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DSpace at VNU: Application of 5S in Vietnamese Small and Medium Manufacturing Enterprise-Current Situation and Soluions...
APPLICATION OF 5S IN VIETNAMESE SMALL AND MEDIUM MANUFACTURING ENTERPRISES - CURRENT SITUATION AND SOLUTIONS Nguyen Dang Mitth - Do Till Cue Ta Thi Huong Giang - Hoang Till Thu Ha I INTRODUCTION The economy is changing more competitively, modern corporations nowadays growth through improving efficiency o f manufacturing as well as delivering higher quality goods and services to attain higher customer satisfaction In Vietnam, on the path to build up a market - oriented socialist economics, the contribution of corporations, especially Small and Medium Enterprises (SMEs) are playing key roles More than 280,000 SMEs accounting for about 98 percent o f total number of firms around Vietnam in 2011, this segment contributes about 30 percent o f GDP annually These enterprises not only employ for millions labor each years but also donate the national wealth so that supporting SMEs development always is top priority among government policies However, small scale and lack o f capital as well as human problems are the reasons that make many SMEs still are in struggling to survive To solve this problem, entrepreneurs take chances o f globalization and integration to learn oversea successful key for business Certainly, the exactly imitation is not allowed due to difference in culture and business circumstance as well as level o f manager Thus, learning from oversea knowledge and implementing for Vietnamese case are still at first stage and always need support from both government and society Come from Japan, a traditional Asian country and home o f powerful corporations, 5S is a tool that applied successful and commonly for a long times It is methods o f maintaining good housekeeping so that firms can enhance the production efficiency as well as quality o f goods and services This method was applied firstly by Osada in 1980s, Then, many firms throughout Japan also start to implement 5S to reduce waste and improve productivity (Osada, 1991) 5S is * University o f Economic and Business, VNU 498 APPLICATION OF 5S IN VIETNAMESE abbreviation o f five Japanese words which starting with S: Seiri, Seiton, Seiso, Seiketsu, and Shitsuke (Ho, 1997) Nowadays, 5S also is implemented in many countries and five Japanese words with s starting also is adapted in local language Particularly, in English, they are Sorting, Straightening, Shining, S t a n d a r d i z i n g and Sustaining (Lonnie Wilson, 2010) 5s is good way to maintaining housekeeping and environment performance as well as safety and systematic workplace (O’Eocha, 2000) Most organizations started practicing 5S in manufacturing areas before applied it in office based environment (Stephen J and Graeme, 2004) Through time, 5S is developed and integrated with other method for better improvement and higher efficiency with other method such as Kaizen ideas (Imai, 1997 and Kodama, 1959) and visual control (Nikkan Kyogyo Shinbun, 1995) Also, 5S is used as foundation o f other managing activities such as Total Quality Management (TQM) (Ho et al, 1995) and Total Productivity Management (TPM) (Ho and Fung, 1995) In lean manufacturing system, 5S is applied as a basic tool to maintain housekeeping (Becker, 2001) and implement lean (Hines et.al, 2004) In Vietnam, the concept of 5S have been developing and applying in firms under the guidance o f Vietnam Productivity Centre (VPC) It is an effective and suitable method for Vietnamese firms in starting to enhance productivity and improve product quality (Phan Chi Anh, 2008) However, the number o f Vietnamese documentary about 5S implementing and how to integrating effectively 5S with others methods is still limited Besides, how well it works and what is the current situation o f implementing 5S in Vietnamese SMEs are still questioned so that restrict supporting and developing it in Vietnam Aimed to provide a picture about the fact o f 5S applying in SMEs for superior support, this paper would like to provide closer look at firstly the overview about 5S theoretically and provide reality about how SMEs are exploit this useful method through survey from Northern manufacturing SMEs Furthermore, final part of this paper would analyze difficulties that they are facing and suggest practical countermeasure that firms should apply to implement 5S more effective II M ETH O D O LO G Y There are three phases in process o f conducting this research The first stage is collecting data This information source was create by combination o f secondary data and primary data which built from survey fifty-two Northern Manufacturing SMEs as well as semi-constructed interview for deeper analyze The second stage is