5S AND GOOD HOUSEKEEPING Issue Date : 05/09/13

MANUAL Effective Date: 05/15/13

Review Date : 05/09/14
INTRODUCTION

Page 1 of 7 Document Code: MA-5SC-01 Version No.: 1.0

1.0 CONTENTS

The 5S and Good Housekeeping Manual contains the following:

1.1 MA-5SC-01 - Introduction

1.2 MA-5SC-02 - Management Responsibility
1.3 MA-5SC-03 - Norms
1.4 MA-5SC-04 - Measurement, Analysis and Improvement
1.5 MA-5SC-05 - Signature Specimen – Authorized Signatories

2.0 OVERVIEW

Prior to ISO 9001:2008 QMS full-blown installation way-back July 2011 to June 2012, Pure Essence
International Inc. spearheaded the implementation of 5S attached to GMP Program as partner program
under the Quality Assurance and Control function in an effort to institutionalize the good manufacturing
practices, hygiene related norms and housekeeping standards of the Company. These are operationalized
across appropriate production lines, work areas, offices and support facilities.

While the activities are performed, changes on implementation plans as well as audit schedules were
considered early part of 2013 to improve further the housekeeping implementation as well as maintenance
of 5S standards, norms and protocols.

It is in this context that the PEI through the facilitation of Deputy QMR (reporting to QMR) in coordination
with HRDA, started calibrating the current 5S norms, guidelines, audit activities, 5S checklist, scheduling of
activities and proposed to design and develop a so called “5S and Good Housekeeping Manual” – as
presented here.

3.0 PURPOSE

This manual defines the standards, norms, guidelines and projects for the 5S and Good Housekeeping
Program of PEI.

The purposes of this 5S and Good Housekeeping Manual were to:

 Calibrate the previous structure of 5S Program;

 Design and develop a more appropriate structure including the 5S Team, roles and areas of
responsibilities of 5S Champions;
 Restructure the 5S Norms per production line, per offices and work areas;
 Standardize the coverage of 5S Norms;

Established by: Reviewed by: Approved by:

Susan Grace L. Camacho Alice Y. Tantuco Eleanor Y. Tantuco

Deputy QMR Operations Director/QMR President

PROPRIETY NOTICE: This document contains information propriety to PEI. Any IMPORTANT: Only documents with stamps are considered official.
disclosure or use is expressly prohibited except upon written permission by PEI.
 5S AND GOOD HOUSEKEEPING Issue Date : 05/09/13
MANUAL Effective Date: 05/15/13
Review Date : 05/09/14
INTRODUCTION

Page 2 of 7 Document Code: MA-5SC-01 Version No.: 1.0

 Cascade the program norms, procedures/instructions and related information regularly (say
quarterly) or when there is need to address deviation from set of approved 5S Norms, protocols and
standards;
 Conduct at least a 5S-GHK Monthly Audit; and
 Provide areas for enhancing and improving the program operationalization whenever there is a
need for such.

3.0 SCOPE

The 5S and Good Housekeeping Program of PEI covers the following:

 5S Committee
 All Administrative offices
 All documents and records
 All production lines
 All common areas
 All support facilities including cabinets, pantries, stockrooms, warehouses, storage and waste bins:
 All PEI Corporate functions as follows:
1. Executive Offices;
2. QMR / Deputy QMR;
3. Sales and Marketing Department;
4. Accounting;
5. HRDA and Administrative areas such as Security, Admin. Lobby, Waste Management,
Conferences..etc.;
6. Purchasing;
7. Logistics / Warehouse – including stockrooms;
8. Production (7 lines);
9. Quality Assurance and Control, Laboratory and Waste Water facility;
10. Engineering and Maintenance Department;
11. Internal Quality Audit;
12. Document Control Unit; and
13. Safety, Security, Health and Environment.

The effective implementation of the overall 5S and Good Housekeeping Program is the responsibility of
the QMS Division together with the 5S Committee and Department Managers.

