SUMMER INTERNSHIP REPORT

On
Implementation of Japanese Management
Technique for
Efficient Warehouse Operation
At

Anchor Electricals Pvt. Ltd.

Submitted in Partial Fulfilment of the Requirements

for
The Master’s Degree in Business Administration

Submitted By:
Shubham Bahuguna
M.B.A(SMS-530)

DOON UNIVERSITY, DEHRADUN

BATCH 2016-18
1
 ACKNOWLEDGEMENT

The internship opportunity I had with Anchor Electricals Pvt. Ltd. was a great chance
for learning and professional development. Therefore, I consider myself as a very lucky individual as
I was provided with an opportunity to be a part of it. I am also grateful for having a chance to meet
so many wonderful people and professionals who led me though this internship period.
Bearing in mind previous I am using this opportunity to express my deepest gratitude and
special thanks to Mr. Ashok Belwal, [Manager(Logistics)] who in spite of being extraordinarily busy
with his duties, took time out to hear, guide and keep me on the correct path and allowing me to carry
out my project at their esteemed organization and extending during the training.
I express my deepest thanks to Mr. Sanjay Mishra[officer], for taking part in useful decision
& giving necessary advice and guidance and arranged all facilities to make life easier. I choose this
moment to acknowledge his contribution gratefully.
It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to
Dr. H.C. Purohit[Professor & Head of the Department], Dr.Gajendra Singh[Associate
Professor] ,Dr. Ashish Sinha[Assistant Professor] for their careful and precious guidance which
were extremely valuable for my study both theoretically and practically.
I perceive as this opportunity as a big milestone in my career development. I will strive to use gained
skills and knowledge in the best possible way, and I will continue to work on their improvement, in
order to attain desired career objectives. Hope to continue cooperation with all of you in the future.

Sincerely,
SHUBHAM BAHUGUNA

Place: Haridwar
Date: 25-07-2017

2
 DECLARATION

I, Shubham Bahuguna, student of MBA IInd Semester, studying at Doon University,

Dehradun, hereby declare that the summer training report on “Study on Implementation of
Japanese Management Technique for Efficient Warehouse Operation” submitted to Doon
University, Dehradun in partial fulfillment of Degree of Master’s of Business Administration is the
original work conducted by me.
The information and data given in the report are authentic to the best of my knowledge. This
summer training report is not being submitted to any other University for award of any other Degree,
Diploma, and Fellowship.

SHUBHAM BAHUGUNA

Place: Dehradun
Date: 25-07-2017

3
 CERTIFICATE

I Have the Pleasure in Certifying That Mr. Shubham Bahuguna is a bonafide Student
nd
of II Semester of The Master’s Degree In Business Administration (Batch 2017-18), of Doon
University (Established By Government Of Uttarakhand), Dehradun.
He has completed his Project work entitled “Study on Implementation of Japanese
Management Technique for Efficient Warehouse Operation” under my guidance.
I certify that this is his original effort and has not been copied from any other source. This
project has also not been submitted in any other institute/University for the Purpose of the award of
any Degree.
This project fulfils the requirement of the curriculum prescribed by this University for the said
course. I recommend this project work for evolution and consideration for the award of the degree to
the student.

Dr. Sudhanshu Joshi

Assistant Professor
School of Management
Doon University, Dehradun

4
 EXECUTIVE SUMMERY

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 stusy 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 organization which have implemented 5S techniques.
Producing high quality of products and services is one of the key concerns in order to keep
up with the competition in the global markets. The main objective today is to increase productivity
through system simplification and incremental improvements by using modern available techniques.
One of the most recognized technique is Kaizen. By using technique of kaizen such as 5 ‘S’ Concept
we can increase the productivity of the process in the form of continuous improvement. The effective
implementation of kaizen methodology will lead to the success of the organization.
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.
Implementation of 5S technique leads to subsequent improvement in productivity of the
manufacturing company. The 5S improves environmental performance and thus relate primarily in
reduction of wastes in manufacturing. It promotes neatness in storage of raw material and finished
products. The 5S implementation leads to the improvement of the organization in many ways for
instance. The implementation of the 5S system of rules leads to the following effects regarding the
improvement in quality.

5
 TABLE OF CONTENT

S.No Content Page No.

1. Front Page 1
Acknowledgement 2
Student’s Declaration 3
Certificate of completion 4
Executive summary 5
Table of Content 6-7
List of Figures 8
Acronyms 9
2. Chapter-1 Introduction 10-12

Introduction to topic 11
Objectives of The Study 11
Scope of The Study 12

3. Chapter -2 Company Overview 13-23

History 14

Important Milestones 15

Mission, visions etc. 17

Products 18
Major Players 19

SWOT analysis 23

4. Chapter -3 Review of Literature 24-27

5. Chapter -4 Research Methodology 28-31

Objective of the Study 29
Types of Research and Research design 30
Sample Design, Sample Size, Sample Type 30
Data Collection Method 31
Limitations of The Study 31

6
6. Chapter -5 Basic warehouse functions 32-34

Planning and Control of warehousing systems 33

Movement of goods in/from warehouse 34

7. Chapter-6 Japanese management techniques 35-52

Kaizen 36
5’s 46
Total Quality Management 52

8. Chapter-7 Data Analysis and Interpretation 53-59

Questionnaire Analysis 53

SPSS Analysis 59

9. Chapter-8 Findings & Suggestions 60-63

Findings of the Research 61

Conclusion 62
Suggestions and Recommendations 63

10. Bibliography 64

11. Annexure 65-67

Annexure-1 Photographs Showing Live Implementation 62

Annexure-2 Questionnaire 63-64

7
 LIST OF FIGURES

Figure. No Name of Figure Page No.

1. Different products produced by Anchor Electrical Pvt. Ltd 18

2. Different Awards and Certifications won by Anchor 19

Electrical Pvt. Ltd.
3. Major Competitors of Anchor Electrical Pvt. Ltd 19

4. Anchor Electrical Pvt. Ltd Haridwar Unit. 21

5. Basic Warehouse Functions 33

6. Movement of goods in/from warehouse 34

7. Implementation of kaizen at Anchor Electrical Pvt. Ltd 43

Haridwar Unit
8. 5’S Model 46

9. Plan-Do-Check-Act (P-D-C-A) Cycle 50

10. Total Quality Management 52

8
 ACRONYMS

S.No. Acronyms Definition

1. TQM Total Quality Management

2. PDCA Plan-Do-Check-Act

3. AEPL Anchor Electrical Pvt. Ltd

4. LED Light Emitting Diode

5. STP Segmentation, Targeting, Positioning

6. SIDCUL State Industrial Development Corporation Limited

7. SWOT Strengths, Weaknesses, Opportunities, And Threats

8. JIT Just In Time

9. TV Television

10. LTD. Limited Company

11. Pvt. Ltd. Private Limited Company

12. 5S Japanese Words: Seiri, Seiton, Seiso, Seiketsu, And
Shitsuke

9
 Chapter-1
INTRODUCTION

10
 CHAPTER – 1
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.
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.