figuring out problems that hide inside the whole picture drawn from previous phrase: How SMEs are exploiting result of 5S? What factors cause this problems? Based on the problem in current situation and using 5whys method, research point 499 VIỆT NAM HỌC - KỶ YÉU HỘI THẢO QUỎC TẺ LẰN THÚ TƯ out the roots o f the problem: lean did not develop in Vietnamese SMEs After that, some suggestions are given in third stage in order to enhance effectiveness o f 5S implementation in these enterprises Figure 1: M ethodology 500 A P P L I C A T I O N O F S IN V I E T N A M E S E III O VERVIEW OF 5S 5S is a method in total quality management system that originated from Japan during the period time from 1960s to 1970s This is difficult period in history of Japan economics after World War II Japanese firms startina apply 5S with the idea about good housekeeping is the basic o f maintaining and improving productivity and quality Five components o f 5S are abbreviation o f five Japanese words which starting with S: Seiri, Seiton, Seiso, Seiketsu, and Shitsuke In different countries, 5S could be translated into dialects for better adaptation but still keep the same meaning For example, in English 5S contain Sorting, Straightening, Shining, Standardizing and Sustaining and in Vietnamese, these five s represent Sàng lọc, xếp, Sạch sẽ, Săn sóc Săn sàng 1 Seiri (Sorting) Seiri is the way tools, equipment, materials, documents is organized follow logical order so that the workplace is keeping clean, tiny All the items could be sort in prioritizing per requirement and keeping them in easily-accessible place One common approach Seiri is using “red card" to tai’ any unnecessary items These tagged items would be consider whether i t ' s in right p l a c e o r n o t a n d p e o p l e w h o r e s p o n s i b l e f o r t h i s a r e a w o u l d m a k e decision to keep this items or not Sorting process will classify everything in workplace so that eliminate time o f m oving and searching for tools or document and also create a safer work environment Seiton (Straightening) In J a p a n e s e , S e ito n m eans is a r n g e d e v e r y th in g n e a t a n d o rd e rly So, w h e n in tro d u c e d into Vietnam, S2 is called Straighten After removal o f unnecessary items, the next task is to organize them effectively so that they can be easy to find, and easy to repay after using Typically this process starts by looking at the usefulness and frequency o f using these items to decide its location In this step, the items need to be identified by labeling or numbering to easily locate the best location, on the principle o f visual management: "a place for each item, each item has a unique position." Through Seiton activities, the working environment would become more convenient and tidy that inspire employee for better work result Seiso (Shining) Seiso - the third s means that shining and keeping the workplace clean Main task in this section is kept clean throughout the organization of the overall hygiene and daily cleaning machinery, supplies, and work areas Seiso aims to improve the working condition, reduce risk, accidents, and improve the accuracy o f machinery and equipment (due to dust) Hygiene regularly also can test machines, devices which detect problems such as dust in m achinery, the place loose screws, broken screws so that w e quickly f in d s o l u t i o n s to problems, improve the productivity o f machinery, equipment and safety at work Ap pl yi ng these first t hree s, firm can achieve a m a z i n g results, thus, contributing for improving productivity and profitability for the business 501 VIỆT NAM HỌC - KỶ YÉU HỘI THẢO QUỎC TÉ LẲN T H Ử TƯ Figure 2: 5S principles In summary, 5S practices to help businesses build environment clean, tidy and safe at work, promoted creativity in employees and develop discipline and corporate culture For business enterprises, the benefits can be identified through model PQCDSM: - Improve productivity (P - Productivity) - Improved product quality (Q - Quality) Seiketsu (Standardizing) ỉn Vietnamese, Seiketsu also is translated as “săn sóc”, which mean focusing on the purpose of maintain standard and operating resuits in the first three Ss Its goal is long-term maintenance 3Ss activities rather than a temporary movement Therefore, ensuring the accuracy is essentia! to maintain the achievements of the previous operation In addition, organizations and businesses may make regulations, rules, plans, etc to be able to control the development and implementation of 5S Other important in Seiketsu contents are operational test and evaluation 5S performance By developing S4, 3S activities will be gradually improved based on the standards set out and proceed to complete the 5S business Shitsuke (Sustaining) Shitsuke is the final