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5S In Retail

Implementation & Its benefits

What is Retail?

The sale of goods to the public in relatively small


quantities for use or consumption rather than for
resale.

Characteristics of the retail market


strong competition
shorter product life cycle
longer product development time
high sensitivity of demand

Lean Retailing

Lean retailing is an approach to re-inventing a long


established business practice by using lean tools
along with new information technologies to cut out
waste and make operations more profitable.

What is 5S?

Sort
Set in order
Shine
Standardize
Sustain

5s

5S Focus

5s program focuses on:


Having visual order
Organization
Cleanliness
Standardization

5S in Retail Sector

SEIRI (SORT)
The areas of application:
The store room
Display racks

Before Sorting

After Sorting

Seiton (Set in Order)


All items were placed in labeled racks

In store room

Seiso(Shine), Seiketsu(Standardize) &


Shitsuke(Sustain)
Maintain
Train
Habitualise

Computer Service Centre


Before 5s

After 5s

The Back Office of a Banks Branch

SEIRI: The Cleaning up /


Sorting
A cabinet storing files and
stationery in an unorganized
manner

After Seiri
All files were checked for relevance on the following
grounds
Usage within last four months
Condition of usability
It was found that many files of the year 2002 were

also in these cabinets and were of no use as such


Some stationery was not in conditions of use

Seiton :Maintain Orderliness


A place for everything and everything is in its place

All these files as well as racks were labeled


Unnecessary files were sent to the archives section
A list was stuck outside the cabinet to make search
easy and quick
More frequently used files were kept in 2nd and 3rd
racks while stationery was in the 4th and 5th racks

SEISO : Cleaning

Rules were set to clean up the cabinets every


weekend in the order prescribed

SEIKETSU: Standarisation

Standards were set for a regular practice of 5s


For eg. Labeling new file, putting them in the
sequence of months, and in the appropriate rack

SHITSUKE: Making it a Habit

It is required to be followed strictly, regularly and by


everyone right from top to bottom
Everyone was oriented towards the consecutive
benefits and how important is everyones role in its
implementation

Importance Of Lean In Retail Stores

Stage 1: Correct layout and arrangement of


merchandise:
Enabling customers to quickly find what they want with

minimal assistance increases sales

Stage 2: Ease of operations:


Eliminating challenging activities greatly improves

employee retention, reducing training costs and improving


customer service

Importance Of Lean In Retail Stores

Stage 3: Removing NVA unpacking and packing


operations
Implementing a more efficient receiving and stocking
process allows labor to be redirected to sales activities

Stage 1: Correct Layout and


Arrangement of Merchandise:
Remove rotten stock
New arrivals and products in demand should be
exclusively showcased

Merchandise should be sorted according to the retail


format:

Category wise
Brand wise
Product wise
Price wise
Size wise
Discount wise

Stage 1: Correct Layout and


Arrangement of Merchandise:
Store map should be displayed in supermarkets near
entrance
Color scheme for different categories
Navigation sign boards should be visible

Low value products like chocolates should be placed


at the point of sales to motivate impulse buying

Stage 2: Ease of operations:

Merchandise should be stocked according to


categories
Merchandise should be within easy reach of the
employee
Employee should be assigned to a single
category/workspace

Stage 2: Ease of operations:

Point of sales:
All unnecessary items should be removed from the
billing area
Necessary tools like pen, barcode scanner, card
swiping machine should be attached to the counter
A helper should be provided for keeping the

merchandise in the polybags


Extra basket or trolley should be available for stocking
the rejected merchandise

Stage 3: Removing NVA unpacking


and packing operations
Load trucks at DC in store-friendly format for orderly
and efficient put away
Ship similar SKUs in coded bins to eliminate the need
for re-sorting

Stage 3: Removing NVA unpacking


and packing operations
Shelf Ready Packaging(SRP):
SRP essentially means that the products are sold out
of the same packages in which they are delivered to a
store

Benefits

Improved customer experience by streamlining sales


floor
Eliminate billing errors
Improved product and employee safety
Better use of floor space
Improved employee satisfaction

Office 5S

It can be applied to:


Any person who has a permanent location for
performing their work
Shared spaces such as office cubicles
Shared copier or printer

Office 5S

SORT:
De-clutter your desk
De-clutter your desktop homescreen
Scan paper docs that are not needed in hard
copies an store electronicaly
Put regular meetings into the calendar

THANK YOU!

Arvind Singh M/BFT/11/06


Vipul Bhatia M/BFT/11/31