Solution to accomplish the 5s management system in hoa tho hoi an garment joint stock company

Her guidance helped me inall the time of research and writing of this thesis.I am also indebted to the members of Hoa Tho-Hoi An Garment Joint stockcompany, Mr.. .182.1.1.The History for

Foremost, I would like to express my sincere gratitude to my advisor Ths.LanLinh Huynh for the continuous support of my thesis, for his patience,motivation, enthusiasm, and immense knowledge Her guidance helped me inall the time of research and writing of this thesis

I am also indebted to the members of Hoa Tho-Hoi An Garment Joint stockcompany, Mr Phuong Duc Nguyen together with other member in department

of administrative organization for the many valuable discussions that helped

me understand my research area better

Last but not the least, I would like to thank my family, all the people who havesupported me to completethe research work directly or indirectly

TABLE OF CONTENS

ACKNOWLEDGEMENT i

TABLE OF CONTENS ii

LIST OF TABLE v

LIST OF FIGURE AND CHART vi

ABTRACT vii

RESEARCH PROPOSAL viii

CHAPTER 1: LITERATURE REVIEW ABOUT 5S SYSTEM 1

1.1.Definition of 5S System 1

1.2.Benefits of 5S System 1

1.3.Component of 5S 3

1.3.1.SEIRI 3

1.3.1.1.Benefits of seiri step 4

1.3.1.2.Primary tools for the Seiri step 4

1.3.1.3.Tips for implementing a seiri 7

1.3.2.Seiton 7

1.3.2.1.The benefits of Seiton 8

1.3.2.2Principles of Seiton 8

1.3.3.Seiso - shine 9

1.3.3.1.Practice seiso 9

1.3.3.2.Steps of seiso 9

1.3.4.Seiketsu - standardize 10

1.3.4.1.The benefits of Seiketsu 10

1.3.4.2.Methodology of Seiketsu 10

1.3.5.Shitsuke- sustain 11

1.3.5.1.The benefits of Shitsuke 11

1.3.5.2.Tools to Shitsuke 5S implement 11

1.4.System implementation 14

1.4.1.Pre-Preparations 14

1.4.2.CEO’s Official announcement 15

1.4.3.Big cleaning by all coleague 15

1.4.4.Initial sort 15

1.4.5.Daily seiri- seiton-sort 15

1.4.6.Periodic audits on 5S 15

1.5.The relationship of 5S components 16

1.6.Some things to keep in mind when implementing 5S 17

1.6.1.Keys to successful implementation of 5S 17

1.6.2.Difficulties to implementation of 5S 17

CHAPTER 2: ACTUAL SITUATION ANALYSIS OF THE 5S IMPLEMENTATION IN HOA THO-HOI AN GARMENT JOINT STOCK COMPANY ( 2014-2015) 18

2.1.Overview about Hoa Tho - Hoi An Garment Joint Stock Company .18 2.1.1.The History formation and development of HoaTho Hoi An Garment Joint Stock Company 18

2.1.2.Functions and responsibilities of the company 20

2.1.2.1.Functions 20

2.1.2.2.Responsibilities 20

2.1.3.Oganizational structure of the company 21

2.1.3.1.Oganizational structure 21

2.1.3.2.Manufacturing Organization Structure 22

2.1.3.3.Function and duties of the the management level department 23

2.1.4.Technological production process 24

2.1.5.2.Human resource situation in the Company 27

2.1.5.3.Situation about technology equipment 28

2.2.Actual situation analysis of the 5s implementation in hoa tho-hoi an garment joint stock company 30

2.2.1.Pre-Preparations at Hoa Tho- Hoi An joint stock Garment Company 30

2.2.2.Implementation phase 31

2.2.2.1.Announces implement of 5S and Organize a Big cleaning by all

colleague 31

2.2.2.2.Implementing initial sort 31

2.2.2.3.Implementing daily seiri- seiton-sort 32

Table2.9: Regulation about seiri- seiton-sort implementation of the company 32

2.2.2.4.Implementing shitsuke or sustain 34

2.2.3.Stages of Implementation assessment and evaluation results 39

2.2.3.1.Results of 5S implementation assessment at Hoa Tho- Hoi An joint stock Garment sompany 39

2.3.General assessment of the 5S management system in Hoa Tho-Hoi An joint stock garment company 47

2.3.1.Achievements 47

2.3.2.Limitations 48

2.3.3.Cause of limitations 49

CHAPTER3: SOLUTIONS TO ACCOMPLISH THE 5S MANAGEMENT SYSTEM IN HOA THO HOI AN JOINT STOCK GARMENT COMPANY 51

3.1.5S Implementation are true and lasting 51

3.1.1.Regeneration methods 52

3.2.Implementing the 5S program must be coupled with improvements 55 3.3.Solutions about people 57

3.3.1.Solutions to enhance through 5S communication 57

3.3.2.Training Solutions 59

3.4.Solutions about management 5S team 60

CONCLUTION 62

BIBLIOGRAPHY AND REFERENCE 63

LIST OF TABLE

Table 2.1 results of the Company during 2013- 2015 25

Table 2.2 Number of employees of the Company according to department 28 Table 2.3 Situation about technology equipment of company 29

