Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
The 5S of Kaizen — The Ultimate Guide
Key take-aways
- The 5S of Kaizen is an approach developed to improve efficiency by organizing operations and workspaces.
- The 5S methodology in Kaizen represents sort, straighten, shine, standardize, and sustain.
- Kaizen is defined as “continuous improvement” or “change for the better,” which improves quality, and makes processes efficient.
The 5S of Kaizen comes under the umbrella of lean management aimed to eliminate waste within manufacturing operations. However, what is it and how can it be applied in procurement?
For this article, we are going to discuss what Kaizen is and the 5s that are under it. Additionally, we are going to tell you how it can be applied in procurement. Furthermore, we are going to show you the benefits of Kaizen.
Once you are done reading this article, you will have an in-depth knowledge of Kaizen, enabling you to promote continuous improvements in your operations. So let us start diving into the world of Kaizen.
What is Kaizen?
Kaizen is a Japanese management philosophy that focuses on continuous improvement. The term “Kaizen” is a Japanese word that originated from two components: “kai” meaning “change” and “zen” meaning “good” or “for the better.” Combined, they form the concept of “continuous improvement” or “change for the better.” It focuses on making things better by improving quality, getting rid of waste, and making processes more efficient. Kaizen involves enhancing both equipment and work procedures.
Let’s trace back the roots of Kaizen. After World War II, Japan struggled to rebuild its economy and industries. That’s when the philosophy called “Kaizen” came into the picture.
Kaizen was shaped by influential figures like W. Edwards Deming, an American expert in quality management. In the 1950s, Deming introduced statistical process control methods to Japan, emphasizing the importance of quality and continuous improvement. His ideas greatly influenced the development of Kaizen.
Toyota, the car company, was one of the first to adopt Kaizen. Toyota loved the philosophy and integrated it into its production system, which eventually became known as the Toyota Production System or Lean Manufacturing.
Additionally, a Japanese consultant named Masaaki Imai took Kaizen’s core principles and made them even more popular through his book “Kaizen: The Key to Japan’s Competitive Success” published in 1986. Imai emphasized the importance of small, incremental improvements made by everyone within an organization, rather than relying on large, radical changes
Soon enough, Kaizen started spreading worldwide and got adopted by different industries like healthcare, services, and software development. It became a go-to approach for organizations aiming for continuous improvement, waste reduction, and increased efficiency.
Nowadays, Kaizen still continues to be an important part of lean management, helping businesses achieve their goals by constantly getting better and eliminating waste.
Recently, I’ve been delving more into Kaizen. Looking back, I wish I had done this sooner, as the mindset could have aided me as a procurement manager at Ahold and Royal Friesland Campina. Reflecting on that time, I see that I’ve employed elements of the Kaizen philosophy, but I could have implemented it more systematically. I’ll elaborate on this further in the article.
The 5S of Kaizen
The 5S methodology in Kaizen is based on the initial letters of five Japanese words: Seiri (Sort), Seiton (Straighten), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain). This approach was originally developed to improve efficiency by organizing operations and workspaces. Let’s explore the meaning and purpose of each of these Japanese words that form the 5S.
1. Seiri (Sort)
During the initial stage of the 5S methodology, the primary objective is to eliminate unnecessary items from the workspace. This step involves distinguishing between essential and non-essential items and removing those deemed unnecessary.
For example, the procurement team looks at their office supplies and finds some outdated technology accessories and too many stationery items that they rarely use. They sort through these items and choose what to keep, omit, or repurpose. This helps them free up storage space and save money by reducing unnecessary inventory.
2. Seiton (Straighten)
In this stage of the 5S methodology, you organize tools and equipment in a way that makes them easy to find and use. The goal is to ensure that necessary items are easily accessible, so you don’t waste time searching for them. By implementing this part of 5S, you prioritize efficiency and prevent unnecessary delays during setup.
The concept of FIFO (First In First Out) is relevant here, where you prioritize using items based on their arrival order. This helps to maintain a smooth workflow and makes tasks easier.
3. Seiso (Shine)
In this stage of the 5S methodology, regular cleaning of the workspace is emphasized. This could involve cleaning work surfaces, equipment, and machinery daily. Keeping the workspace clean ensures that equipment functions properly and lasts longer, reducing the need for repairs or replacements.
For instance, in a manufacturing facility, workers may clean production areas at the end of each shift to remove any debris, dust, or waste materials, contributing to the overall maintenance and longevity of the equipment.
4. Seiketsu (Standardize)
In this part of the 5S methodology, it’s essential to have consistent and standardized work practices in place. For example, in a customer service department, all employees should have identical workstations equipped with the same tools, such as computers, phones, and relevant software.
The tools and their locations should be consistent across all workstations, allowing any employee to easily navigate and perform their responsibilities, regardless of the specific station they are assigned to.
5. Shitsuke (Sustain)
In the final stage of the 5S methodology, Shitsuke or Sustain, the focus is on keeping up with the improvements made. For example, in a warehouse, it involves regularly maintaining organized storage areas, ensuring items are properly labeled, and encouraging employees to follow the established practices for item placement and retrieval.
By consistently upholding these standards and regularly reinforcing the importance of a tidy and efficient workspace, the benefits of the 5S methodology can be maintained and continued over the long term.
