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Procedia Manufacturing 00 (2018) 907–912
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Manufacturing 00 (2018) 907–912
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ScienceDirect 
Procedia Manufacturing 22 (2018) 900–905
Procedia Manufacturing 00 (2017) 000–000
11th International Conference Interdisciplinarity in Engineering, INTER-ENG 2017, 5-6 October
www.elsevier.com/locate/procedia
2017, Tirgu-Mures, Romania
11th International Conference Interdisciplinarity in Engineering, INTER-ENG 2017, 5-6 October
2017, Tirgu-Mures, Romania
Case study concerning 5S method impact in an automotive company
Case study concerning
Manufacturing
Cristina Engineering
5S
Society
Veres (Harea) a, method impact
International
*, Liviu
in an
MarianaConference
automotive
b MESIC 2017,company
2017,
, Sorina Moica 28-30
, Karam Al-Akel a June
2017, Vigo (Pontevedra), Spain
P P0F P P P P P

a,
Cristina a
P

Veres
Technical
P

b
(Harea)
University *, Liviu
of Cluj-Napoca,
P P0F Mariana, Street,
Memorandumului Sorina Moicab, 400114,
28, Cluj-Napoca,
P P Karam Al-Akela
Romania
P P P

“Petru Maior” University, Nicolae Iorga Street, 1, Tirgu Mures, 540088, Romania
Costing models for capacity optimization in Industry 4.0: Trade-off
P P

a
P Technical University of Cluj-Napoca, Memorandumului Street, 28, Cluj-Napoca, 400114, Romania
P

b
“Petru Maior” University, Nicolae Iorga Street, 1, Tirgu Mures, 540088, Romania
between used capacity and operational efficiency
P P

Abstract

Abstract A. Santana , P. Afonso , A. Zanin , R. Wernke

a a,* b b
In a constantly changing economic environment strong developed countries created significant management models to follow.
5S, as part of Toyota Production Systema (the most used
University management
of Minho, model in automotive
4800-058 Guimarães, Portugal industry), is a method which develops
In a constantly
discipline changing economic
and cleanliness environment
at workplace, strongefficiency
maximizing
b
Unochapecó, developedand
89809-000 countries
SC,created
productivity.
Chapecó, significant
Brazil This paper management
aims to studymodels to follow.
the relationship
5S,
between 5S evolution and productivity in a local company from Mures County, Romania, which operates in automotivedevelops
as part of Toyota Production System (the most used management model in automotive industry), is a method which industry
discipline
for over 10and cleanliness
years, and it isatpart
workplace, maximizing
of an Austrian group. efficiency and of
The objective productivity. Thistopaper
this paper was aims to that
demonstrate study
5S the relationship
method is very
between
important5S evolution
and and productivity
have a positive correlationintoa local company
overall from of
performance Mures County,results.
production Romania, which operates in automotive industry
Abstract
for over 10 years, and it is part of an Austrian group. The objective of this paper was to demonstrate that 5S method is very
important
© 2018 The and have a positive
Authors. Publishedcorrelation to overall
by Elsevier B.V. performance of production results.
Under the under
Peer-review concept of "Industry
responsibility of the4.0", production
scientific committeeprocesses
of the 11thwill be pushed
International to be Interdisciplinarity
Conference increasingly interconnected,
in
© 2018
© 2018 The
The Authors.
Authors. Published
Published by
by Elsevier
Elsevier B.V.
B.V. necessarily, much more efficient. In this context, capacity optimization
information
Engineering. based on a real time basis and,
Peer-review under responsibility of the scientific committee of the 11th International Conference Interdisciplinarity in Engineering.
Peer-review
goes beyondunder responsibility
the traditional aimofofthecapacity
scientificmaximization,
committee of the 11th International
contributing Conference
also for Interdisciplinarity
organization’s in and value.
profitability
Engineering.
Keywords: 5S Method; Lean Manufacturing; Performance; Productivity.
Indeed, lean management and continuous improvement approaches suggest capacity optimization instead of
maximization. The study of capacity optimization and costing models is an important research topic that deserves
Keywords: 5S Method; Lean Manufacturing; Performance; Productivity.
contributions from both the practical and theoretical perspectives. This paper presents and discusses a mathematical
1. Introduction
model for capacityto Lean Manufacturing
management based on different costing models (ABC and TDABC). A generic model has been
developed and
1. Introduction it was
to used to analyze
Lean Manufacturing idle capacity and to design strategies towards the maximization of organization’s
An The
value. important challenge
trade-off capacity of maximization
nowadays managers is to keep
vs operational on trackiswith
efficiency high competition,
highlighted constantly
and it is shown that changing
capacity
economic
optimizationenvironment
might hide and scarce
operational resources. In
inefficiency. these conditions, a company should have a desired level of quality
and An
be important
timeAuthors.challenge
efficient, of nowadays
as its main objective managers is to keep on track with high competition,
costumer aconstantly
qualitativechanging
© 2017
economicThe environmentPublished
and by Elsevier
scarce B.V.is industrial
resources. In these
excellence,
conditions,
thus deliver
a company
to the
should have a desired
product,
level of quality
in the wanted quantity, on time and keep the production costs as low as possible.
Peer-review under responsibility of the scientific committee of the Manufacturing Engineering Society International Conference
and be time efficient, as its main objective is industrial excellence, thus deliver to the costumer a qualitative product,
2017.
in the wanted quantity, on time and keep the production costs as low as possible.
Keywords: Cost Models; ABC; TDABC; Capacity Management; Idle Capacity; Operational Efficiency

