Admas University College

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.

Question 2: Explain benefits of 5’s :

A. For Organization
The 5S process takes a common sense approach to maintaining a clean workplace environment.
Although technically part of a lean manufacturing strategy, 5’S elements – sort, straighten, shine,
standardize and sustain – benefit businesses of all sizes and in any industry. A good way to think
of the 5S process is not as a lean tactic or a cost-reduction program, but as a workplace
philosophy.

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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.

Question 3: Explain and discuss kinds of waste? Give example.

1. Liquid Waste
Liquid waste is commonly found both in households as well as in industries. This waste includes
dirty water, organic liquids, wash water, waste detergents and even rainwater.
You should also know that liquid waste can be classified into point and non-point source waste.
All manufactured liquid waste is classified as point source waste. On the other hand, natural
liquid waste is classified as non-point source waste. This is best get in touch with waste removal
experts, such as 4 Waste Removals, to dispose of liquid waste properly.
2. Solid Rubbish
Solid rubbish can include a variety of items found in your household along with commercial and
industrial locations. Solid rubbish is commonly broken down into the following types:
Plastic waste – This consists of bags, containers, jars, bottles and many other products that can
be found in your household. Plastic is not biodegradable, but many types of plastic can be
recycled. Plastic should not be mix in with your regular waste, it should be sorted and placed in
your recycling bin.
Paper/card waste – This includes packaging materials, newspapers, cardboards and other
products. Paper can easily be recycled and reused so make sure to place them in your recycling
bin or take them to your closest Brisbane recycling depot.
Tins and metals – This can be found in various forms throughout your home. Most metals can be
recycled. Consider taking these items to a scrap yard or your closest Brisbane recycling depot to
dispose of this waste type properly.
Ceramics and glass – These items can easily be recycled. Look for special glass recycling bins
and bottle banks to dispose them correctly. If you still cannot grasp the concept of recycling, then
an incredibly easy and efficient way to dispose solid rubbish is by hiring a Brisbane waste
removal company, like 4 Waste Removals, to take care of your recycling for you. We will
removal all of your rubbish and ensure it is disposed of properly.
3. Organic Waste

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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.

Question 4: Explain Basic principles of entrepreneurship?

Principles of Entrepreneurship
1. Be a Solution Provider
You must note that entrepreneurship is not just about making money at first but it’s about
providing solutions and adding value. Over the years, successful entrepreneurs had noted that
passion is what brings success in business. This is because, in starting a business, there are bound
to be issues ranging from sourcing funding to getting good partners, building a good team,
location, marketing etc.
2. Have a Vision
You are not an entrepreneur merely to make a living. You are an entrepreneur because you want
to enable the world to live more amply, with greater vision, with a finer spirit of hope and
achievement. You are an entrepreneur to enrich the world, and you impoverish yourself if you

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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.

3. Choose the Right Team

When assembling your team, it is imperative to gather a team of individuals with the same
mindset and attitude towards achieving a common goal. You must not involve family or close
friends especially those without any knowledge or expertise they can add to your startup. Your
team must have the same drive, tenacity, perseverance and an underlying belief in themselves
and the value they can add to the success of the business.
4. Viable Product/Service
Let your product/service fulfill a need, be innovative and the approach, a little different from
other regular businesses. Technology is an important tool in the hand of modern entrepreneurs.
Your business should easily be accessible to your target customers. Always give your customers
room for feedback or suggestions on how your product/service can be better.
5. Capital
Good business plan always draw investors. Capital should be your least worry when you have a
solution. Entrepreneurship is all about solution. When your idea is great, you can easily get
investors or government loan. In my country, Ethiopia for example, government has created loan
programs for IMXs and this can be easily accessed with a good business plan alone.
6. Accountability
As an entrepreneur, you are accountable to the success or failure of your business, not your
employees, investors or advisors. You must have detailed account of whatever transaction made
by the company. Have a scorecard of all inventories. Always carry your investors along if there
are any.
The success of any business is, in many ways, measured by the management of its resources.
Even if you hire a full-time accountant, as an entrepreneur, you are expected to have a
fundamental knowledge of accounting, how it works and how to apply its basic principles with
the aim of operating a flourishing business.
7. Growth and Marketing
Every successful business grew over the years. Most big companies started small. It was all a
process. Success in business is not a one-time event; it is an on-going process. You must give

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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.

Question 5: Explain and discuss on entrepreneurial functions.

The following points highlight the top five functions of an entrepreneur. The functions are:
Function # 1. Decision Making:
The primary task of an entrepreneur is to decide the policy of production. An entrepreneur is to
determine what to produce, how much to produce, how to produce, where to produce, how to sell
and’ so forth. Moreover, he is to decide the scale of production and the proportion in which he
combines the different factors he employs. In brief, he is to make vital business decisions
relating to the purchase of productive factors and to the sale of the finished goods or services.
Function # 2. Management Control:
Earlier writers used to consider the management control one of the chief functions of the
entrepreneur. Management and control of the business are conducted by the entrepreneur

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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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