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Measuring Business Excellence

Examining the role of 5S practices as a facilitator of business excellence in manufacturing organizations


Jugraj Singh Randhawa, Inderpreet Singh Ahuja,
Article information:
To cite this document:
Jugraj Singh Randhawa, Inderpreet Singh Ahuja, (2017) "Examining the role of 5S practices as a facilitator of business
excellence in manufacturing organizations", Measuring Business Excellence, Vol. 21 Issue: 2,pp. -, doi: 10.1108/
MBE-09-2016-0047
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http://dx.doi.org/10.1108/MBE-09-2016-0047
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EXAMINING THE ROLE OF 5S PRACTICES AS A FACILITATOR OF
BUSINESS EXCELLENCE IN MANUFACTURING ORGANIZATIONS

ABSTRACT
Purpose: A research has been conducted to evaluate the role of 5S initiatives as a facilitator
of accruing business excellence in the manufacturing organizations.
Design/methodology/approach: The study involves empirical investigation of ninety two
manufacturing organizations to evaluate the contributions of 5S initiatives towards accruing
business performance excellence in the respondent organizations. The study involves nine
significant stimulants for 5S implementation and seven crucial performance parameters
leading to realization of business excellence in manufacturing organizations.
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Findings: The results clearly indicate close association between the significant nine
stimulants for 5S implementation and seven crucial business excellence performance
parameters. The study also establishes that 5S initiatives can significantly facilitate
achievement of business excellence in the manufacturing organizations.
Originality/value: The study deploys various statistical and validation techniques to evaluate
the contributions of effective 5S approach as a facilitator for accruing business excellence in
manufacturing organizations.
KEYWORDS
5S, Lean Manufacturing, Toyota Production System, Business Excellence,
Manufacturing Organizations

INTRODUCTION
Ferocious competition in the contemporary manufacturing scenario has contributed to
enormous pressure on manufacturing organizations to sustain high levels of improvements in
their performance for the survival and success of organizations. The fierce competition in the
global marketplace has provided impetus to manufacturing firms to remain intensely focused
to systematically adopt proactive Lean manufacturing methodologies. These methodologies
comprise of 5S, Kaizen, Total Productive Maintenance (TPM), Just in Time (JIT), Kanban,
Single minute exchange of dies (SMED), Poka Yoke etc. to attain significant manufacturing
performance improvements (Monden, 1998; Radnor and Walley, 2008; Gomes et al., 2013).
Lean manufacturing (LM) has emerged as an important philosophy for successfully guiding
an organization to overcome the unpredictable competition in industrial environments with
lesser resources (Shah and Ward, 2007). LM is a dynamic learning process which eliminates
wastages in the production system and ensures optimal utilization of resources for fulfilling
the customer’s perspectives (Ohno, 1988). 5S methodology has emerged as a primary lean
initiative imbibed by large number of companies implementing various lean initiatives, since
5S principles have exhibited tremendous potential in meliorating the level of quality,
productivity, organization work culture, employee morale values and safety.
1
5S methodology has its roots in Japan’s Toyota Production System (TPS). Japan has
0.3% of world land mass and 2.3% population, but still it has emerged as a global leader in
automobiles manufacturing (Hitomi, 2004). Before the Second World War, Japanese
organizations were lagging behind in the global manufacturing scenario with moderate
quality and productivity levels, thereby lacking competitiveness. Since World War Second,
the Japanese manufacturing companies have attained huge upsurge in the quality of products,
and have even upstaged the performance levels exhibited by organizations from the Western
Countries. The tremendous performance improvement by Japanese manufacturers has been
achieved by the collective efforts of top management and employees partnership strategy and
the admirable employee centric management techniques like 5S, Kaizen, TQM, TPM,
Kanban and LM principles (Kobayashi et al., 2008; Suarez-Barraza and Ablanedo-Rosas,
2014, Singh and Ahuja, 2014).
For many years, 5S initiatives were practiced in Japan to achieve significant
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organizational benefits like quality enhancement, cost optimization, waste elimination,


employee empowerment and delivery adherence. These factors have motivated the
organizations worldwide to holistically imbibe 5S practices (Ohno, 1988). 5S is basically
made from five Japanese words which start with letter S: Seiri, Seiton, Seiso, Seiketsu and
Shitsuke. The complexity of the Japanese language is removed by the researchers in English
language as: Structurize, Systemize, Sanitize Standardize and Self-discipline (Ho et al., 1995;
Ho and Cicmil, 1996). 5S involves a structured improvement program with a series of
identifiable steps related to each other in a progressive manner (Hirano, 1995). Takisha
Osada (1989-1991) coined 5S principles in late 1980’s, while later on Hiroyuki Hirano (1995,
1996) proclaimed a Westernized approach about 5S. Both of them developed their respective
frameworks for understanding 5S principles and applications in the organizations. Hirano
(1995) proclaimed that 5S steps were designed to improve efficiency, strengthen
performance, and provide continuous improvement in virtually all segments of the
organization. These steps involved a structured improvement program with a series of
identifiable steps related to each other in a progressive manner (Jaca et al., 2013).

