DESIGN OF A MODEL FOR

IMPLEMENTING THE 5SS IN SMALL

AND MEDIUM-SIZED ENTERPRISES:
CASE OF PHOYEN MECHANICAL JSC
Students name: Nguyen Thi Linh Chi
Supervisors name: Dr. Nguyen Dang
Minh

Nguyen Thi Linh Chi QH 2010 E QTKD

OUTLINE
I. Introduction

Nguyen Thi Linh Chi QH 2010 E QTKD

I. INTRODUCTION
RESEARCH OBJECTIVES:
To change management methodology in Vietnam
SMEs toward a new and more efficient way
To make 5S applied more popularly and effectively

RESEARCH QUESTIONS:
1. How is 5S being applied in Fomeco currently?
2. What are the main issues of 5S practices in
Fomeco?
3. What is a suitable model for implementing 5S in
Fomeco?

Nguyen Thi Linh Chi QH 2010 E QTKD

RESEARCH
FRAMEWORK

4
Nguyen Thi Linh Chi QH 2010 E QTKD

II. LITERATURE REVIEW

Japanese

English

Vietnamese

Meanings

Seiri

Sort

Sng lc

Classify items and get rid of

useless ones

Seiton

Set in order

Sp xp

arranging items so that they are

easy to use and to label them;
easy to find and give back

Seiso

Shine/
Cleaning

Sch s

simply sweeping floors, wiping

off machinery and keeping thing
tidy

Seiketsu

Standardization

Sn sc

bring three Ss into regular work

duties and make it as a standard
method

Shitsuke

Sustain/
Selfdiscipline

Sn sng

making a steady habit of

properly maintaining correct
procedures
5

Nguyen Thi Linh Chi QH 2010 E QTKD

II. LITERATURE REVIEW

Benefits of the
5Ss
Remove wastes and
non-value activities
Classify and organize
workplace

Improve
quality,
efficiency and safety
Motivate employees
Source:Hirano,
6
2009
Nguyen Thi Linh Chi QH 2010 E QTKD

II. LITERATURE REVIEW

Author/Published
Year

Book/Article

Osada, T. (1991)

The 5Ss: Five Keys to a Total Quality Environment,

Asian Productivity Organization, Tokyo

Ho, S.K., Cicmil, S.

and Fung, C.K.
(1995)

The Japanese 5S Practice and TQM Training, Training

for Quality, Vol. 3, No. 4, pp. 19-24

Becker, J.E. (2001)

Implementing 5S to promote safety and

housekeeping Professional Safety, Vol. 46, No. 8, pp.
29-31

Hirano H. (2009)

The complete Guide to Just-in-Time Manufacturing,

volume 2: Waste and the 5Ss, Productivity Press, 2nd
edition, pp 102 -264

Mohd, R. et al.
(2010)

Implementation of 5S practices in manufacturing

companies: A case study, American Journal of Applied
Sciences, Vol.7, No.8, pp. 1182-1189

Noni, J. et al.
(2011)

Factors influencing employees motivation in

implementing 5S system, Elixir International Journal
of Human Resource Management, Vol.39, pp 4836-

Nguyen Thi Linh Chi QH 2010 E QTKD

II. LITERATURE REVIEW

Author/Published
Year

Book/Article

Phan Ch Anh
(2008)

Thc hnh 5S Nn tng ci tin nng sut, NXB.

Lao ng, H Ni.

Nguyn Th c
Nguyn, Bi
Nguyn Hng.
(2010)

p dng lean manufacturing ti Vit Nam thng

qua mt s tnh hung, Tp ch Pht trin &
Hi nhp, S 8, tr. 41- 48

Nguyn ng
p dng 5S ti cc doanh nghip sn xut nh
Minh v nhm tc v va Vit Nam Thc trng v khuyn ngh,
gi, (2013)
Tp ch Khoa hc, i hc Quc Gia H Ni, tp
29, S 1 (2013), tr. 23-31

Nguyen Thi Linh Chi QH 2010 E QTKD

II. LITERATURE REVIEW

5S model in theory
Source: Hirano, 2009

Nguyen Thi Linh Chi QH 2010 E QTKD

II. LITERATURE REVIEW

Six steps of 5Ss implementation

Source: Vietnam Productivity Center,

2007
10
Nguyen Thi Linh Chi QH 2010 E QTKD

III. RESEARCH CONTEXT

Vietnam manufacturing small and medium
enterprises (MSMEs)
- 95% total number of Vietnam enterpises
- Lack of capital, small scale of production
- Lack of skilled labor and high-qualified managers
and often located in rural or mountainous areas
=> Low competitive advantage
Loses
39%
56%
5%