1. 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. Available techniques are different from each other in terms of their specific characteristics,
factors and ways that consider for reaching their purpose.
This study aims to investigate the impact of 5S practices on performance of industrial
organizations. Accordingly, the main objective of the research is to measure and compare of the
organization’s performance before and after implementing 5S practice. So the objectives of this
research are:
• To determine factors and characteristics of industrial organizations’ performance.
• To identify effectiveness of 5S implementation on the organization performance.
11
2. Scope of The Study. -
The scope of this work is limited to determine performance factors and dimensions of
industrial organizations and also characteristics of those dimensions, which will be proposed as
questions, and finally find out whether 5S is an effective method to improve whole performance of
an industrial organization. It realized that the scope is ambitious in that, but it examines a new outlook
at organization and total quality approach, however it is limited enough to be a realistic base for a
research. The output of this research will help us to locate 5S practices in the most suitable framework
for total quality management and performance improvement in industrial organizations.
Implementation of 5S technique leads to subsequent improvement in productivity of the
manufacturing company. The 5S improves environmental performance and thus relate primarily in
reduction of wastes in manufacturing. It promotes neatness in storage of raw material and finished
products. The 5S implementation leads to the improvement of the organization in many ways for
instance. The implementation of the 5S system of rules leads to the following effects regarding the
improvement in quality.

12
 Chapter-2
COMPANY’S OVERVIEW

13
 CHAPTER – 2
COMPANY’S OVERVIEW

Established in 1963, Anchor Electricals Pvt. Ltd is a wholly owned subsidiary of the
Panasonic Corporation. Panasonic acquired Anchor, the 50-year-old Indian family-owned electrical
equipment brand, in 2007. The company produces low-voltage electrical switches and accessories,
switchgear and protection devices, wires & cables, lamps & luminaries and fans. It also sells home
automation products from Panasonic.
The companies’ new manufacturing unit has been built at Daman, India. The investment for
the plant has been Rs. 200 crores and will produce a complete range of wiring devices. The plant's
current production capacity is of 240 million units. For the first two years, the products manufactured
at Daman will cater to the domestic market, A post which they will start exporting to the Middle East.
By 2015 the company is expecting 5 percent of their revenues to come from exports. The factory
adopts many green features including the installation of LED lighting, solar panels and use of treated
sewage water.
Over the last five decades, Anchor has managed to capture the attention of every citizen in
this country. It started with a humble vision of manufacturing electrical products of outstanding
quality at a time when the market involving electrical switches or wiring devices was handled by the
unorganized sector. Since 1918, Panasonic has offered long-lasting products with better safety and
comfort to customers worldwide. With nearly a century of experience in research and development
of smarter electrical solutions for homes and industries, Panasonic Corporation has emerged as a
global leader in Lighting, Energy and Indoor Air Quality. Anchor’s experience, skill set, and
understanding of the Indian market is unmatched in the field of electrical products since 1963. With
a constantly expanding product range and growing market share, Anchor is one of the largest
domestic manufacturers of electrical construction materials.
Innovative Solutions for a Brighter Future. - Anchor and Panasonic’s synergy in 2007 resulted
in products that cater to better energy generation, management, and conservation. With Panasonic's
cutting-edge technology and Anchor’s vast customer support network, Anchor Panasonic today
delivers a seamless and vast range of innovative electrical, lighting and ventilation products that
exceed global standards. The world of electrical solutions today has evolved beyond recognition. The
prominence of Anchor as India's only "Switches Super Brand" testifies to the fact that it is still the
most respected brand to be leading this business vertical.

14
2.1.- IMPORTANT MILESTONES

Started with the establishment of anchor India Pvt. Ltd in Mumbai in 1963 with the
manufacturing of Tumbler Switches. In 1971 Valsad factory was established with an aim to
manufacture the wiring device. In 1973 anchor gain fame among electrical manufacturing units with
introducing first piano switch under the brand PENTA in the electrical market.
Followed by the set up of Valsad unit for fans in 1989 and ROMA MODULAR SWITCHES in 1993.
In 1994 anchor extended their hands with the set up of DAMAN unit for wiring devices and started
manufacturing in candescent bulbs and fluorescent
Now in the last decade, it gained fame with the four major achievements including
§ Starting manufacturing retardant wire in1999.
§ In 2007 MATSUSHITA electric works, JAPAN acquires 80% stake in Anchor adds
T5 lighting portfolio
§ In 2009 ANCHOR become a wholly owned subsidiary of MATSUSHITA electric
works. Receives super brand status and unveil a new CFL.
§ In 2010 ANCHOR acquires globes lamps unveil its first major channel partner loyalty
program ZULU launches ROMA VIOLA switches.

YEARS OF PRODUCTS MANUFACTURE

STARTING
1963 Tumbler switches.

1971 Commissioning of Valsad factory (Wiring Devices)

1973 First Piano switch unveiled under the brand Penta

1978 Initiates manufacturing of the monoblock switches...Dyna

1984 Commissions Valsad Unit - ll and starts manufacturing switches from

Engineered Polymers

1989 Commissions Valsad Unit for fans.

1994 Commissions Daman unit for Wiring Devices Starts manufacturing

incandescent Bulbd and Fluorescent Tubes

1999 Starts manufacturing Fire Retardant Wires

15
2007 Matsushita Electric Works, Japan acquires 80% stake in Anchor Adds T5
Lighting portfolio

2009 Becomes a wholly owned subsidiary of Matsushita Electric Works.

Receives Business Super brand Status Unveils a new CFL

2010 Acquires Globus Lamps Unveils its first major channel partner loyalty
program Zulu Launches Roma Viola Switches

2011 Introduces Ave Sistema 44 Luxury range of switches and accessories from
Ave Italy.New Fan Factory at Dhamdachi. Unveils Panasonic Switchgear
MCB, RCCB and Isolator.

2012 Commissions 1st Greenfield facility at Daman (Unit V) Acquires majority

stake in Firepro Systems Pvt.Ltd Introduces Panasonic - Vision Switches
Panasonic Vision receives ‘Good Design Award 2012’ by Japan Institute
Of Design

2013 Launches Panasonic Ventilation Fans range. Introduces Residential

Lighting range of Panasonic Panasonic Vision Wiring Devices awarded IF
Product Design Award in Germany. Awarded ‘Masterbrand’ status

2014 Awarded Asia’s Most Promising Brand Unveils Uno Switchgear Starts
selling Solar Modules under Anchor & Panasonic Brands Unveils LED
Lighting for Commercial, Retail and Hospitality Sectors Panasonic HIT
Solar PV Module wins Gold Award for Innovative Product at Acetech
Awarded Global HR Excellence awards for: outstanding Contribution to the
cause of Education and Innovative HR Practices by World HRD Congress

2015 Unveils Penta Modular Switches Awarded Global Excellence awards for:
Outstanding Contribution to the cause of Education and Diversity Impact
by World HRD Congress Award for Continuous Innovation in HR Strategy
at work Initiates CSR Project at Jawahar and in villages near Haridwar
Starts offering EPC services for Solar Customers

16
2.2.- VISION AND MISSION

“Anchor’s mission is to manufacture, Innovative, Eco-Friendly, Energy

saving world class products for making user’s life simpler, safer, and
comfortable.”

2.3.- PURPOSE AND PRINCIPLES

• INTEGRITY & HONESTY

o We shall be ethical, sincere and honest in all our internal and external relationship. we
commit to uphold the highest ethical standards in all our business dealings.

