2012 ماليزيا

ASIA PACIFIC JOURNAL OF OPERATIONS MANAGEMENT
19 DECEMBER 2012. VOLUME 1. NUMBER 1

ISSN: 2232-1896. WEBSITE: www.globalresearch.com.my
A CONCEPTUAL MODEL TOWARDS SUSTAINABLE MANAGEMENT SYSTEM BASED

UPON 5S PRACTICE FOR MANUFACTURING SMEs
Rahim Jamian
Manufacturing Section,
Universiti Kuala Lumpur Malaysian Spanish Institute
rahimj@msi.unikl.edu.my
Mohd Nizam Ab Rahman

Faculty of Engineering & Built Environment,
Universiti Kebangsaan Malaysia
mnizam@eng.ukm.my
Baba Md Deros
Faculty of Engineering & Built Environment,
Universiti Kebangsaan Malaysia
hjbaba@eng.ukm.my
Nik Zainuddin Nik Ismail

Hicom-Yamaha Manufacturing (Malaysia) Sdn. Bhd.
nikzn@hicomyamaha.com
ABSTRACT
The issues for economic and environmental sustainability are receiving major attention by many
organizations. However, the practices toward striving for sustainability are uncommon in small and
medium-sized enterprises (SMEs) as compared to large organizations. SMEs in manufacturing sector is
said to be having resources constraint (time, monetary and manpower) which caused the delay in
achieving sustainability. These days, a number of management system practices (MSPs) have been used
to promote sustainability. The practice of 5S is often considered as an essential component of MSPs.
Therefore, the purpose of the study is to investigate the capability of 5S as an integral part of MSPs
significantly proceed as basis in pursuing sustainability within manufacturing SMEs in Malaysia. For this
purpose, preliminary framework and causality model have been developed from literature sources. The
basic idea of the framework and model are about how the implementation of 5S in conjunction with
MSPs can lead SMEs to achieve the benefits of sustainability. Eventually, several propositions have been
developed to address the relationship between different constructs in the model and suggestions made
for further development of the framework toward sustainable management system practice in
manufacturing SMEs.
Field of Research: 5S, sustainability, manufacturing SMEs.
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1. INTRODUCTION
As the problems of sustainability continue, there has been an increasing concern on the practices for
sustainability by various organizational sectors (Bajracharya & Too, 2009; UNEP [United Nations
Environment Program], 2011). However, the moves towards sustainability in manufacturing small and
medium-sized enterprises (SMEs) are often slow as compared to large organizations (Natarajan &
Wyrick, 2011). Although, manufacturing SMEs are usually constrained by their size and financial
resources, and having difficulties to solve sustainable development issues, but their contribution in
economic growth of most nations around the world (Moore & Manring, 2009) including developing
countries such as Malaysia (NSDC [National SME Development Council], 2011) cannot be neglected.
Manufacturing SMEs in Malaysia are important sector and must not be left out in the pursuit for
excellence and sustainable competitive advantage. Various management system practices (MSPs) and
approaches have been developed to deal with the issues for sustainability such as by means of: quality
management system (QMS); environmental management system (EMS); and corporate codes of
conduct and eco-labels (Crals & Vereeck, 2005). Other MSPs that could be used to improve sustainability
are including total quality management (TQM) (Isaksson, 2006), integrated management system (IMS)
(Bamber et al., 2000), and lean manufacturing (LM) (Fliedner, 2008).
Nowadays, the adoption of 5S practice as business improvement tool is well accepted by many
organizational sectors and sizes worldwide (Mohd Azman et al., 2011). It is often thought as an integral
part of MSP of TQM (Ho et al., 1995). The practice of 5S has become the way of doing business and
being the foundation for several MSPs including TQM (Khanna, 2009), total productive maintenance
(TPM) (Ahmed & Mohiuddin, 2005), just-in-time (JIT) (Teeravaraprug et al., 2011), QMS (Pheng, 2001),
EMS (O’hEocha, 2000), occupational health and safety (OHS) (Becker, 2001), and LM (Fliedner, 2008). In
fact, it is also used in parallel with TPM as foundation for building the management system toward
integrated manufacturing (Bamber et al., 2000). Researchers agreed that 5S is very powerful tool,
feasible to implement and incurred less investment (Rose et al., 2011) in improving the organizational
performances on the aspects of economic opportunities and environmental sustainability that include
the benefits of quality, productivity, safety, cost, workplace environment and waste reduction (Ho,