Table2.4 Regulation about seiri- seiton-sort implementation of the company 32

Table 2.5 The criteria for evaluation 34

Table 2.6 5S reward for 14 sewing lines 36

Table2.7 5S evaluation form 38

Table 2.8: The situation of work safety in the production process: 40

Table 2.9: 5S assessment based on the violation errors 42

Table 2.10: 5S assessment based on the number of violation errors 43

Table 2.11: Assessment average scores for the month 44

LIST OF FIGURE AND CHART

Figure1.1 : Red/yellow Tag samples 5

Figure 1.2: Signage Strategy 13

Figure1.3 : The relationship of 5S components 16

Diagram 2.1: Organization chart 21

Diagram 2.2: Manufacturing Organization Structure 22

Diagram 2.3: Technological production process 24

Diagram 2.4: Cutting stage 24

Diagram 2.5: cutting stage 25

Figure 2.13: before/ after implementing 5S at office 39

Figure 2.15: Applied sorted according the 5S trace lines and bins in warehouses, workshops 41

Chart 2.17: 5S assessment based on the violation errors 43

Chart 2.20: Assessment average scores for the month 44

Chart 2.21: Assessment average scores for the month 45

Figure 3.2: 5S regeneration stage 51

Diagram 3.3:Cause-and-effect diagrams at Hoa Tho- Hoi An 53

Figure 3.4: 5S Map illustrations in sewing workshop to avoid violations 54

Figure 3.5 : illustrations in cutting workshop 54

Figure 3.6: Seiton by current methods of Hoa Tho-Hoi An 55

Figure 3.8 : PDCA (plan–do–check–act ) cycle of Dr Deming 56

ABTRACT

5S is a systematic technique used by organizations comes from five Japanesewords; Seiri (sort), Seiton (set in order), Seiso (shine), Seiketsu (standardize),and Shitsuke (sustain) It stands for improving the order and cleanliness, andcreating comfort and a safe working environment The aim are to increase theproductivity of labor and improve the efficiency of the work, to ensure thehealth and safety of workers, workers felt the workplace was at his home,which helps people more interested in plants It also provides useful visualevidences to obtain more firm results There is a real need for empiricalstudies in field of new management systems and their impact on company’sperformance The aim of this thesis was to propose solutions to improve theefficiency and to maximum benefic of apply 5S and to accomplish 5Smanagement system In addition a plan to expand this 5S management system

to 5S program must be coupled with improvements Assessment method base

on establish the 5S standard is used and data collection is done by Syntheticobservation The results of this research obtained from a comparativemeasurement of organizational performance before and after 5Simplementation The results show that 5S is an effective tool for improvement

of organizational performance, regardless of organization type, size,itsproduction or its service Consequently, The results of this thesis confirmedthe 5S management system will be upheld through internal audits andstandardized 5S to achieve continuous improvement and higher performance Keywords: 5S; quality improvement

RESEARCH PROPOSAL

1 The thesis’s necessity

The trend of deep integration into the world economy has been createdcompetitive pressures increasingly fierce for most businesses In this context,

in order to survive and grow, businesses must active seek solutions to improveproductivity and competitiveness of their enterprises To meet customer needs,many companies have applied a number of management tools in productionand business activities, and have achieved certain success

On the other hand, primary function of the Hoa Tho Garment Joint StockCompany is the production by processing form such as jacket Products areexported to many countries around the world such as USA, EU, Japan,Taiwan, Hong Kong, China So, customer are mostly perennial customers,prestige, requires high product quality, accurate delivery Therefore, from theearly days of production the company has carried out the management method

of Japan and especially the 5S management method However, the 5S method

is a method of Japan but it actually executed in Vietnam Thus, it isn't suitablepoints Furthermore, 5s are applicable for the majority of staff areVietnamese So there are many problems that arise in the process ofimplementing and maintaining of the 5S method in Hoa Tho - Hoi AnGarment Joint stock company

So, with a large role as well as the benefits that 5S activities brings , and

inadequacies exist in this system, I hereby choose the topic “Solution to

accomplish the 5S Management system in Hoa Tho - Hoi An Garment Joint Stock Company’’ as the research orientation for my thesis purpose to

promote the strengths and overcome these limitations exist, create impetus forthe development of theH oa Tho - Hoi An Garment Joint Stock Company inparticular and business organizations in general

2 Research objective

Based on the study, analysis, and evaluation of actual situation of 5Smanagement system in Hoa Tho- Hoi An Garment Joint stock Company,

construct scientific foundation for solutions to accomplish 5S managementsystem in company.