LITERATURE REVIEW
The historical roots of 5S have been essentially based on the principles of Shintoism
(cleanliness of mind), Buddhism (Orderliness) and Confucianism (self-discipline) related to
Japanese culture while its value and ethics were running from the times of Samurais (Ohno,
1988; De Mente, 1994). 5S program initially originated in Japan during 1955-1960 when
Toyota Production System was envisioned to affect significant organizational performance
enhancements. At the initial stages of 5S program, only 1S and 2S elements of 5S program
(Seiri, and Seiton) were introduced as a Japanese management system. Later on, during 1956-
1972, 3S (Seiso) and 4S (Seiketsu) elements were further evolved in order to build
standardization and eliminating wastages from TPS. The last element of 5S was introduced
during the period 1973-1980. Thereafter these five S elements were compiled and formulated
in an organized framework initially explained by Takisha Osada (1989) and then by Hiroyuki
Hirano (1995) with their different perspectives for developing understanding of 5S

2
implementation in the organizations (JISHA, 1999; Becker, 2001; Gapp et al., 2008; Monden
1998; Gao and Lowa, 2014).
It has been a well-established fact that 5S programs constitute the base foundation of
total quality pyramid. Quality gurus like Kaoru Ishikawa and Professor Miyauchi have
emphasized that 5S Program is a stepping stone towards improvement in quality and
productivity (Mendes-de-Toledo and Andde-Farias-Filho, 2001). 5S not only simplifies the
work environment and reduces wastage, but also decreases frequent hindrances to workflow,
thereby contributing significantly towards safety enhancement at the workplace with a huge
reduction in incidents of industrial accidents and injuries (Nakamura, 1992; Miki, 1995;
JISHA, 1999; Marria et al., 2014; Singh and Ahuja, 2015).
Ho (1997, 1998, 1999) has contributed significantly towards developing an
understanding and application of 5S program in the Western organizations. Ho proclaimed
that 5S is a significant improvement program for Western organizations, since it holds key
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for enhancing quality, productivity, employee participation, quick item retrieval, time saving,
communication among employees, working environment and safety, visual improvement.
Patten (2006) has emphasized that 5S is much more than cleanup. It is a method for reshaping
the workplace and changes the approach of the employees towards their work, workplaces
with improved communication among various business functions and departments
(Kobayashi et al., 2008; Ablanedo-Rosas et al., 2010). 5S philosophy facilitates
systematically achievement of overall organization, cleanliness, standardization and
providing a foundation for significant improvements at workplace (Liker, 2004; Liker and
Hoseus, 2008; Suarez-Barraza and Ablanedo-Rosas, 2014).
5S implementation depends significantly upon certain human factors like employee
commitment, training, competencies and sustainability initiatives (Ebadi et al., 2015;
Kanamori et al., 2015; Ram et al., 2015, Jaca et al., 2014, 2016). 5S program facilitates
development of self-pride, regard for others, and team working among the employees by
solving the organizational growth problems with collective effort. It also develops a sense of
optimal resource utilization and deriving systematic organization for realizing efficient results
from the workplace and act as a key for the survival of the company in the competitive world
(Mendes-de-Toledo and Andde-Farias-Filho, 2001; Kobayashi et al., 2008). Lista
International Corporation (2007) has concluded that 5S is typically the first lean method that
facilitates organisations in pursuit of: waste reduction, eliminating unplanned downtime,
improving the workplace, eliminate searching time of items at workplace, eliminating
difficulties in using and returning of items and exercising enhanced inventory management
(Muruganantham et al., 2014; Randhawa and Ahuja, 2017).
Kobayashi et al. (2008) have suggested that 5S tool stands first in front of other lean
tools for the development of organization because it is the most effective, simplest and easiest
technique to implement in any organization. 5S philosophy has emerged as the base
foundation for other lean tools (Ho, 1999a; Bamber et al., 2000; O’hEocha, 2000; Chapman,
2005). 5S has significantly emerged as a support, foundation, starting point and baseline of
various organizational management techniques like lean thinking, ISO 9000, Six Sigma,
Kaizen, TPM, ISO 14001, TQM, JIT and Continuous Improvement initiatives (Hirano, 1996;

3
Ho, 1999; Bamber et al., 2000; Kumar et al., 2007; Suárez-Barraza and Ramis-Pujol, 2012;
Singh and Ahuja, 2013). Patra et al. (2005) have proclaimed that 5S played a significant role
to achieve total quality management (TQM) and TPM in Indian organizations. Ho and Cicmil
(1996) have concluded that 5S practices constitute a significant pillar of TQM and can be
implemented successfully with the help of top management commitment, promotional
campaign, training of 5S, evaluation of the results and keeping of records. Brayer and Walsh
(2002) have also concluded that 5S technique has successfully facilitated the Australian
office of the Mast international group to rediscover the value of TQM in the organization.
The case study reported that 5S practice effectively transformed the organizational culture
and offered significant benefits in the business strategic plans. O’hEocha (2000) has
conducted the case studies regarding the 5S technique in various organizations and reported
that 5S practices have been found to be significantly effective to attain the environmental,
health, safety standards along with reduction of water, oil and energy wastage in the
organizations. 5S methodology can not only contribute towards imbibing significant
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developments in manufacturing sector, but can also offer remarkable evolutions in library,
defence, banking, mining, agriculture, hospitals and construction sector (Gratiela, 2012;
Chuanjie, 2013; Aziz et al., 2014; Ikuma and Nahmens, 2014; Flynn and Vlok, 2015). From
the literature survey, it can be concluded that 5S has considerable linkage with almost every
lean tool as shown in Figure 1 (Ahuja and Khamba, 2008).
FIGURE 1: INSERT HERE
Figure 1 Linkage of 5S with other Lean Tools

METHODOLOGY OF STUDY
From the literature review, it is evident that 5S programs have attained wide
acceptability in manufacturing organizations globally owing to the tremendous potential to
cater to realization of organizational goals and objectives. In their pursuit to adopt proactive
Lean manufacturing principles, Indian manufacturing organizations have been laying
emphasis on imbibing proactive 5S initiatives for realizing organizational sustainability and
growth. The research aims at critically investigating the effectiveness of strategic 5S elements
towards achieving business excellence in Indian Industry. Figure 2 describes the
methodology deployed in the research.