* Corresponding author. Tel.: +40-741-353-853.

1.E-mail
Introduction
address: harea.cristina@yahoo.com
* Corresponding author. Tel.: +40-741-353-853.
The cost
E-mail
2351-9789 of idle
address:
© 2018 capacity is a fundamental
harea.cristina@yahoo.com
The Authors. Published by Elsevier information
B.V. for companies and their management of extreme importance
in modern under
Peer-review production systems.
responsibility of theIn general,
scientific it is defined
committee as unused
of the 11th capacity
International or production
Conference potential
Interdisciplinarity and can be measured
in Engineering.
in several©ways:
2351-9789 2018 Thetons of production,
Authors. available
Published by Elsevier B.V.hours of manufacturing, etc. The management of the idle capacity
Peer-review underTel.:
* Paulo Afonso. responsibility
+351 253of the761;
510 scientific committee
fax: +351 253 604of741
the 11th International Conference Interdisciplinarity in Engineering.
E-mail address: psafonso@dps.uminho.pt

2351-9789 © 2017 The Authors. Published by Elsevier B.V.

Peer-review under responsibility of the scientific committee of the Manufacturing Engineering Society International Conference 2017.
2351-9789 © 2018 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of the scientific committee of the 11th International Conference Interdisciplinarity in Engineering.
10.1016/j.promfg.2018.03.127
 Cristina Veres (Harea) et al. / Procedia Manufacturing 22 (2018) 900–905 901
908 Cristina Veres et al. / Procedia Manufacturing 00 (2018) 907–912

Lean Manufacturing is an enterprise streamline method, derived from Toyota Production System, which aims to
eliminate losses and waste in all its forms. In Lean Vision, all must be evaluated based on added value and any
expenditure of resources that do not add value for the customer is a waste, so should consist a target for elimination.
Lean defines the major types of waste as: overproduction, over processing, defects, inventory, transportation,
motion, underutilization, and delay [1].
All types of waste generate hidden costs, which Lean aims to eliminate using a set of instrument as: Kaizen
(Continuous Improvement), Just in Time, 5S Method, Kanban, Single-Minute Exchange of Die and many more
besides.

2. 5S Method

5S is a Japanese method of organizing the workspace, in a clean, efficient and safe manner, in order to achieve a
productive work environment. The 5S is a starting point for any company that wants to be recognized as a
responsible producer, worthy of world class status [2].
5S Method includes five phases (see Fig. 1):

• Sort (Seiri): Removing what is not needed and clearing the workplace;
• Set in Order (Seiton): Preparing the necessary items neatly and systematically so that they can easily be taken and
returned in the original place after use [3, 4, 5];
• Shine (Seiso): Cleaning regularly equipment and workplace, identifying irregularities. Dust, dirt and wastes are
the source of untidiness, indiscipline, inefficiency, faulty production and work accidents [3, 6, 7];
• Standardize (Seikutsu): Documenting and standardizing the method, using standard procedures. Standards should
be very communicative, clear and easy to understand [3, 7, 8].
• Sustain (Shitsuke): Continuously maintaining established procedures, auditing work methods, making 5S a habit,
integrating into culture.

