Dear Forum Users,

I need your suggestion on How to quantify the benefits of implemeting 5S. Normally, when we propose to some manufactring unit to implement 5S, they want to know the benefits in numbers, costs etc. I know qualitative outcomes of 5S but not quantitative. Please suggest some ways to bring some factual results out of effective 5S execution at shop floor.

Thanks for your time.

Regards
Amit

Make Rules/Quality Workplace Standards
e.g. lights, computers, etc shall be turned off when not in use. you can quantify the cost savings.

Thanks for your answer.

When someone is to be conviced on 5S effectiveness, what results and factual outcomes we can promise to him?

Thanks for your time.

Regds
Amit

When someone is to be conviced on 5S effectiveness, what results and factual outcomes we can promise to him?


Improve the quality of work life through a clean and organized workplace using a team-based approach.

It really is that simple.
Further gains are that it allows a company to shape a cultural mindset in preparation for other continuous improvement efforts.
I would not have been able to teach and help a process just today for the sake of one-piece-flow and high quality yield without the basic principles of 5S in place.
If you need to provide further information in a quantitative way, you may need to show them. That is how I gained traction in a few places... just do it in a selected area and then show and tell.

Thanks for your answer.

When someone is to be conviced on 5S effectiveness, what results and factual outcomes we can promise to him?

Thanks for your time.

Regds
Amit

Amit - implementing a 5S approach in the workplace is (in part) a method to reduce the '7 Wastes' which are also part of TPS/Lean. It shouldn't be too difficult to see (literally) what affects a production line (if that's what you're considering) and has an impact on one or more of the 7 Wastes. Once you know that, you can put a cost to it - wasted movement, wasted time (like waiting) until a tool is found etc. etc.

Thanks Andy, for your reply.

Actually, I am facing problem in convincing some of european plants of my company, that 5S can be effective in cost reduction or improving productivity. While selling any idea, we need to provide some facts and/or cash benefits. Some units say that its is just improvised cleaning and nothing more. They already have a system of housekeeping and I know, 5S will obviously add further value to it. But, unless I show, some case studies in terms of impact on profictability or give them some attraction in terms of cost reduction possibilities, it is becoming difficult. Qualitative benefits are convincing ones but, it is suitable to only those who have already seen it implemented somewhere in his career history, but to convince someone, who is new to this concept is challenging.

Please suggest something, which I can use as an example.

Regards
Amit Kumar

Amit;

Good deal! Why not make a video of the typical workplace/workcell where the 5S would bring most benefit? As you know, if you were implementing an entire "lean' program, you'd probably diagram (spaghetti style) the walk the operator/s make. Since you are unlikely to get that help, you could video or make many still photos to demonstrate how much wasted traveling is involved in an 'un-5S' ed space.

I have some poor photos which actually show the operator in the 'future' state standing drinking tea because he has so much time on his hands!! Not before 5S though!!

Amit-

Or, you might try pointing out to your superiors that 5S is one of the foundations of the Toyota Production System and ask them: do you want to imitate the success of Toyota, or do you just want to keep making Yugos? :notme:

Kind Regards -John

Thanks Andy, for your reply.

Actually, I am facing problem in convincing some of european plants of my company, that 5S can be effective in cost reduction or improving productivity. While selling any idea, we need to provide some facts and/or cash benefits. Some units say that its is just improvised cleaning and nothing more. They already have a system of housekeeping and I know, 5S will obviously add further value to it. But, unless I show, some case studies in terms of impact on profictability or give them some attraction in terms of cost reduction possibilities, it is becoming difficult. Qualitative benefits are convincing ones but, it is suitable to only those who have already seen it implemented somewhere in his career history, but to convince someone, who is new to this concept is challenging.

Please suggest something, which I can use as an example.

Regards
Amit Kumar

Use the idea on cost saving. 5s save space, save time and easy to get tools.

Use some example and calculate the cost compare on before and after 5S

Its a nice idea. I have some Before 5S photographs. I can share that, but I do not know, if it relevent to someone. It is from steel manufaturing facilities.

Regards
Amit Kumar

Amit,

I tried to attach a PowerPoint presentation (but I think it's too big) to provide an overview of a 5S Kaizen we did last year. One of the big gains that we were able to demonstrate in this event was Labor Efficiency. We were able to eliminate some Overtime hours and avoided the need to hire a third shift and we conservatively estimated savings at $55,000. If we had added the benefits, etc into the savings figures the number would have been higher.

I'm not sure if this is what you are looking for but it should at least give you an idea of the type of gains you can get just by focusing on 5S. If you would like a copy of the PowerPoint presentation just provide me an email address.

