1. Asstt. Professor, University of Central Punjab, Lahore, Pakistan; shehzad.hanif@ucp.edu.pk
2. The Institute of Business Management, Karachi, Pakistan; fatimab2212@gmail.com
3. The Institute of Business Management, Karachi, Pakistan; h.hifzayaseen@gmail.com

*             Correspondence: h.hifzayaseen@gmail.com

Keywords:5S, Performance, Management, Learning, PLS Smart

1. INTRODUCTION

The word “kaizen” simply means “good change,” a philosophy of Japanese for continuous improvement in organizational efficiency. Kaizen is a strategy that is based on the 5S principles that bring continuous improvement in the industry performance by minimizing wastage and improving productivity effectively and efficiently [1]. Kaizen is a process that involves employees of all levels in an organization. Everyone comes up the suggestion regarding the improvement and implementation of the process. This is not a short-term activity [2]; it is continuous and revolves around setting standards and then frequently improving those standards and sustaining their abilities to meet standards on a long-term basis [3]. It focuses on five steps that are the foundation for any organization’s competitive advantage. These are Seiri (Sort), Seiton (Set In Order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain) [4]. Kaizen is a process that involves employees of all levels in an organization. Everyone comes up the suggestion regarding the improvement and implementation of the process. This is not a short-term activity [5]; it is continuous and revolves around setting standards and then frequently improving those standards and sustaining their abilities to meet standards on a long-term basis. Many companies started introducing measures to boost their productivity in order to succeed in this situation [6]. The majority of these programs were based on Japanese principles of development. In this way, the company deals with the lean management (LM) theme with a focus on Kaizen 5S implementation, which, if correctly implemented, helps to increase the sustainability of organizations [7]. Many companies are now faced with the need to adapt rapidly to the changing demands, wants, and preferences of consumers [8]. To stay competitive and maintain market share in this world economy, continuous development has become a requirement of the industry. These continuous forces have been efficient and constantly rising levels of customer loyalty in the success of companies [9]. Many companies faced problems during the implementation of this strategy, like; lack of time by top management, lack of interest of middle management, lack of communication, employee resistance towards new strategy, sticking to the old ways of working, and lack of understanding [10]. The essence of success in every kind of company is currently innovative in its goods or services. The latest advancements and the increased consistency of goods or services are key factors for performance [11]. Normally, this change was accomplished by applying the best methods selected to accomplish a specific target. With competition on a global scale, two main problems confront managers in the organization: first, managers need to make the right choices in choosing the strategies to accomplish their targets, and second, they lack the knowledge to effectively improve efficiency and performance [12]. The textile sector of Pakistan is a major contributor in the perspective of export and employment and adds 8.5 percent to the GDP and gives 40% of the workforce employment [13]. Pakistan is the 8th largest exporter of textile products and is among the top producers and consumers of cotton and produces diversified textile products [14]. In the international market, Pakistan, Bangladesh, China, and India are major competitors, but in the past few years, Pakistan’s share has been less than one percent of world textile trade, and Bangladesh, China, and India have become more competitive in both quality and price than Pakistan [15]. Kaizen should be implemented in the apparel industry by improving every phase of the business process while gradually developing employee abilities through training and involvement [16]. It should be implemented in the apparel industry to reduce wastage and improve productivity in all respective departments [17]. The prosperous future of the economy is in the growth of the industry, which can be achieved through better and sustained performance [18]. The objective of this research was to explore the questions regarding the implementation of the kaizen 5S strategy.