activity of 5S This “S” meant to be trained to make up a daily routines and habits of employees in implementing 5S Ready can be interpreted as training people to follow standard and strict monitoring rules in the workplace However, when the improvement opportunities appear, ready will help firm make changes as appropriate easily Thus, the in S5 content, the training of 5S is the most important point, help the 5S activities are maintained and developed to the highest level, thus contributing to improve productivity and product quality 502 APPLICATION OF 5S IN VIETNAMESE - Cutting costs (C - Cost) - Delivery (D - Delivery) - Ensure safety at work (S - Safety) - Raise awareness and discipline for employees (M - morale) As a simple method, ju st changing in mind thinking o f manager and employee and also a methodology that sharing the same perspective “Cleanliness is next to eoodliness” of Vietnamese, 5S is less costly way for firm to a bring up hieher performance with cleaning and efficient working environment IV C URRENT SITUATION OF 5S PRACTICE IN VIETNAMESE MANUFACTURING SM A L L AND MEDIUM ENTERPRISES Small and medium enterprises in Vietnam The above part represent literature reviews and some theories about 5S, this prove that 5S is 2;ood method to improve company performance We analyze continuously the current situation application 5S in Viet Nam through survey at 52 SMEs According to the Vietnam government regulations, small and medium businesses is a registered business under the law with total capital under 100 billion VND or number o f employees less than 300 In recent years, the number o f SMEs increased continuously and accounts for approximately 97% o f businesses operating across the country C ontributing more than 30% in G D P and creating thousands o f jobs for the society, the development o f SMEs are considered as an important strategy in Vietnam ’s development Due to small scale in both capital and number o f employees, SMEs often are highly flexible, adaptable to changes in business environment However, because of low technological capabilities as well as the limited capital, a great number of SMEs in Vietnam are falling, stagnating and facing bankruptcy during the downturn Therefore, Vietnam government has been supporting for enterprises to access capital and technology as well as efficient management and production methods And, 5S - a Japanese method, that is very simple but efficiency of production to improve company environment and performance is one way to develop SMEs We conducted survey in 52 SMEs in Viet Nam, and went to reality to research and investigate the current situation o f application 5S in Viet Nam Current situation o f lean practices in Vietnamese small and medium enterprises Following the Japanese firms, 5S was introduced in Vietnam in the early 21s century After 10 years o f development in Vietnam, 5S has brought many benefits 503 VIỆT NAM HỌC - KỶ YẺU HỘI THẢO QUÒC TẺ LÀN THỬ TU to enterprises, especially SMEs during the economic downturn In 2002, a workshop on methods and experience o f Japan in productivity management held by Vietnam Productivity Center and Asian Productivity Organization introduced overall TQM tools to Vietnamese enterprises In the following years, a series o f programs to support for applying lean in Vietnam was organized and obtained good results In June 2010, program " Enhancing capacity to support industry in Vietnam" held by JICA and SME TAC help Vietnamese SMEs to apply a number o f tools o f lean such as 5S, kaizen, visual management, TPM, However, up to now, these methods has not been widely applied in Vietnamese enterprises However, the number o f enterprises that has been supported in this program achieved about 170 enterprises, account for a very small proportion (less than 1%) o f SMEs in Vietnam In 52 companies, we conduct the survey to exam how 5S apply in Vietnamese SMEs, and which level application o f 5S in SMEs is We exam the relationship between 5S and productivity efficiency, workplace and performance before and after a p p ly this tools The r e s u lt - the table o f this survey show that the application o f 5S in SMEs is medium, follow JICA - one o f organize in Japan to develop productivity , that cooperate with SME - TAC, and through the survey and real observation, the level o f apply 5S stood at level in level It means that, the SMEs, which are applying 5S, only achieved 3S (Sort, Straighten, Shine) Most o f these companies is trained or guided by volunteer in Japan, but they still have not yet apply 5S completely and successfully Table 1: Results o f survey at 52 companies about 5S practice 5S M in M ax M ean STD Training 5S awareness for employees 1.00 5.00 4.28 0.93 Formulating 5S committee 1.00 5.00 4.24 0.80 Developing and Establishing 5S