A 5S Template to Increase ROI

There are many benefits associated with the implementation of 5S. Below, we have created a list of the top ten benefits which may result in higher ROI’s (Return on Investment) when 5S is implemented properly.

1. Creates Consistency
When 5S is implemented, consistency is created throughout the workplace. Processes, procedures, tools used, and even levels of cleanliness will be consistent which will lead to a reduction in costs due to unique or unnecessary products or processes.

2. Reduction in Labor Hours

Labor hours will be reduced with the help of 5S as product errors will be avoided, processes will be streamlined, and production will be at its height due to high levels of organization.

3. Reduction in Accident Rates
Safety is improved with 5S/6S and the number of employee injuries are reduced. 5S/6S focuses on being proactive and using preventative measures to avoid accidents and increase safety awareness through proper training, appropriate use of PPE, and posted safety materials.

4. Increase in Inventory Control

Inventory control seems like a small component of cost savings but it truly starts adding up when unnecessary storage is needed to house overabundances of inventory. By Reducing Space Requirements needed, certain costs such as storage fees and wasted workspace can be avoided.

5. Enhances Employee Morale
Keeping employees happy, helps to keep a consistent team of reliable employees who know and understand their jobs. When employees are not happy or unsatisfied with their jobs, they will often go looking for a better job and thus cost the business more money as they have to search for and then train new employees. 5S sets the stage for a clean, organized and consistent work environment which promotes employee job satisfaction.

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6. Preventing Mistakes
5S helps to prevent inadvertent errors by mistake proofing certain processes and procedures through either streamlining and/or standardization. For instance, when workstations are set up in a similar manner it reduces the possible mistakes that could be made by utilizing incorrect tools or equipment thus causing waste.

7. Equipment is in Good Working Order
When 5S is fully implemented there is a distinct emphasis placed on making sure that equipment is fully operational and does not cause or create defects. Equipment that breaks down often causes losses in productivity and also costs the company money by having to constantly engage in pricey repairs.

8. Removing useless activities and Machines
The sorting component of 5S results in the elimination of any unneeded and unnecessary processes, tools, and equipment. Only essential, value-added tools and processes should be kept. The removal of waste, creates more space and eliminates the costs involved with storing unneeded equipment and the costs involved with engaging in useless tasks.

9. Increase Performance of Service
When items in a work environment are well organized and easily accessible, employees are able to quickly find and utilize items as they are needed. This in turn increases productivity and effectiveness.

10. Prevents Downtimes
Downtimes lead to wastes in profit. When employees are not working, yet being paid and when machines are down and not operational, it is literally like throwing money out the window. The implementation of 5S assists in preventing downtimes by making sure processes, machines, and tools are all in appropriate working order and are serviced regularly.

Never underestimate the power of an effectively run 5S work facility. The core of 5S is efficient organization, and when this is achieved there are many monetary benefits and increases in ROI to follow.

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