities adapted during implementation of 5S with the contribution and support by their employees. The article concludes on 5S methodology that needs to become an established practice in most of the industries with active support from the top management and employees. Understanding 5S and building a culture helps to develop a management strategy based on quality standards. RESEARCH METHODOLOGY An attempt has been made in this section to provide an insight on methods and assumptions used in the study to explain the procedure adopted in the research work and various steps that has been conducted. The study has followed descriptive research based on survey method. After investigating the implementation methods in literature review, it is realized that 5S has an effective impact on improvement of organization. Exhaustive literature review from national and international authors has been done to frame the hypothesis and to explore the variables which affect the systematic working process of the organizations. Secondary data collected from online databases like EBSCO, ProQuest, and Google, industry reports as available, newspapers, books and magazines. Literature has been reviewed and based on literature and a group discussion question has been framed. 10 Likert scaled questions based on 5s were asked from the employees from different organizations 450 employees from 23 companies responded to these questions. A structured questionnaire was administered to top management and general employees of the organisations, executives from various departments such as HR, sales and marketing, finance, manufacturing etc. have been taken into consideration. All attempts were made to conduct face to face interviews wherever possible. and telephonic interviews were also conducted with respondents. VOL. 5, ISSUE 1 (January 2016) 3

4 Sampling method for this research study is based on simple random sampling. Simple random sampling is selected so that all samples of the same size have an equal chance of being selected from the entire population. It means that the questionnaires were distributed among employees of organization by random. 450 employees from 23 companies were surveyed to find the effectiveness of the 5s technique in the organizations. While surveying the general employees a care was taken to survey at least 5 % of total employees of that particular unit of that company DATA ANALYSIS AND INTERPRETATIONS Data analysis has an important role to verify the accuracy of hypothesis for each type of research. Today, for most researches that have relied on gathered information data, analysis has the most significant part of study. Now in this part, data collected from the real world will be analysed using SPSS software. a) Reliability test has been carried out to test whether data is reliable for further tests or not by calculating α. Employees were asked 10 questions based on 5s system. 450 responses were found to be correct and analysed. This database tested for reliability. The Cronbach s Alpha is.915 Cronbach alpha was also found by split half first 5 item have the Cronbach s alpha as.815 and the second part (next 5 questions) has the Cronbach s alpha as.909. There is a consensus that data is reliable if Cronbach alpha falls near.9. High Cronbach s alpha means repetitive questions on the same issue as the questions has been asked on 5s system many of the responses, are but natural same. b) Data was coded for Likert scaled questions to test the hypotheses. Hypothesis of the questions were tested by calculating t- value. The expected mean value of the responses is 5.5 as respondents have been asked to grade these questions. Table no.1 shows one sample t-test. Mean, std. deviation, std. error and t values have been shown in the table. Significance value with two tailed test have been shown in the last paragraph all 10 statements are statically significant at 1% level. The highest t-vale is for the last statement i.e. in case of any problems/challenges there is SOP at place to handle it. It means people have written operation procedures which help them to solve the problem. The lowest t-test is for the statement (appointed personnel s are given responsibilities to ensure that tools and machines are in good conditions) it clearly shows people have less interest in keeping the tools and machines in good conditions although statement is positive. c) Z = where x is the mean and μ is the expected mean. This z value were calculated using one sample t-test using SPSS. d) Confirmatory factor analysis has been done for question 1 to 10 for general employees. (Analysis has been done with R and Lavaan) As mentioned in earlier sections employees were asked to grade 10 statements based on 5s systems that is Seri, Seiton, Seiso, Seiketsu and Shitsuke, these 5s were our predefined factors a confirmatory factor analysis was done as this researcher could not afford high cost commercial software s for path analysis. R was learned using Lavaan library and a path was established as shown in Chart-1 and the relationship has been established as follows: Seri<- Q.1 Seiton<- Q2, Q3, Q4 Seiso<- Q5, Q6, Q7 Seiketsu<- Q8 Shitsuke<- Q9, Q10 VOL. 5, ISSUE 1 (January 2016) 4