• TEAMWORK

o We believe that people are our key performance differentiator. We nuture an

environment where Teamwork is most valued.

• CUSTOMER FOCUS

o We are committed to surpassing expectations of our customer at all times. We believe

that our quality of customer responsiveness will lead to greater customer loyalty.

• ACCOUNTABILITY

o We shall be fully accountable for our actions and we commit to be objective and
transaction oriented, thereby earning respect from others

• INNOVATION

o We shall continuously encourage entrepreneurial and innovative ideas in pursuit of

excellence so as to become the best.

• ADAPTABILITY

o We will continually adapt our thinking and behavior to meet the ever- changing
conditions around us, taking care to act in harmony with nature to ensure progress and
success in our endeavors.

• SOCIAL RESPONSIBILTY

o We are committed towards making a positive and proactive contribution to the

community. As a responsible corporate we will contribute to and abide by
environmental and legal norms.

17
2.4.- DIFFERENT BRANDS SEGMENT UNDER ANCHOR

2.5.- PRODUCTS

Figure 1: Different products produced by Anchor Electrical Pvt. Ltd.

18
2.6.- AWARDS AND CERTIFICATIONS

Figure 2: Different Awards and Certifications won by Anchor Electrical Pvt. Ltd.

2.7.- MAJOR COMPETITORS IN MARKET

Figure 3: Major Competitors of Anchor Electrical Pvt. Ltd.

19
2.8.- ANCHOR’S CSR INCENTIVES

20
2.9.- AEPL (HARIDWAR UNIT)

Anchor Electricals Pvt. Ltd. is situated at Ranipur near Haridwar. There are two
manufacturing plants situated in Anchor Electricals Pvt. Ltd. On the southern (SIDCUL), set up is
made for Compressed Moulding Articles, the side is State Industrial Development Corporation
Limited (SIDCUL), set up is made for Compressed Moulding Articles, originally the basic products
of AEPL. With Japanese collaboration i.e. Matsushita Electrical Works (MEW). The plant went into
production in 2004 and is engaged in the manufacturing of electrical accessories called “PENTA”.

Figure 4: Anchor Electrical Pvt. Ltd Haridwar Unit.

All the units of ANCHOR are environment friendly and the norms of pollution control are
strictly followed here. To maintain the natural environment in Factory Premises a very soothing
combination of Greenery and Plantation is developed. With regular care and personal touch, the
premises of ANCHOR has become one to the most attractive Unit of SIDCUL. Thane-headquarter
Anchor Electricals Pvt. Ltd (AEPL) which a subsidiary of Panasonic Corporation in Japan has started
its second manufacturing unit in Haridwar, Uttarakhand.

21
 The company has invested more than Rs.150 crores in setting up the unit, which will have a
production capacity of 25 million units per month and has expectations to double the installed
capacity by the financial year 2020. The plant is mainly manufacturing a complete series of wiring
devices and switchgear, among to meet the constantly increasing demand.

Mainly these brands and products manufactured in AEPL Haridwar .-

It is spread over 25,000sqm: the new unit setup is one of the company’s biggest factory in the
country. The company adopted many environment- friendly facility and green features like the
installation of LED lighting and use of treated sewage water. The opening of the new plant in
Haridwar is in accordance with the commitment to give the best electrical solutions for homes and
businesses. An investment of worth Rs.150 crores gives them the necessary movement for local
manufacturing and with it drives the government’s Make in India Vision. Additionally, the new plant
will give force to the company’s increasing business and will help them to register double digit growth
and boost it to stand at number one position in electrical solutions company in India by 2018.

22
2.10.- SWOT ANALYSIS
Swot analysis of Anchor Electrical Pvt. Ltd with USP, competition, STP (segmentation, targeting,
positioning) - marketing analysis.

23
 Chapter –3
REVIEW OF LITERATURE

24
 CHAPTER – 3
REVIEW OF LITERATURE

5S initially based on the Japanese acronyms of seiri (organization), seiton (neatness), seiso
(cleaning), seiketsu (standardization) and shitsuke (discipline), is used as a platform for developing
an integrated management system by the parallel use of total productive maintenance (TPM) (Bamber
et al., 2000). Osada (1991) refers to 5S as the five keys to a total quality environment. 5S is a system
to reduce waste and optimize productivity and quality through maintaining an orderly workplace and
using visual cues to achieve more consistent operational results.
The practice of 5S aims to embed the values of organization, neatness, cleaning,
standardization and discipline into the workplace basically in its existing configuration, and it is
typically the first lean method implemented by firms. Kobayashi et al. (2008) make a distinction
between 5S as a philosophy or way and 5S as a technique or tool by comparing the frameworks
provided by Osada (1991) and Hirano (1995) respectively. From their study, they conclude that 5S
tends to be recognized as a philosophy in Japan, but in the other hand it is likely to be considered as
a technique or tool in the United Kingdom and United State of America. Osada (1991) views 5S as a
strategy for organizational development, learning and change, whereas Hirano (1995) considers 5S
to be an industrial formula that differentiates a company from its competitors.
A common definition of 5S in the West is housekeeping (Becker, 2001; Chin and Pun, 2002;
Ahmed and Hassan, 2003; Eckhardt, 2001). In the West both 5S and TPM are sometimes disregarded
or at least underutilized (Douglas, 2002). A framework of applying 5S within a business (as appose
to a personal philosophy of way of life) was first formalized in the early 1980s by Takashi Osada (Ho
et al., 1995). The practice of 5S aims to embed the values of organization, neatness, cleaning,
standardization and discipline into the workplace (Osada, 1991). In Japan the 5S practice was initiated
in the manufacturing sector and then extended to other industries and services sector. The Toyota
Production System provides a well-known example of 5S principles in practice, the early versions
were based on 3-S this, became 4-S (Ohno, 1988). Boeing in the USA pursues 5S as a world-class
strategy (Ansari and Modarress, 1997). Even with these prestigious and complex examples it appears
that manyresearchers and practitioners have difficulty going beyond the simplest 5S concept.
This is suggested by Hyland and others where they believe that Australian manufacturing
firms have only a basic perception of the importance and the potentiality of 5S (Hyland et al., 2000).
These authors found of ten continuous improvement tools they investigated the usage and perceived
importance of 5S was lowly ranked. Therefore, we can say that there is no consensus about the scope

