Abstract:
Small scale industries plays an important role in Indian economic. It has emerged as
powerful tool in providing relatively larger employment next to agriculture. It contributes
more than 50% of the industrial production in value addition terms and generate one third
of the export revenue. Global markets are continuously changing and demanding product
of high quality and low cost. Such products can be produced using lean manufacturing,
a management philosophy that aimed to reduce all types of wastes at all levels of
product manufacturing so as to reduce product cost. 5S is a basic lean manufacturing tool for
cleaning, sorting, organizing and providing necessary groundwork for work place
improvement. This report deals with the implementation of 5S methodology in the Otoklin
filters Company, Ambernath, Maharashtra. Out of the available various lean
manufacturing techniques, 5S offers good potential for required improvement.
5S is a systematic 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 determine performance factors and characteristics in industrial organizations and
identifying the effectiveness of 5S implementation on organizational performance as well.
Surveying method is used and data collection is done by distributing questionnaire among
five target organizations which have implemented 5S techniques. The target organizations are
chosen from different industries and diverse field of work. The results of this research
obtained from a comparative measurement of organizational performance before and after 5S
implementation. 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.