3 Scope and research subject

Research subject of thesis are the 5S management system of Hoa Tho- Hoi AnGarment Joint stock Company

Scope: The scope of this study limited by 5S management activities of HoaTho- Hoi An Garment Joint stock Company start from applying 5Smanagement system (2/2014) to in December, 2015

4 Research method

Research based on theoretical basis about 5S management system

Data collected by research method about secondary data: Secondary data wascollected in Hoa Tho- Hoi An Garment Joint stock Company includesprovisions on 5S documents, profiles, results from internal evaluation of thecompany and outside secondary data sources as textbooks and references Synthetic observation method: based on observations of the investigation.These observations have been obtained by engage in the actual situation ofcompany Combined with tools for exploration, taking photos to assess andoffer solutions

5 Thesis structure

The thesis is organized as flow

Chapter 1: Literature review about 5S system

Chapter 2: Actual situation analysis of the 5S implementation in Hoa Tho -Hoi

An Garment joint stock company ( 2014-2015)

Chapter 3: Solutions to accomplish the 5S management system in Hoa Hoi An Garment Joint stock company

Tho-CHAPTER 1: LITERATURE REVIEW ABOUT 5S SYSTEM 1.1 Definition of 5S System.

In Lean manufacturing tools, KAIZEN is a selection of better means or achange of current method for achieving an objective Steps to implement theactivities of KAIZEN are eliminate- reduce- change (The Japan HRAssociation Definitions of KAIZEN) There are various other types of kaizenthat you can use within your company.5S System is one in best of Kaizentools And 5S is the one of the essential steps in motion and bring about aflourishing Lean culture according to Cooper Et al (Cooper, 2007)

Dictionary definition, an organizational methodology originating in Japan that,when implemented, reduces the waste of resources and space whileincreasing operational efficiency The 5S elements include Seiri, Seiton, Seiso,Seiketsu and Shitsuke translated into English, are Sort, Set in Order, Shine, Standardize and Sustain and are applied in some companies' efforts

to achieve "lean manufacturing"

In fact, the 5-S concept was originally developed by Takashi Osada

in the early 1980s3 According to Osada( Osada, 1991), 5-S practice isintended “to organize the workplace, to keep it neat, to clean, to maintainstandardized conditions, and to maintain the discipline that is needed to do agood job” and “ 5S is a system in which to reduce work and optimizeproductivity and quality through maintaining and orderly work- place”

5S is a useful method for founding an organization and spread out a designand can improve communication and help employees to develop theircharacteristics to decrease, downtime, lead time, inventory, defect, injury andassociated costs (K.Tsuchiya, 1998) Result the study of Becker J.E(Becker,2001) indicates that 5S technique is an effective way to improvehealth and safety standards, environmental performance and housekeeping

1.2 Benefits of 5S System.

Employee benefits:

- The worplace are cleaner and safter The atmosphere becomes airy,comfortable and pleasant.

- Improving the efficiency of the work, to ensure the health and safety ofworkers, workers felt the workplace was at his home, which helps people moreinterested in plants, self-discipline training and scientific work

- Create more value for morale staff and contribute to improve the image andbeauty to the company When 5S becomes standardize, it fosters betterteamwork and enthusiasm

Company benefits : The company successfully implementing 5S will bringmany benefits to:

- High in Productivity: Workflow becomes smoother and implementsstandardization thereby achieving productivity

- Increases in Quality: Improves quality by reducing the amount oferrors/defects

- Reduction in Cost: Costs are minimized leading to making defect-freeproducts And provides cost-savings by reducing inventory, storage fees andspace

- Accurate Delivery : 5S becomes standard for the entire company Workflowbecomes smoother and don't have turmoil Therefore, the product isimplemented on schedule

- Safe fof people to work in: the workplace becomes cleaner, safer, organized and more pleasant All the items are properly sort Eliminatingmany unnecessary things and easy to move items

well High in morale: the morale and satisfaction of employees improves and thecustomers belive in product of company

- High-performance devices and instruments, tools less damaged due to itkeep clean and regularly checked to detect these occurrences So, preventdamage and extend the cycle life of machinery

The general concept of the 5S is that they are intended to eliminate waste(Osada, 1993) So, implement 5S by neatly arranged It's hepl save time, workspace, reduce waste due to.

- Overproduction

- Waste of inventory: Many devices don't use to will conduct sort andremoval storage space

- Waste manipulation work: Workflow becomes smoother

- Waste of waiting/ sorting: time for searching tools, materials and document

is minimized

Besides, the 5S methodology is a simple and basix approach that support tosuch other manufacturing improvements as just-in-time (JIT) production,cellular manufacturing, total quality management (TQM), or six sigmainitiatives……

1.3 Component of 5S

1.3.1 SEIRI

Seiri is the first step in any 5S process In English, it is translated asSort It refers to the sorting of the clutter from the other items within the workarea that are actually needed This stage requires the team to remove all itemsthat clearly do not belong in the working area and only leave those that arerequired Remove from the workplace all items that are not needed for currentproduction (or office) operation

Simply speaking, we should clearly identify what is needed and screen outwhat is not needed in organizing a wealth of things Many people are inclined

to keep things Though they might not have been used for years, people feelthese items will be used at some time so, things not used for a period of timeare regarded as unnecessary and they should be removed or discarded Thisnot only avoids a massive buildup of waste, but also reduces storage cost Seiri helps to keep work area tidy, improves searching and fetchingefficiency, and generally clears much space Seiri is also excellent way to gain

valuable floor space and eliminate old broken tools, obsolete jigs and fixtures,scrap and excess raw material.

