Energy Action Planning

Introduction:
Planning is one of the most important component of energy
management system. It has two major functions-
• A good plan can be a shield from disruption.
• By scheduling events throughout the year, continuous emphasis
can be applied to the energy management program and this will
play a major role for keeping the program active.
Such events can be in the form of-
• Training programs.
• Audits.
• Planning Sessions.
• Demonstrations.
• Research Projects.
• Lectures etc.
Top Management Commitment and Support
Top Management Support:

The 4 vital requirements of successful energy management is

shown in above figure.
If the top management accepts the view that energy efficiency is
good business, implementation of the energy management
program will become easier. It can be integrated with existing
techniques that are already in place to deal with manpower, raw
materials etc.
The other important requirements are a well charted strategy plan, an
effective monitoring system and adequate technical ability for
analyzing and implementing energy saving options.
An important part of top management commitment is that
establishing an organization structure for implementing the energy
management program. This can be done in two way-
• Energy Committee.
• Energy Manager.
Evidence of top management support will be seen in the level of
support given to the committee and manager, especially through
authorization of resources and participation in meetings.
Motivation of the Employees
One of the most successful means of motivating employees is
through "awareness".
Employees can be stimulated to support an energy management
program if they are informed of
(1) The amount of energy they are using.
(2) The costs involved.
(3) The critical part that energy plays in the continued viability of
their job.
(4) The many ways in which they can save energy in their operation.
(5) The relationship between production rate and energy
consumption and
(6) The seriousness of the energy problem and its potential impact
upon country economy in the future.
Another effective way to motivate employees is through
recognition.
The employees are committed, if they are involved personally in
setting realistic, but challenging targets. Energy conservation goals
must be decided by the operating department and not be dictated by
senior management.
Healthy competition between departments and plants must be
encouraged to motivate them to set the goals higher and to work
harder to achieve them.
A documented program by each department and every plant on how
they plan to attain their goals should accompany these goals. The
program will contain activities and assigned responsibilities that will
lead to reaching the goals.
If possible, energy management activities can be made a part of each
supervisor's performance or job standards.
Another potential area for motivating employees to generate creative
ideas in saving energy is rewards, either as cash awards or
certificates. The other aspect concerns purchasing energy-efficient
equipment.
Appointment of Energy Manager
To develop and maintain vitality for the energy management
program, a company must designate a person who has responsibility
for coordinating the program.
If no one has energy management as a specific part of his or her job
assignment, management is likely to find that the energy
management efforts are given a lower priority than other job
responsibilities.
The energy manager should be strong, dynamic, goal oriented, and a
good manager.
Such a person should be supported by management with resources
including staff.
The energy manager should report as high as possible in the
organization without losing line orientation.
Energy Manager location can vary from one organization to another
depending upon existing management structure. The location of
Energy Management function in a typical textile mill is shown in
Figure-
Responsibilities and Duties of Energy Manager
Responsibilities
1. Prepare an annual activity plan and present to management
concerning financially attractive  investments to reduce energy
costs.
2. Establish an energy conservation cell within the firm and agree
with management about the mandate and task of the cell. 
3. Initiate activities to improve monitoring and process control to
reduce energy costs.
4. Analyze equipment performance with respect to energy efficiency.
5. Ensure proper functioning and calibration of instrumentation
required to assess level of energy  consumption directly or
indirectly.
6. Prepare information material and conduct internal workshops
about the topic for other staff.
7. Improve disseminating of energy consumption data down to
shop level or profit center of a  firm.
8. Establish a methodology to accurately calculate the specific
energy consumption of various  products/services or activity of
the firm.
9. Develop and manage training program for energy efficiency at
operating levels.
10. Co-ordinate nomination of management personnel to external
programs.
11. Create knowledge bank on sectorial, national and international
development on energy  efficiency technology and management
system and information denomination.
12. Develop integrated system of energy efficiency and
environmental up gradation.
13. Wide internal and external networking.
14. Co-ordinate implementation of energy audit/efficiency improvement
projects through external  agencies.
15. Establish and / or participate in information exchange with other energy
managers of the same  sector through association.
Duties of Energy Manager 
16. Report to Designated Agency once a year. The information with regard to
energy consumed and action taken in the recommendation of the
accredited energy auditor,  as per designated format.
17. Establish an improved data recording, collection and analysis system to
keep track of energy consumption.
18. Provide support to Accredited Energy Audit Firm retained by the
company for the conduct of  energy audit.