5 All employees at their respective workplaces or offices contribute in removing unnecessary items which are not required in day to day tasks. All the temporary repairs items are conveniently available at the work place. All the tools and machines are placed on designated places. All the materials are properly placed on racks & marked for identification. Appointed personnel are given responsibilities to ensure that tools and machines are in good condition. The workplace is always clean and free from any clutter. All working places are painted and access to cleaning is excellent All routines for cleaning are scheduled with a system All the instructions and procedures are regularly updated and published on designated billboards, signage areas that are visible to personnel In case of any problems/challenges there is SOP at place to handle it Table 1. One-Sample Statistics N Mean Std. Deviation Std. Error Mean T Df Sig. (2- tailed) The estimate for these paths have been shown in table- 2.1 estimates for q1,q2,q5,q8 and q9 have not been calculated by system, q1 and q8 have only one latent variable for each. q2 q5 and q9 have errors as shown in chart-1, q5 has the highest error (19.52). q5 states that appointed personnel are given responsibilities to ensure that all tools and machines are in good condition this appears to be a case of highest controversy among employees, the next highest error in q2 which states that all temporary repair items are conveniently available at work place. Besides these two statements (including these two) the relationship between hidden factors and variables are statistically significant at 1% level. The estimates and variances among latent variables have been shown in tables: 2.1 and 2.2 Table- 2.0 says Lavaan first normally after 110 iteration. T-value for Chi square is.000. RMSEA (root mean square error of approximation) is which statistically significant at1% level which means the model is reliable. The relationship between latent variables well established as z-values are very high. VOL. 5, ISSUE 1 (January 2016) 5

6 Chart 1. lavaan (0.5-20) converged normally after 110 iterations Table 2. Number of observations 450 Estimator ML Minimum Function Test Statistic Degrees of freedom 27 P-value (Chi-square) Model test baseline model: Minimum Function Test Statistic Degrees of freedom 45 P-value User model versus baseline model: Comparative Fit Index (CFI) Tucker-Lewis Index (TLI) Log likelihood and Information Criteria: Log likelihood user model (H0) Log likelihood unrestricted model (H1) Number of free parameters 28 Akaike (AIC) Bayesian (BIC) Sample-size adjusted Bayesian (BIC) VOL. 5, ISSUE 1 (January 2016) 6

7 Root Mean Square Error of Approximation: RMSEA Percent Confidence Interval P-value RMSEA <= Standardized Root Mean Square Residual: SRMR Table 2.1. Estimates of CFA Parameter Estimates: Information Expected Standard Errors Standard Latent Variables: Estimate Std.Err Z-value P (> z ) Seiri =~ q Seiton =~ q q q Seiso =~ q q q Seiketsu =~ q shitsuke =~ q q Covariances: Estimate Std.Err Z-value P (> z ) Seiri ~~ Seiton Seiso Seiketsu shitsuke VOL. 5, ISSUE 1 (January 2016) 7

8 Seiton ~~ Seiso Seiketsu shitsuke Seiso ~~ Seiketsu shitsuke Seiketsu ~~ shitsuke Variances: q Table 2.2 Estimate Std.Err Z-value P (> z ) q q q q q q q q q Seiri Seiton Seiso Seiketsu shitsuke FINDINGS OF THE RESEARCH Individual analyses of twenty three organizations successfully showed that 5S implementation has a positive impact on performance of organization. Implementation of 5S is an effective way to improve and promote the organizational performance level. 450 employees was taken into consideration from diverse field of operations and from different department for the research and found employees are positively agreed for the questions asked on 5s in a simple language though they are not fully aware of 5s technical terms. Study analysed that 5s has positive effect on employees as well as organisational performance but there is lack of awareness among employees except few high tech firm who are known for TQM implementation and few top managers from both SMEs as well as from high tech firms. SMEs need to focus on 5s technique of quality of quality management system. Another result comes out from the research is that employees are not feeling 100% responsible for 5s implementation this might be due lack of awareness and training for 5s. The objectives of the research that is VOL. 5, ISSUE 1 (January 2016) 8