1.3.1.1 Benefits of seiri step

Seiri has two main goals: remove unnecessary objectsand reduce waste So,some benefits that seiri bring in:

- Your searching time of tools, materials, and papers is reduced

- You have better flow of work

- Solves the problem of Stock of item Your inventory cost of unnecessaryitems is reduced

- Effective use of space for utilization

- It will be quicker and safer to move goods after clutter has been removed 1.3.1.2 Primary tools for the Seiri step

- Red/yellow tag movement:

Establishing clear-cut criteria for what is needed in a particular area andwhat is not include: The usefulness of the item to perform the work Thefrequency with which the item is used The urgency and the quantity of theitem needed to perform the work These items were identified and tagged, withthe tag containing information such as why these were tagged and whatneeded to be done

Use a red tag to mark the materials are not necessary and it should bedisposed of Such as store the item away from the work area, move the item to

a new location, sell it , throw it away……

The yellow tag use to mark necessary items and remain in the future

Figure1.1 : Red/yellow Tag samples

There are six steps to implement Red-Tagging process

Step 1: Launch the Red-Tag Project

Step 2: Identify the Red-Tag Targets

Step 3: Set Red-Tag Criteria

Step 4: Attach the Reg-Tag

Step 5: Evaluate Red-Tagged Items Decide what to throw and the actionsrequired

Step 6: Document the Results of Red-Tagging

- Classification management

Industrial bins are needed for an accurate sort Based on the standardapproach, there are three to four “bins” or sorting categories used whenconducting a 5S sort According to CSS research and trainning center

The three or four bins are as follows:

Keep: These are items that are used frequently and are essential to theoperation of the workplace being sorted If the target area is a supply room,tool shed, or another area that feeds into greater business operations,

employees should be evaluated on how often they draw tools from the sortarea to utilize those items These items should be returned to the 5S’d areaafter sorting is complete.

Remove: Items that are not needed and are simply taking up spaceshould be placed in a bin or pile to be removed Example items might includethe following: broken or outdated tools, chemicals or components that havedegraded or passed their expiration date

Probation: Items in this pile or bin are being evaluated for use A specificamount of time should be set (that is appropriate to your business cycle)during which items will be evaluated to see whether they are utilized oftenenough to keep After the probationary period, these items are either discarded

or organized back into the original workspace

To-Move: This option is talked about less, but is still an importantconsideration for items that may be helpful in your business Items that are not

needed often but must be on hand for times when they are required will need

to be relocated These items will eventually find new homes in other stations

or rooms that make the most sense for them

Sort Tips

Different spaces require different sorting frequencies For example, aworkstation should be sorted to ensure tidiness everyday it will be used Onthe other hand, a storage or filing cabinet may only need to undergo the initialsteps of 5S monthly, quarterly, or even annually

It is important to actively audit the sorting process of any 5S’d space toensure accuracy and attentiveness Sometimes, an emphasis on organizationcan overshadow other important areas; be sure to check in on tool calibration,supply expiration dates, and potential safety hazards while areas areundergoing audit organization

Take visual “before and after” photographs when practive sort

1.3.1.3 Tips for implementing a seiri.

- First decide what is necessary and what is unnecessary To find outunnecessary items you should not only check the floor but also shelves,lockers, storehouse, stairs, roofs, notice boards, etc

- While red tagging, ask these questions: Is this item needed? If it is needed, is

it needed in this quantity? If it is needed, how frequently is it used? If it isneeded, should it be located here? Who is ultimately responsible for the item?

- Find a holding area to put red tagged items

- If it is difficult to decide whether an item is necessary or not, put a differenttag and segregate it in the holding area

- Things used hourly/everyday/once a week should be near the work station ormay be worn by or kept in the pocket of your worker there

- Things used more than once a month should be available at a central point inthe workplace

- Items or equipment used less frequently should be stored in a more distantlocation

- Individual departments should each have a holding area

- A holding area should be clearly visible and clearly marked to assure visualcontrol of items

1.3.2 Seiton

Seiton or set-in-oder Acording lean manufacturing tools, seiton is theprocess of taking the required items that are remaining after seiri stage andarranging them in an efficient manner through the use of ergonomic principlesand ensuring that every item “has a place and that everything is in its place".Arrange items that are needed so that they are ready & easy to use Clearlyidentify locations for all items so that anyone can find them & return themonce the task is completed

It is an extension of “seiri” that focuses on prioritizing the arrangementand location of remaining needed things systematically according to theirusage frequency and importance For needed things, we should further sort

and put them in appropriate places with clear location indicators; the mostfrequently used ones being kept at convenient locations while the lesser usedones are placed in a relatively remote area Under this orderly and organizedarrangement, things will be found more easily and smoothly, saving us time;therefore, it can improve our efficiency in getting work done and improvemorale

1.3.2.1 The benefits of Seiton

- Increases the efficiency of the production

- You take things out and keep things back easily

- Time required for seeking the items are reduced and easy identification

- Your work environment becomes safe Because tools are stored inconvenient and ergonomic places

Combined with mark techniques for ease set-in-order , retrieving andreturning the place marker and transparent principles for easy to find, easy tofind Use floor paint marking to define working area, path, entrance / exit,safety equipment, cart / trolley locations, etc

- Put aside 10 or 15 minutes for the same activity per day.