standard 1.00 5.00 4.10 0.74 Maintaining daily 5S at office and showroom 1.00 5.00 4.00 0.94 Maintaining daily 5S at shop-floor 1.00 5.00 3.75 1.05 x6 Maintaining daily 5S at warehouse 1.00 5.00 3.98 0.99 Promoting 5S to suppliers network 1.00 5.00 3.54 1.12 Actually, 52 companies in survey were typical in applying 5S method And most of company located in Hanoi or Ho Chi Minh City In a bis city, where information network is very developing and receive more support from government, those SMEs still cannot apply fulfill 5S method, so in the rural areas may be the number o f application o f 5S is much small It is reason why we can estimated that 504 APPLICATION OF 5S IN VIETNAMESE there are only small num ber o f SME apply 5S in Viet Nam M oreover, the number of SMEs that has successfully applied is smaller Besides survey at 52 M SM Es, deep interview was carried out at enterprises in Hanoi: Hanel JST Company, CN C-V IN A and Shorai Limited Company 2.1 H anel Plastics Joint Stock Company As one o f the first joint stock companies in Hanoi, Hanel Plastics JSC was founded in 1994 Its main products are plastic and foam products for other industries With the support from the program “Enhancing capacity to support industry in Vietnam”, Hanel has applied the 5S, kaizen into the plant since 2009 In the first phase, company held training program for employees with basic knowledge of 5S, kaizen, TPM, After training, cleaning campaign was done in the entire of company, machines, facilities and products were filtered and rearranged logically and scientifically During implementation process, the enterprise also made improvements to reduce lead-time for arriving and operating As a result, the effectiveness o f the t o o l s 5S, kaizen is evidence in the work environment as well as business result Table 2: Business performance o f H anel in 2010 and 2011 2010 (VND) 2011/2010 355,799,459,721 244,417,127,586 146% Net revenue from operating 12,274,437,332 8,492,201,326 145% Net profit 9,802,473,216 6,963,307,919 141% Criteria 2011 (VND) Net Revenue Source: Hanel financial statement, 2011 2.2 Vietnam CNC and Technology application Joint Stock Company (CNC- VINA) C N C-V IN A was established in 2007 and engaged in the field o f machine manufacturing and automatic control With the support o f program “Enhancing capacity to support industry in Vietnam", the com pany has applied CNC-VINA tools 5S, kaizen since its establishment W hen first applied, the training programs o f these tools are held regularly to the board o f directors and managers Then, the training for staffs was implemented At the same time, com pany also organized and 505 VIỆT NAM HỌC - KỶ YÉU HỘI THẢO QUỎC TÉ LẰN TH Ứ TU arrar.ged machinery, equipment, products to eliminate lead-time Continuous improvement, kaizen was encouraged in the enterprise, so work environment and productivity o f CNC were improved significantly 2.3 Shorai Vietnam Company Limited Shorai Vietnam Co., Ltd, a member o f A Long Corporation operates in support industries Its director is Japanese, so Shorai applied 5S and Kaizen when it was established in 2011 With support o f program “Enhancing capacity to support industry in Vietnam”, Shorai hold a number of training programs for its managers and employees After that, it began practicing 5S and kaizen under supervision of director Application process at the company almost a year but only gives efficient large companies The company has made continuous improvements to reduce leadtime as well as manipulate time in the production process Up to now, Shorai received a lot of orders from the ereat enterprises such as Toyota, Dongfeng, Truong Hai, Thong Nhat There cases imply the change in performance and efficiency after applying 5S in specific case and in specific number So, 5S can apply in Viet Nam and bring many good result for SMEs Besides good news, there are some true stories that we need to know that even the companies is considered quite success in application 5S, the level o f application still stood at level It may suggest that, may be many other companies apply 5S is stood at lower than level Even though, many SMEs have never access concept o f 5S It will lead to the number o f SMEs apply 5S is small The less, with typical success stories in Vietnam, the authors have drawn three major lessons that the company has successfully applied to implement lean; good leadership, management capability and suitable training program Those cases show that 5S (and some other methods) is a very useful method that helps enterprises increase profit and it can be adopted in Vietnamese SMEs However, those are only the initial successes; it would take more time to popularize lean in Vietnam To find out the reason why 5S still have yet develop in Vietnam, and reasons for there are a