9 organisations are implementing 5s technique and its benefit in overall organisations performance is found to be positive, organisations in targeted sample are implementing 5s, increases employees and organisations performance. CONCLUSIONS/ RECOMMENDATION During research process, after getting familiar with 5S practice, its implementation and its benefits for industrial organizations, the results showed that the technique is very useful, applicable and beneficial But it also shows that some organizations are implementing 5s in bits not as whole strategy/ policy because of this employees are not recognising the importance and benefits of 5s tool that s why they show less interest towards their role in 5s implementation. However research found another fact that more than manufacturing sector its service sectors who are not realising the benefits of 5s in their working process. It could be concluded that 5S is a useful quality management tool causes to improve employee performance in any organization without any limitation on different kinds of products or services and organisations need to consider it as a part of their organisation strategy. FUTURE STUDY According to the results, future researches can be a conducted on comparative study of 5S effects on performance in similar organizations, review requirements of the implementation and deployment of 5S practice, and review of the key success factors for organizations that have been successful in implementing of 5S and other quality management systems. The methodology used in this research can be extended for more factors by involving more experts to get more accurate results. Future research also can be applied for any other industry and organization to achieve best form of relationship among directional indicators and overall performance and so on. Studying success factors and their effects on organizations or projects can be investigated and all details which will result in competitive advantage of company are also recommended for future study. Researches also recommend detail study of manufacturing and service sector separately for 5s implementation and its effectiveness on overall performance. A detailed qualitative research need to be done on the employees perceptions for 5s and their awareness for the same. REFERENCES 1. Arash Ghodrati1, Norzima Zulkifl,( March,. 2013); The Impact of 5S Implementation on Industrial Organizations Performance International Journal of Business and Management Invention; Malaysia; ISSN (Online): , ISSN (Print): X Volume 2, Issue 3; PP Ayush Khandelwal, Prathik R., Rahul P. Kikani, Vigneshwaran Ramesh (September 2014); 5s implementation and its effect on physical workload ; IJRET: International Journal of Research in Engineering and Technology, Coimbatore, Tamil Nadu, India; eissn: , pissn: ; Volume: 03 Issue: 09; pp Dr. D.S. Uma,Mr. Aadharsh Kannan(October - December, 2010); Implementation of 5s in HRM HoD in Commerce, Nirmala College for Women, Coimbatore, Amrita School of Engineering, Coimbatore, Journal of Contemporary Research in Management; pp, Dilek Acar Gürel;( 14th August, 2013 ); A conceptual evaluation of 5S model in hotels African Journal of Business Management; ISSN Academic Journals; Vol. 7(30), pp Fanny Y. F. Young ; (September 2014); The Use of 5S in Healthcare Services: a Literature Review; International Journal of Business and Social Science, Hong kong; Vol. 5, No. 10(1); pp J.Shanmuganathan, S. Thiriveni Sripriya, A.S.SathishKumar (February 2014); A Study on Employee Opinion towards 5S Implementation in PGC Textile Corporation (P) Ltd, Tirupur ; ijsr - VOL. 5, ISSUE 1 (January 2016) 9

10 international journal of scientific research; Volume : 3, Issue : 2, ISSN No ; pp Mihail Aurel Titu; Constantin Oprean and Daniel Grecu (January 2010) Applying the Kaizen Method and the 5S Technique in the Activity of Post-Sale Services in the Knowledge-Based Organization Daniels, A., Managementul performantei Strategii de obtinere a rezultatelor maxime de la angajati, Editura Polirom, Bucuresti, Romania, (2005). 8. Shogo Kanamori, Seydou Sow, Marcia C. Castro5 Rui Matsuno, Akiko Tsuru and Masamine Jimba (April 2015); Implementation of 5S management method for lean healthcare at a health center in Senegal: a qualitative study of staff perception Global Health Action; Tokyo- Japan; pp VOL. 5, ISSUE 1 (January 2016) 10