- Prepare a full of equipment and tools appropriate and necessary toperform clean

- Not only seiso in the personal locations but also should be responsible inthe general area

- Use 5Whys or cause-and-effect methods to find the root causes of suchcontamination and take appropriate corrective and preventive action

- The unusual problem should be a priority processing and reporting onsuperior to support

- Design a log of all places/areas to be improved

- Take before and after photographs to show the results of the clean

1.3.3.2 Steps of seiso

Include 7 steps to practice base on concep Madhavan

- Identify which parts are to be cleaned each shift/twice daily, daily,wekkly, monthly

- Plan for systematic daily or periodic cleaning of all nooks and corners ofthe zone/ whole plant

- Prepare a cleaning calender and follow it regularly

- Ensure cleaning material and cleaning tools are available at an accessibleplace

- Carry out seiso systematically

- Attend to defects that are revealed while cleaning

- Identify and remove the root causes of such defects

1.3.4 Seiketsu - standardize

Once the first three S have been implemented, it should be set as a standard

so to keep these good practice and standardize the methods applied in previoustools Create a set of standards for both organization and processes tomaintains the habit Standards are determined according to three motto nouseless - no indiscriminately-no dirty

Standardize work is one of the most important principles of Leanmanufacturing

1.3.4.1 The benefits of Seiketsu

- Consistency in the iimplement process

- Defining standards that be implement by everyone

- Consistency in the implement process and systematic workplace

- Your activities will be simplified and will avoid mistakes

- With better visual and transparency management work efficiency willimprove

1.3.4.2 Methodology of Seiketsu

- Creating the standardization to implement 3S( Seiri, Seiton, Seiso) thatestablish the routines and standard practices for regularly and systematicallyrepeating

- Use visual management or location maps to action quickly and exactly

- We should each have regular daily or weekly 3S activities as part of ourjob, irrespective of grade or function

- Periodic review of the area

1.3.5 Shitsuke- sustain

The final stage is 5S Shitsuke or sustain, ensuring that the companycontinue to maintaining the improvements done in previous stages of 5S.Because over time a 5S System may become less effective due tocomplacency To sustain a 5S System you must change the culture ofemployees and sometimes the company It is about self-discipline to maintain

or sustain the changes or sustain new practices and conduct audits to maintaindiscipline

5S should become part of the culture of the business and theresponsibility of everyone in the organization according toleanmanufacturingtools

1.3.5.1 The benefits of Shitsuke

- Creating discipline in the work No gradual decline back to the previousway of working

- Promotes habit for complying with workplace rules and procedures andincrease morale

- Creates healthy atmosphere and a good work place

- Increases the awareness among the staffs Helps you to develop team work.Long-term productivity improvements due to:

- Reduced wear and tear on machinery, due to greater cleanliness

- Without Shitsuke – sustained discipline – at the "end" of the 5S process,any benefits from the first four steps will gradually evaporate

1.3.5.2 Tools to Shitsuke 5S implement

According Sam grier ( grier, 2008): In order for your 5S System to reach itsfull potential you must instill self-discipline and change the culture of youremployees, teams, departments and company Education and participation areyour best weapons against complacency Contests and rewards are excellentincentives to draw attention to and get everyone involved in the 5SSystem Specific:

- Self-Discipline:

To sustain a 5S System you must self-discipline Because

after a while they may fall out of the habits of 5S So, effort to gathersuggestions or ideas to improve the 5S System

- Evaluate the 5S System

As part of the continuous improvement of your 5S System you shouldregularly evaluate it Answering the the questions: Has that goal been reached?Are you getting all of the benefits of a 5S System? why changes 5S to achievethe desired results and what changes?

- 5S Contests

Reward will be a powerful incentive improve and build self-discipline andculture 5S Everyone will attend to the 5S system and offer an incentive foreveryone to participate Contests can incude the best 5S worspace/ area/department

Contests for individuals can include the best 5S workspace For teams orgroups it can be an area or department Awards for innovations andimprovements that have been adopted will help the program and offer anincentive for everyone to participate

Addition, using disciplinary actions can help change behavior

- Change the Culture

Changing the culture is the most difficult part of implementing 5S System bybuild think " change is improve, grow and better " A 5S System should be thestart of a change in the culture of your company, department and employees Therefore education about the 5S System and its benefits is a useful tool tosustain the program Use your 5S System as a base from which you can build aculture of change for your company You employees will learn that what isgood for the company is good for them

Moreover, base on learmanufactuingtools then Tools can support of 5Ssystem include:

- The Signage Strategy

The Signage Strategy uses signs to identify what, where, and how many Signage is also used to identify