25
of 5S. Much of Western literature still acknowledges 5S as housekeeping (Ahmed and Hassan, 2003;
Becker, 2001; Chin and Pun, 2002; Eckhardt, 2001). However, 5S is more frequently framed in the
―leanǁ philosophy (James-Moore and Gibbons, 1997; Hines et al., 2004; Kumar et al., 2006), since
it encourages workers to improve their working conditions.
Kaizen literally means improvement - improvement in your personal life, your spiritual life
and your working life. When a company adopts the Kaizen model, it strives to improve its processes
in small but meaningful ways. And not just a onetime improvement, but a commitment to excellence
by constantly testing and improving the work flow, day in and day out. Kaizen was first introduced
in the Toyota manufacturing plant in Japan in the early 1950s, and it has since become one of the
country‟s main reasons for its success. In Japan, kaizen is a way of life in the workplace, from the
office of the CEO all the way down to shop apprentice. They take it very seriously, and for good
reason. Kaizen has led them from a defeated wartime nation to one of the strongest industrialized
countries in the world. But the best thing about kaizen – and the biggest reason that every company
should adopt it – is that it does not rely on expensive innovative solutions. Just the opposite is true.
The core principal of kaizen is to make small, immediate improvements in the processes and standards
of the workplace. But not just one improvement.
Looking for ways to make small improvements should be part of everyone‟s job, every day
of the week. And after a period of time, all of these small improvement will add up to better working
conditions, a (Imai, 1997) higher degree of safety, more efficiency and ultimately, greater profit.
Continuous improvement of processes and products as well as the responsibility of all workers for
quality are fundamental guidelines of TQM philosophy – the philosophy conducting to the increase
of productivity without simultaneous decrease of quality and based on the Deming cycle.
The cycle, characterizing the repeatability of actions, is aimed at the achievement of farther
improvements Those ideas had been formulated and published in United States of America, and then
used in practice and improved in Japan; this is the place of origin of one the most popular methods
of the quality improvement. Kaizen (kai – do, change, zen – well) is a kind of thinking and
management, it is a philosophy being used not only in management field but also in the everyday life
in Japan. It means gradual and continuous progress, increase of value, intensification and
improvement Kaizen needs attaching great value to the details and common sense to make work
cleverer. In Japanese management, kaizen means “continuous improvement” involving the entire
workforce from the top management to middle managers and workers.
The origin of Japan‟s kaizen movement was the quality control method imported from the
United States (US) in the post WW2 period. Japan assimilated and developed this as its own
management practice method which later even surpassed performance in the US. This adapted

26
method, which became known as kaizen, spread rapidly among Japanese companies including a large
number of small and medium-sized enterprises. It subsequently spread overseas as Japanese business
activities expanded abroad and Japanese companies began to build production networks with local
companies. Japan offers assistance for kaizen in many developing countries through private channels
such as intra-company technology transfer and support for local suppliers, as well as through public
channels such as official development assistance (ODA) and guidance provided by various public
organizations. By now, kaizen assistance is one of the standard menu items of Japanese industrial
support in developing countries.
While such assistance initially focused on East Asia where Japan had active business
partnerships, it has now been implemented widely in other regions including South Asia, Latin
America and Eastern Europe. However, as far as Sub-Saharan Africa is concerned, knowledge
sharing and implementation of kaizen has been rather limited except in a few notable cases. There
are a lot of unexploited benefits of selective and well calibrated application of kaizen from which
African countries can draw upon to improve their production and service units.
The practice of 5S aims to embed the values of organization, neatness, cleaning,
standardization and discipline into the workplace basically in its existing configuration, and it is
typically the first lean method implemented by firms. Kobayashi et al. (2008) make a distinction
between 5S as a philosophy or way and 5S as a technique or tool by comparing the frameworks
provided by Osada (1991) and Hirano (1995) respectively. From their study, they conclude that 5S
tends to be recognized as a philosophy in Japan, but in the other hand it is likely to be considered as
a technique or tool in the United Kingdom and United State of America. Osada (1991) views 5S as a
strategy for organizational development, learning and change, whereas Hirano (1995) considers 5S
to be an industrial formula that differentiates a company from its competitors.

27
 Chapter –4
RESEARCH
METHODOLOGY

28
 CHAPTER – 4
RESEARCH METHODOLOGY
4.1.- Research. -
Research in common parlance refers to a search for knowledge. Once can also define research
as a scientific and systematic search for pertinent information on a specific topic. In fact, research is
an art of scientific investigation. A careful investigation or inquiry specially through search for new
facts in any branch of knowledge. 1 Redman and Mory define research as a “systematized effort to
gain new knowledge.”2 Some people consider research as a movement, a movement from the known
to the unknown. It is actually a voyage of discovery.

This inquisitiveness is the mother of all knowledge and the method, which man employs for
obtaining the knowledge of whatever the unknown, can be termed as research. Research is an
academic activity and as such the term should be used in a technical sense. The systematic approach
concerning generalization and the formulation of a theory is also research.

Research is the systematic design, collection, analysis and reporting of data and findings
relevant to a specific situation or problem. The objective of this section is to describe the research
procedure and methods that have been adopted for the achievement of the project objectives. The
purpose of research is to discover answers to questions through the application of scientific
procedures. The main aim of research is to find out the truth which is hidden and which has not been
discovered as yet.

4.2.- 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. Available techniques are different from each other in terms of their specific characteristics,
factors and ways that consider for reaching their purpose.
This study aims to investigate the impact of 5S practices on performance of industrial
organizations. Accordingly, the main objective of the research is to measure and compare of the
organization’s performance before and after implementing 5S practice. So the objectives of this
research are:
• To determine factors and characteristics of industrial organizations’ performance.
• To identify effectiveness of 5S implementation on the organization performance.

29
4.3.- Scope of The Study. -
The scope of this work is limited to determine performance factors and dimensions of
industrial organizations and also characteristics of those dimensions, which will be proposed as
questions, and finally find out whether 5S is an effective method to improve whole performance of
an industrial organization. It realized that the scope is ambitious in that, but it examines a new outlook
at organization and total quality approach, however it is limited enough to be a realistic base for a
research. The output of this research will help us to locate 5S practices in the most suitable framework
for total quality management and performance improvement in industrial organizations.
Implementation of 5S technique leads to subsequent improvement in productivity of the
manufacturing company. The 5S improves environmental performance and thus relate primarily in
reduction of wastes in manufacturing. It promotes neatness in storage of raw material and finished
products. The 5S implementation leads to the improvement of the organization in many ways for
instance. The implementation of the 5S system of rules leads to the following effects regarding the
improvement in quality.

4.4.- Research Design

Research design specifies the methods and procedures for conducting a particular study. A research
design is the arrangement of conditions for collection and analysis of the data in a manner that aims
to combine relevance to their search purpose with economy in procedure. Research design is broadly
classified into three types as:

Ø Exploratory Research Design

Ø Descriptive Research Design
Ø Causal Research Design

Descriptive Research Design

Descriptive research studies are those studies which are concerned with described the characteristics
of particular individual. In descriptive as well as in diagnostic studies, the researcher must be able to
define clearly, what he wants to measure and must find adequate methods for measuring it along with
a clear cut definition of population he want to study. Since the aim is to obtain complete and accurate
information in the said studies, the procedure to be used must be carefully planned. The research
design must make enough provision for protection against bias and must maximize reliability, with
due concern for the economical completion of the research study. Descriptive Research method
attempts to determine the extent of differences in the needs, perceptions, attitude and characteristics
of subgroups.

30
Sampling Design-
Sample Design is a definite plan for obtaining a sample from a given population. It refers to
the technique to the procedure adopted in selecting items for the sampling designs are as below:
SAMPLE SIZE
The sample size has been 15 Employees. Conclusions had been arrived at using the response of the
questionnaire.
SAMPLING METHOD
In this research project, I am using Random sampling method.

Data Collection-
Method of Data collection:

Ø The study proposed to collect Primary Data through questionnaire using survey method. So
as to give a precise, accurate, realistic and relevant data.
Ø The Secondary Data as it has always been important for the completion of any report
provides a reliable, suitable, equate and specific knowledge. The data will collect from
websites published by the company.