2. LITERATURE REVIEW

5S implementation assists organizations in arranging unused equipment/resources, reducing obsolete items, improving productivity, and creating a better working atmosphere [19]. The author revealed that for companies who would like to begin a journey towards continuous quality development and lean output, their first step is the successful application of 5S practices [20]. If people are given the responsibility for their own office, they prefer to arrange and clean up the workspace [21]. The 5S practices inspire the worker to work in a good atmosphere. This will also last for a long time as each company acknowledges the 5S behaviors and promotes workers by incorporating a scheme of incentives [22]. Currently, entrepreneurs are pursuing process optimization methods through which their firms must stay active in the competitive market. One can see the need for a business to ensure that its goods are of good quality and that procedures are continually enhanced [23]. Kaizen is an instrument for cost savings and quality growth. Continuous changes in the manufacturing chain are required in order to further refine the organization’s operations and thus create improved working conditions for its workers [24]. These processes can enhance confidence, change the work environment and make a good impression on customers and give motivation to employees. These qualities give the organization speedy development, efficiency in their work, increase in profitability, and sustainability in a competitive market [25]. To be successful and competitive in the global market company’s output and performance play a major role, and for that purpose, different strategies are designed and implemented. The research revealed that 5S is a technique through which a company can improve quality, output, performance, and working conditions [26]. The researchers suggest the factors and the relationship among them to achieve efficiency and effectiveness in performance. Training is the 5S secret to success. Without adequate training, 5S implementation is not possible, and staff can not actively standardize the 5S [27]. The organization should be aware that resistance to change is an issue during 5S implementation. As a result of 5S operations, the company has created a safe and healthy work atmosphere and increased work quality [28]. Owing to good training sessions and skill practice, several causes that trigger injuries at work have been overcome successfully [29]. In one of the research by, the findings revealed that after getting acquainted with the 5S application, the methodology is highly effective, appropriate and beneficial, and advantageous for organizations. It also demonstrates that in certain organizations, their workers do not understand the advantages of 5s as it is not implemented fully [30]. 5S is a structured approach intended to coordinate, schedule, disinfect, standardize, and develop a work environment constantly. 5S projects are far more than mere housekeeping at work. 5S is important for the efficient operation of different lean manufacturing techniques [31]. 5S measures, namely Seiri, Seiton, Seiso, Seiketsu, and Shitsuke, are considered the keys to maximum performance in a company. The research revealed 5S as the technique used for organizational performance, development, and efficiency.5S is a method to minimize waste and maximize productivity effectively and efficiently [32]. 5S increases ‘transparency’ in an organization, ensuring that visitors, and especially potential new customers, have a good first impression of the working place. The successful implementation of 5S not only increases efficiency, for example, in terms of productivity and cost quality. The 5S principles shall extend equally to any field or business: manufacturing, trade, and services [33]. The four main factors in successful 5S include sustained engagement and top management support, training & development, full-time employee involvement, and standardization of long-term 5S implementation [34]. Continuing training is therefore believed to be the key to changing the organizational culture, and evaluations must focus on enhancing and advancing all input from the organization until the 5S system is complete. A study stated in one of their research that 5S is used as an efficient technique to streamline housekeeping, environmental efficiency, health, and security requirements [35]. It can be noted that the methods followed by the organizations contain certain similarities. It can be used as the promotion of 5S practices among employees and as a form of training for employees [36]. 5S is a methodology used to establish; sustain an effective culture of quality in an enterprise and promise the workers to be more functional. 5S contributes significantly towards the successful implementation of TQM in the United Kingdom; for instance, there are 205 manufacturing firms and 106 services companies, and 16 leading companies from Japan, which have been a major basis in the successful implementation of TQM. Figure 1 presents the conceptual model of the research. It shows that kaizen management practices have a positive association with organizational performance, 5S, and organizational learning.

H1           MP has a direct effect on OP towards efficiency improvement.

H2           MP has positive relation towards 5S.

H3           5S has positive relation towards better performance.

H4           MP has positive relation towards organizational learning.

H5           Organizational learning has positive relation towards OP.

H6           MP has a positive impact on OP with mediating effect of 5S.

H7           MP has a positive impact on OP with mediating effect on OL.

Figure 01: Conceptual Model

3. MATERIALS AND METHODS

The quantitative research is comprised of the Readymade Garments sector and is conducted covering the area of Karachi, Pakistan. A random sampling technique is employed in this research, and the sample is selected from the area specified for the research. The research includes four latent variables 5S, Management Practices (MSP), Organizational Learning (OL), and Organizational Performance (OP). Data is collected from member companies’ factories through a survey by using a closed-ended questionnaire based on a 7-point Likert scale and is analyzed using the PLS Smart tool. The total number of respondents is N=100, out of which N=82 received fill questionnaire adequately. Cronbach alpha is used to check the internal consistency of the model. As from Table 3, the Cronbach alpha range from 0.696 to 0.706, which is above than acceptable value of 0.7, which illustrates that instrument used in this research is reliable and suitable for analysis.

4. RESULTS AND DISCUSSION

The variables that are perceived to be related are checked through the convergent validity test. Convergent validity is determined by using the average extracted value (AVE). The AVE greater than 0.5 shows a higher correlation among variables.