+ Names of work areas

+ Locations of materials and supplies

+ Equipment and instrument storage locations

to return a piece of equipment or an instrument, the outline creates a “shadow”

of the instrument or piece of equipment and provides an additional indication

If you wish to train people in the application of 5S for lean manufacturingthe best way forward is the use of simple 5S games and 5S simulations Many

of these 5S training games are also very quick, this lends them to being aneffective tool for persuading higher management as to the value ofimplementing a 5S program and demonstrating the benefits of 5S

- 5S Lego Game:

Another 5S simulation can be built using Lego and a series of toolboxes (ortackle boxes);The first toolbox should be the worst case scenario; all of theLego blocks should be mixed in the bottom of the toolbox along with manyadditional parts that are not required, the instructions should be simple textinstructions without any diagrams

The final toolbox should contain only the required Lego blocks, eachlocated in a clearly labelled cell in the order that they are required forassembly Instructions should be very clear annotated digital photographs

In addition, the use of utility facilities for propagation such as:

- 5S Slogans: 5S Slogans communicate the themes of the 5S campaign inyour organization

- 5S Posters and 5S Photo exhibits or 5S newsletters:

Posters displaying 5S Slogans or descriptions of 5S activities can be postedthroughout the workplace or photos can also communicate the status of 5Sactivities

- 5S Months:

Organizations should designate 2, 3, or 4 months every year as “5S Months.”During these months, various activities such as 5S seminars, field trips, andcontests can be carried out to further promote 5S implementation in theorganization

1.4 System implementation.

1.4.1 Pre-Preparations

- CEO’s commitment of 5S implementation

- Identify who monitor

- Train 5S facilators and practicers

- Design 5S Plan to implementation and prepare terms of propaganda

1.4.2 CEO’s Official announcement

- CEO’s officially announces implement of 5S

- CEO’s explains objectives and benefits of 5S program to all colleague

- Publicize 5S organization and assignments by area

- Promote 5S with posters, banners and newsletter

1.4.3 Big cleaning by all coleague

- Organize a Big cleaning by all colleague

- Divide small groups who are implement in individual areas

- Provide enough cleaning tools and materials

- Implement elimination of unnecessary items and wastes

1.4.4 Initial sort

- Establish a disposal standard for unnecessary item

- Everyone concentrates to identify and classify unnecessary items forelimination

- Unnecessary items that cost a lot should be evaluated after elimination

1.4.5 Daily seiri- seiton-sort

1.4.6 Periodic audits on 5S

- Establish a 5S evaluation and incentive plan to increase motivate

- Conduct 5S audit regularly by auditor

- Award individuals and groups for who good implement

- Organize 5S inter-company competition to sustain the program

- Organie study tours to others company to learn knowledge

Finally, go to the next workplace in the process and repeat steps from 1.5.3 to1.5.6

1.5 The relationship of 5S components.

The components of the 5S include seiri,seiton, seiso, seiketsu and shitsuke and

it have a relationship with each other Specifically, the first step of the “5S”process is seiri refers to the action of sorting all unwanted, unnecessary, andunrelated materials in the workplace

Effective implementation of seiri is how to conduct more effective seiton.Seiton only implemented after conducted seiri steps And just set-in-oder all ofthings were sort Furthermore, the sorting phase also aims to provide a cleanslate on which to build and carry out the other four steps

After the implementation of seiri-seiton Then, seiso will be make smooth andeasy Prevent loss and waste of time when arranging everything Three abovesteps should be done on regular basis and can be do at the same time

After the implementation of seiri-seiton-seiso Then, seiketsu will be set set as

a standard so to keep these good practice and standardize the methods applied

in previous tools And implementing previous tools more effective at a higherlevel

Finally, the combination between seiketsu and are shitsuke to create the habitand personnel voluntarily observe cleanliness and orderliness at all times,without having to be reminded

Figure1.3 : The relationship of 5S components

1.6 Some things to keep in mind when implementing 5S

1.6.1 Keys to successful implementation of 5S.

- Get everyone involved and leader committed support: 5S is not be theresponsibility of a concerned few It is a concern of every one to action Alllevels of management should take part in decision making required to ensure5S implementation and resolve 5S issues

- Training and coaching: train and provide the necessary knowledge tooperate effectively 5S and provide enough implemeting tools

- Maintain effective implementation of 5S: don't stop halfway inestablishing 5S developing habits, sense of self-discipline and alwaysimprove with higher standards

- 5S is a halfway toward other improvements: Don’t stop with 5S: Followthrough with Zero Defects, Cost Reduction, and other Productivity & Qualityimprovements

1.6.2 Difficulties to implementation of 5S

- Difficulties of form perceptions: that the formation of workers' awarenessabout benefits of 5S Process Implementation 5S activities is not onlysuperficial but also asocialted with the cultural change and awareness ofworkers

- Difficulties in initial Implementation: Initial difficulties inimplementation: forming the think for people that they are implementing 5S.Along with building Reward and Punishment mechanisms so that all ofcompany members would commit the 5S implemention

- Difficulties in terms of maintenance: All of the company members areexcited about implementing 5S They are always conscious about the 5Simplementation and improvement Therefore 5S activities become morefrequent, more effective and higher applicability

