Discussion
Background
In
our Lean Briefing #45, I stated that the benefits of 5S were
significant but difficult to measure for a variety of reasons.
Several thoughtful readers took issue with this and some provided
results and narratives from their 5S implementations.
The
discussion has been stimulating and, it seems to me, that there is
no longer serious disagreement between any of the participants. I am
suggesting some joint conclusions at right and you may read
the original comments below. Their comments are also reflected in
our page on 5S Benefits.
Conclusions
About 5S Benefits
-
5S
is an integral part of a larger manufacturing strategy and the total
effects cannot be measured in isolation.
-
It
IS difficult to measure SOME
of these effects directly but they are often reflected, at least
partially, in other metrics.
-
Directly
measurable effects are significant and these alone
are sufficient to justify the
investment and effort.
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Comments
Brian
Levitan (Australia)
Roll
Forming, Welding & Logistics
I
disagree that the benefits of 5S are hard to quantify. Here are some
examples:
Roll
Forming
-
Accidents LTI and MTI – 50 – 70% reduction
-
Space Saved 20% – 40%
-
Morale/ Absenteeism – drop of 25% - 50%
-
Productivity/Quality – improvements of 15 – 50%
-
The
results were obtained after years of conventional methods and
committees and HR surveys which did not produce results.
Reverse Logistics Stores
Welding
Wire Plant
After a 5S Blitz on a
steel slitting line (3 day event because of the culture
change) there was a huge improvement in quality. This
impacted favorably on the downstream downtime of the wire lines,
thus a huge improvement in OEE resulting from an
improvement in quality from an upstream process. Yet, the
focus was on culture change and not quality itself.
Brian
Levitan
Principal
Lean
Australia
www.leanaust.com
Americo
Chiruque (Mozambique)
Basic
Metals
After
reading this article, I felt that it could raise a very interesting
debate, especially amongst those who are (or have been) part of a 5S
implementation team.
When
we started the 5S implementation at Mozal in 2003, this was one of
the questions put and although the importance of the initiative was
clear to us, it was not easy to give a sort of a mathematical answer
to it.
Now,
about three years down the line, we can feel that 5S is a
pre-requisite for creation of a high performance culture in the
organisation as it helps to establish the basics. I tend to believe
that no one can achieve big accomplishments without being able to do
small things.
Last
month I received a safety report that was making a correlation
between HSE audit findings and 5S audit findings and the conclusion
was the following:
-
The
main category of safety and environment problems is 5S related
problems;
-
All
the departments that have poor performance on 5S are also poor
performers on safety and environment ;
-
The
best 5S areas are also best areas in terms of safety and
environment.
It
is possible to extend this analysis to other correlations such as
quality of 5S versus productivity, etc. This
is because the key for good safety performance is discipline and
appropriate behaviour.
Now,
after this comment, let us ask the question again: does 5S payoff on
the bottom line?
Best
regards,
Américo
Anthony
V. Element (Australia)
Electric
Motors
Sorry
to be critical, but your argument that 5S benefits are difficult to
quantify is fundamentally flawed.
First,
you are making the mistake of addressing 5S in isolation. When
Taichi Ohno developed the suite of concepts that make up LE for
Toyota, he was adamant that they all worked together, harmoniously. You
simply cannot discuss any aspect of LE in isolation.
In
terms of relevant figures, here’s one example that relates
directly to the link between 5S and throughput.Some
years ago I was General Manager of an electric motor manufacturer in
Australia. We had begun introducing LE with company wide training
on:
The factory workers response for the most part was,
“We know the Chinese will have our jobs someday but this is the
first time we’ve felt like we could fight back. We’ll give it a
go.”
We
then implemented 5S thoroughly, i.e. each S got a good going over
right across the company , (that means offices and factory.) The
staff decided to pile it all up in the car park so we could
viscerally sense that we were doing something significant. Much
hilarity about the size of the mountain that ensued.
Anyway,
the C Frame production people suddenly discovered the distance they
were traveling because now that the clutter was gone the space they
traversed between work centres, tool boards, parts racks, etc, was
made obvious by the emptiness. Before we’d gotten around to
actually having a kaizen, they moved all the machines, tools, and
parts together.
Doing
nothing else resulted in:
-
Utilised
space reduction of 62%;
-
Daily
distance walked reduction from 1+ kilometers to <100metres,
-
Output
improved by >20% with the same headcount.
All
this and we hadn’t yet done a kaizen event.
We
had a pizza lunch to celebrate and that was when the real benefit
came out. One of the C Frame team said, as best as I can remember:
“If we can make this much improvement from nothing more than a big
Spring clean, what’s going to happen when we’ve done all this LE
(expletive deleted).”
That
was several years ago and the factory’s still there. Although
the products aren’t as cheap as imports, production can turn on a
dime in response to customer requirement changes, and that the
Chinese can’t do without a local warehouse which eats their price
advantage.
Hope
that helps. Cheers,
Anthony
Anthony V. Element OAM
2 Highclere St
Bateau Bay, NSW Australia 2261
Michel
E. Hess (U.S.)
Financial
Call Center
"In
our call center operation, 5S eliminates distractions,
promotes consistency and reduces wasted motion. It greatly
enhanced our office rearrangement and helped our
conversion to paperless processing."
Michel
E. Hess
Evergreen
Capital Partners
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