The 5S and Good Housekeeping Manual is documented in five (5) parts:

Established by: Reviewed by: Approved by:

Susan Grace L. Camacho Alice Y. Tantuco Eleanor Y. Tantuco

Deputy QMR Operations Director/QMR President

PROPRIETY NOTICE: This document contains information propriety to PEI. Any IMPORTANT: Only documents with stamps are considered official.
disclosure or use is expressly prohibited except upon written permission by PEI.
 5S AND GOOD HOUSEKEEPING Issue Date : 05/09/13
MANUAL Effective Date: 05/15/13
Review Date : 05/09/14
INTRODUCTION

Page 3 of 7 Document Code: MA-5SC-01 Version No.: 1.0

1. The 5S and Good Housekeeping Introduction

2. The 5S and Good Housekeeping Management Responsibility
3. The 5S and Good Housekeeping Norms
4. The 5S and Good Housekeeping Measurement, Analysis and Improvement
5. The 5S and Good Housekeeping Signature Specimens- Authorized Signatories

4.0 DEFINITIONS

4.1 PEI - Pure Essence International, Inc.

4.2 QMS - Quality Management System
4.3 refers to the Japanese words: seiri, seiton, seiso, seiketsu and
5S - shitsuke describing how to organize work space for efficiency and
effectiveness
4.4 GHK - Good Housekeeping
4.5 QMR - Quality Management Representative
4.6 DQMR - Deputy QMR
4.7 refers to the group of personnel assigned to establish, implement
5S Committee -
and evaluate the 5S Program of PEI
4.8 5S Standards - refers to the 5 phases of 5S
4.9 refers to the established 5S protocols applicable per area and
5S Norms -
function
4.10 refers to the conduct of 5S audit and continual improvement
5S Guidelines -
projects of the Committee

5.0 ORIGIN OF 5S AND GOOD HOUSEKEEPING

5S was developed in Japan. It was first heard of as one of the techniques that enabled what was then
termed 'Just in Time (JIT) Manufacturing. The Massachusetts Institute of Technology's 5-year study into the
future of the automobile in the late 1980s identified that the term was inappropriate since the Japanese
success was built upon far more than components arriving only at the time of requirement. John Krafcik, a
researcher on the project, ascribed Lean to the collective techniques being used in Japanese automobile
manufacturing; it reflected the focus on waste in all its forms that was central to the Japanese approach.
Minimized inventory was only one aspect of performance levels in companies such as Toyota and in itself
only arose from progress in fields such as quality assurance and Andon boards to highlight problems for
immediate action.

5S was developed by Hiroyuki Hirano within his overall approach to production systems. Many Western
managers coming across the approach for the first time found the experience one of enlightenment. They
had perhaps always known the role of housekeeping within optimized manufacturing performance and had
always known the elements of best practice. However, Hirano provided a structure for improvement
programs. He pointed out a series of identifiable steps, each building on its predecessor. Western
managers, for example, had always recognized the need to decide upon locations for materials and tools
Established by: Reviewed by: Approved by:

Susan Grace L. Camacho Alice Y. Tantuco Eleanor Y. Tantuco

Deputy QMR Operations Director/QMR President

PROPRIETY NOTICE: This document contains information propriety to PEI. Any IMPORTANT: Only documents with stamps are considered official.
disclosure or use is expressly prohibited except upon written permission by PEI.
 5S AND GOOD HOUSEKEEPING Issue Date : 05/09/13
MANUAL Effective Date: 05/15/13
Review Date : 05/09/14
INTRODUCTION

Page 4 of 7 Document Code: MA-5SC-01 Version No.: 1.0

and upon the flow of work through a work area; central to this (but perhaps implicit) is the principle that
items not essential to the process should be removed – stored elsewhere or eliminated completely. By
differentiating between Seiri and Seiton, Hirano made the distinction explicit.

He taught his audience that any effort to consider layout and flow before the removal of the unnecessary
items was likely to lead to a sub-optimal solution.