little o f company apply 5S in SMEs, we can consider the next part V THE CAUSES d evelopm ent o f lean OF PR O B LE M AND SOLUTIONS FOR p r o d u c t i o n i n V IETN A M ESE E N TE R PR ISES T he causes th a t lead to u n d erd ev elo p m en t of 5S in V ietnam ese Sm all an d M ed iu m E n te rp ris e Although 5S is an effective method that helps Vietnamese SMEs eliminate wastes and improve productivity, 5S has not yet been applied widely in Vietnam In order to point out the roots of the above issue, tree diagram o f causes was built based on 5Whys method and the survey results The tree diagram consists o f 50 APPLICATION OF 5S IN VIETNAMESE layouts where present the causes lead to the results in the previous layout Therỉ are causes that lead to the problem: 5S are not applied widely in Vietnamese SMEs: - Lack o f enterprise leader’s commitment in 5S practice - Ineffective propaganda about 5S in Vietnam - Limited capability of leaders - Lack o f 5S specialists - Poor quality training 5S program - Lack o f Vietnamese materials about 5S - Lack o f supervision in 5S practice - Lack o f support from government in accessing capital - Lack o f initiative in learning from other enterprises Based on the result o f survey at 52 companies, there exist the most critical reasons that make 5S practice unpopular in Vietnam L I Lack o f enterprise leader’s commitment in 5S practice In enterprises, leaders or Board o f Directors (BOD) play a vital role in orienting the development strategics as well as 5S practice plan BOD will set up the goals and necessary resources in plan o f applying 5S, so that commitment OÍ B O D in 5S practice is essential for enterprise to implement 5S plan successfully In addition, strong commitment o f leaders could make employees aware o f importance o f 5S in company, since then encourage them to 5S activities effectively In short, leader’s commitment is a key for success o f 5S plan in MSMEs 1.2 Ineffective propaganda about 5S in Vietnam Although 5S was imported in Vietnam for over 10 years, it is still considered as a new method in many Vietnamese MSMEs It is a really useful method that helps enterprises improve productivity, but there is no propaganda campaign about 5S in Vietnam Therefore, at the present, there are few SMEs that knew and applied this method in management and production 1.3 Lack o f 5S specialists 5S is still new for many Vietnamese SMEs, so that it is difficult for those to apply 5S in company properly Specialists who have deep understandings about both 5S and Vietnamese business context will support SMEs to develop strategy and to overcome the difficulties in implementation plan, especially in the beginning stage Without support from specialists, enterprises could face to the failure o f 5S plan, so lack o f 5S specialist is a critical reason that leads to problem in applying 5S 507 VIỆT NAM HỌC - KỶ YỂU HỘI THẢO QUỎC TÉ LẰN TH Ử TƯ Figure 5: The tree diagram of causes r Fluctuation in m arket that lead to changes in strategies for applying 5S Lack o f favorable outside factors f Lack o f long term strategies for 5S practice J V N ( 1) Lack o f enterprise leader’s com m itm ent to 5S practice ^ The tree analysis with layouts analyzes reasons y why 5S has not yet been applied f Lack o f supports for applying 5S from governm ent Lack o f awareness about benefits o f 5S practice N ( 2) Ineffective propaganda about 5S in Vietnam Vietnamese SMEs by using J V 5whys method s ' V Poor ( m anagement system 5S practice are not applied w idely in Vietnames e MSM Es widely in r Limited capability o f leaders - / The main causes \ J V (3) Lack o f 5S specialists Lack o f resources to apply 5S in com pany Poor quality training 5S program Poor human resources in 5S Poor em ployee’s know ledge about 5S f Lack o f V ietnam ese m aterials about 5S (4) (5) ) Poor consciousness o f em ployees in 5S Lack o f supervision in 5S practice (6 ) Lack o f favorable inside factors Lack o f capital and technology investm ent to apply 5S v_ 508 Lim ited capital source Lack o f support from governm ent (7) APPLICATION OF 5S IN VIETNAMESE 1.4 Poor quality training 5S program To approach new method like 5S, training is the basic requirement in implementation process Training program will provide the basic knowledge about 5S as well as steps o f implementation If training program does not meet the needs and requirements o f enterprises, employees can understand incorrectly the 5S philosophy As a result, 5S could not develop in Vietnamese SMEs 1.5 Lack o f Vietnamese materials about 5S In Vietnam, materials about 5S are mainly in English or Japanese, so it is difficult for SMEs to study about this method Moreover, materials for training play an important role in development strategy o f lean, consequently Vietnamese documents