A simple yet powerful quality practice, 5S helps identify and eliminate waste in a workplace. It also helps
establish and maintain a productive and quality environment in an organization. It forces companies to look at issues
that are often overlooked [9].

Fig. 1. The implementation steps of 5S method [10].

The continuous implementation of 5S Method in various companies has revealed several advantages, such us:
improved quality of products and services, clean and productive work environment, improved maintenance and
safety, cost reduction, increasing of effectiveness and efficiency in the processes, discipline and better engagement
902 Cristina Veres (Harea) et al. / Procedia Manufacturing 22 (2018) 900–905
Cristina Veres et al. / Procedia Manufacturing 00 (2018) 907–912 909

at workplace, improved sense of responsibility and teamwork, better equipment reliability, as well as reduced waste:
less space for storage and wasted labor time, reduced production and set-up times etc. [3,11,12].
The 5S practice is worthwhile for production and service organizations and is universal to all organizations. The
big challenge is how to incorporate the 5S practice in everyone’s (employee’s) life [13].

3. Current state of Lean implementation

Nowadays most world famous companies use mature forms of Lean streamline method, called in different ways:
Lean Manufacturing, Six Sigma, Toyota Production System, Kaizen and so on. A lot of companies adapted the Lean
philosophy, giving it a specific name and choosing their own set of tools, in accordance with the company`s
principles, type of activity, location etc.
The Lean implementation started in Japan and United States of America in automotive industry and it became a
must in this sector. In the last decades the concept in constantly expanding due to its proved efficiency and
effectiveness. An important characteristic of Lean is flexibility: it`s successfully applied in various fields:
healthcare, retail, IT, government, transportations, in manufacturing and supply chain, in commercial and public
sector.
As an infrastructure for a culture of continuous improvement, 5S is typically the first lean method which
organizations implement to facilitate the application of other lean techniques that improve/optimize process
structure and parameters [14, 15].
The result of an research done among five target organizations showed that 5S is an effective tool for
improvement of organizational performance, regardless of organization type, size, its production or its service [16].

4. Case study concerning 5S implementation project in an automotive company

The company involved in the present case study is Hirschmann Automotive – an Austrian company which
produces auto parts and has production units in Morocco, Mexico, China, Czech Republic and Romania. Its overall
turnover in 2016 is 300 million euro, with 12.5% share of investments and 4768 employees on January 2017.
In Mures County (Romania) the manufacturer has the biggest production platform, which was set up in 2007,
actually divided into two plants.
The implementation of 5S is an integrated part of production processes and managerial culture, being present
simultaneously in all sectors and departments of the enterprise. Each employee is first trained through Hirschmann
School, were everyone gets acquainted with Lean principles and its instruments, 5S, company’s vision, expectations
and so on.
As Hirschmann Automotive Company defines the continuous improvement formula [17]:

𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 ∗ 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 = 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 (1)

Monthly a 5S evolution audit is made in all the company and employees are given salary bonuses for maintaining
established procedures. Being guided by the 5S principles, the enterprise improved its results each year since 2007.
This case study covers the data collected for January – December 2016:

• 5S evolution – a checklist audit, made of 17 questions, is done in all 8 segments of the company and a percentage
is assigned by a special committee;
• Productivity – due to confidential data, we used percentage values. Productivity is calculated dividing standard
hours by productive attendance time, multiplied by 100:

𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜
𝑃𝑃(%) = ∗ 100; (2)
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡

• Production volume – indicated in euro (due to mutual dependence between this indicator and productivity and to
similarity between graphs, we chose to use only the first two mentioned indicators);
 Cristina Veres (Harea) et al. / Procedia Manufacturing 22 (2018) 900–905 903
910 Cristina Veres et al. / Procedia Manufacturing 00 (2018) 907–912

The following hypotheses were formulated:

• H 1 : There is a positive relationship between 5S level and productivity;
• H 0 : There is not a positive relationship between 5S level and productivity.