19. Provide information to Designated Agency as demanded in the Act, and
with respect to the tasks given by the mandate, and the job description.
20. Prepare a scheme for efficient use of energy and its conservation and
implement such scheme  keeping in view the economic stability of the
investment in such firm and manner as may be provided in the
regulations of the Energy Conservation Act.
Marketing Energy Management Program
• One of the most important role of energy manager is marketing or
selling energy management program to top management. The best
way to convince management is with facts and statistics using
graphs. 
• The data can also supported with quotes from other companies for
showing saving goals are realistic. Other company experiences are
widely published in the literature; results can also be obtained
through direct contacts with the energy manager in each company.
Energy Committee
• Since, not all the talent necessary for a successful energy management
program resides in one person or discipline, several engineering
disciplines may be necessary to accomplish a full-scale study of the plant
involving thermal and electrical system.
• For this reason, most successful energy management programs have a
committee. The committee is usually composed of several persons with
strong technical  background in their discipline. Chemical, industrial,
electrical, civil, and mechanical engineers as well as others may all be
represented in this committee.
• Their responsibility is to provide technical assistance for the energy
manager and plant-level people. For example, the committee can keep up
with developing technology and research into potential applications
company-wide. The results can then be filtered down.
• While the energy manager /energy management coordinator may be a
full-time position, the committee is likely to operate part-time, being
called upon as necessary. In a multi-plant or multidivisional organization,
the committee may also be full time.  
• The frequency of committee meetings depend on the importance
of energy costs in the overall cost structure of the company and
what projects are in progress at that time.
• Normally a monthly meeting is usual, so that monthly production
and energy consumptions may be reviewed regularly by
the committee. This review would include a comparison of actual
performance against previously set targets and budget figures, as
well as against previous months.
• Other items for the agenda should be a review of the status of
energy conservation projects under implementation or planned. 
Having a committee can encourage communications and the sharing
of ideas among various departments (and even other plants)
throughout the company. It can serve to obtain agreements on energy
conservation projects, which affect more than one department. It can
provide a stronger voice to the top management than a single energy
manager normally could.
Assessing Energy Profile and Establishing Baseline 
Before trying to make out any future programs or action plans, it is
essential for the company or factory management to understand the
current and past energy situation or the organisation.
Energy Data Collection and Management
The first step is to find out how, when, where energy is being used.
This information is necessary for establishing baselines and
managing energy use.
a) Collect data 
• The data must be complete and accurate as it would be used for
analysis and setting goals. The current data for energy
consumption can be obtained by measurements, calculations or
estimation. 
• The level and scope of data collection will vary from organisation
to organisation. The sources of data are normally utility bills and
sub-meters on individual processes, if available.
• All sources of energy (electricity, steam, oil, natural gas, waste
fuels), purchased or generated on-site must be accounted in
physical units (kWh, kg of steam, etc.) and on cost basis. 
• At least two years of data must be assembled and summarized
monthly. More recent data must be used if available.
b) Track data 
• Along with data, non-energy related data for all facilities and
operations such as building size, production, operating hours etc.
have to be collected.
• This will also help in establishing Energy Performance Indicators
(EPI).
c) Normalize data 
• The energy use of facilities varies widely for reasons other than
energy efficiency of equipment and operations. These factors may
include season, occupancy, raw material quality or other operating
characteristics.
• Normalization is the process of removing the impact of other
factors on energy use so that energy performance of facilities and
operations can be compared. 
• For industrial facilities, normalization factors include inputs,
product type, output, production process etc. 
• For commercial buildings, common normalization factors include,
climate zone, building area, energy choice, cost of energy,
occupancy levels, hours of operation etc.
d) Establish Baseline 
The purpose of baseline is to determine reference point from which
to measure progress. 
• Establish energy baseline considering a minimum of 12 months
of data. A baseline considering average for past two to three years
is more desirable.
• Identify Energy Performance Indicators (e.g. kcal/ton, kcal/kWh,
total energy cost/ton).
• Publish and share the baseline with managers and other key
stakeholders in the organisation.
e) Analyse energy use pattern and trends 
Analysing data to determine energy use and trends can help to better
understand factors that affect energy performance and identify steps
for reducing energy consumption. 
• Based on energy use data, identify facilities, equipment, systems,
and processes of the organisation that significantly affect energy
use. The significant energy consumption is that which accounts
for a high proportion of the total energy consumption of the
organisation.
