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Admas University College Department of Accounting Group Assignment On Apply 5's Procedures (Kaizen)
Admas University College Department of Accounting Group Assignment On Apply 5's Procedures (Kaizen)
Department of Accounting
Group Assignment
On
Apply 5’s Procedures (Kaizen)
Group Members ID
1. __________________ ________
2. __________________ ________
3. __________________ ________
4. __________________ ________
5. __________________ ________
6. __________________ ________
7. __________________ ________
July 2019
Addis Abeba, Ethiopia
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Question 1: Explain and Discuss on the ultimate goals of 5’s
procedures?
The ultimate goal with 5’S is to:
1. Have a clean, safe and effective workplace, every day.
2. Learn what is required to take care of our workplace.
3. Train management in an attentive leadership
What is needed to reach these goals?
Firstly we need to agree on a standard. Everyone must know and accept what should be done.
We need clear routines for what we are going to do, by whom and when so that everybody
knows what is expected of them. We need a planning system that helps us remember our duties
and where eventual deviations will show clearly.
We need leadership that will notice deviations and initiate correcting and improving measures.
We need a system for following up on different levels to keep the standard we wish for, but also
to give an incentive to the improvement work. The point is that 5’S offers a systematic way to
obtain all of this in five clear steps, but only if you go all the way and see 5’S as a way to renew
your way of thinking throughout the whole organization. Properly implemented, 5S is a great
shortcut to Lean and Total Productive Maintenance, since it has laid the foundation for new ways
of thinking where we work more standardized and use deviations for improvement.
From the leaders’ side, you have proved that you are serious about actually striving for some real
change that can be a driving force in the work for improvement. All of your colleagues get the
joy of working in a workplace that is something to be proud of.
Together we are more than prepared to take on the next step towards even higher efficiency.
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Increased Efficiency and Productivity One of the main objectives of 5’S is to get and keep every
aspect of your business organized. As a result, businesses that adopt the 5’S system are often
more efficient. For example, in a retail store, items at each cashier station have exactly the same
labeling and organization.
Anyone can step in and start working with customers without first having to assess the work
area, locate a copy of the latest ad and replenish the supply of rain-check slips. As a result,
cashiers spend more time working with customers and less time on non-productive tasks.
Increased Workplace Safety A clean, well-organized working environment reduces hazards and
in turn creates a safer workplace. Safety-first standard operating procedures require employees to
clean spills immediately, keep aisles free from clutter and store items in their proper place. This
is especially important for businesses subject to Occupational Safety and Health
Administration compliance regulations. Good organization, which includes storing commonly
used items close to the work area and in ergonomically correct locations not only reduces
unnecessary movements but also the potential for injuries that occur over time, such as carpal
tunnel syndrome.
Benefits of 5’S Cost-Control Implementing the 5S system can have significant direct and indirect
cost-saving advantages. For one thing, better organization often reduces storage space
requirements. For another, you are less likely to experience increased inventory costs relating to
lost or misplaced inventory items. In a manufacturing business, routine cleaning and preventative
maintenance SOPs increase the chance that employees can find and address problems with
machines and other equipment before issues become more serious and require expensive repairs.
In addition, a safer working environment can decrease health and business insurance costs.
B. For Employee
Morale Satisfaction
Morale
Everything that goes on behind the scenes in a 5’S system works to provide value to your
customers and, in turn, increase customer satisfaction. For example, although your customers
don’t care about cash station organization or routine cleaning SOPs, they do care about fast
check-out lanes and appreciate a clean, well-organized store.
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In addition, because a commitment to 5’S requires significant employee participation, not only
does this increase employee engagement, but it also creates a more pleasant work environment in
which employees take greater pride in their jobs.
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Organic waste is another common household. All food waste, garden waste, manure and rotten
meat are classified as organic waste. Over time, organic waste is turned into manure by
microorganisms. However, this does not mean that you can dispose them anywhere.
Organic waste in landfills causes the production of methane, so it must never be simply
discarded with general waste. Instead, look to get a green bin from the Brisbane council, or hire a
green skin bin or garden bag for proper waste disposal.
4. Recyclable Rubbish
Recyclable rubbish includes all waste items that can be converted into products that can be used
again. Solid items such as paper, metals, furniture and organic waste can all be recycled. Instead
of throwing these items in with regular waste, which then ends up in landfills, place them in your
yellow recycling bin or take them to your local Brisbane recycling depot.
If you’re unsure whether an item is recyclable or not, look at the packaging or the diagrams on
the lid of your yellow recycling bin. Most products will explicitly state whether they are
recyclable or not.
5. Hazardous Waste
Hazardous waste includes all types of rubbish that are flammable, toxic, corrosive and reactive.
These items can harm you as well as the environment and must be disposed of correctly.
Therefore, I recommend you make use of a waste removal company for proper disposal of all
hazardous waste.
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forget the errand. Jonathan Swift said that “ Vision is the art of seeing what is invisible to others”
. Have a defined purpose and pursue it.
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room for growth. Do not be content with the success of yesterday; always strive to beat your own
record. That way, your business will keep on growing, your investors will be happy to remain
and inject more funds.
Always remain focused and dedicated to your goal. Have a clear goal and pursue it. Your
business growth also depends on your marketing strategy. Marketing helps in getting your
product known and good sales come from good marketing.
8. Know Your Customer
Your customer base determines the life of your business. If you provide solution to better the
world, your customers will increase. In business, the higher your customers, the higher the profit.
Your business must be streamlined into a particular niche. This will help you to know who your
prospective customers should be and how to get and keep them. When you focus on a niche
market, it is more efficient, more productive and less competitive.
9. Priorities
For success in business, you must categorize things in order of importance. Set your priorities
based on your goals and do not deviate. Your investors should not make you lose focus on your
dream. Daren Smith of the selfemployer.com wrote “Decide what to do and do it, then decide
what not to do and don’t do it “.
10. Never Give Up
The never give up attitude is one quality an entrepreneur must possess. Successful entrepreneurs
are goal-getters. They never give up on turning their vision into reality.
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himself. So, the latter must possess a high degree of management ability to select the right type
of persons to work with him. But, the importance of this function has declined, as business
nowadays is managed more and more by paid managers.
Function # 3. Division of Income:
The next major function of the entrepreneur is to make necessary arrangement for the division of
total income among the different factors of production employed by him. Even if there is a loss
in the business, he is to pay rent, interest, wages and other contractual incomes out of the realized
sale proceeds.
Function # 4. Risk-Taking and Uncertainty-Bearing:
Risk-taking is perhaps the most important function of an entrepreneur. Modern production is
very risky as an entrepreneur is required to produce goods or services in anticipation of their
future demand. Broadly, there are two kinds of risk which he has to face. Firstly, there are some
risks, such as risks of fire, loss of goods in transit, theft, etc., which can be insured against. These
are known as measurable and insurable risks. Secondly, some risks, however, cannot be insured
against because their probability cannot be calculated accurately.
These constitute what is called uncertainty (e.g., competitive risk, technical risk, etc.). The
entrepreneur undertakes both these risks in production.
Function # 5. Innovation:
Another distinguishing function of the entrepreneur, as emphasized by Schumpeter, is to make
frequent inventions or invention of new products, new techniques and discovering new markets
to improve his competitive position, and to increase earnings.
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