You will face many challenges implementing and sustaining a 5S System.One of those is that a 5S System represents change One way to make thechange easy for employees it to use a slow and steady method ifimplementation.You must examine how your organization works and tailoryour 5S System to fit

CHAPTER 2: ACTUAL SITUATION ANALYSIS OF THE 5S IMPLEMENTATION IN HOA THO-HOI AN GARMENT JOINT

STOCK COMPANY ( 2014-2015)

2.1 Overview about Hoa Tho - Hoi An Garment Joint Stock Company

Garment Joint Stock Company

* Name and adress

- Transaction name: HoaTho-Hoi An Garment Joint StockCompany

- Director: Mr Nguyen Van Binh

- Adress : 26 Nguyen Tat Thanh, Hoi An City, Quang Nam Province

* History formation and development

Hoa Tho- Hoi An Garment joint-stock company(old garment factory) wasestablished under Decision No 159 / QD / UB dated 02/02/1987 of thePeople's Committee of Quang Nam-Da Nang and delivered to the People'sCommittees of Hoi An city manager With land area is 30.528m2, workshoparea is 28 281 m2 and warehouses, with 9 production lines (35 sewing-machine / lines ) specialized manufacturing sports clothing and exporter HoaTho Garment Company – Hoi An was established and recieved facilities fromBuilding No 5 Secondary School of the Ministry of Construction andrenovated to suit the production model

Since 1987 to early 1988, Enterprise had repaired technology production lineand start going into production The first time, Factory produce domesticaccording to orders Department Stores company's apparel textiles Central.

By mid-1988, Enterprise began producing goods for export to the USSR In

1989 Enterprise have signed processing contracts with the Soviet Union inlarge quantities

In late 1990 early 1991, due to political unrest in the socialist countries makeour country's textile industry in general and Hoi An garment factory particular

be lost traditional client, markets exports be shrinking Before this situationforced the board of directors have to find new markets turning to othermarkets such as Hong Kong, Taiwan

In early 2003, Hoi An garment factory has an implement the policy ofGovernment about merger, dissolution or equitization of state-ownedenterprises small and medium does not hold a dominant role in the nationaleconomy May 3-2003, garment factory Hoi An, Quang Nam provincialPeople's Committee and Textile Corporation Vietnam agreed to merge into theCorporation and delivered to Hoa Tho Textile Company management andadministration

In 2005, the company had repaired, upgraded and expanded by adding threelines and solve the employment for employees contribute to increase revenuefor the company

02/2012, according to Decision No 59 / QD / VP / HT dated 02/01/2012 Hoi

An garment factory shift to equitisation of Hoa Tho Textile and Garmentcorporation, renamed Hoa Tho- Hoi An Garment joint stock company Sincethen, the company has maintained a pace of production, create jobs for manyworkers and have good relations with traditional clients Most orders arecustomers appreciate the product quality and on time delivery under thecontract

2.1.2 Functions and responsibilities of the company.

2.1.2.1 Functions

HoaTho Hoi An Garment Joint Stock Company specialized apparelmanufacturer, served according to business requirements of the industry,locally and abroad

The main export items finished garment products manufactured by processingbased on assigned corporation number

Seek and exploit of all items that can meet customer demand for efficiencybusiness

Through the provision of the garments for the unit, the textile industry Inorder to exploit all potentials to serve freight , the ability to meet customerrequirements about quantity and quality Then extend enhance product qualityand meet the increasing demands of the components in the national economicsystem

Besides, the company constantly innovate and improve the technology.applications of science and technology into production and business in order

to create the best products to meet customer needs

Monthly, quarterly and annual reports business results, tasks, labor, salaries,inventory assets about the corporation and the function room

2.1.3 Oganizational structure of the company

(Source: Hoa Tho - Hoi An Garment Joint Stock Company)

The structure in the company is a structure directly multifunctional, with this

form will have the advantage of specialized work and ensuring a cross-cutting

D i r e c t o r

p a r t m e n t o f A c c o u n t i n g a n d F i n a n c i a l A f f a i r s

D e p a r t m e n t o f P l a n n i n g a n d S u p p l i e s

V i c e D i r e c t o r

D e p a r t m e n t o f A d m i n i s t r a t i v e O r g a n i z a t i o n

D e p a r t m e n t o f E n g i n e e r i n g T e c h n o l o g y

K C S

C u t t i n g W o r k s h o p

S e w i n g W o r k s h o p

E l e c t r o m e c h a n i c a l G r o u p

G r o u p o f C o m p l e t i o n

C u t t i n g t a b l e 2

C

u t t i n g t a b l e 1

S e w i n g t e a m 1

=

>

1 5

systems from top to bottom It help to issue the decisions , policies andenforcement of decisions and policies

Coordination, intimate contact between departments within the organizationand executive producer Formed a working system and relatively tight control

to achieve the best results And then, bring economies of minimizing theoverlaps about personnel and equipment, increase confidence and satisfactionfor employees

2.1.3.2 Manufacturing Organization Structure

Diagram 2.2: Manufacturing Organization Structure

- Function and duties of the department

Main production department: include auxiliary and production servicedepartment, semi-finished produce production departmen, finished produceproduction departmen and finishing derpartment

Auxiliary and production service department: Check fabric quality areassurance or not Receiving and transporting raw materials to the productionworkshops

Semi-finished produce production Departmen: in charge of cutting,numbering, sewing, assembling, doing buttons

Finished produce production Departmen: electric ironing, check qualityproducts

COMPANY

MAIN PRODUCTION DEPARTMENT

FinishedproduceproductionDepartmen

FinishingDerpartment

Finishing Derpartment: Get the product, size classification, packaging, cratingand shipping to warehouse.