FIGURE 2: INSERT HERE

Figure 2: Methodology Deployed for Research Study


The research has been conducted in manufacturing organizations located in different
geographical locations in India that have effectively imbibed the 5S technique or are in the
process of implementing 5S initiatives alone or along with other lean manufacturing

4
practices. The framework deployed for development of 5S questionnaire is shown in Figure
3.
FIGURE 3: INSERT HERE

Figure 3: Framing of 5S Questionnaire


The questionnaire survey technique has been deployed in the present study for
seeking information on the status of 5S implementation issues and the realization of various
business excellence performance parameters (BEPP) in the Indian manufacturing industry.
The 5S questionnaire has been formulated through exhaustive literature review and expert
advice of the organization's managers, TPS consultants and Lean councillors from various
industries to ensure the effectiveness of questionnaire to meet the specified objectives. The
questionnaire had been pre-tested on sample manufacturing Industries and further validated
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through Peers, TPS consultants, Lean councillors, Academicians, Quality executives and
executives from Confederation of Indian Industries (CII) in order to ensure the relevance and
effectiveness of the questionnaire. The suggestions obtained during the pre-testing stage were
incorporated to make the questionnaire relevant to the purpose and bring out key outcomes as
a result of strategic 5S implementation. The 5S questionnaire serves the purpose of revealing
the exploits of Indian entrepreneurs with 5S practices and highlights the contributions of 5S
practices in realizing the overall organizational business excellence and sustainability
pursuits.
The 5S questionnaire has been designed in such manner to engulf all the necessary
elements of 5S implementation program and their contributions to improve the performance
parameters which lead to business excellence. The various 5S implementation attributes and
performance parameters leading to business excellence involved in this study were
formulated through extensive literature review and consultations with industrial resource
persons, quality managers, lean councillors, as depicted in Figure 4 (Ho et al., 1995; Ho and
Cicmil, 1996; Bamber et al., 2000; O’hEocha, 2000; Liker, 2004; Chapman, 2005; Kumar et
al., 2007; Kobayashi et al., 2008; Ablanedo-Rosas et al., 2010).
FIGURE 4: INSERT HERE

Figure 4: Stimulants for 5S implementation program and Business Excellence


Performance Parameters
Around 275 different manufacturing organization were approached having more than
100 working employees to record the responses regarding their exploits with 5S program and
business excellence attributes accrued through a well-designed 5S questionnaire. The
organizations were contacted to explain context of the research work. Ninety two
manufacturing organizations responded to the questionnaire thereby indicating a healthy
response rate of 33.45%. The responses regarding each of 5S implementation attributes were
recorded on a four point Likert scale with intercepts: Not at all; To some extent; Reasonably
well and To a great extent; while the performance enhancement parameters leading to

5
business excellence were also recorded on a Likert scale with intercepts: Nominal Gain (<
10%); Reasonable Gain (10 – 20 %); High Gain (21 – 30%) and Extremely High Gain (>30
%).
The valuable responses were obtained from senior management administrators like:
senior engineers, quality managers, TPS councillors, Lean councillors, quality assurance
heads, Kaizen coordinators, etc. regarding the exploits of manufacturing organizations with
5S initiatives and performance enhancement achievements leading to business excellence.
The data collected from the manufacturing organizations have been compiled and analysed
through IBM SPSS Statistics 21 (Statistical Package for the Social Sciences) software for
evaluating the level of associations between the input and output variables through different
statistical techniques like Cronbach’s Alpha, Covariance Matrix, Pearson Correlation
Coefficient, Multiple Regression Analysis, Canonical Correlation Analysis, Two tailed ‘t’
test and Discriminant Validity analysis. The 5S questionnaire serves the purpose of revealing
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the exploits of Indian entrepreneurs with 5S practices and highlights the contributions of 5S
in realizing the overall organization’s goals and objectives.

DATA ANALYSIS
The data collected from various manufacturing organizations regarding various
stimulants for 5S Implementation (X1, X2, X3, X4, X5, X6, X7, X8 & X9) and Business
Excellence (Y1, Y2, Y3, Y4, Y5, Y6 & Y7) attributes have been statistically tested through
the Cronbach’s alpha statistical test in order to validate the reliablity of the data obtained
through the ‘5S Questionnaire’. Tables 1 and 2 portray the assessment of Cronbach’s alpha
for each of the stimulants for 5S implementation and performance parameters considered for
the present research work. The Cronbach’s alpha for both 5S Stimulants and business
excellence performance parameters have been observed to be greater than 0.86, which clearly
validates the high reliability of data obtained from the respondent organizations.
TABLE 1: INSERT HERE
TABLE 2: INSERT HERE

Tables 3 shows the Inter-item covariance matrix depicting the covariance of all 5S
stimulants and business excellence performance parameters. The data clearly reveals that the
covariance within the group is higher than covariance’s outside the group, which is
acceptable.
TABLE 3: INSERT HERE