4.5.- Limitations of The Study. -

Although all effort was taken to make the result of the survey as accurate as possible, there
were certain constraints during the study.
1. Some Employees were not willing to give appointment due to their busy schedule.
2. Due to very large size of the organization, only selected samples of Employees were
contacted.
3. Due to fast pace of life, some Employees were unable to justify to the questionnaire.
4. Personal biases might have come while answering the questionnaire.

31
 Chapter –5
BASIC WAREHOUSE PROCESS

32
 CHAPTER-5
BASIC WAREHOUSE PROCESS

Warehouses are essential components of any supply chain. In a warehouse items are handled
in order to level out the variability and imbalances of the material flow caused by factors such as
seasonality in demand, production scheduling, transportation, and consolidation of items. Inventories
in warehouses are capital intensive assets that require storage areas, handling equipment, and
information systems. In addition, warehouse operations are repetitive, labour intensive activities. The
capital and operating costs of warehouses represent about 20- 25% of the logistics costs. Therefore,
improvements in the planning and control of warehousing systems can contribute to the success of
any supply chain. A warehouse is typically divided into functional areas that are designed to facilitate
the material flow.

Figure 5: Basic Warehouse Functions

The main warehouse areas are outlined in the following: receiving area, reserve and forward
storage area, and shipping area. Operations in the receiving area include the processing (i.e.,
unloading) of carriers, item identification, and quantity and quality inspection. Received items are
then moved to a storage area or directly to the shipping area. The storage area is often divided into a
33
reserve and a forward storage area. The reserve storage area covers typically distant and heavily
accessible locations, e.g., the uppermost part of a rack, and is used to ensure the replenishment for
the forward storage area. Customer demand is primarily satisfied from the forward storage area,
where the items are typically stored in convenient size and the storage locations are easily accessible.
In the shipping area, items are sorted, consolidated and loaded on the carriers.
While this is a general material flow in a warehouse, the actual material flow depends mainly
on the role of the particular warehouse in the supply chain. Specialized warehouses are established to
fulfill the different requirements, e.g., production warehouse, distribution warehouse, and cross-dock.
The main function of a production warehouse is buffering and storage, it supplies raw or semi-
finished material for production and may prepare finished items for shipment; the typical objective is
the minimization of operation and investment costs given the storage capacity and response time.
Distribution warehouse (or distribution centre) handles, in addition, the distribution of items. In this
case, the general objective is to achieve high throughput at minimum operational and investment
costs. In a cross-dock (or transshipment center), storage is scarcely presented, incoming items are
immediately sorted and new customized shipments are created.

Figure 6: Movement of goods in/from warehouse

In a typical warehouse 65% of the operating expenses are consumed by order picking, which
includes the item picking to replenish the forward area and to ful- fill customer order. Therefore, this
thesis focuses on those decision problems and warehouse systems that aim to reduce or even eliminate
the order picking costs.
34
 Chapter –6
JAPANESE MANAGEMENT
TECHNIQUE

35
 CHAPTER-6
OVERVIEW OF JAPANESE MANAGEMENT
TECHNIQUE
Japanese companies are known for their customer orientation and their high-quality products.
Efficient business processes therefore play a major role in Japanese management, and many Japanese
management concepts have been adopted and successfully integrated into Western management
techniques and businesses.
The most famous concept in a Japanese firm is kaizen, or continuous improvement, which is
often considered a philosophy and aims at improving and perfecting all management processes within
a firm. Another concept, which has become successful in Western firms, is the 5S System, which
helps organize business and production processes within the firm. The high quality with which
Japanese products are produced and with which services are performed are based on business
practices that are recognized outside of Japan. In this arena, the Japanese have developed and
implemented very effective tools for sustaining their competitive quality advantage.

6.1.- KAIZEN (CONTINUOUS IMPROVEMENT)

Kaizen is the most well-known concept of Japanese management. Kaizen is the Japanese term
for “continuous improvement.” Kaizen is neither a single management activity nor a management
technique, but it can be best described as a positive attitude or a philosophy of creating the highest
value and quality for the customer.

The main aspect of kaizen is that it is not about radical and ad-hoc change or turnaround but
that it is performed by making small changes on an everyday basis to improve productivity, safety

36
for all employees, and business process effectiveness while reducing waste. The overall goal is to
enhance the quality of products and to maximize cost efficiency and the safety of manufacturing
processes. The concept is based on two principles.
First, kaizen is not restricted to a single management discipline but is considered a part of
every single business process. Second, kaizen is a continuous process that is supported by all
members of a Japanese organization. Kaizen can therefore be applied to every management process
or operation and in every organization. Every process can be improved and should be continuously
improved. The philosophy of kaizen was popularized in the West by Masaaki Imai in his book about
kaizen, which created a worldwide interest in the concept. The term itself is not clearly defined and
is often confused with concepts like the kanban system, total quality management, and just-in-time
management.

Kaizen literally means improvement - improvement in your personal life, your spiritual life
and your working life. When a company adopts the Kaizen model, it strives to improve its processes
in small but meaningful ways. And not just a onetime improvement, but a commitment to excellence
by constantly testing and improving the work flow, day in and day out.
37
 Kaizen was first introduced in the Toyota manufacturing plant in Japan in the early 1950s,
and it has since become one of the country’s main reasons for its success. In Japan, kaizen is a way
of life in the workplace, from the office of the CEO all the way down to shop apprentice. They take
it very seriously, and for good reason. Kaizen has led them from a defeated wartime nation to one of
the strongest industrialized countries in the world. But the best thing about kaizen – and the biggest
reason that every company should adopt it – is that it does not rely on expensive innovative solutions.
Just the opposite is true.
The core principal of kaizen is to make small, immediate improvements in the processes and
standards of the workplace. But not just one improvement. Looking for ways to make small
improvements should be part of everyone’s job, every day of the week. And after a period of time,
all of these small improvement will add up to better working conditions, a (Imai, 1997) higher degree
of safety, more efficiency and ultimately, greater profit.
Continuous improvement of processes and products as well as the responsibility of all workers for
quality are fundamental guidelines of TQM philosophy – the philosophy conducting to the increase
of productivity without simultaneous decrease of quality and based on the Deming cycle.

The cycle, characterizing the repeatability of actions, is aimed at the achievement of farther
improvements Those ideas had been formulated and published in United States of America, and then
used in practice and improved in Japan; this is the place of origin of one the most popular methods

38
of the quality improvement. Kaizen (Kai – do, change, Zen – well) is a kind of thinking and
management, it is a philosophy being used not only in management field but also in the everyday life
in Japan. It means gradual and continuous progress, increase of value, intensification and
improvement Kaizen needs attaching great value to the details and common sense to make work
cleverer. In Japanese management, kaizen means “continuous improvement” involving the entire
workforce from the top management to middle managers and workers.
The origin of Japan’s kaizen movement was the quality control method imported from the
United States (US) in the post WW2 period. Japan assimilated and developed this as its own
management practice method which later even surpassed performance in the US. This adapted
method, which became known as kaizen, spread rapidly among Japanese companies including a large
number of small and medium-sized enterprises. It subsequently spread overseas as Japanese business
activities expanded abroad and Japanese companies began to build production networks with local
companies. Japan offers assistance for kaizen in many developing countries through private channels
such as intra-company technology transfers and support for local suppliers, as well as through public
channels such as official development assistance (ODA) and guidance provided by various public
organizations. By now, kaizen assistance is one of the standard menu items of Japanese industrial
support in developing countries.

While such assistance initially focused on East Asia where Japan had active business
partnerships, it has now been implemented widely in other regions including South Asia, Latin
America and Eastern Europe. However, as far as Sub-Saharan Africa is concerned, knowledge

39
sharing and implementation of kaizen has been rather limited except in a few notable cases. There
are a lot of unexploited benefits of selective and well calibrated application of kaizen from which
African countries can draw upon to improve their production and service units.
Kaizen (Kai+Zen) is a Japanese term that means continuous improvement, taken from words 'Kai',
which means continuous and 'Zen' which means improvement. Some translate 'Kai' to mean change
and 'Zen' to mean good, or for the better. Kaizen is one of the most commonly used words in Japan.
It is in the newspapers, on the radio and TV. Japanese society is bombarded daily with statements
regarding the Kaizen of almost anything. In business, the concept of Kaizen is so deeply ingrained in
the minds of both managers and workers that they often do not even realize that they are thinking
Kaizen. The key difference between how change is understood in Japan and how it is viewed in the
West lies in the Kaizen concept.

This concept is so natural and obvious to many Japanese managers that they often do not even
realize that they possess it! This explains why companies are constantly changing in Japan. The
Kaizen concept is very weak in Western companies, where it is often rejected without knowing what
it really entails. This explains why American and European factories may go years without changing.
Within the Kaizen way of thinking, not a day should go by without some kind of improvement being
made somewhere in the company.
After WWII most Japanese companies had to start from the ground up. Every day brought
new challenges to managers and workers alike, and every day meant progress. Simply staying in
business required unending progress, and Kaizen has become a way of life. Today, it is increasingly
recognised that 5S management techniques enhance productivity and competitiveness. In order to
become a World Class Gemba, an organisation has to go through a continuous and systematic process
to: As each 5S management techniques begins with an S, this approach has been named 5S.

40
The Japanese concepts of change and improvement differ from Western ideas on these topics. In a
Western firm, change typically refers to “radical” change. If a business process or a strategy is
changed, we prefer to see a real difference compared to the original situation.
A company turnaround or an entirely new strategy are considered significant changes. Small
changes, such as moving a desk from one part of the room to another to improve communication
between employees, or other similar activities, are not considered very influential on overall corporate
success. The Japanese have a different attitude toward change. Their ideas of change and
improvement are ubiquitous. Every process and activity can be improved at any time. Even small
changes, such as moving a desk, are considered important because the changes will improve the
situation in the long run. Since Japan is a group-oriented society, any change, adaptation, or
improvement must be discussed with a large number of people. Important decisions can never be
made by just one person. However, group discussions often do not lead to radical ideas, as too many
people are involved and too many viewpoints must be considered—the more people involved, the
more mass oriented the decision becomes. Radical changes such as drastic downsizing or adopting a
strategy are very difficult to implement in a Japanese firm. Radical decisions are therefore very rare,
and improvements in the Japanese workplace are often very subtle and would not be considered very
significant from a Western perspective.

The overall goals of kaizen are improved business and manufacturing practices. The most prominent
teian kaizen methods include total quality control and just-in-time management. Kaizen Can Be
Applied Anytime and Everywhere. The first step to a kaizen-oriented enterprise is a corporate culture
that motivates employees and rewards them for improving work and business processes. Kaizen is a
process-oriented approach rather than a result oriented one.

41
 Kaizen is not just the task of a special group within a company; employees of all levels, from
the CEO down, participate in kaizen activities. When the kaizen philosophy is applied, every single
organizational member is responsible for the improvement processes.
If the benefits of Kaizen come gradually, and its effects are felt only on a long-term basis, it
is obvious that Kaizen can thrive only under top management that has a genuine concern for the long-
term health of the company. One of the major differences between Japanese and Western
management styles is their time frames. Japanese management has a long-term perspective and
Western managers tend to look for shorter-term results. Unless top management is determined to
introduce Kaizen as a top priority, any effort to introduce Kaizen to the company will be short lived.
Kaizen starts with the identification of problems.

In the Western hire-and fire environment, identification of a problem often means a negative
performance review and may even carry the risk of dismissal. Superiors are busy finding fault with
subordinates, and subordinates are busy covering up problems. Changing the corporate culture to
accommodate and foster Kaizen - to encourage everybody to admit problems and to work out plans
for their solution - will require sweeping changes in personnel practices and the way people work
with each other. Kaisen’s introduction and direction must be top-down, but the suggestions for Kaizen
should be bottom up, since the best suggestions for improvement usually come from those closest to
the problem.

42
 Western Management will be required to introduce process-oriented criteria at every level,
which will necessitate company-wide retraining programs as well as restructuring of the planning and
control systems. The benefits of Kaizen are obvious to those who have introduced it. Kaizen leads to
improved quality and greater productivity. Where Kaizen is introduced for the first time, management
may easily see productivity increase by 30 percent, 50 percent and even 100 percent and more, all
without any major capital investments. Kaizen helps lower the breakeven point. It helps management
to become more attentive to customer needs and build a system that takes customer requirements into
account. The Kaizen strategy strives to give undivided attention to both process and result. It is the
effort that counts when we are talking about process-improvement, and management should develop
a system that rewards the efforts of both workers and managers, and not just the recognition of results.
Kaizen does not replace or preclude innovation.

Figure 7: Implementation of kaizen at Anchor Electrical Pvt. Ltd Haridwar Unit

The Kaizen concept is valid not only in Japan, but in other countries. All people have an
instinctive desire to improve themselves. Although it is true that cultural factors affect an individual's
behaviour, it is also true that the individual's behaviour can be measured and affected through a series
of factors or processes. Thus, it is always possible regardless of the culture, to break behaviour down
into processes and to establish control points and check points. This is why such management tools
and decision-making and problem solving have a universal validity.

43
After the elimination of waste, the management focus for Kaizen should include:
• Achieving maximum efficiency and quality
• Eliminating processes that cause human fatigue
• Maximizing utilization of facilities, tools etc.
• An open management style that allows questioning of the existing systems and processes.
• Providing opportunities for employees to learn and encouraging them to do so
• Encouraging teamwork and cooperation.
• Striving for continuous improvement at all levels.
• Improving systems and processes.

Kaizen is a culture initiative. Your organization must have leadership that encourages and incents
people to continuously improve their ability to meet expectations of high quality, low cost, and on-
time delivery.

6.1.1.- STEPS IN KAIZEN IMPLEMENTATION

• Identify specific point for improvement in one’s own work area.
• Analyse the root cause of the problem using QC tools and develop.
• Implement the kaizen and quantify.
• Standardize the improvement through proper documentation.
• Deploy horizontally if applicable.
• Fill in the improvements in the standard format and submit for evaluation.
• Audit after 3 months.

6.1.2.- KAIZEN BENEFITS

• Kaizen Reduces Waste- like inventory waste, time waste, workers motion
• Kaizen Improves space utilization, product quality
• Results in higher employee morale and job satisfaction, and lower turn-over.
• Toyota is well-known as one of the leaders in using Kaizen. In 1999 at one U.S. plant, 7,000
Toyota employees submitted over 75,000 suggestions, of which 99% were implemented.
• Eliminating processes that cause human fatigue.
• Improvement in individual people capabilities.
• Improvements for new products (ideas)
• Improving systems and processes
• Achieving maximum efficiency and quality
• An open management style that allows questioning of the existing systems and processes

44
• Machine capability improvement (minimum down-time)
• Striving for continuous improvement at all levels
• Quality improvement.
• Improvement in customer service and customer relations.
• Improvement in production aids (fixtures, tools, etc.).

6.1.3.- NEED AND SCOPE

Kaizen is the means to achieve a corporate strategy, not the strategy. Every corporation needs
to make a radical change, or some change at least, to survive in this very competitive, rapidly
changing world. The most important challenge facing top management today, especially in a
manufacturing company, is to establish a target about where they want to take the company in the
next two, five and ten years. In manufacturing, there are only two systems. One is the batch or queue
production system, and the other is what we call just-in-time (JIT) or the Toyota production system.
One of the most urgent tasks for top management is to choose the strategy, and say that we have
decided to change to the just-in-time production system to be able to survive in the new millennium.
Kaizen is misunderstood by most people. They say Kaizen is small step improvement and this is the
age of big jumps, but in my way of thinking, the biggest jump is making the transformation from the
batch mode to JIT.

45
6.2.- THE 5S SYSTEM

Another famous management practice related to gemba kaizen is the 5S System. The “5S”
refers to five key words all starting with an “S” in Japanese. The words describe how a workplace or
production process can be effectively organized. The 5S System consists of five stages of a production
process, which are seiri (sort), seiton (set in order), seiso (clean), seiketsu (systematize), and shitsuke
(standardize).

Figure 8: 5’S Model

The words combined do not really make up a system but a set of guidelines regarding how to improve
a business or production process, or any kind of standardized process, and maintain lasting, high-
quality performance. In the first stage, seiri, all tools and materials used in the work process are taken
care of. Seiri refers to tidiness and structured organization.
During the seiri process, all materials and tools are sorted, and only the necessary ones are kept for
continued use. Everything else is stored or discarded. This process leads to fewer hazards and less
clutter that might interfere with productive work. Stage 2, seiton, refers to straightening and
orderliness. In this phase, all the materials and tools chosen for the production process are organized.
The focus is on the need for an orderly workplace.

46
Even though the translation appears to indicate something similar to “sweeping,” the intent is to
arrange the tools, equipment, and parts in a manner that promotes workflow. It has to be systematic.
For example, tools and equipment should be kept where they will be used (i.e., in order to straighten
the flow path), and the process should be arranged in an order that maximizes efficiency.
There should be a place for everything, and everything should be in its place—this is also
known as “demarcation and labeling of place.” Stage 3, seiso, stands for sweeping and cleanliness. It
means to clean all items used at work (e.g., all materials used during a manufacturing process). The
workplace, for example, has to be clean and tidy all the time.

At the end of each shift, a work area is cleaned up and everything is restored to its place. This
makes it easy to know what goes where and to have confidence that everything is where it should be.
The key point is that maintaining cleanliness should be part of daily work—not an occasional activity
that is initiated only when things get too messy. Phase 4, seiketsu, translates as “standards.” Seiketsu
refers to making all the cleaning, control, and improvement processes a regular activity in the
47
workplace, allowing for control and consistency. Basic housekeeping standards apply everywhere in
the facility. Everyone knows exactly what his or her responsibilities are. Housekeeping duties are
part of regular work routines. Phase 5, shitsuke, means “sustaining discipline.” It also refers to
standardizing and sustaining the process to support long-term kaizen goals and to maintaining and
reviewing standards. Once the previous four phases have been established, they become the new way
of operating the organization.
Maintaining a focus on this new way of operating is essential, and a gradual decline back to
the old ways of operating should not be allowed. But if an issue arises about improvements in
working, a new way of doing things, or a new requirement concerning output, it usually leads to a
review of the first four commandments. In a Japanese context, a sixth phase, “safety,” is sometimes
added. Purists, however, argue that adding this phase is unnecessary since correctly following 5S will
result in a safe work environment.

Often, however, a poorly conceived and designed 5S process can result in increases in
workplace hazards when employees attempt to maintain cleanliness at the expense of ensuring that
safety standards are adequately followed.
5S is a management tool from Japan, that focuses on establishing a quality environment in the
organisation, ensuring adherence to standards and in the process, fosters the spirit of continual
improvement. It focuses on five management techniques that are the foundation for any organisation’s
competitive initiative. Identify, reduce and eliminate waste Enhance Teamwork Enhance operation
effectiveness in a better working environment Form the basic advanced model for Productivity and
Quality Improvement.

48
The 5S concept is easy for everyone to understand because:
• It does not require the understanding of difficult terminologies.
• It is simple, driven by logic and natural to human behavior.
• It is within the reach of all type and size of industry or organization.

In order for the 5S system to be successful, the most important factor is the commitment, participation
and involvement of EVERYONE and strong visible support from top management. Generally, 5S
activities should be carried out systematically as follows:

o Lead-time reduced
o Changeover time reduced by streamlining operations.
o Breakdowns and minor stops eliminated on production lines.
o Defects reduced by mistake proofing.
o Clear methods and standards are established.
o In-process inventory is reduced.
o Space usage is improved.
o Customer complaints are reduced.

49
In order for the 5S system to be successful, the most important factor is the commitment, participation
and involvement of EVERYONE and strong visible support from top management. Generally, 5S
activities should be carried out systematically as follows:
§ Visit 5S model companies for continual improvement.
§ Train everyone adequately on 5S Practices.
§ Promote 5S Campaign.
§ Plan systematic approach following the
§ Plan-Do-Check-Act (P-D-C-A) Cycle.
§ Practice Performance Measurement and Reward System.

The 5S approach outlined in this guidebook is a simple and systematic methodology which can be
introduced and implemented in any size and type of organisation. To start the 5S: Step-by-Step
Implementation, each phase must be thoroughly analysed and addressed using the P-D-C-A Cycle
and 5W2H approach as follows:

Figure 9: Plan-Do-Check-Act (P-D-C-A) Cycle.

50
51
6.3.- TOTAL QUALITY MANAGEMENT
Japanese consumers are obsessed with quality and do not accept any product defects. In the
case of a product defect, the product will be returned, but the Japanese customer is lost forever. To
avoid any problems with quality, decades ago, Japanese corporations started improving and refining
their production management processes and also implemented a number of instruments for
controlling and sustaining quality at the highest level.

Figure 10: Total Quality Management

Quality, however, plays an important role in all the other business processes as well. Here again, as
with the kaizen approach, the quality idea is relevant at every level and stage. Total quality control is
implemented in all phases of the manufacturing and work processes, and it is not simply result
oriented. While working employees are constantly expected to check and improve the quality of work,
mistakes must be reported or fixed as soon as they are found. Japanese firms apply a number of
interesting tools to leverage their employees’ creativity and ideas and to make sure that their products
and services are produced at the highest level.

52
 Chapter-6
DATA ANALYSIS AND
INTERPRETATION

53
 CHAPTER-6
DATA ANALYSIS AND INTERPRETATION
1. Have plant and/or office workplace organization (5S) guidelines been developed?
o Yes
o No
o I don’t Know

2. Is effective employee training and awareness provided?

o Yes
o No
o I don’t Know

54
3. Is sorting done in all work areas?
o Yes
o No
o I don’t Know

4. Is straighten done for aisles and passageways?

o Yes
o No
o I don’t Know

55
5. Is sufficient cleaning done in the building?
o Yes
o No
o I don’t Know

6. Is awareness and ownership evident?

o Yes
o No
o I don’t Know

56
7. Is information and guidelines on various faults are informed to all the employees and
workforce.?
o Yes
o No
o I don’t Know

8. Is implementation of these techniques helping the workforce.?

o Yes
o No
o I don’t Know

57
9. Is Implementation of 5's improved the overall efficiency.?
o Yes
o No
o I don’t Know

Cronbach’s alpha is a measure of internal consistency, that is, how closely related a set of items are
as a group. It is considered to be a measure of scale reliability. The value of alpha (α) may lie between
negative infinity and 1.

58
Ø A correlation matrix shows, in brief, the interconnections between series of variables. It
computes correlation coefficients between variables represented in the same sequence of rows
and columns.

Ø Variance measures how far a data set is spread out. The technical definition is “The average of
the squared differences from the mean,” but all it really does is to give you a very general
idea of the spread of our data. A value of zero means that there is no variability; All the
numbers in the data set are the same.

• The data set 12, 12, 12, 12, 12 has a var. of zero (the numbers are identical).
• The data set 12, 12, 12, 12, 13 has a var. of 0.167; a small change in the numbers equals a
very small var.
• The data set 12, 12, 12, 12, 13,013 has a var. of 28171000; a large change in the numbers
equals a very large number.

59
 Chapter-8
FINDINGS, CONCLUSION AND
SUGGESTIONS

60
 FINDINGS FROM THE RESEARCH

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. 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.

1. Productivity increased due to well defined space and systematic arrangement at the
workplace.
2. Time saving in searching for tools, raw material required for production due to standard
storage system with proper identification. As a result of saving in time, productivity increased.
3. Tremendous cost required for the inventory of unwanted material is drastically reduced.
4. Availability of more space for raw material storage, bin storage and finished goods storage.
Also clear and well defined gangway for movement is achieved.
5. Morale of the workers increased due to proper workplace management.
6. Equal participation of officers, staff and workers motivates them.

Implementation of 5S technique leads to subsequent improvement in productivity of the

manufacturing company. The 5S improves environmental performance and thus relate primarily
in reduction of wastes in manufacturing. It promotes neatness in storage of raw material and
finished products. The 5S implementation leads to the improvement of the organization in many
ways for instance. The implementation of the 5S system of rules leads to the following effects
regarding the improvement in quality.

61
 CONCLUSION

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. The first objective, which was determining factors and characteristics of industrial
organizations’ performance has been achieved by reviewing 5S activities, TQM systems.
The second and main objective of this research, which was identifying effectiveness of 5S
implementation on the organization performance, has been achieved by using a comparative
measurement between performance of organization before and after 5S implementation assisted by
Excel software.
According to the achieved results from the study, performed on target industrial
organizations, it could be concluded that 5S has positive effect on overall performance and could
improve the quality, efficiency and productivity of industrial organizations.
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.
Due to implementation of 5S, there was improvement in space utilization, safety of the
employees, less scope of error, increased productivity, and improved inventory system, also
increasing of machines’ efficiency, maintenance the cleanness of devices, maintenance and
improvement of the machines’ efficiency, maintenance the clean workplace, easy to check, quick
informing about damages (potential sources of damages),improvement of the work environment,
elimination of the accidents’ reasons in the company

62
 SUGGESTIONS AND RECOMANDATIONS

It’s not only mean to reach at conclusions we cannot substitute it for sound judgment.
Furthermore, good judgment depends upon the intelligence and ability of the analyst. I have obtained
some weak of the company which are as follows: -
1. The company should take steps to remove the work load on workers by bifurcating the work
into parts.
2. The company should use modern technology like barcode reader.

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 BIBLIOGRAPHY

[1]. Alston, J. P., & Takei, I. (2005). Japanese business culture and practices: A guide to twenty-
first century Japanese business. iUniverse.

[2]. Brannen, C. (2003). Going to Japan on business; Protocol, strategies, and language for the
corporate traveller. Berkeley, CA: Stone Bridge Press.

[3]. Clarry, J. (2010). Innovation and the patenting of knowledge in Japanese corporations. In P.
Haghirian (Ed.), Innovation and change in Japanese management (pp. 177–198). London:
Palgrave Macmillan.

[4]. Guvenir, H. A., & Erel, E. (1998). Multicriteria inventory classification using a genetic
algorithm. European journal of operational research, 105(1), 29-37.

[5]. Hayakama, N., Okachi, M., & Kalbermatten, P. (2009). Production management. In P.
Haghirian (Ed.), Japanese management: Fresh perspectives on the Japanese firm in the 21st
century (pp. 147–179). Bloomington, IN: iUniverse.

[6]. Hentschel, B., & Haghirian, P. (2010). Nonaka revisited: Can Japanese companies sustain
their knowledge management processes in the 21st century? In P. Haghirian (Ed.), Innovation
and change in Japanese management (pp. 199–220). London: Palgrave Macmillan.

[7]. Kohlbacher, F., & Haghirian, P. (2007, January). Japan und das Wissen der Babyboomer
[Japan and the babyboomers’ knowledge]. Wissensmanagement, pp. 22–24

[8]. Polanyi, M. (1969). The tacit dimension. New York: Doubleday. Roland Berger. (2005).
Making money in Japan: A profitability survey among German affiliates in Japan. Tokyo:
Roland Berger Strategy Consultants & Deutsche Industrieund Handelskammer in Japan.

[9]. Richards, G. (2017). Warehouse management: a complete guide to improving efficiency and
minimizing costs in the modern warehouse. Kogan Page Publishers. Sanga, A. & Nishida, J.
(2009). Marketing. In P. Haghirian (Ed.), J-Management; Fresh perspectives on the Japanese
firm in the 21st century (pp. 180–203). Bloomington: iUniverse Star.

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 APPENDIX -1
Some of the photographs showing live implementation of 5’s and has positive effect on overall
performance. -

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 APPENDIX -2
Questionnaires. –

1. Have plant and/or office workplace organization (5S) guidelines been developed?
o Yes
o No
o I don’t Know
2. Is effective employee training and awareness provided?
o Yes
o No
o I don’t Know
3. Is sorting done in all work areas?
o Yes
o No
o I don’t Know
4. Is straighten done for aisles and passageways?
o Yes
o No
o I don’t Know
5. Is sufficient cleaning done in the building?
o Yes
o No
o I don’t Know
6. Is awareness and ownership evident?
o Yes
o No
o I don’t Know
7. Is information and guidelines on various faults are informed to all the employees and
workforce.?
o Yes
o No
o I don’t Know

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8. Is implementation of these techniques helping the workforce.?
o Yes
o No
o I don’t Know
9. Is Implementation of 5's improved the overall efficiency.?
o Yes
o No
o I don’t Know
10. How the use of Kaizen and 5's changed the way of doing things in your work area.?

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