Equally the Seiso, or cleanliness, phase is a distinct element of the change program that can transform a
process area. Hirano's view is that the definition of a cleaning methodology (Seiso) is a discrete activity, not
to be confused with the organization of the workplace, and this helps to structure any improvement
program. It has to be recognized, however, that there is inevitably an overlap between Seiton and Seiso.
Western managers understood that the opportunities for various cleanliness methodologies vary with the
layout and storage mechanisms adopted. However, breaking down the improvement activity in this way
clarifies that the requirements for the cleanliness regime must be understood as a factor in the design
aspect of Seiton. As noted by John Bicheno, Toyota's adoption of the Hirano approach, is '4S', with Seiton
and Seiso combined – presumably for this very reason. The improvement team must avoid the trap of
designing the work area and then considering the cleanliness or tidiness mechanism.

Hirano also reminded the world of the Hawthorne effect. We can all introduce change and while people in
the business consider the change program to be under management focus the benefits of the change will
continue, but when this focus has moved (as is inevitably the case) performance once more slips. Western
managers, in particular, may have benefited from the distinction between the procedural or mechanical
elements, Seiketsu, of keeping these matters in focus and the culture change, Shitsuke, which is a distinct
approach to bringing about a new way of working. A number of publications on the subject in the West have
questioned whether this culture can really be tackled as part of an exercise of relatively limited scope. The
broader kaizen, or continuous improvement, approach is built, among other things, upon the company's
valuation of all members of the workforce. If employees don't feel valued within the overall company culture,
perhaps the change required falls outside the limits of a housekeeping improvement program.

6.0 5S STANDARDIZATION

Seiri-Sorting

Eliminate all unnecessary tools, parts, documents, records, and instructions. Go through all tools, materials,
and so forth in the , admin areas, plant and work area. Keep only essential items and eliminate what is not
required, prioritizing things per requirements and keeping them in easily-accessible places. Everything else
is stored or discarded. Any work area should only have the items needed to perform the work in the area.
All other items should be cleared (sorted out) from the work area.

Established by: Reviewed by: Approved by:

Susan Grace L. Camacho Alice Y. Tantuco Eleanor Y. Tantuco

Deputy QMR Operations Director/QMR President

PROPRIETY NOTICE: This document contains information propriety to PEI. Any IMPORTANT: Only documents with stamps are considered official.
disclosure or use is expressly prohibited except upon written permission by PEI.
 5S AND GOOD HOUSEKEEPING Issue Date : 05/09/13
MANUAL Effective Date: 05/15/13
Review Date : 05/09/14
INTRODUCTION

Page 5 of 7 Document Code: MA-5SC-01 Version No.: 1.0

Seiton-Straightening or Setting in Order

Arranging tools, parts, documents, records, and instructions in such a way that the most frequently used
items are the easiest and quickest to locate. The purpose of this step is to eliminate time wasted in
obtaining the necessary items for an operation. Everything in the work area should have a place and
everything should be in its place.

Seiso-Sweeping or Shine

Standardized cleaning-point at a 5S organized plant. Clean the workspace, tools, parts, documents,
records, and instructions and all equipment, and keep it clean, tidy and organized. At the end of each shift,
clean the work area and be sure everything is restored to its place. This makes it easy to know what goes
where and ensures that everything is where it belongs. Not only should the work area be clear, it should
also be clean. Cleanliness involves housekeeping efforts, improving the appearance of the work area, and
even more importantly, preventive housekeeping - keeping the work area from getting dirty, rather than just
cleaning it up after it becomes dirty.

Seiketsu-Standardizing

All work stations for a particular job should be identical. All employees doing the same job should be able to
work in any station with the same tools that are in the same location in every station. Everyone should know
exactly what his or her responsibilities are for adhering to the first 3 S's. Synonym : Systematize. Everyone
in the work area and in the organization must be involved in the 5S effort, creating best practices and then
getting everyone to "copy" those best practices the same way, everywhere, and every time. Work area
layouts and storage techniques should be standardized wherever possible.

Shitsuke-Sustaining the Practice

Maintain and review standards. Once the previous 4 S's have been established, they become the new way
to operate. Maintain focus on this new way and do not allow a gradual decline back to the old ways. While
thinking about the new way, also be thinking about yet better ways. When an issue arises such as a
suggested improvement, a new way of working, a new tool or a new output requirement, review the first 4
S's and make changes as appropriate. It should be made as a habit and be continually improved. It's tough
to keep a 5S effort, or any improvement effort for that matter, going. The 5S's involve a culture change. And
to achieve a culture change, it has to be ingrained into the organization - by everyone at all levels in the
organization.