Table 4 portrays the Pearson’s correlations between stimulants for 5S implementation


and performance parameters leading to Business Excellence to depict the level of association
between these attributes. Pearson correlations (r) highlight the critical predictor attributes
mainly responsible for accruing strategic improvements in Business Excellence performance

6
parameters. The data depict that most of the pairs are significantly associated with each other
with ‘r’ ≥ 0.440 at statistical significance level ‘p’ of 0.001. The t–test has been applied to
examine and validate the contributions of 5S implementation stimulants towards
enhancements of business excellence performance parameters. The ‘t’ values for most of the
pairs have been found to be significantly more than tabular ‘tn – 2’ value of 3.40 corresponding
to confidence limits for n – 2 (= 90) degrees of freedom and significance level ‘p’ of 0.001,
obtained from two tailed statistical t tables. This clearly establishes the strong association
between stimulants for 5S Implementation and business excellence performance parameters
involved in the study.
TABLE 4: INSERT HERE

Table 5 presents Multiple Regression Analysis to validate the results of Pearson’s


Correlation and t-Test to evaluate the contributions of stimulants of 5S Implementation for
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accruing strategic improvements in Business Excellence performance parameters. The data


depict significantly higher values of R2, thereby indicating strong relationship between the 5S
stimulants and business excellence attributes. Further, the Durbin Watson coefficient close to
2.0 depicts the normal distribution of the data obtained from the questionnaires.
Table 5 clearly highlights the significant contributions of stimulants of 5S
implementation towards accumulation of significant improvements in business excellence
performance parameters in the respondent organizations. The results clearly indicate that
adequate strengthening of last element 5S (Shitsuke) Issues (X9) initiatives/dimensions in the
manufacturing organizations can have substantial impact in betterment of Production Related
Achievements (Y2), Quality & Continuous Improvements (Y3), Employees Related
Achievements (Y5), Effective Workplace Utilization (Y6) and Safety Enhancements
Achievements (Y7) performance parameters of business excellence, while the basic 5S issues
(X4) have contributed in the meliorations of Production Related Achievements (Y2) and
Effective Workplace Utilization (Y6). The results highlights that successful implementation
of last element 5S (Shitsuke) has huge potential in providing significant improvements of
performance parameters thereby imbibing business excellence in the organizations, since it
stands for proactively sustaining all the previous four S initiatives and bring proactive
changes in the behaviour of employees at all levels within an organization to make the
continuity of daily routines to autonomously perform previous 4S task habitually.
Further, the data reveals that Top management involvement initiatives (X1) perform
active role in the improvement of Overall Organization Achievements (Y1) and Cost
Optimization Achievements (Y4) by providing necessary leadership, resources,
synchronization between different business functions and elimination of procedural obstacles
in the administrative work. The data also highlights that Employee Involvement Issues (X2)
have shown negative significant association on output parameters Production Related
Achievements (Y2), Cost Optimization Achievements (Y4) and Employees Related
Achievements (Y5). This suggest that some organizations have not fully covered all the
employees under 5S program, and they are paying less attention towards improvement of
their skills, training and personnel development from time to time. Thus there is an emergent

7
need to strengthen employee involvement attributes in the respondent manufacturing
organizations.
TABLE 5: INSERT HERE

Table 6 depicts the Canonical Correlations between 5S stimulants and business


excellence performance response attributes. The Canonical correlation analysis is a
significant multivariate statistical data analysis tool for evaluating relationships amongst
group of multiple dependent response attributes (performance parameters) and multiple
predictor variables (stimulants). Table 6 indicates the existence of strong canonical
correlation function (r = 0.917 at Fstatistic probability < 0.001) between stimulants of 5S
implementation and performance business excellence parameters attributes in the
organizations. The data also demonstrates the powerful loading of criterion set (Business
Excellence performance parameters) variates (Y1, Y2, Y3, Y4, Y5, Y6 and Y7) on dependent
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variate ranging from 0.724 to 0.966. Similarly, the explanatory set of 5S implementation
stimulants (X1, X2, X3, X4, X5, X6, X7, X8 & X9) have also exhibited strong loading on the
independent variate ranging from (0.658 to 0.963).
Further, the stability runs of canonical correlation analysis were conducted, for
validating the canonical loadings, due to moderate sample size, by excluding one variable at a
time. The tests depict the stability of canonical loadings and statistical significance of
univariate and stepdown F tests for canonical correlation function. The results after deletion
of predictor variables Columns X1, X2, X3, X4, X5, X6, X7, X8 and X9 clearly exhibit the
stability of Canonical Loadings from these stability runs.
TABLE 6: INSERT HERE

The research involves evaluating the short, medium and long-term effects of 5S
implementation on business excellence performance. The respondent organizations have been
clubbed into three categories based on their experience with 5S initiatives. The organizations
who have reported 5S implementation experience up to three years have been classified under
Phase-I (Introductory phase, N=23), whereas the organizations having three to five years 5S
implementation experience have been classified under Phase-II (Stabilization phase, N=32),
and organizations having more than five years of 5S implementation experience have been
categorized under Phase-III (Maturity phase, N=37).
Table 7 depicts the improvements in business excellence performance parameters
accrued by respondent organizations over variable 5S implementation periods (phases). The
data depicts means and standard deviations of different business excellence performance
parameters achieved through strategic 5S initiatives by various respondent organizations. The
data reveals a trend of progressive improvement of various performance parameters which
lead to business excellence reaped in Phase-II and Phase-III, viz-a-viz those of Phase-I,
thereby indicating the improvements in business excellence performance parameters accrued
over extended 5S adoption period.
TABLE 7: INSERT HERE