are necessary for SMEs to practice lean successful 1.6 Lack o f supervision in 5S practice Vietnamese employees are not good at self-consciousness and self-discipline, so when there is any change in work, they often ignore the requirements If enterprises not supervise strictly 5S implementation process of employees, they will not have right awareness and attitude about this method Thus, supervising the 5S tasks in the beginning stage is very necessary to create 5S habits for employees in work in the future 1.7 Lack o f support from government At the current time, Vietnam government has provided a num ber o f programs and policies that support for SMEs to overcome the downturn period However, the number o f enterprises that can access to those policies is very small Without support from government, SMEs would face the difficulties in accessing capital source, technology as well as the advanced methods like 5S, Kaizen, TPM Briefly, support from government is an important factor that help MSMEs approach to capital, technology and 5S method Suggestions for 5S development in Vietnam Based on the causes o f the issue in the previous part and results o f deep interview in enterprises, authors suggest some countermeasures to popularize 5S in Vietnamese M SM Es The suggestions are recommended to government and enterprises as well as the training organizations to create the most favorable conditions for 5S practice in Vietnam 2.1 Suggestions fo r government - D evelop the wide-range propaganda about 5S in Vietnam, especially in SMEs 509 MỆT NAM HỌC - KỶ YẺU HỘI THẢO QUÓC TẺ LẰN TH Ử T In Vietnam, 5S method is new for many enterprises while it has been imported in Vietnam for over 10 years This method can help M SM Es enhance their P'oductivity and competitiveness, so propaganda about 5S will popularize this rcethod to enterprises in response get benefits from this method Government can raise the popularity o f 5s by holding the awards or competitions about developing the advanced methods in manufacturing and management like good 5S practice in Metnam as annual, since then these methods can be spread around country - Provide the support policies fo r SM Es to 5S practice in production At present, Vietnamese MSMEs have numerous o f difficulties in capital and technology Even though Government provides a number o f policies to support SMEs in accessing the capital source and technology, the number of SMEs that can take advantage o f those policies is very small Therefore, government should srengthen these policies that help enterprises set up the foundation for 5S development For companies that are at the beginning stage o f implementation plan, the State should push 5S practice in these companies through reducing tax (5-10%) Besides, Government should form a separate fund or department that is responsible for supporting M SM Es in Vietnam Thereby, this department can make the priorities policies encouraging this method Besides, State also can encourage firms through awarding, honoring companies that have excellent innovation or new achievement in production such as implementing Lean successfully Thus, 5S could be quicker spreads among Vietnam SMEs 2.2 Suggestions fo r enterprises - Providing training courses about 5S The training programs should be developed in accordance with the qualifications o f employees It can be divided into many different courses including reality case studies in industrial practice so that learners can easy to understand The effectiveness o f training also determines the success o f applying 5S Besides, training program should be improved continuously to get the highest impact on 5S implementation -Raising awareness o f the learners about training program s In the first phase, companies should focus on the inspection and supervision to ensure quality training In addition, they also can organize internal contest about 5s issues and countermeasures in implementing progress, to attract attention of employees and improve result o f courses 510 APPLICATION OF 5S IN VIETNAMESE - Setting up 5S committee to monitor implementation process and persor.ml inspecting In the early stage o f development, firms should construct an oversight committee to raise awareness o f staffs and make 5S become a habit o f thinking in work Hence, the 5S philosophy will gradually become ingrained businesses cultural and raise competitive position o f enterprises - D eveloping long-term strategies fo r 5S im plem enting integrate with compary tactics Successful 5S implementing in Vietnam required times, resources and plai Thus, firms should make a long term strategy with a fulfill preparation in human, capital and facilities so that the applying process is not interrupted - Cooperating with 5S specialists and institutions to enrich Vietnamese :S