2010; Mohd Nizam et al., 2010). Currently, 5S becomes one of the most popular business improvement
tools in several organizations including manufacturing SMEs (Mohd Azman et al., 2011). The benefits
that could be gained from 5S implementation are in accordance to 3Ps (people, planet and profit), a
well-known marketing principle which having strong linkage with sustainability (Crals & Vereeck, 2005).
In short, the practice of 5S would generate benefits for people (e.g., safety, health, and discipline),
planet (e.g., waste, pollution, and energy), and profit (e.g., productivity, quality, and operational cost).
All aspects of 3Ps need to be fulfilled in order to become sustainable organizations (Tsai & Chou, 2009).
Perhaps, because of its ability to be associated with several MSPs such as TQM, TPM and JIT, the
application of 5S has been extended onto IMS (Gapp et al., 2008) and EMS to help organizations to
achieve sustainability (Tice et al., 2005).
Although, some researchers frequently considered the issue for 5S implementation is not new, but,
given the ability to improve the operational performance in parallel with reduction of environmental
impact within limited investment budget, the successful implementation of 5S in conjunction with
several MSPs should be considerably significant to be the foundation of a framework to help
manufacturing SMEs to pursuit for sustainable economy and environment. Despite the popularity of 5S
practice, there are relatively few empirical papers emphasizing on its use or its association with MSPs in
the journey to promote and assist sustainable management system practices in manufacturing SMEs.
Therefore, this study attempts to explore the ability of 5S implementation in combination with MSPs
that lead to sustainable performances in Malaysian certified 5S practice (also known as Quality
Environment) companies within manufacturing SMEs sector. In the context of this study, a number of
research questions have been formulated in order to further specify the study: i) Does the
implementation of 5S in conjunction with MSPs could be used as foundation in pursuing for
sustainability?; and ii) Which MSPs that could significantly mediate the effect of 5S practice on the
economic and environmental sustainability? Specifically, the objectives of this study are to: i) Explore
the impacts of 5S implementation in combination with MSPs on the operational and environmental
performances in Malaysian manufacturing SMEs; and ii) Propose a conceptual model of the relationship
between 5S practice, MSPs and sustainable performances towards developing a framework for
sustainability practices in Malaysian manufacturing SMEs. This paper reviews the literature related to
the importance contributions of SMEs, and their current practices and issues dealing with economic and
environmental sustainability. It then proposes a conceptual model that could be served as the
foundation for future empirical based research.
2. THE IMPORTANCE OF MANUFACTURING SMES
SMEs are quoted as constituting 80% of global enterprises (Moore & Manring, 2009). They have a very
important function in all economic activity in most industrialized nations. In selected countries such as
UK, SMEs generate 51% of national turnover (Walker & Preuss, 2008), and contribute about 60% of total
country export in China (Crals & Vereeck, 2005), whilst, SMEs in Malaysia constitute 99.2% of total
business establishments which contribute 30.9% of total manufacturing output and account for 31.8% of
total employment in 2008 (NSDC, 2011). According to NSDC (2005), Malaysian manufacturing SMEs are
classified into micro, small and medium-sized enterprise with less than 150 full time employees or less
than RM25 million of annual sales turnover. Majority of them were micro enterprises with 79% of
establishments, small enterprises constituted 18% of establishments, and medium enterprises
represented 3% of establishments as summarized in Figure 1 (SME Corporation Malaysia, 2011). In
addition to economic benefits, SMEs also have a significant environmental impact as they could be
blamed for about 70% of global pollution, whereas manufacturing sectors are the major contributors
(Burke & Gaughran, 2007). In summary, manufacturing SMEs are often thought as having an important
contribution not only to social obligations, but also to the economic opportunities and environmental
preservation. Therefore, SMEs in manufacturing sectors have an important role to take part in the
pursuit for sustainability.
Figure 1: Classification of manufacturing SMEs in Malaysia

3. SUSTAINABLE MANAGEMENT SYSTEM PRACTICE IN MANUFACTURING SMES
The problems of sustainability are becoming a global concern by many organizations (UNEP, 2011).
Today, business function has been greatly influenced by sustainability stewardship such as standards
and regulatory compliance, employee awareness, and customer satisfaction (Natarajan & Wyrick, 2011)
to ensuring the preservation of environment and increasing economic opportunities for present and
future generations which aligned with the concept of sustainable development (SD) coined by
Brundtland Commission (WCED [World Commission on Environment and Development]), 1987).
Specifically, Sohif et al. (2009) highlighted that sustainability is achieved when “the needs of the present
are met without compromising the ability of the future generations to meet their needs”. Consequently,
SD which triangulated the dimensions of social, economic and environmental goals is now a commonly
used framework for sustainability in various organizational sectors (Bajracharya & Too, 2009).
It is increasingly evidence that the practices for sustainability are often employed by large organizations.
Except a very few, SMEs are still lagging behind in implementing a good MSP to improve their economic
and environmental sustainability. Indeed, SMEs in manufacturing sector are facing difficulties and
constraints to provide financial budget and to dedicate manpower in pursuing sustainable
entrepreneurship (Crals & Vereeck, 2005; Natarajan & Wyrick, 2011). Several MSPs have been used to
take care of the issues for sustainability such as by means of: ISO 9001 of QMS to increase economical
benefits; ISO 14001 of EMS to manage and control the environmental impacts; and corporate codes of
conduct and eco-labels to address the concerns on environmental sustainability (Crals & Vereeck, 2005).
Another examples of MSPs that could be used to improve sustainability are including OHSAS 18001 of
OHS (Crals & Vereeck, 2005), TQM (Isaksson, 2006), IMS (Bamber et al., 2000), and LM (Fliedner, 2008).
However, manufacturing SMEs may be required huge commitment to implement the existing practices
due to their constraints and barriers as highlighted earlier. They are said to be having lack of expertise,
and monetary problems of financial investment and maintenance cost in implementing the
management practices such as: ISO 9001, ISO 14001, OHSAS 18001 (Crals & Vereeck, 2005; Tsai & Chou,
2009); IMS (Santos et al., 2011) which consists of QMS, EMS and OHS; and LM (Wong et al., 2009) which
will eventually give impacts on sustainable economy and environment. Therefore, manufacturing SMEs
need a simple, feasible, and affordable approach to make them available in improving their sustainable
performances. One of the widely used approaches under the program of MSPs for the improvement of
organizational performances is through the adoption of 5S practice (Ho, 2010; Mohd Nizam et al., 2010).
4. 5S: THE UNDERLYING CONCEPT FOR SUSTAINABLE MANAGEMENT SYSTEM PRACTICE
The practice of 5S is initially concentrates on the improvement of industrial workplace environment in

