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Five S to Improve Revenue

  • By faber
  • March 6, 2020

Did you know, Five S helped one of the leading sanitaryware solutions manufacturers increase its revenue by 21% within a year from its implementation?

At one of the leading sanitaryware solution manufacturers, the organization was facing delays in attaining on-time delivery. The organization was not able to achieve on-time delivery due to insufficient storage space.

The organization was receiving a high amount of sales orders, but they were not able to produce above a specific number of units. The reason why this issue was happening was that the organization was not able to manage the space to store the products. Space was occupied with unwanted things.

Due to space congestion, the employees were not able to work at their full capacity. As a result, the orders were not completed on time and this left the customers unsatisfied.

Improve Profitability through Five 3 Methodology

After seeing all this, the managing director of the organization decided to apply the Five S methodology. This was brought into immediate action. They deployed red tag methodology for sorting and setting of the equipment in order.

They also created a waste zone wherein they kept those objects which were identified as non-productive and were later disposed of. The training was given to every employee of the organization right from the shop-floor to the management team.

They designed various charts, alerts, notices and placed them in areas where they were easily visible. They modified various rules and regulations for performing different activities. Also created zones and sub-zones and assigned responsibilities to each of the employees ensuring their active participation in this initiative.

One year from the implementation of this initiative, when the results were measured, they were as follow; 34% additional space freed and was made available for stocking the products, saved around 1200 working hours per year, the defect rates were reduced from 9% to 2% within a span of just 3 months from the implementation, production increased by 12% within a year, overall revenue increased by 21% within a year, and much more.

Five S has been helping organizations across industries in many ways including an increase in revenue and production. So, have you started implementing Five S? 

Written & Compiled by Faber Priyal & Faber Mayuri