• Determine the current performance of facilities, equipment,
systems, and processes related to the identified significant energy
uses. 
The data can be analysed through quantitative or qualitative reviews:
Quantitative Review 
• Identify energy consumption peaks and valleys and determine
how they relate to key operations or events.
• Compare the performance data of similar facilities.
Qualitative Review 
• Conduct interviews and seek informed opinions from colleagues,
lessons learned, system-specific information through in-house
audits and surveys.
• Review policies and operating procedures to determine impact of
energy use.
The future trend of energy supply-demand balance is estimated based
on analysis and projection of historical data. The data on future trend
would also be a basis of the program of good Energy Management 
The energy profile shall be updated at defined intervals and in
response to major changes in facilities, equipment, systems, or
processes.
Conducting Energy Audit
• Determining the organization's baseline energy use and energy
performance is only a starting point. Subsequently, the operating
performance of facility systems and equipment is more
comprehensively evaluated and accurate baseline is determined by
conducting a detailed energy audit.
• Energy audit should cover all energy using systems, processes and
equipment.
• Energy audit is conducted by energy auditor to evaluate the actual
performance against desired performance or best available
technology. The differences indicate the potential for actual
savings.
• The energy audit report is prepared on completion of energy audit
containing detailed summary of actual steps that can be taken to
reduce energy use.
• The report should contain recommended actions ranging from
simple adjustments in operation to complete equipment
replacement. Estimate of investments for completing actions
should also be included. 
Energy Policy and Planning
Good planning is a basis and starting point of effective energy action
planning. The basis for policy and planning is based on the premise -
Strategic goals are only achieved if driven by day-to-day actions. The
various components of planning are: 
1. Developing an energy policy.
2. Setting objectives and targets.
3. Preparing detailed action plans.
4. Allocating management resources.
5. Utilizing various management techniques (5S, TPM, TQM,
Kaizen, ISO 50001) for effective implementation.
Develop an Energy Policy
Energy policy provides the foundation for setting performance goals
and integrating energy management into an organisation's culture and
operations. 
It is a well-established fact that a formal written energy policy acts
both as:
• A public expression of an organisation's commitment to energy
management 
• A working document to guide energy management practices and
provides continuity.
It is in the company's best interest that support for energy
management is expressed in a formal written declaration of
commitment accompanied by a set of stated objectives, an action
plan for achieving them, and clear specifications of responsibilities.
• Actual drafting of energy policy will depend on an organisation's
corporate culture and management style. The policy will get wider
acceptance if all the concerned parties have been given the
opportunity to contribute to its formulation.
• All departmental representatives should be invited to make
submissions when the policy is first formulated and again when it
is reviewed. After the policy is drafted, it should be formally
adopted and ratified by the head of the organisation. 
• The format of the energy policy statement is various, but it usually
includes the goal or objective of the company and the more
concrete targets in the field of Energy Management (or Energy
Conservation).
• It often shows the major measures and timetables. The statement
shall match the company's mission statement or overall
management strategy plan.
Establish Goals
• Once the potentials for improvement have been estimated, goals
can be established at the appropriate organisational levels.
• Setting goals ensures that organisation has defined success
criteria so that progress towards energy efficiency can be
measured.
• The goals should be formally approved by senior management. 
• The goals should be measurable with time frame set for
achievement.
• Goals can be set based on energy audit findings or what is
technically or economically feasible or using benchmarking
information.
• The goals can be long-term or medium term.
Few examples of goals are: 
1. Reducing specific energy consumption of clinker from 100
kWh/ton to 90 kWh/ton of furnace  oil by 2022 .
2. 10% reduction of coal consumption by end of 2022.
3. Increase staff awareness on energy issues
4. Use of renewable energy etc. 
A good rule for setting goals is start with small goals
First year goals of 3 to 6% of energy consumption reduction or
specific energy consumption reduction are quite adequate for most
companies.
Another way is to develop a goal over several years; for example, set
up a goal of 20% energy savings over 3 years. The yearly goals are
usually better, however, as the reward can be seen sooner, success
celebrated more often, and adjustments and corrections to goals can
be made more frequently, especially if plant production changes. 
Set targets
Targets are normally set at departmental levels to achieve the
organisational goals. 
The targets can relate to the whole organisation, to one site, to a
production process or even to particular equipment.
A company may set a range of targets for different departments,
taking into account the scope for improvement. Ideally, targets
should be attainable, but challenging.