Lack of
manageme
nt capacity
Other

Main reasons of Vietnam SMEs bankruptcy in

2013

11

Source:
General
Statistics
2013
Nguyen
Thi Linh
Chi QHOffice,
2010 E
QTKD

III. RESEARCH CONTEXT

A glance at 5Ss practices in Vietnam
manufacturing small and medium
enterprises
- Transferred into Vietnam for >10 years and
the number of enterprises applying 5S has
been increasing
- Only approximately 1% of Vietnam
enterprises have approached to 5S tool
- The effectiveness of 5S in Vietnam SMEs is
not high (3S/5S)
12

Nguyen Thi Linh Chi QH 2010 E QTKD

III.RESEARCH METHODOLOGY
CASE STUDY PhoYen Mechanical JSC

Bai Bong, Pho Yen, Thai Nguyen

900 employees
9 departments and 7 manufacturing plants
13

Nguyen Thi Linh Chi QH 2010 E QTKD

III.RESEARCH METHODOLOGY
History of establishment and development
1974

14

Nguyen Thi Linh Chi QH 2010 E QTKD

III. RESEARCH METHODOLOGY

Manufacturing sector:
Produce motorcycle and automobile components,
gears,
bearings and rollers

Products:

15

Nguyen Thi Linh Chi QH 2010 E QTKD

III. RESEARCH METHODOLOGY

Major Partners:
Domestic partner: Honda, Yamaha
International partner: Italy, Japan and Thailand
including VPIC, ULVAC, Takako, Suzuki, Stanley,
Showa, Panasonic, Anippo, KYB, Hi-lex, Bando,
Sumitomo, Exedy

16

Nguyen Thi Linh Chi QH 2010 E QTKD

III. RESEARCH METHODOLOGY

5S practices in FOMECO

17

Nguyen Thi Linh Chi QH 2010 E QTKD

III. RESEARCH METHODOLOGY

18

Nguyen Thi Linh Chi QH 2010 E QTKD

III. RESEARCH METHODOLOGY

QUESTIONNAIRE DESIGN
Survey questionnaire
The measurement is based on a 5-point rating Likert scale with
corresponding to 1 = extremely bad; 2 = somewhat bad; 3 =
Normal; 4 = somewhat good; 5 = strongly good.
No

Content

No of question

Respondent information

Part A: Identifying current 5S implementation in studied

company
Part B: Evaluating degree of factors affecting to 5Ss

18

success and efficiency.

4

26

Part C: Evaluating degree of 5S impact on studied

company performance
Total

18
65

19

Nguyen Thi Linh Chi QH 2010 E QTKD

III. RESEARCH METHODOLOGY

QUESTIONNAIRE DESIGN
In-depth interview questionnaire
No

Content

No of interview
question

Interviewee information

How the company implement 5S: the

motivation,

the

3
process,

the

commitment and support from leaders

3

and reward and punishment policy

What organization structure supporting

for 5S activities is.

Training policy: the training method,
training

content

training courses.
Total

and

frequency

of

3
15

20

Nguyen Thi Linh Chi QH 2010 E QTKD

III. RESEARCH METHODOLOGY

DATA COLLECTION
Position

No of respondent

Survey questionnaire
1.

Secretary of 5S committee

01

2.

Middle managers

03

3.

Workers

06
Total

10

Interview questionnaire
1

Secretary of 5S committee

01

2.

Middle managers

03

Total

04

21

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. DATA ANALYSIS

An analysis of 5S practices in FOMECO
Degree of employees understandings of 5S activities
80%
70%