8
Table 8 exhibits the result of two tailed t-test for business excellence performance
parameters accrued in variable time periods through effective implementation of various 5S
stimulants at the significance level of 0.01.
TABLE 8: INSERT HERE

The test t (II/I), t (III/I) and t (III/II) reveals the statistical significance of
improvements of business excellence performance parameters accrued in various 5S
implementation time periods, through effective adoption of 5S stimulant attributes. It has
been evident from the data analysis that t (II/I), t (III/I) and t (III/II) values have been found
to be statistically significant at significance level ‘p’ of 0.001, thereby demonstrating the
strengthened performance of 5S stimulants to accrue significant business excellence
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performance attributes from Phase–I (introductory phase) to Phase–II (stabilization phase) to


Phase–III (maturity phase). This reveals that 5S practices have continuously enhanced the
performance parameters levels, which efficiently lead to realization of significant business
excellence in manufacturing organizations.

DISCRIMINANT VALIDITY TEST FOR CLASSIFYING MORE SUCCESSFUL


AND LESS SUCCESSFUL ORGANIZATIONS
Finally the study deploys discriminant validity test for classifying ‘More successful’
and ‘Less successful’ organizations based on their exploits with ‘5S implementation
stimulants’ and ‘Business Excellence performance parameters’ measureable attributes
obtained through ‘5S Questionnaire’, while the categorical output variable is the status of 5S
implementation, which has further been classified into ‘0 – Less Successful’ and ‘1 – More
successful’. Discriminant Analysis has been used to determine the probability of categorical
group membership using interval or predictor variables. The status regarding success of 5S
implementation (qualitative information) has been obtained from the industrial resource
persons.
The analysis of discriminant analysis involving 92 respondents has revealed that 20
organizations have reported ‘low success’ with 5S exploits, 72 organizations had reported
‘high success’ accrued through strategic 5S implementation. The discriminant analysis
‘Group Statistics’ data depict that pre-test means of ‘high successful’ organizations are higher
than those of ‘less successful’ organizations. The ‘Tests of Equality of Group Means’ reveal
that Wilks’ Lambda is statistically significant for each of the predictor variables, that is ideal
in this case.
Box’s Test of equality of covariance matrices depicted in Table 9, reveals that Log
determinants for ‘Less Successful, ‘More Successful and ‘Pooled within-groups’ segments
are pretty similar at ‘–96.386’, ‘–94.820’ and ‘–91.712’ respectively, which is acceptable.
Also the test reveals high Box’s M value of 309.520 significant at level p < 0.001 (unlike
other statistical tests, where significance level of < 0.05 is usually acceptable). Thus null

9
hypothesis of equal covariance matrix assumption is rejected and there is significant
difference in the covariance of two subgroups.
TABLE 9: INSERT HERE

Further, the summary of Canonical Discriminant Functions reveal that large Eigen
value (2.359) explains the variance of the function in the dependent / outcome variable
appropriately. In the present case, Canonical Correlation works out to be 0.838, thus high R2
(0.701) value can facilitate prediction of outcome variable. Wilks’ Lambda (0.98) predicts
how well the prediction model fits. In this case prediction model is statistically significant (<
0.001) as depicted in Table 10.
TABLE 10: INSERT HERE
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The Standardized Canonical Discriminant Function Coefficients are further evaluated


to evaluate contributions of individual predictor variables on the outcome variables. Similarly
structure matrix also provides the consistency with between Discriminant Function
Coefficients with similar pattern of results. Also it is observed that the lowest value of
function in structure matrix is 0.429, which is greater than 0.3, which is the minimum
accepted value.
Finally the classification statistics data reveals the sensitivity and specificity of the
model, which means that the predicted group membership should be accurate. The data
reveals that in the original sample 95.0% organizations reporting ‘less successful’ have been
predicted as ‘Less successful’, thus revealing high sensitivity of 95.0%. Whereas for ‘More
successful’ organizations, 97.2% organizations have been categorized as ‘More successful’,
thus giving specificity of 97.2%. Therefore high sensitivity mean that there are few false
negatives, whereas high specificity means that there are few false positives. Therefore this
particular model has high sensitivity and specificity. Further, this model has been cross
validated and sensitivity obtained as 90.0% and specificity obtained as 94.4%. Thus this
model accurately classifies 96.7% of original grouped cases and 93.5% of cross validated
cases as depicted in Table 11.
TABLE 11: INSERT HERE

CONCLUSIONS
The research establishes the existence of significant associations between stimulants
for 5S implementation and performance parameters leading to business excellence. The study
exhibits that effective deployment of element 5S (Shitsuke) and basic 5S issues are the
crucial factors in providing significant improvements of performance parameters which leads
to business excellence in the organizations because it stands for sustaining all the previous S
and bring proactive changes in the behaviour of employees at all levels in the organizations.
The study also depicts that organizations need to further emphasize upon building strong

