Did Kaizen and 5S Affect Company Performance ? Evidence from Indonesian Manufacturings

Abstract

This study aims to analyze the influence of kaizen culture and the application of 5S (Seiri,
Seiton, Seiso, Seiketsu, and Shitsuke) to employee performance in the manufacturing industries in
Tangerang Indonesia. This research uses a quantitative approach with Structural Equation Modeling (SEM)
using smart PLS software. Data collection methods using online questionnaires and simple random
sampling technique, the number of samples to be used as respondents as many as 200 manufacturing
industry managers. The results of this study indicate that the kaizen culture has a positive and significant
influence on the company's performance. For 5S culture also has a positive and significant influence on
kaizen culture on company performance. The implication of this research is to be a reference that kaizen and
5S can be applied in several manufacturers to improve their performance and can be a reference to be
applied in other companies in subsequent studies. This novelty of this research is build a new model of the
effect of applying new kaizen and 5S to the manufacturing industry in Indonesia