2.1.3.3 Function and duties of the the management level department

Director: is a person from a group of managers who responsible for managing,executive, general in charge of all production and business activities Is theperson with the highest power in the Company and as a representatives aboutthe legal status of companies in the transaction relations with partners, to bearall responsibilities for the operations of company before the law As well asproposed policies and development orientation for the company

Vice Director: Is the person supporting the Director, general in charge of allproduction to organize production of orders and directly manage thedepartments, check and ensure the technical standards of the product andensure production progress control

Department of Administrative Organization: manage the files, documents ofthe company include documents on personnel organization, human resources,salary, Regulations of rewards and punishments and settle the obligations andrights for the employees Accept and report timely on any information ofcompany to the superiors

Department of Accounting and Financial Affairs: Set financial plans, identifyneeds for annual working capital, advise the director to use its capital andcapital preservation Manage, monitor and supervise the financial situation ofthe company, the company's spending in line with the policies Price, identifythe business result, manage the debt Implement payables, receivables, managethe assets, materials, capital and establish the settlement in accordance withaccounting year

Department of Planning and Supplies: Plan, set annual production plans tosubmit to the director, plan the procurement of materials for production,arrange the production plans for the sewing workshop, set production scheduleand delivery

Department of Engineering Technology: Etablish the production processes forthe company, build technical norms, standards of quality product, build

specifications for each item, instruct technological process for the production

groups and test standards specified by customers on the product manufacture

The technological production process is organized by continuous production

line with modern machinery and equipment Each product code are designed

technology process and production line before being put into production

process by department of Engineering Technology Production parts are

arranged logically to minimize the time between the lines Production parts are

arranged logically to minimize the time between the lines

Diagram 2.3: Technological production process

(Source: Hoa Tho - Hoi An Garment Joint Stock Company)

This process are divided into cutting and sewing stages

Diagram 2.4: Cutting stage

KCS

Cutting Enter the material Clasify

Spreading fabric Industrial

cleaning

Spreadingmex

Check out

Cutting fabric Cutting mex Pressingmex

Numbering

Some details split into small groups

Gather details ofthe sameproduct into thesame fabrictable

Enter semi-finished

produce

(Source: Hoa Tho - Hoi An Garment Joint Stock Company)

After entering raw materials, conduct classified fabric, check fabric beforecutting, spreading fabric, spreading mex workers cutting fabric according todiagrams, designs and sizes of order or supplied by the engineering technologydepartment Each part must be cut base on specifications, always check toremove the incorrect details cutting then, numbering, some details split intosmall groups, gather details of the same product into the same fabric table andenter semi-finished produce

Diagram 2.5: cutting stage

(Source: Hoa Tho - Hoi An Garment Joint Stock Company)

After receipt semi- finished produce in order to examine, workers assignedimplementation base on the expertise of each team, each worker Then, ironingproduct and KCS derpartment will be check out product quality and finishingdepartment packing, crating

2.1.5.1 Business results of the Company

- Business results of the Company

Table 2.1 results of the Company during 2013- 2015

V Checkout Semi-finished product

Industrial

cleaning

Sewing accessories, buttons

packing andcrating

KCSElectric

iron

2013 was less efficient than 2014 because in 2013 the economy had not beenexpanded material prices increased highly making the cost of goods soldincrease Partially in 2013, the Company's labor use was not reasonablemaking the management costs increase leading to an decrease of profit aftertax In addition, this year was the first phase for the Company to initiallyequitize so it faced difficulties in the management and production.

The main production operations

- The main items produced by the company:

The company specializes manufacture outwork of garments for export , suchas: Jackets, T-shirts, jeans, shorts, sportswear, uniforms in that, Jacketshave consumption markets mostly European countries such as Britain, France,America The remaining products are sold in Asian countries such asTaiwan,Koren

In addition , the company also outwork, production , purchase products of rawmaterials for production as director of the Company be authorized : Cappa ,Nautica , Russell , Ping.Jantzen , Grand Slam

- The market of company

With characteristics of a shareholding company specializing outwork theproducts of export according to orders oversea currently, the consumptionmarket of company is mainly such as the USA , EU , Japan , Taiwan , HongKong , China , Specifically, the US accounted for 70 % , the EU accountedfor 20 % , the rest 10%

2.1.5.2 Human resource situation in the Company

The company now has 561 staff and workers, including productiondepartment (main production workers and auxiliary production workers ),cutting workshop, warehouse, electronic mechanical group, finishingdepartment and sanitation worker with 511 peoples Board of directors,management, administrative office has 50 people The following summarizesthe allocation the number of employees for each department: