Implementation Of 5s In Non Manufacturing Area Commerce Essay

Lean manufacturing is a philosophy that increases the productivity and improves the quality with less resource (Womack and Jones, 1996). Lean manufacturing is the systematic elimination of waste from all aspects of an organization’s operations and this included production costs, product quality, and product delivery and worker involvement. Any use or loss of resources that does not lead directly to creating the product or service in an organization is viewed as waste.

Now days, many companies are implementing such lean production systems. Companies primarily choose to engage in lean manufacturing for three reasons which are to reduce production resource requirements and costs, improve customer responsiveness and to improve product quality. These 3 elements are very important to boost company profits and competitiveness.

The lean manufacturing concept is first introduced in Toyota Corporation which is Toyota Production System. Toyota started the lean manufacturing by following the basic principles that set out by Henry Ford with the moving assembly line. Ford realizes that the importance things in the operation are material flow continuous, process standardization, and waste elimination. The basic principle that set out by Henry Ford did bring the success to Ford Corporation. At the same time, Toyota was experience a difficult time and these basic principles give inspiration to Toyota to develop a system that flexibly responded to customer demand and was efficient at the same time.

Now a day, Lean Manufacturing has been implementing in the manufacturing companies throughout the world and was becoming an important topic for manufacturing companies especially in the developed countries. The Japan, which consider as the developed country in Asia did show the success with the implementation of lean manufacturing concept and even the western countries also try to find the ways to compete against with the company in Japan.

According to the Industry Week Magazine in a survey at 2004, as a result of the implementing lean manufacturing, U.S. companies had a median savings which is 7% of Cost of Goods Sold. This savings also consider as a higher levels of waste before the company implementing the lean manufacturing concept. Lean manufacturing is a concept which use the less input to achieve the same output and the input can be time, space, human effort, machinery, materials, or costs.

In 1995, the U.S. equipment manufacturing company which named Lantech completed the implementation of lean and reported that there had many improvements compare batch-based system in 1991. According to Lantech, the element like manufacturing space per machine, production cycle time and product delivery lead time are reduced after the implementing of the lean manufacturing concept.

During the 1990, the Wiremold Company successfully implementing the concept of lean manufacturing. Wiremold Company found out that there have many improvements after the implementing of lean manufacturing concept which the product development time-to-market, receipt and fulfilment of order time, amount of plant space needed, time for raw material to shipping dock and number of suppliers are have been reduced. Besides that, the inventory turns and sales per employee did show the increasing advantage.

Some companies in Vietnam also actively conducted training and implemented lean manufacturing concept to eliminate the inefficiency process. This brings the improvement to their production and service lead times. For example, Toyota Ben Thanh, a service center of Toyota in Vietnam, has implemented lean concept to significantly reduce the process time for the automobile maintenance service and as a result, the total number of cars processed are increase. Toyota Ben Thanh achieved significant reductions in the process lead time by successfully eliminating unnecessary waiting time, inefficiencies of physical motions and process flow.

According to the oxford dictionary, technique is a particular way of doing something. Lean manufacturing techniques are based on the application of five principles to guide the action of management toward success. The five principles are included value, the value stream, flow, pull and perfection. The perfection is bringing the meaning of the ability to advocate doing things right at the first time through the application of continuous improvement efforts. The element of “continuous improvement” can break down into 3 basic principles which are Challenge, Kaizen, and Genchi Genbutsu.

Background information

Kaizen is a Japanese word with literally mean improvement. In the context of Lean manufacturing, kaizen is understood to signify small, incremental, and frequent improvements to a process. Lean philosophy states that the large improvement which just require small amounts of investment and risk. The kaizen main mindset is making process improvements without adding people and space to the process. The more important one is implement the change without spending the money.

In the early 1950s, Kaizen was first introduced in Japan which is the Toyota manufacturing plant. In Japan, kaizen is a way of life in the workplace which from the office of the CEO until to the shop apprentice. Kaizen has lead most of the company from a defeated wartime nation to one of the strongest industrialized countries in the world. The main principal of kaizen is making the small, immediate improvements in the process and standardizes the workplace. Actually, all of these small improvement will add up to better the working conditions which a (Imai, 1997) higher degree of safety, more efficiency and ultimately, greater profits.

In the western, the improvements are done by introducing the latest technology, or incorporate the newest management technique and the result is outspending of money and time. But Kaizen is different which just requires a small investment of money, but a large investment in effort, cooperation and training. If fully implementation in organization, the results are often amazing. Kaizen is a process which must become a daily part of every worker’s routine and this is the key for the successful implementation of Kaizen Concept.

In Kaizen, management has two functions which are Maintenance and improvement. The important part of kaizen is setting and keeping them. The role of maintain is to maintain the technological and operating standards that have been put into place. The other role of management is improvement which constantly looking for ways to raise the current operating standards. This is an ongoing effort and must be a daily part of the manager’s job. Process is the holy grail of kaizen and the main focus of Kaizen is on the process because Kaizen emphasize that improving the process will improve the result.