7.0 5S AND GOOD HOUSEKEEPING PROGRAM

The 5S and Good Housekeeping Program of PEI is composed of the following Phases:

1. Awareness and Appreciation - 5S and Good Housekeeping Seminar

Established by: Reviewed by: Approved by:

Susan Grace L. Camacho Alice Y. Tantuco Eleanor Y. Tantuco

Deputy QMR Operations Director/QMR President

PROPRIETY NOTICE: This document contains information propriety to PEI. Any IMPORTANT: Only documents with stamps are considered official.
disclosure or use is expressly prohibited except upon written permission by PEI.
 5S AND GOOD HOUSEKEEPING Issue Date : 05/09/13
MANUAL Effective Date: 05/15/13
Review Date : 05/09/14
INTRODUCTION

Page 6 of 7 Document Code: MA-5SC-01 Version No.: 1.0

2. Establishment of 5S and Good Housekeeping Committee

3. Formulation of 5S and Good Housekeeping Manual
4. Cascading and Orientation
5. 5S and Good Housekeeping Day
6. 5S and Good Housekeeping Audit
7. Awarding and Recognition
8. Evaluation of the Program

8.0 CONFIDENTIALITY AND DISTRIBUTION

The 5S and Good Housekeeping Manual is considered as an Internal Document and must be kept
confidential. Only authorized document writers are allowed to make corrections or amendments to the
contents after proper review and approval. This process is documented in the Document Control Procedure
of QMS (QP-DCC-01).

Every PEI Plant department maintained a Controlled Copy of this Manual. Upon revision of any section of
the document, the controlled copies of that section in possession of all plant departments must also be
updated. Issuances may only be facilitated by the Document Control Unit, who is in charge of safekeeping
the Manual Master Copy. Distribution of Controlled copies is limited to those in the Distribution List (FO-
DCC-02).

Uncontrolled copies for purposes of auditing, training, and revisions, can only be issued upon approval of
the company President and the Quality Management Representative. Issuance of uncontrolled copies to
customers is only allowed when it is justified as commercially beneficial or when demanded as a contract
requirement.

9.0 AMENDMENTS AND ADDITIONS

Changes in the 5S and Good Housekeeping Manual are only effected when there are changes in the
management or organization structure, the business process flow, there is introduction of a new product or
service that may affect the Scope and consequent changes in the 5S and Good Housekeeping Manual. All
changes shall undergo the procedure of review and approval prior to final issuance of the revised Manual.

10.0 AUTHORIZATION

The contents of this 5S and Good Housekeeping Manual have been agreed upon by all key persons in the
organization with approval of the management. It summarizes the standards, norms and guidelines that
needs to be followed to assure the seamless execution of the Program across the plant premises.

Established by: Reviewed by: Approved by:

Susan Grace L. Camacho Alice Y. Tantuco Eleanor Y. Tantuco

Deputy QMR Operations Director/QMR President

PROPRIETY NOTICE: This document contains information propriety to PEI. Any IMPORTANT: Only documents with stamps are considered official.
disclosure or use is expressly prohibited except upon written permission by PEI.
 5S AND GOOD HOUSEKEEPING Issue Date : 05/09/13
MANUAL Effective Date: 05/15/13
Review Date : 05/09/14
INTRODUCTION

Page 7 of 7 Document Code: MA-5SC-01 Version No.: 1.0

11.0 HISTORY OF CHANGES

Version Changes Effective

1.0 New Version 05/15/13

Established by: Reviewed by: Approved by:

Susan Grace L. Camacho Alice Y. Tantuco Eleanor Y. Tantuco

Deputy QMR Operations Director/QMR President

PROPRIETY NOTICE: This document contains information propriety to PEI. Any IMPORTANT: Only documents with stamps are considered official.
disclosure or use is expressly prohibited except upon written permission by PEI.