a 5s template to increase roi

A 5S Template

To Increase ROI

First: The Benefits of 5S

There are many benefits associated with the implementation of 5S.

Following, we have created a list of the Top 10 benefits which may result in higher ROI’s (Returnon Investment) when 5Sis implemented properly.

I N T R O 5 S

Example of a 5S

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Creates ConsistencyB E N E F I T 1

When 5S is implemented, consistency is created throughout the workplace.

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Processes, procedures, tools used, and even levels of cleanliness willbe consistent which will lead to a reduction in costs due to unique or unnecessary products or processes.



Reduction in Labor Hours

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

B E N E F I T 2

Reduction in Accident Rates

Safety is improved with 5S/6S and the number of employee injuries are greatly reduced.

B E N E F I T 3

Reduction in Accident Rates (cont.)B E N E F I T 3

5S/6S focuses on being proactive and using preventative measures toavoid accidents and increase safety awareness through proper training, appropriate use of PPE,and posted safety materials.

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 an overabundance of inventory.

B E N E F I T 4

By reducing space requirementsneeded, certain costs such asstorage fees and wastedworkspace can be avoided.

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 are unsatisfiedwith 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.

B E N E F I T 5




Enhances Employee Morale (cont.)

5S sets the stage for aclean, organized and consistent workenvironment whichpromotes employeejob satisfaction.

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B E N E F I T 5

Preventing Mistakes

5S helps to prevent inadvertent errorsby mistake-proofingcertain processes and procedures through either streamliningand/or standardization.

B E N E F I T 6

Preventing Mistakes (cont.)

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.

B E N E F I T 6

Equipment is in Good Working Order

When 5S is fully implemented there is a distinct emphasis placed on making surethat equipment is fully operational and doesnot cause or createdefects.

B E N E F I T 7




Equipment is in Good Working Order

Equipment that breaks down often causes losses in productivity and also costs the company money by having to constantly engage in pricey repairs.

B E N E F I T 7




Removing useless activities & Machines

The sorting component of 5S results inthe 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 spaceand eliminates the costs involved withstoring unneeded equipment and the costs involved with engaging in useless tasks.

B E N E F I T 8




Increase Performance of Service

When items in a work environment are well organizedand easily accessible, employees are able to quickly findand utilize items as they are needed.

B E N E F I T 9

This in turnincreasesproductivity &effectiveness.

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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.

Prevents DowntimesB E N E F I T 10

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.

Prevents Downtimes (cont.)B E N E F I T 10

S U M M A R Y

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.


The Power of a 5S Facility



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S U M M A R Y



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a 5s template to increase roi

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