Application of 5S and Visual Management to Improve Shipment Preparation of Finished Goods

The purpose of this paper is to present a lean case study to resolve issues related to shipment preparation in the finished goods store of a manufacturing industry. The process was first investigated through cause and effect diagram. Several root causes detected, including unorganized finished goods inventory, the absence of first-in-first-out (FIFO) rule in process flow, lack of visibility and inadequate inventory data recording and keeping. The two lean manufacturing tools, notably 5S and visual management were deployed in the finished goods store as the countermeasures. This leads to a significant improvement where the shipment preparation was seen reduced by 50%. The offshoot benefits include increased awareness and motivation for lean manufacturing by the involved staff.