the pursuit for high quality, low cost and rapid delivery of products. The theory of 5S is simple and could
be transferred into practice towards continual improvement (Ho et al., 1995; Mohd Nizam et al., 2010).
Originally, it is a workplace housekeeping technique based on five Japanese acronyms (Ho et al., 1995).
Much of literature still declares 5S as housekeeping (Becker, 2001; da Silveira, 2006) or a lean tool
(Pavnaskar et al., 2003; Hines et al., 2004). Others recognize 5S as a problem-solving tool (Hyland et al.,
2000) and as well as environmental improvement tool (O’hEocha, 2000). Although, some quality experts
have used different words for 5S, however they carry the same meaning and objective to establish and
maintain quality environment in an organization (Mohd Nizam et al., 2009; Ho, 2010). In the context of
this study, the authors use the meaning of 5S as seiri (sort), seiton (set in order), seiso (shine), seiketsu
(standardize) and shitsuke (sustain), adopted from Malaysia Productivity Corporation (MPC), a
government agency under the Ministry of International Trade and Industry (MITI), Malaysia (Mokhzani,
2010). The first ’S’ refers to sorting out and categorizing the items depending upon frequency of use
with the aim to reduce mess at work area. Second is set in order which is to organize the items from sort
phase into a designated area for easy storage and retrieval purpose through proper visual control
system. The third is shine that refer to systematic cleaning, maintenance and inspection in ensuring a
clean and conducive environment at workplace. The next ‘S’ is standardize which means to do
standardization of best practices such as by documenting and updating the processes, work instructions,
procedures and manual. The last ‘S’ is sustain which means sustaining what has been carried out
(Mokhzani, 2010; Wan Asri & Azman, 2011).
Many researchers have promoted in their studies that the effective use of all five ‘S’ can bring potential
benefits associated with having better workplace environment in improving the operational
performance by means of quality, productivity and safety (Khanna, 2009; Mohd Nizam et al., 2010), and
environmental performance by means of waste, pollution and energy (O’hEocha, 2000; Nilipour &
Jamshidian, 2005). For example, a survey on the impact of implementing 5S practice within Malaysian
companies conducted by MPC confirmed major benefits associated with 5S practice including the
reduction in reworks and floor space optimization by 83.7% of the companies, while 82.8% experienced
improvement in visual management, 78.4% of respondents achieved improvement in employee
creativity, teamwork and morale, and 68.8% of the companies reported reduction in customer
complaints. Consequently, 5S practice had contributed to higher sales and reduction in operation costs
(MITI, 2010). The practice of 5S is also become a foundation for the improvement agenda such as TQM,
QMS, EMS, TPM, JIT, OHSMS, IMS, and LM in an organization. For examples, some studies affirmed 5S
has a major role for successful TQM implementation in many organizations (Ho et al., 1995; Khanna,
2009). The other study verified that 5S is an effective tool that can improve housekeeping,
environmental performance and safety. Major efforts to improve environmental performance are linked
with housekeeping; therefore hazardous waste and pollutions within workplace environment could be
easily traced by utilizing 5S practice (O’hEocha, 2000; Nilipour & Jamshidian, 2005) which is considered
as one simple technique for pollution prevention apart from waste segregation and training (EPA
[Environmental Protection Agency], 1992). The 5S could also be incorporated with QMS, OHS and EMS
as an approach for IMS in order to gain benefits for productivity, quality, costs, delivery, and safety
(Bamber et al., 2000). In addition, lean practices such as kaizen, kanban, value stream mapping (VSM),
5S, cellular manufacturing (CM), and TPM are commonly used by manufacturing industry (Fliedner,
2008; Rose et al., 2011). Among the practices, 5S is considered as one of the least financial investment
approach for lean implementation (Rose et al., 2011), but resulting in considerably improvements in
quality, productivity and morale more than any other lean tools, particularly in SMEs (Nilipour &
Jamshidian, 2005). In addition to reduction of financial budget, the 5S if practiced in a systematic way
will improve the operational and environmental performances of an organization (Mohd Nizam et al.,
2010), and subsequently give benefits and profit to the people and planet. In summary, the practice of
5S is considered as an essential component of several MSPs, and aligned with the concept of SD which
covers the aspects of society, economy and environment.
Today, 5S practice has been extensively adopted by various industrial sectors and sizes around the world
(Mohd Azman et al., 2011). According to the survey conducted by Centre for Organizational Excellence
Research (COER), Massey University, New Zealand, and Fraunhofer Institute for Production Systems &
Design Technology (IPK), Germany with over 500 respondents from over 20 countries around the world,
the 5S practice was among the top 20 of popular business improvement tools and used by 30.3% of
organizations worldwide (Global Benchmarking Network, 2010). Meanwhile, Figure 2 shows the result of
recent survey carried out by Standards and Industrial Research Institute of Malaysia (SIRIM) to identify
the status of standard based management system (SBMS) in 1000 certified SBMS Malaysian
organizations with response rate of 14%. The survey revealed that 5S was the most popular
improvement tool and used by 94 organizations with 60% of them were SMEs (Mohd Azman et al.,
2011). In the context of organizations in Malaysia, perhaps the implementation framework for 5S
practice has been adopted from MPC. For many years, MPC has been working in helping organizations
to achieve the 5S practice or Quality Environment certification as public declaration and marketing
strategy for their commitment in quality workplace environment and continual improvement to satisfy
customer wants. In between year of 2000 to 2010, a total of 667 organizations from various industry
sizes and sectors have received the certification in 5S practice with 326 (49%) were from public and 341
(51%) from private sectors. Out of the total number of private organizations, 242 (71%) were from large
companies and 99 (29%) were from SMEs (Mokhzani, 2010). However, the key factor for successful
implementation of 5S is largely driven by the commitment from top management (Mohd Nizam et al.,
2010). Another suggestion for critical success factors (CSFs) of 5S implementation are inclusive of
management support, management role, employee empowerment and training (Wan Asri & Azman,
2011). In addition, strategic planning for successful 5S program has been recommended by MPC that
comprises of approval from top management, appointment of project committees, promotion and
training and identification of focused-work area (Mokhzani, 2010).
5S 94
TQM 60
ICC/ QCC 51
Improvement Tools
Benchmarking 50
Employee Survey 48
TPM 48
7 QC Tools 46
KPIs 45
Kaizen 42
Risk Management 40
0 10 20 30 40 50 60 70 80 90 100
No of Organizations
Figure 2: Adoption of improvement tools by Malaysian organizations
5. RESEARCH METHODOLOGY
5.1 Research Design
This study concentrates on the initial phase of the research project toward development of framework
for sustainable management system practice in manufacturing SMEs. In this phase, conceptual
background shall be the main focus. Figure 3 summarizes the entire phases of the research project.
Figure 3: Research design
5.2 Research Framework
This study has developed a preliminary framework based on the literature sources as depicted in Figure
4 that integrates the practice of 5S and MSPs in improving the operational performance and
simultaneously reducing the environmental impacts within manufacturing SMEs which emphasize on
the prioritization of financial investment cost. The proposed framework shall bear the core principles of
5S but deliberates the environment in parallel. Therefore, the well-established 5S processes shall not be
substituted, but it will be enhanced in order to consider the environmental issues within the workplace
as part of 5S system. The framework has been developed for better implementation of 5S in conjunction
with MSPs throughout the following four main stages:
The work begins with the first stage or PLAN that includes planning and preparation by considering the
CSFs as key drivers for the successful implementation of 5S system such as obtaining approval and
participation from top management team to run the program, formation of project committees,
creating 5S and environmental awareness and organization-wide promotion, organizing basic training on
5S and MSPs, involving employees to define and identify work area and zone to be focused. The second
stage or DO is a system to be employed. It is about how to implement step-by-step of sustainability

