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Assessment on 5S Approach Strategy for Small Medium Enterprise (SME): A Case Study in Sabah

This study aims to assess the 5S approach strategy for SME. 5S in simple terms is a Japanese technique consisting of five ‘S’ terms namely Seiri (sorting), Seiton (set in order), Seiso (shine), Seiketsu (standardize) and Shitsuke (sustain) which is always applied to manage the workplace. In this research, a case study will be steered at the packaging section of Fatt Choi Sdn Bhd Company located in Sabah, Malaysia to gather data for analysis. This paper targets the wastes observed in the packaging section of Fatt Choi Company and systematic elimination of them through 5 stages of 5S. Low space utilization, presence of unnecessary items, lack of proper cleaning schedule, obsolete work rules are the major wastes observed in the workplace. Through the implementation of various steps of 5S, the targeted wastes are eliminated, and better space utilization is achieved. The objectives of this paper are to assess the level of understanding for workers to encounter and adapting 5S systems which would enhance their performance, to evaluate the acceptance rate for employees to implement 5S in their work area as well as to relate the effectiveness of the 5S system in improving the worker performance and reducing unwanted waste in the industry. The researcher is able to assist with the implementation of 5S practices in the SMEs which could benefit their organization from the 5S systems, as well as the problem faced in implementation, factors of implementation and benefits experienced after the adoption of 5S lean manufacturing tools were being identified and evaluated. The results reveal that before the implementation of 5S, the survey scores varies from very poor to satisfactory( scoring from 1-3) related to the level of understanding for workers to encounter and adapting 5S systems, the acceptance rate for employees to implement 5S in their work area as well as the effectiveness of the 5S system in improving the worker performance and reducing unwanted waste in the industry but after the implementation of 5S the scores had changed from good to very good (scoring from 3-5). Survey results show a clear change can be seen before and after the implementation of 5S. The result gets positive result from the survey done by the employees after the implementation of 5S in their working area. Employees are more contented with their work environment after the implementation of 5S. This is due to the cleanliness of their workplace is maintained every day, all items and tools are adequately arranged, and they can finish their work without any delay resulting from time waste searching for tools.