Kaizen in Procurement
Applying Kaizen principles in procurement, inspired by the Toyota Production System (TPS), can lead to significant improvements in operational efficiency and continuous improvement.
One way to implement Kaizen in procurement is through the adoption of Just-in-Time (JIT) inventory management. This involves closely aligning procurement with production requirements, and procuring materials and supplies in quantities that meet immediate production needs. By reducing excess inventory and carrying costs, procurement teams can enhance cash flow and responsiveness to customer demand.
Another important aspect of Kaizen in procurement is the development of strong supplier relationships. This entails establishing long-term partnerships based on trust, collaboration, and continuous improvement.
By fostering open communication channels and sharing information on quality standards, cost reduction opportunities, and process improvements, procurement teams can optimize supply chains, reduce lead times, and ensure consistent quality.
Value stream mapping (VSM) is another valuable tool in the Kaizen approach for procurement. VSM helps visualize the end-to-end procurement process, identifying inefficiency, bottlenecks, and non-value-added activities. Through VSM analysis, procurement teams can identify improvement opportunities, streamline processes, and reduce lead times, ultimately enhancing efficiency and effectiveness.
Continuous improvement is at the core of Kaizen, and it applies to procurement as well. Procurement professionals can engage in Kaizen events or continuous improvement projects to identify and implement process improvements, cost-saving measures, and quality enhancements. Cross-functional collaboration and data-driven decision-making enable procurement teams to improve and adapt to changing business needs.
Lastly, standardized work practices play a crucial role in Kaizen for procurement. Creating standard operating procedures (SOPs), templates, and guidelines for various procurement activities ensures consistency, eliminates variability, and reduces errors. Standardized work processes enhance efficiency, enable seamless knowledge transfer among team members, and contribute to overall process improvement.
Benefits of Kaizen
Implementing Kaizen offers a lot of benefits to your organization. Some of the benefits are the following:
1. Continuous Improvement
Kaizen fosters a culture of continuous improvement, encouraging employees at all levels to contribute to incremental enhancements. This leads to a constant flow of small improvements that collectively drive significant progress.
My advice here is to thoroughly document complex processes with your team. Consider all the steps in the process and to what extent these steps require human intervention and where filled documents need to go.
For example, we scrutinized the entire ordering system, including the addition of promotional volumes. Here, we discovered many manual steps in the process, requiring numerous Excel forms to be filled out, which were then manually entered into the systems by another department. Asking the team to optimize the entire process at once was too overwhelming.
However, requesting to improve three process steps within this large process was feasible. My conclusion is that you can achieve more by first documenting entire processes and then identifying a few bottlenecks to improve, potentially using scalable IT solutions
2. Improved Quality
Through Kaizen, organizations can focus on improving quality by addressing the root causes of defects and errors. By standardizing processes, implementing error-proofing techniques, and continuously seeking ways to enhance quality, organizations can deliver better products or services to customers.
3. Waste Reduction
Kaizen emphasizes the identification and elimination of waste in processes, such as unnecessary waiting time, excessive inventory, defects, overproduction, and unnecessary motion. By reducing waste, organizations can improve efficiency, reduce costs, and enhance productivity.
Excessive inventory is a disaster for a company and its working capital. Merchants prefer $100 in sales with new inventory over $50 in sales with existing/excessive inventory.
This is a discussion we frequently had within Ahold. Do we purchase new inventory for that one top-selling item, or do we look at existing inventory and use promotions to sell these products? Option 1 would have been better for sales.
However, it is crucial for every organization to also assess their stagnant inventory and find ways to deal with it. The longer this inventory sits, the greater the impact on your working capital and the more difficult it becomes to sell it off.
Therefore, the advice is for organizations to gain a thorough understanding of their stagnant inventory and establish a process for managing it
4. Enhanced Productivity
Kaizen drives efficiency by streamlining processes, reducing non-value-added activities, and optimizing resource utilization. By eliminating bottlenecks and improving workflow, organizations can increase productivity and achieve higher output levels with the same or fewer resources.
5. Promotes Employee Involvement
Kaizen promotes employee involvement and empowerment by encouraging them to contribute ideas and suggestions for improvement. This involvement not only increases employee engagement and satisfaction but also taps into the collective knowledge and creativity of the workforce.
Conclusion
Kaizen, a Japanese management philosophy centered around continuous improvement, has proven to be a powerful approach across various industries. Originating from the post-World War II era and heavily influenced by figures like W. Edwards Deming, Kaizen emphasizes making incremental improvements in quality, efficiency, and waste reduction.
The 5S methodology, an integral part of Kaizen, consists of Seiri (Sort), Seiton (Straighten), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain). These principles guide organizations in organizing workspaces, enhancing efficiency, and maintaining continuous improvement.
Frequentlyasked questions
What is Kaizen?
Kaizen is a Japanese management philosophy that focuses on continuous improvement.
What are the 5S in Kaizen?
The 5S in Kaizen are Seiri (Sort), Seiton (Straighten), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain).
How is Kaizen different from other improvement methodologies?
Kaizen emphasizes small, incremental improvements made by everyone within the organization. On the other hand, other improvement methodologies may focus on large-scale and disruptive changes.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.