initiatives of ‘5S + MSPs’ system. The third and final stages are the results that could be achieved. During
the third stage or CHECK, the effectiveness of the implementation results shall be verified through
internal audit and self-assessment before proceeding to the external audit and compliance certification.
The results could be measured quantitatively and qualitatively through several indicators. In the final
stage or ACTION, in relation to the outcomes, the practicability of the framework shall be reviewed,
modified, standardized and to be continuously improved throughout the complete cycle of the stages.
Figure 4: Preliminary framework
5.3 Data Collection and Analysis
By incorporating the theoretical ideas, models and frameworks as discussed earlier, this study has
developed a causality model in order to assist in the process of data collection and analysis as illustrated
in Figure 5. The model shall be validated through a survey instrument (questionnaires) by purposive
sampling on the perceptions and experience of 5S certified companies in the Malaysian manufacturing
SMEs. All target respondents of SMEs shall be selected from MPC directory. A five-point Likert-type scale
will be used for measuring the variables. Table 1 summarizes the definition and measurement of
variables for this study. Descriptive, correlation and structural equation modeling (SEM) shall be
employed as data analysis methodology.
Figure 5: Conceptual model
Table 1: Definition and measurement of variables
5S Practices (5S):
 Seiri (S1); Seiton (S2); Seiso (S3); Seiketsu (S4); and Shitsuke (S5)
Management Practice (MSP):
 Integral part of TQM, TPM, JIT implementation (TQM)
 Certification and implementation of ISO 9001 (QMS)
 Certification and implementation of ISO 14001 (EMS)
 Certification and implementation of OHSAS 18001 (OHS)
 Combination of QMS, EMS and OHS (IMS)
 Integral part of lean manufacturing implementation (LM)
Operational Performance (OP):
 Product quality improvement (OP1)
 Productivity improvement (OP2)
 Lead time reduction (OP3)
 Manufacturing cost reduction (OP4)
 Work culture improvement (OP5)
 Safety and health improvement (OP6)
Environmental Performance (EP):
 Reduction of emission of waste (EP1)
 Reduction of hazardous pollution (EP2)
 Reduction of energy usage (EP3)
6. CONCLUSION AND FUTURE RECOMMENDATION
This paper focuses attention on the early phase of research project which may contributes preliminary
work related to development of framework toward sustainable management practice for SMEs. In this
study, a model that conceptualizes the relationship of 5S practice, MSPs and sustainability in terms of
operational and environmental performances at workplace within manufacturing SMEs in Malaysia has
been proposed. The impacts of 5S practice on both operational and environmental performances in
conjunction with MSPs have been predicted and discussed, and key areas for research have been
identified.
This study would be useful for manufacturing SMEs to choose which MSPs could significantly be
associated with 5S in order to give big influence on sustainable performance. The outcomes could also
enhance the relationship between 5S practice and sustainability via MSPs in manufacturing SMEs, and
eventually contribute to the body of knowledge in both disciplines. Both disciplines could benefit from
one another by integrating experiences and concepts from the other discipline. Nevertheless, an
empirical research is needed to determine the applicability and validity of the proposed model. It is
hoped that the collected empirical data could enhance the proposed model and provide new
information towards developing the efficient framework for sustainable management practice in SMEs.
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ASIA PACIFIC JOURNAL OF OPERATIONS MANAGEMENT