10
employee competencies to accrue significantly improved performance parameters. Further,
top management initiatives have also been found to contribute significantly in accruing
business excellence attributes. The results are in line with the findings of other researchers
who have also emphasized on effectively harnessing human factors like employee
commitment, training, competencies for successful strategic 5S implementation (Ho and
Cicmil, 1996; Ho, 1999b; Khanna and Gupta, 2014; Ebadi et al., 2015; Kanamori et al., 2015;
Ram et al., 2015; Jaca et al., 2016). This strongly establishes 5S as a facilitator of Business
Excellence in Manufacturing Organizations.
The study successfully validates that the last S ‘Shitsuke’ is extremely important
element for reaping consistent BEPP improvements. It is a good finding as last S is about
sustaining the use of earlier 4 S. This can be attributed to the fact that 5S is not just a one-
time short term activity for managing and improving the workplace. Thus mere adoption of
‘Basic 5S initiatives’ does not guarantee long term business performance gains, since
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organizations have shown strong inclination to return to old and poor ways of managing the
workplace in the absence of long term commitment from top management and employees.
The study has revealed that many organizations have shown poor organizational performance
due to non-long term commitment of top management towards 5S initiatives. Thus in this
context the significance of ‘Employee Involvement Initiatives’ and ‘Fifth S Shitsuke
Initiatives’ of sustainable 5S initiatives have been observed to be strongly associated with
‘Business Excellence Performance Parameters’. Based on this research, the practitioners can
evolve ways and means to ensure that 5S initiative once taken has to be sustained.
The study presents progressive improvements in seven Business Excellence
performance parameters accrued through nine significant 5S implementation stimulants over
extended time periods, thereby indicating strong potential of 5S programmes to provide
business excellence results over long time periods. Thus it can be concluded that 5S program
can act as a key facilitator in accruing critical business excellence attributes in Indian
manufacturing organizations for achieving sustainable growth.

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15
EXAMINING THE ROLE OF 5S PRACTICES AS A FACILITATOR OF BUSINESS
EXCELLENCE IN MANUFACTURING ORGANIZATIONS

Table 1: Cronbach Alpha Values of Stimulants for 5S Implementation


Stimulants For 5S Implementation Cronbach’s Alpha
X1 Top Management Involvement Issues 0.863
X2 Employee Involvement Issues 0.9
X3 Organizational Quality Management Issues 0.934
X4 Basic 5S Issues 0.968
X5 1S Initiatives (Seiri) 0.904
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X6 2S Initiatives (Seiton) 0.942


X7 3S Initiatives (Seiso) 0.935
X8 4S Initiatives (Seiketsu) 0.936
X9 5S Initiatives (Shitsuke) 0.941

Table 2: Cronbach Alpha Values for Performance Parameters Leading to Business


Excellence
Performance Parameters Cronbach’s Alpha
Y1 Overall Organization Achievements (OOA) 0.899
Y2 Production Related Achievements (PRA) 0.918
Y3 Quality & Continuous Improvements (QCI) 0.924
Y4 Cost Optimization Achievements (COA) 0.935
Y5 Empolyee Related Achievements (ERA) 0.958
Y6 Effective Workplace Utilization (EWU) 0.937
Y7 Safety Enhancments Achievements (SEA) 0.933

1
Table 3: Inter-Item Covariance Matrix
X1 X2 X3 X4 X5 X6 X7 X8 X9 Y1 Y2 Y3 Y4 Y5 Y6 Y7
X1 .011 .011 .010 .011 .008 .008 .008 .008 .009 .008 .008 .008 .009 .009 .008 .007
X2 .011 .015 .012 .014 .009 .010 .009 .010 .010 .008 .009 .009 .008 .009 .009 .009
X3 .010 .012 .015 .014 .010 .011 .011 .011 .011 .009 .010 .010 .010 .011 .011 .010
X4 .011 .014 .014 .018 .011 .013 .013 .013 .013 .010 .012 .012 .012 .013 .012 .012
X5 .008 .009 .010 .011 .012 .011 .011 .011 .011 .009 .010 .010 .010 .011 .010 .010
X6 .008 .010 .011 .013 .011 .014 .013 .012 .013 .010 .011 .011 .011 .012 .011 .012
X7 .008 .009 .011 .013 .011 .013 .015 .013 .014 .011 .012 .012 .012 .014 .013 .014
X8 .008 .010 .011 .013 .011 .012 .013 .014 .013 .010 .012 .012 .011 .013 .013 .013
X9 .009 .010 .011 .013 .011 .013 .014 .013 .016 .011 .012 .013 .012 .015 .014 .015
Y1 .008 .008 .009 .010 .009 .010 .011 .010 .011 .015 .013 .013 .016 .015 .012 .012
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Y2 .008 .009 .010 .012 .010 .011 .012 .012 .012 .013 .015 .014 .015 .015 .013 .013
Y3 .008 .009 .010 .012 .010 .011 .012 .012 .013 .013 .014 .016 .016 .016 .014 .014
Y4 .009 .008 .010 .012 .010 .011 .012 .011 .012 .016 .015 .016 .023 .018 .014 .014
Y5 .009 .009 .011 .013 .011 .012 .014 .013 .015 .015 .015 .016 .018 .022 .016 .018
Y6 .008 .009 .011 .012 .010 .011 .013 .013 .014 .012 .013 .014 .014 .016 .017 .017
Y7 .007 .009 .010 .012 .010 .012 .014 .013 .015 .012 .013 .014 .014 .018 .017 .023