Harold

Amit,

I tried to attach a PowerPoint presentation (but I think it's too big) to provide an overview of a 5S Kaizen we did last year. ................Harold

Yes, there is a software limit (about 3.2Mb Max). You can do 2 things.
1. Break the presentation down into parts (each about 3Mb) or
2. Email to Marc for further action.

Thanks for your generosity.

@ Harold,

Thanks for sharing your experience on 5S implementation. My email is:
reach.amitdas(at)gmail(dot)com

Thanks again.

Regds
Amit

The earlier that errors are found due to well organized workplace, the cheaper they are to fix. The later that errors found due to disorganized workplace, the more rework required.

Impact of disorganized workplace:

1. may require many people to fix and get it done within the deadline
2. or may extend the deadline

TIME = MONEY

Thanks to all of you.

@Harold,

I am trying to upload the consolidated presentation you sent me. So that forum users can also have the ppt.

Thanks for your help.

Attached are a couple of 5S presentations

Hope they help

Attached are a couple of 5S presentations

Hope they help

File Attachments - How to Attach a File to a Post in a Thread (http://elsmar.com/Forums/showthread.php?t=10668)

With 5S's this is the fact. in order to implement Lean Manufacturing @ your manufacturing site, the Basics are 5S's, Value Stream Map, Kaizen and TPM.
I had a Kaizen event last Month when applying 5S's eliminating one of the 7 types of waste, (Inventory) Implementing One piece flow, we reduce Space first. (1200 sq-ft x 35 dlls sq-ft= $42K savings) Work in process material between machines . WIP from $13K to $6K = $7K reduction, material transportation from 424 ft to 174 ft with the re-layout (2nd S to orginize) we reduce Labor productivity from 9 to 7 operators, $14K annual savings and because we implement one piece flow we reduce lead time to customers and reduce the std hours rate in 2 dlls each piece, according our requirement we'll have annual savings abou $126K dlls. so if you don't implement 5S's you'll fail implementing LEan and cost reductions....
any quiestions please let me know.

Jorge Ivan Castellanos
Lean Manufacturing Coordinator
Invacare Corporation






The earlier that errors are found due to well organized workplace, the cheaper they are to fix. The later that errors found due to disorganized workplace, the more rework required.

Impact of disorganized workplace:

1. may require many people to fix and get it done within the deadline
2. or may extend the deadline

TIME = MONEY

Dear Jorge,

Your explanation is really good. I thank you for sharing the savings possibility with 5S. In fact, in some industries like automobiles, 5S can be very fruitful. Whereas, in other manufacturing industries like steel sector, its not easy to recognize these benefits imediately. But, I am confident that sooner or later they will also realize the benefit of using 5S for housekeeping.

It will be better, if you can share some presentation of the gains you had with 5S implementation. Please upload if you have any, or send it to me on reach.amitdas(at)gmail(dot)com

Thanks for your time.

Regds
Amit

Dear Amit
I fully agree with you that it is hard for people to appreciate the benefits if they have not experienced it!! I can suggest to you that you do it in a pilot project (Small area) and then show them the benefits- reduction in wastes, Improved Floor Space utilization, Improved safety and reduction in frustrations while seking/storing things. Once 5S is in place, people will suddenly realize that a lot of space has been created "OUT of Nowhere".

Actually, I am facing problem in convincing some of european plants of my company, that 5S can be effective in cost reduction or improving productivity. While selling any idea, we need to provide some facts and/or cash benefits. Some units say that its is just improvised cleaning and nothing more.

Hi Amit,

How are you measuring your lean activities AND who is doing the measuring?

Do you have primary visual displays on the floor?
Are the work center members performing the measurements?
Are they measuring productivity, safety, cost savings, setup time, defects, scrap, quality, etc?

5S needs to be moving your indicators. Is the problem here that you are not measuring these indicators or that you dont know how to tie the indicators to your 5S activity?

Let us know and we can direct suggestions.

For example,

You should have a baseline for travel during setups. 5S/suggestions/kaizen should be reducing the travel. If you do a kaizen blitz you should have a before and after. If you have a suggestion, you should have a before and after. Your 5S audits should be quantifying improvements too.

If your not there yet. Consider doing a 5S blitz. Quantify travel, space consolidated, safety improvements (in terms of a safety score improvement), consolidate supply stores for parts and search reduction, etc. Setups and maintenance are usually very juicy targets. Boneyards can also be good targets, especially if you are constrained on space or paying for offsite storage.

Regards,

Steve.