The major concept of kaizen is visual management. The opportunities for improvement may present themselves on a daily basis, but if you are not able to see them, they will be missed. One of primary methods used in kaizen is to create an environment where tools, supplies and processes that out of place can be seen right away. There are two systems that are used to achieve this target is 5S and 5M. The heart and soul of visual management is 5S. It is systematic approach to workplace organization and cleaning that will transform a disorganized workplace into an efficient running machine. The 5Ss are Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu) and Sustain (Shitsuke)

5S method started introduced in Malaysia at the middle age of 1980s and was actively conducted training and implementing in the private sector especially in multinational company. In 2004, 5S method was introduced to all public and private sectors in in Malaysia. In this 6 years, there have many certificates were issued to various factory industries and service as an encouragement. 5S is a method or tool which aims to manage workplace organisation and standardisation. 5S improves the safety, work efficiency, productivity and establishes a sense of ownership.

The successes of lean manufacturing concept in the manufacturing area brought the attention of non-manufacturing area using the lean manufacturing concept to manage their company. Although 5 S is a system aimed at good housekeeping and floor cleanliness. But this concept can be used in broader area where you have any kind of waste and even, these concepts also can be use in non-manufacturing process.

1.2 Problem of Study

Universiti Teknologi Malaysia (UTM) is a university which has the highest number of postgraduate enrolment in engineering and technology, which is one of the important components in contributing towards the development of an innovation-led economy. There have many department and unit in UTM which provide quality services to help expedite the process and system administration. Each department plays a role in the system administration of UTM and the 5S concept has been introduced to make sure the efficiency in the system administration.

Universiti Teknologi Malaysia was the first public university (IPTA) which successfully applies and attains the 5S Concept Certificate at 2009. The certificate handing ceremony was held in UTM Skudai and was officiated by the Director of National Productivity Corporation (NPC) Southern Region, Mohd. Razali Hussin.

In his speech, Mohd Razali, the Director of National Productivity Corporation (NPC) Southern Region congratulated UTM staff for their commitment in making this concept a success in UTM. The Director of NPC also said that all the staff in utm are the pioneers to this program and will be the best example and reference for other IPTA. Besides that, in his speech, he did mention that the effort must be consistent from time to time and in the effort to increase the skill and improve the office management system, the commitment and participation of all the UTM’s staff are essential.

According to the 5S concept program leader, Puan Norazlina Md. Said, this program was introduced to all public and private sectors at the year of 2004 in Malaysia. With the help of NPC, UTM has started realizing the 5s concept and managed to pass a certain requirement and finally successful attaining the certificate.

This is an honor for University Teknologi Malaysia. To successfully implementation the 5S concept, each staff of the UTM plays an important role. The successful of UTM will bring a lot of attention which first public university (IPTA) to successfully apply and attain the 5S Concept Certificate.

a) What is the key of the successful implementation 5S concept?

b) How far the implementation of the 5S concept?

c) What is problem that will be face in the implementation of 5S concept?

1.3 Purpose of the Study

The purpose of the study is to found out that how far that the implementation that have been done and investigate the key of the successful implementation 5S concept. Besides that, this research can also can give recommendation which ensure a constantly successful of 5s implementation.

1.4 Objective of the Research

The purpose of the research is to investigate the implementing 5s at non-manufacturing area which a research will be doing in the Treasurer’s office UTM. The objectives of this research are:

1.2.1 To investigate that how far that the implementation of 5S concept.

1.2.2 To investigate the factor of the successful implementation of 5s concept.

1.2.3 To suggest the recommendation to ensure a constantly successful 5s implementation.

1.5 Scope

This study is focusing on the Implementing 5s at non-manufacturing area which in Bursary office at Universiti Teknologi Malaysia. The respondents, which involve the staff of the Bursary Office and the data collected via questionnaires, were distributed to the respondent.

1.6 Significance of the Study

The findings of this study are very important to:

UTM

The finding in this study can help UTM know the perception of the staff about the implementation of 5S concept. Besides that, can give awareness to UTM about the important of the implementation of 5s concept.

Bursary Office

Through this finding, can let the staff in the office know that the problem in the implementation of the 5S concept. Besides that, can give a recommendation to Bursary Office and ensure the constantly successful of the implementation of 5S concept.

Undergraduate

The finding in this study can give knowledge to undergraduate student about the 5S concept. This is because nowadays, there have many company already implement the 5s concept so the undergraduate will not feel unfamiliar when they hear the 5s concept.

1.7 limitations

There are some limitations in this research.

a) The sample of the study is only limited to the staff of the bursary office and cannot represent all the non-manufacturing area in Malaysia. Therefore, the results of the analysis could be questioned.

b) Due to time constraints and cost, the survey will only distributed to respondents via questionnaire. To get an accurate analysis and data, will need an amount of cost and a lot of time. Consider to this problem, the survey will only distribute to respondents via questionnaire.

c) The level of reliability and accuracy of this study may be affected by the deceit of respondents. This is because respondents normally tend to answer questions in the way that are beneficial to them.