Table 4: Pearson Correlation between Stimulants for 5S Implementation (X9) and


Performance Parameters Leads to Business Excellence (Y7)
X1 X2 X3 X4 X5 X6 X7 X8 X9
** ** **
Y1 r 0.609 0.521 0.597 0.641** 0.681** 0.663** 0.719** 0.736** 0.730**
p .000 .000 .000 .000 .000 .000 .000 .000 .000
t 7.29 5.79 7.06 7.94 8.84 8.41 9.82 10.32 10.14
** ** **
Y2 r 0.629 0.585 0.672 0.755** 0.751** 0.773** 0.787** 0.803** 0.806**
p .000 .000 .000 .000 .000 .000 .000 .000 .000
t 7.67 6.84 8.61 10.92 10.81 11.58 12.10 12.82 12.95
** ** **
Y3 r 0.610 0.584 0.666 0.721** 0.728** 0.753** 0.773** 0.792** 0.821**
p .000 .000 .000 .000 .000 .000 .000 .000 .000
t 7.31 6.84 8.48 9.89 10.10 10.88 11.57 12.31 13.64
**
Y4 r 0.563** 0.440** 0.537 0.591** 0.613** 0.623** 0.651** 0.639** 0.649**
p .000 .000 .000 .000 .000 .000 .000 .000 .000
t 6.47 4.6613 6.047 6.96 7.36 7.57 8.15 7.89 8.09
Y5 r 0.603** 0.530** 0.585** 0.669** 0.662** 0.683** 0.768** 0.782** 0.811**
p .000 .000 .000 .000 .000 .000 .000 .000 .000
t 7.187 5.933 6.845 8.55 8.40 8.87 11.40 11.91 13.18
Y6 r 0.565** 0.557** 0.665** 0.730** 0.727** 0.734** 0.814** 0.837** 0.842**
p .000 .000 .000 .000 .000 .000 .000 .000 .000

2
t 6.504 6.368 8.45 10.13 10.04 10.26 13.33 14.56 14.82
** ** ** **
Y7 r 0.476 0.470 0.546 0.617 0.623** 0.682** 0.741** 0.747** 0.807**
p .000 .000 .000 .000 .000 .000 .000 .000 .000
t 5.13 5.05 6.18 7.44 7.55 8.86 10.48 10.68 12.97
** Correlation is significant at the 0.01 level (2-tailed)

Table 5: Multiple Regression Analysis between Stimulants for 5S Implementation (X9)


and Performance Parameters Leads to Business Excellence Y7)
Significant Beta Adjusted Durbin-
t-value p-value F-value
Factor Value R2 value Watson
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Y1 X1 0.317 2.188 0.032 0.575 14.661 2.108


X4 0.376 2.402 0.019
Y2 X9 0.355 2.372 0.02 0.692 23.704 1.834
X2 – 0.29 – 2.084 0.04
Y3 X9 0.53 3.456 0.001 0.677 22.154 1.941
X1 0.434 2.672 0.009
Y4 0.466 9.831 1.613
X2 – 0.484 2.644 0.01
X9 0.667 4.481 < 0.001
Y5 X6 – 0.336 – 2.002 0.049 0.696 24.12 2.177
X2 – 0.274 – 1.985 0.05
X9 0.593 4.547 < 0.001
Y6 0.766 34.156 2.302
X4 0.379 2.78 0.007
Y7 X9 0.845 5.376 < 0.001 0.660 20.612 1.935

3
Table 6: Canonical Correlation Analysis between Stimulants for 5S Implementation
and Performance Parameters Leads to Business Excellence
Results
with all Results after deletion of
variables
X1 X2 X3 X4 X5 X6 X7 X8 X9
Canonical
0.917 0.916 0.915 0.917 0.907 0.917 0.912 0.916 0.913 0.887
correlation
Canonical
0.076 0.097 0.085 0.080 0.091 0.080 0.82 0.114
root 0.080 0.093
F statistic
0 0 0 0 0 0 0 0
probability 0 0
Dependent Variate
Canonical loadings
Y1 –0.822 –0.831 –0.815 –0.822 –0.837 –0.821 –0.824 –0.820 –0.822 –0.847
Y2 –0.907 –0.912 –0.901 –0.907 –0.904 –0.907 –0.918 –0.909 –0.910 –0.934
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Y3 –0.909 –0.912 –0.906 –0.909 –0.915 –0.909 –0.917 –0.910 –0.912 –0.912
Y4 –0.724 –0.736 –0.709 –0.724 –0.731 –0.724 –0.736 –0.723 –0.731 –0.752
Y5 –0.909 –0.916 –0.904 –0.909 –0.917 –0.909 –0.905 –0.907 –0.909 –0.893
Y6 –0.966 –0.965 –0.965 –0.966 –0.965 –0.966 –0.960 –0.964 –0.965 –0.964
Y7 –0.889 –0.889 –0.888 –0.889 –0.896 –0.890 –0.892 –0.89 –0.892 –0.846
Shared
0.771 0.779 0.762 0.771 0.781
variance 0.771 0.777 0.771 0.775 0.776
Redundancy
0.578 0.605 0.603 0.591 0.576
index 0.578 0.576 0.563 0.558 0.564
Independent Variate
Canonical loadings
X1 –0.658 ---- –0.655 –0.658 –0.668 –0.658 –0.664 –0.659 –0.661 –0.694
X2 –0.653 –0.653 ---- –0.653 –0.658 –0.653 –0.657 –0.655 –0.656 –0.682
X3 –0.752 –0.752 –0.754 ---- –0.756 –0.752 –0.758 –0.754 –0.756 –0.792
X4 –0.837 –0.838 –0.838 –0.837 ---- –0.837 –0.844 –0.839 –0.842 –0.879
X5 –0.827 –0.829 –0.827 –0.827 –0.835 ---- –0.835 –0.829 –0.832 –0.869
X6 –0.850 –0.851 –0.85 –0.850 –0.858 –0.850 ---- –0.853 –0.857 –0.883
X7 –0.914 –0.916 –0.914 –0.914 –0.924 –0.914 –0.920 ---- –0.919 –0.945
X8 –0.943 –0.944 –0.945 –0.943 –0.953 –0.943 –0.947 –0.944 ---- –0.976
X9 –0.963 –0.964 –0.965 –0.963 –0.976 –0.963 –0.970 –0.965 –0.968 ----
Shared
0.687 0.721 0.721 0.702 0.700
variance 0.688 0.693 0.672 0.670 0.716
Redundancy 0.649 0.654 0.638 0.649 0.642 0.649 0.647 0.646 0.646 0.611