Table 01: Construct Reliability and Validity

Latent Variable	Cronbach’s Alpha	rho_A	Composite Reliability	Average Variance Extracted (AVE)
5S	0.751	0.794	0.840	0.573
MP	0.696	0.711	0.815	0.527
OL	0.730	0.769	0.829	0.550
OP	0.706	0.819	0.814	0.531

As per Table 02, the AVE values are 0.573, 0.527, 0.550, and 0.531, greater than 0.5, which shows that all variables have a higher correlation. The composite reliability of variable items extracted is 0.840, 0.815, 0.829, and 0.814, which shows items are homogeneous (Table 02). Table 4 shows the values of the indicator reliability tests through smart pls.

Table 02: Indicator Reliability

Latent Variable	Indicators	Indicator Reliability
Management Practices (MP)	MP1	0.828
	MP2	0.660
	MP3	0.778
	MP4	0.618
Organization Learning (OL)	OL1	0.775
	OL2	0.614
	OL3	0.742
	OL4	0.820
Organizational Performance (OP)	OP1	0.728
	OP2	0.900
	OP3	0.701
	OP4	0.540
Kaizen 5S	S1	0.857
	S2	0.792
	S3	0.796
	S4	0.545

The impact of one variable on another variable is checked through the coefficient of determination. Table 03 shows the coefficient of determination (R2) that 50%, 23%, and 38.8% of the independent variable is explained by the dependent variable.

Table 03: Coefficient of Determination-R2

Construct	R Square	R Square Adjusted
5S	0.504	0.498
OL	0.234	0.224
OP	0.388	0.365

Hypotheses are accepted and rejected by using values obtained from Smart PLS results. Figure 2 presents the results of the model using partial least squares.

 

Figure 02: Conceptual Model Result

Table 04 displays the results of hypotheses determining the level of hypotheses by testing and seeing the value of path coefficient and t-tests. The test is used to determine the acceptance and rejection of hypotheses on the basis of data collected from the research.

Table 04: Hypotheses Testing

SN	Hypothesis	Suggested	Path Coefficient	T- Value	Significant	Confirmed
H1	MP has a direct effect on OP towards efficiency improvement.	+	0.185	1.011	*	Yes
H2	MP has positive relation towards 5S.	+	0.710	13.12	***	Yes
H3	5S has positive relation towards better performance.	+	0.210	1.237	*	Yes
H4	MP has positive relation towards organizational learning.	+	0.484	4.757	***	Yes
H5	Organizational learning has positive relation towards OP.	+	0.345	2.422	**	Yes
H6	MP has a positive impact on OP with mediating effect of 5S.	+	0.149	1.205	*	Yes
H7	MP has a positive impact on OP with mediating effect of OL.	+	0.167	1.788	**	Yes

*Significance at 10% (1.645) p<0.10

**Significance at 5% (1.96) – p<0.05

***Significance at 1% (2.576) p<0.01

As from Table 04, the results of hypotheses testing by considering the values of T-tests, path coefficients, and determining the significance levels. On the basis of data collected from the research, the test was used to conclude the accepted and rejected hypotheses. As per Table 04, all hypotheses show a positive association with each other and significant varies at each association.

5. CONCLUSIONS

The 5S technique has been a major contributor to increasing the efficiency of companies. This research has examined how management practices are connected with organizational performance through 5S. The main aim of this research is to establish the relationship between management methods, 5S, and organizational learning towards organizational performance. The literature indicates that the 5S implementation generates a positive impact and also revealed the significance of the training & development process to remain successful in the competitive market. For this purpose, we have conducted research in the readymade sector of Karachi, Pakistan. All factors are shown to be positively associated with each other, and results indicate that management practices and 5S policies are highly significant to each other, but 5S is not adopted and implemented fully to get the desired results. It is also revealed that management practices and organizational learning are significant to each other, but this element is not used to the desired extent. Training & development is a process through which employees’ knowledge and skills are upgraded according to the market requirement. Training element is present in the readymade garment sector but not upgraded to the current market level. The findings also indicate that surveyed organizations are working on their old practices and are reluctant to adopt new strategies for better performance. This paper represents a useful resource for practitioners and managers responsible for 5S approach implementation because it demonstrates how they can get benefits from the new strategy and sustain the culture required to operate their processes and achieve compliance with goods and services in their system. From a managerial point of view, the results connect theory to actual 5S practice. Since the findings suggest that 5S tends to boost performance and productivity, it is also recommended that 5S professionals or instructors should consider the advantages of 5S rather than merely simplifying implementation as a technique for business development. The limitation of the research is that it includes only the garment sector. It is recommended that similar research can also be conducted in another sector also. The research covers only the Lahore area, while the same research can be extended to other areas of Pakistan.

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