70%
60%
50%

50%
40%40%

40%

40%
30%

30%

30%
20%

20%
10%
0%

10%10%

0%

Sort

10%10%

0%Set in order

Extremely bad

Somewhat bad

10%

0% 0%Shine
Normal

30%30%

20%

20%

10%

10%10%

0%Standardize
Somewhat good

Sustain

Extremely good

Degree of employees understandings of 5Ss

definition

22

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. DATA ANALYSIS

60%
50%

50%

40%

40%

30%

30%
20%

20%

20%

0%

0% Set in order
Extremely bad

30%

20%

10%

Sort

40%

30%

20%20%

10%

10%

0%

40%

Somewhat bad

40%

30%

20%

10%

Shine
0%
Normal

10%

0% Standardize
Somewhat good

20%

Sustain

0%

Extremely good

Degree of employees awareness of 5Ss

benefits

23

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. DATA ANALYSIS

Degree of 5Ss implementation frequency
100%
90%

90%
80%
70%
60%

60%

60%

50%
40%
30%
20%

20%
10% 10%

10%
0%

20%

0%

Sort

Extremely bad

10%

0%
Somewhat bad

10%

Set in order
Normal

10%

0%

Somewhat good

0% Shine
0%
Extremely good

24

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. DATA ANALYSIS

Training 5S program
0.6

50%

0.5

0.4

30%

0.3

0.2

0.1

Extremely
0% bad

10%

10%

Somewhat bad

Normal

Somewhat good Extremely good

25

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. DATA ANALYSIS

Planning and establishing job description

26

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. DATA ANALYSIS

Establishing 5S assessment checklists

27

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. RESEARCH RESULTS

Current situations of 5S implementation in
FOMECO

28

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. RESEARCH RESULTS

BEFORE

AFTER

29

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. RESEARCH RESULTS

BEFORE

AFTER

30

Nguyen Thi Linh Chi QH 2010 E QTKD

III.
METHODOLOGY
IV.RESEARCH
RESEARCH
RESULTS
5S Committee in FOMECO

31

Nguyen Thi Linh Chi QH 2010 E QTKD

IV. RESEARCH RESULTS

5S implementation process in FOMECO

32

Nguyen Thi Linh Chi QH 2010 E QTKD

V. FINDINGS
Problem identification
The effectiveness of 5S in Fomeco is not as high as
leaders expected.
Target
Fact
For example:

Reasons

Apply 5S/5S

4S/5S

Reduce 30% of
defects

Reduce 10% of
defects

- Resistance of employees
- Top management commitment
33

Nguyen Thi Linh Chi QH 2010 E QTKD

V. RECOMMENDATIONS

34

Nguyen Thi Linh Chi QH 2010 E QTKD

V. RECOMMENDATIONS

Source: Nguyen Dang Minh et al. ,

35
2013
Nguyen Thi Linh Chi QH 2010 E QTKD

V. RECOMMENDATIONS

36

Nguyen Thi Linh Chi QH 2010 E QTKD

VI. CONCLUSIONS
CONTRIBUTIONS

37

Nguyen Thi Linh Chi QH 2010 E QTKD

VI. CONCLUSIONS
LIMITATIONS
Sample size is limited
The model has not tested in reality yet

FURTHER RESEARCH
Expand sample size
Focus on evaluating effectiveness of 5S before
and after implementing

38

Nguyen Thi Linh Chi QH 2010 E QTKD

VI. CONCLUSIONS
LIMITATIONS
Sample size is limited
The model has not tested in reality yet

FURTHER RESEARCH
Expand sample size
Focus on evaluating effectiveness of 5S before and
after implementing

39

Nguyen Thi Linh Chi QH 2010 E QTKD

REFERENCES
Vietnamese References
1. Nguyn ng Minh v nhm tc gi, 2013, p dng 5S ti cc doanh nghip sn xut nh v va Vit Nam Thc trng v
khuyn ngh, Tp ch Khoa hc, i hc Quc Gia H Ni, s 1 nm 2013, tr. 24-32.
2. Nguyn Th c Nguyn, Bi Nguyn Hng, 2010, p dng lean manufacturing ti Vit Nam thng qua mt s tnh hung,
Tp ch Pht trin & Hi nhp, S 8, tr. 41- 48.
English References
3. Becker, J.E. (2001), Implementing 5S to promote safety and housekeeping Professional Safety, Vol. 46, No. 8, pp. 29-31.
4. Bhasin, S. (2012). Prominent obstacles to lean. International Journal of Productivity and PerformanceManagement, Vol. 61, No.
4, pp. 403425.
5. Chin, K.S. and Pun, K.F. (2002), A proposed framework for implementing TQM in Chinese organizations, International
Journal of Quality & Reliability Management, Vol. 19 No. 3, pp. 272-94.
6. Dombrowski U. v cng s, (2011) Employee Participation in the implementation of Lean Production Systems, Proceedings 4th
International Conference on Changeable, Agile, Reconfigurable and Virtual Production (CARV2011), Montreal, Canada.
7. Graban, Mark. (2009). Lean hospitals: improving quality, patient safety, and employeesatisfaction. United States of America:
Taylor & Francis Group, LLC.
8. Herron, C., Hicks, C. (2008), The transfer of selected lean manufacturing techniques from Japanese automotive manufacturing
into general manufacturing (UK) through change agents, Robotics and Computer-Intergrated Manufacturing, no.24, pp.524
531.
9. Hirano H. (2009), The complete Guide to Just-in-Time Manufacturing, volume 2: Waste and the 5Ss, Productivity Press, 2nd
edition, pp 102 -264
10.Ho, S.K., Cicmil, S. and Fung, C.K. (1995), The Japanese 5S Practice and TQM Training, Training for Quality, Vol. 3, No. 4,
pp. 19-24.

40

Nguyen Thi Linh Chi QH 2010 E QTKD

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QH 2010 E QTKD
Proceedings of the World Congresson Engineering,
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THANKS FOR YOUR

ATTENTION!

42

Nguyen Thi Linh Chi QH 2010 E QTKD