4.1. Materials and Methodology

The research involved the following methodology:

• Studying specialized literature about Lean Manufacturing, 5S Method and waste.
• Elaboration of comparative measurement between 5S evolution and productivity. The study was conducted using
the data of 2016 months, recorded 2016 in one representative automotive production company in Mures County,
Romania, called Hirschmann Automotive.
• The statistical analysis was performed with PSPP, which is a free software developed by GNU General Public
License as published by the Free Software Foundation; version 3 of the License, with the goal to identify
effectiveness of 5S implementation on the organization performance.
• The experimental design is made from two different steps that were put in practice with the help of statistical soft
PSPP.
The first step is evaluation of the validity of data measurement, and then we continued to make the correlation
analysis.
We chose to test the normality of our data using a graphic method: histogram. The histogram is a quick way of
examining one or more sets of data. After we decide if our data are valid we pass to the correlation analysis in order
to see what correlation level we have.
After data collection, for data analysis, two variables were identified (see fig. 2): the independent variable (X)
and the dependent variable (Y). The independent variable is “5S Level” because this is the cause of basic
assumption. The dependent variable is “Productivity” because this shows the effect of the research assumption.

Independent variable (X) Dependent variable (Y)

• 5S Level • Productivity

Fig. 2. The independent and the dependent variable.

The coefficient of correlation was applied to identify the impact of 5S Level on Productivity.

4.2. Results and Discussion

Before performing the correlation analysis we tested the variable to see the normality of our data. As we can see
in Fig. 3, the distribution is normally for all the tested variables.
The results and findings of the research study are:

Table 1. Results of the research

5S Level
Productivity Pearson Correlation 0.65
Sig. (2-tailed) 0.022
N 12
5S Level has a positive moderate Pearson correlation (0.65) with Productivity, with a significance of 0.022. The
Fig. 4 represents the scatterplot graphic for the two analyzed parameters and we can observe the positive correlation
between the variables.
904 Cristina Veres (Harea) et al. / Procedia Manufacturing 22 (2018) 900–905
Cristina Veres et al. / Procedia Manufacturing 00 (2018) 907–912 911

Fig. 3. (a) Histogram for testing the normality of 5S Level; (b) histogram for testing the normality of Productivity.

102%
101%
100%
99%
Productivity

98%
97%
96%
95%
94%
93%
92%
86% 88% 90% 92% 94% 96% 98%
5S evolution

Fig. 4. Correlation between 5S Level and Productivity. Scatterplot.

The hypothesis H 1 : There is a positive relationship between 5S level and productivity, is proved correct.
Supporting the statistically proven data, it’s important to mention that Hirschmann Automotive Romania ran 14
projects in 2016. Among the successful projects we should mention [18]:
• Segment no. 5 TM1 - Scrap Reduction;
• Segment no. 1 – Eliminating internal sorting;
• Segment no. 6 - Improving productivity;
• Segment no. 7 - Strengthening quality;
• Tool shop - Spare parts monitoring system for molds in SAP;
• Engineering - Reducing cooling time at injection processes;
• Maintenance - Automatic RFT centralization for Adaptronic tests.
Currently they have ongoing 23 projects, with a potential cost reduction of more than half a million euros [18].
 Cristina Veres (Harea) et al. / Procedia Manufacturing 22 (2018) 900–905 905
912 Cristina Veres et al. / Procedia Manufacturing 00 (2018) 907–912

5. Conclusions

As a result of the conducted analyses, the hypothesis H 1 was proven: the correlation show a positive relation
between 5S Level and Productivity in an automotive cable production plant, and the goals defined at the beginning
has been fulfilled. This means that implementing and maintaining 5S method and standards in the company leads to
improved performances.
The need of having 5S method implemented represent one of the first step taken in the Lean Management
strategy and it determines, as a result, the increase of the productivity of the organization. Moreover, due to 5S, the
factory is a cleaner place, the safety at workplace and the product quality is increased, the problems are easy to
detect and prevent, waste and costs are reduced, the product or service fulfils the customer needs in the most
efficient manner. Contrariwise, the lack of efficiency and organization at workplace lead to waste of time and
resources, low quality products, disorganization, safety problems, delivery delays and so on.
In an increasingly competitive environment it’s absolutely necessary to efficacious manage the company’s
processes. 5S method is a starting point for any company who wants to achieve high goals and positions.

6. Acknowledgements

We are grateful to the top management of Hirschmann Romania who helped us with useful information and
suggestions. Reproduction, full or partial use of this content in any publications, and by any means (electronic,
mechanical, photocopying, microfilm, etc.) is prohibited if there is no prior written consent of Hirschmann Romania
through its representatives.

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