4
Table 7: Results of Performance Parameters accrued based upon 5S adoption period
Performance Phase – I Phase – II Phase – III
Parameters Leading to N = 23 N = 32 N = 37
Business Excellence Mean S.D. Mean S.D. Mean S.D.
Y1 2.5922 .40422 3.1231 .31544 3.5197 .25979
Y2 2.6187 .37694 3.2350 .33594 3.6200 .19124
Y3 2.6413 .44170 3.2131 .32561 3.6322 .21062
Y4 2.2413 .58412 2.9553 .34060 3.4111 .31055
Y5 2.5717 .61340 3.2763 .34347 3.6989 .20399
Y6 2.8183 .55862 3.3288 .32151 3.7551 .22746
Y7 2.8222 .73410 3.3263 .43962 3.7781 .23009
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Table 8: Result of Two tailed t-test for Performance Parameters accrued in variable
time periods
Performance Parameters t t t
Leading to Business Phase – I Phase – II Phase – III (II/I) (III/I) (III/II)
Excellence (p-value) (p-value) (p-value)
5.254* 9.817* 5.647*
Y1 2.5922 3.1231 3.5197
(0.000) (0.000) (0.000)
6.256* 11.828* 5.730*
Y2 2.6187 3.2350 3.6200
(0.000) (0.000) (0.000)
5.265* 10.070* 6.238*
Y3 2.6413 3.2131 3.6322
(0.000) (0.000) (0.000)
5.255* 8.855* 5.773*
Y4 2.2413 2.9553 3.4111
(000) (0.000) (0.000)
4.976* 8.525* 6.094*
Y5 2.5717 3.2763 3.6989
(0.000) (0.000) (0.000)
3.939* 7.658* 6.267*
Y6 2.8183 3.3288 3.7551
(0.000) (0.000) (0.000)
2.936* 6.063* 5.228*
Y7 2.8222 3.3263 3.7781
(0.000) (0.000) (0.000)
* t-values are significant at 0.001 level

Table 9: Box’s Test of Equality of Covariance Matrices

5
Table 10: Summary of Canonical Discriminant Functions
EIGENVALUES
Function Eigenvalue % of Variance Cumulative % Canonical Correlation
1 2.359 100.0 100.0 .838
a. First 1 canonical discriminant functions were used in the analysis

WILKS' LAMBDA
Test of Function(s) Wilks’ Lambda Chi-square df Sig.
1 .298 99.355 16 .000
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Table 11: Classification Results


SUCCESS Predicted Group Membership Total
Less Successful More Successful
Less Successful 19 1 20
Count
More Successful 2 70 72
Original
Less Successful 95.0 5.0 100.0
%
More Successful 2.8 97.2 100.0
Less Successful 18 2 20
Count
More Successful 4 68 72
Cross-validated
Less Successful 90.0 10.0 100.0
%
More Successful 5.6 94.4 100.0

6
EXAMINING THE ROLE OF 5S PRACTICES AS A FACILITATOR OF BUSINESS
EXCELLENCE IN MANUFACTURING ORGANIZATIONS

Figure 1

TPM
KAIZEN TPS

5S
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QC TQM

SIX
JIT SIGMA
ISO
STANDARDS

Figure 1: Linkage of 5S with other Lean Tools

1
Figure 2:
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Figure 2: Methodology Deployed for Research Study

2
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Figure 3:

3
Figure 3: Framing of 5S Questionnaire
Figure 4:

• X1 – Top Management Involvement Issues


• X2 – Employee Involvement Issues
• X3 – Organizational Quality Management Issues
5S • X4 – Basic 5S Issues
Implemenation • X5 – 1S Initiatives (Seiri)
Attributes • X6 – 2S Initiatives (Seiso)
• X7 – 3S Initiatives (Seiton)
• X8 – 4S Initiatives (Seiketsu)
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• X9 – 5S Initiatives (Shitsuke)

• Y1 – Overall Organization Achievements (OOA)


Performance • Y2 – Production Related Achievements (PRA)
Parameters • Y3 – Quality & Continuous Improvements (QCI)
Leading to • Y4 – Cost Optimization Achievements (COA)
Business • Y5 – Employee Related Achievements (ERA)
Excellence • Y6 – Effective Workplace Utilization (EWU)
• Y7 – Safety Enhancement Achievements (SEA)

Figure 4: Stimulants for 5S implementation program and Business Excellence


Performance Parameters

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