materials Enterprises should cooperate with 5S specialists in consultant centers ard universities to create documentary system in Vietnamese that provide fulfill theory and guiding tools for 5S implementing that are suitable with domestic business and manufacturing context 2.3 Suggestions fo r training organizations Incorporating 5S in educational institutions as a reference subject The basic training at schools will provide the theoretical basis for learners, who will directly involve in business and manufacturing process in the future (work as managers, workers, supervisors, and so on) Therefore, 5S should be added in the training program in universities and colleges as a reference subject These courses will help them to have overview o f tools, benefits, and implementing paths o f 5S and form labor force in 5S for future VI CONCLUSIO N 5S is an effective method that helps firms eliminate waste and improve productivity as well as product quality 5S has introduced to Vietnam enterprises lor a long time and some SMEs have recognized its benefits However, the number of Vietnam SMEs that apply 5S is still small (less than 1% o f total number o f SMEs) Thus, 5S has not been widely developed in Vietnam despite the support from many organizations such as the Small and Medium Enterprises Technical Assistance Centre in Hanoi (SME-TAC Hanoi), Asia Productivity Organization (APO) Vietnam Productivity Center (VPC) and Japan International Cooperation Agency (J1CA) 511 VIỆT NAM HỌC - KỶ YÉU HỘĨ THẢO QUỎC TÉ LẰN TH Ử T The research was conducted based on survey at 52 enterprises and interview at three SMEs in Hanoi, SME SME-TAC Hanoi and JICA to provide overview of the current situation o f 5S implementing o f Vietnam SMEs Then, authors use causeeffect method to analysis problems and find out its main causes and propose some practical solutions that aim to help SMEs in implementing 5S in production systems Due to the importance o f SMEs in national economy development, 5S applying will have vital role in pushing economic growth Therefore, 5S should be studied and developed in further analysis to provide a complete model for Vietnam business context as well as expand 5S practice for other business sectors such as services, medicine and public services References Alberto Bayo-Moriones, Alejandro Bello-Pintado, Javier Merio-Diaz de Cerio, 2010, 5S use in manufacturing plants: contextual factors and impact on operating performance, International journal of Quality & Reliability Management, Vol 27, Iss 2, pp 217-230 Lonnie Wilson, 2010, How to implement lean manufacturing, The McGraw-Hill Vietnam government, 2009, Decree No 56/2009/NĐ-CP, issued on June 30th, 2009 (Vietnamese) Phan Chi Anh, 2008, 5S Implementation - Foundation for Productivity Improvement, Labor Publisher (in Vietnamese) Rod Gapp, Ron Fisher, Kaoru Kobayashi, 2008, Implementing 5S within a Japanese context: an integrated m anagem ent system , M a n ag e m en t D ecision, Vol 46, ĨSS 4, pp 565-579 Hines, p., Holwe, M and Rich, N., 2004, Learning to evolve: a review o f contemporary lean thinking International Journal of Operation & Production Management, Vol 24, No 9/10, pp 994-1011 Stephen J Warwood, Greame Knowles, 2004, An investigation into Japanese 5S practice in UK industry The TQM Magazine, Vol 16, Iss: 5, pp 347 - 353 Becker J.E., 2001, Implementing 5S to promote safety and housekeeping, Professional Safety, Vol 46, No 8, pp 29-31 O’Eocha, M., 2000, Use o f 5Ss for environment management at Cooke Brothers, The TQM Magazine, Vol.12, No 5, pp 321-330 10 Ho, S.K., 1997, Workplace learning: the 5S way, Journal of Workplace Learning, Vol 9, No 1, pp 45-53 512 APPLICATION OF 5S IN VIETNAMESE 11 Imai, ML, 1997, Gemba Kaizen: A Common Sense, Low Cost Approach to Management, McGraw-Hill, London 12 Ho, S.K., Cicmil, s and Fung, C.K 1995, The Japanese 5Spractice and TQM training, Training for Quality, Vol 3, No 4, pp 19-24 13 Nikkan Kogoyo Shanbun, 1995, Visual Control Management, Productivity Press, Portland, OR 14 Osada, T., 1991, The S ’s: Five Keys to a Total Quality Environment, Asian Productivity Organization, Tokyo 15 Kodama, R 1959, Medemiru Kaizen dokuhon, Nikkan Kogyo Shinbunsha, Tokyo 513 ... Developing and Establishing 5S standard 1.00 5.00 4.10 0.74 Maintaining daily 5S at office and showroom 1.00 5.00 4.00 0.94 Maintaining daily 5S at shop-floor 1.00 5.00 3.75 1.05 x6 Maintaining... to a bring up hieher performance with cleaning and efficient working environment IV C URRENT SITUATION OF 5S PRACTICE IN VIETNAMESE MANUFACTURING SM A L L AND MEDIUM ENTERPRISES Small and medium. .. with domestic business and manufacturing context 2.3 Suggestions fo r training organizations Incorporating 5S in educational institutions as a reference subject The basic training at schools will