19 DECEMBER 2012. VOLUME 1. NUMBER 1

A CONCEPTUAL MODEL TOWARDS SUSTAINABLE MANAGEMENT SYSTEM BASED

Mohd Nizam Ab Rahman

Nik Zainuddin Nik Ismail

Field of Research: 5S, sustainability, manufacturing SMEs.

2. THE IMPORTANCE OF MANUFACTURING SMES

Figure 1: Classification of manufacturing SMEs in Malaysia

3. SUSTAINABLE MANAGEMENT SYSTEM PRACTICE IN MANUFACTURING SMES

4. 5S: THE UNDERLYING CONCEPT FOR SUSTAINABLE MANAGEMENT SYSTEM PRACTICE

The practice of 5S is initially concentrates on the improvement of industrial workplace environment in

5.1 Research Design

Figure 3: Research design

5.2 Research Framework

stage or DO is a system to be employed. It is about how to implement step-by-step of sustainability

Figure 4: Preliminary framework

5.3 Data Collection and Analysis

Figure 5: Conceptual model

Table 1: Definition and measurement of variables

6. CONCLUSION AND FUTURE RECOMMENDATION

Burke, S. & Gaughran, W. F. (2007). Developing a framework for sustainability management in

Mokhzani, A. M. Y. (2010). Malaysia Productivity Corporation (MPC): Quality environment standard.

Nilipour, A. & Jamshidian, M. (2005). 5S as an environmental organization management tool: Benefits

Wan Asri, W. A. A. & Azman, C. M. (2011). The effectiveness of implementation of 5S on employee

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