Targets should be SMART i.e.:
(a) Specific and Measureable.
(b) Ambitious so as to commit the organisation to continual
improvement.
(c) Realistic, so that they can be achieved within specified Time
limits.
As a minimum, targets should be established for each of the
significant energy issues or aspects identified during the initial phase.
Some targets may apply to equipment or facilities (e.g. a specific
production line) while others may address the energy consumption of
departments (e.g. transport and logistics department), training or
energy awareness, additional measurement and monitoring. 
Energy reduction targets could be expressed through energy
performance indicators such as energy consumption per item, per kg,
per m2 or % or equivalent. 
Examples of targets are: 
• Reducing raw mill power consumption by 20% by modifying the
raw mill fan by July 2021.
• Achieve 10% reduction in power consumption in air compressors
by modifying the piping system by April 2022.
Use of Benchmarking for setting goals and targets 
• “Benchmarking" is a general term in the field of business
administration or corporate management, meaning “gathering
information on performance of others and compare” or “learn
from others”.
• By benchmarking themselves against others who are best in the
field, companies can learn more efficient ways of operating. 
• If companies could get good Benchmarking figures, they might
be utilized as reference for goal setting or targeting.
• Though Benchmarking is an effective tool for performance
comparison and improvement, it should be used carefully,
because it requires detailed data and information on not only
energy type and consumption but also on manufacturing or
production processes.
• The latter includes information on raw materials, products (types
and grades), processes and other related conditions.
• Inaccurate comparison not standing on the same basis would give
the misleading results.
• Finally, if companies want to use benchmarking externally to
establish targets, they should get very detailed information from
other companies and there are issues of confidentiality in sharing
information.
• In such situations, company can use their own historical best as
the basis for setting targets. This is called internal benchmarking. 
Create Action Plans 
Action Plans are basically Energy Management Programs established to
ensure that organisation achieves its goals and targets.
Steps in creating action plans 
a) Evaluate energy audit reports and identify gaps between current and
desired performance (goals/targets)
b) Identify and list activities need to reach desired performance from
current performance for each action plan. 
c) List resources and time required for reaching the goals/targets
d) Designate overall responsibility for each action plan
e) Facilitate budget negotiations and confirm budget availability for
each action plan 
Action plans should be communicated to relevant departments as it may
involve roles and contribution from various departments such as utility
management, operations management, human resources, purchase,
engineering, environment, health and safety etc. 
Force Field Analysis 
Before creating the action plan, it can be a useful exercise to clarify
the goal to be achieved, and to assess what barriers must be
overcome and what influences exist in the organisation that works
towards the achievement of the goal.
These barriers and influences can be thought of as negative and
positive forces respectively.
Force field analysis is a smile tool that can be used to gain additional
insight about the change process to be pursued.
The steps involved in force field analysis are: 
• State the organisational goal and indicate the direction (say, left to
right) that signifies moving towards the goal: for example, the
goal might be “improve energy efficiency in the assembly plant”
or “reduce energy consumption in the facility for current
occupancy levels” .
• Identify barriers that tend to work against the achievement of the
goal: these may be internal to the organisation (for example, a lack
of expertise related to energy management) or external (for
example, energy rate structures or government regulation). 
• Identify positive influences or forces that tend to work towards
achievement of the goal; these may also be internal or external.
• Estimate the relative strength of the negative and positive forces
(for simplicity, we may want to identify them as low, medium and
high strength) 
• Prioritize those forces that can be strengthened or weakened
through the action plan with the greatest effect on achieving the
goal (Tips: It is usually more effective to attempt to minimize
negative forces than to try to strengthen forces that are already
positive).
A typical force field analysis chart is shown in Figure.
Implementation
The energy manager/ committee established in the planning step
shall ensure smooth implementation of the program. People can
make or break an energy program.
Gaining the support and cooperation of key people at different levels
within an organisation is an important factor in successful
implementation of the action plans. 
Reaching the goals depends on the awareness, commitment and
capability of the personnel who will implement the activities listed
in the action plans.
For effective implementation, the following need to be considered:
Communication
Create communication plan: Develop targeted information for key
employees about the energy management program i.e. organisation
energy performance, current energy use and trends, financial 
benefits of improved performance.
Communication should raise general awareness, commitment and
participation at all levels within the organisation so as to build
support at all levels of the organisation for energy management
initiatives and goals. Employees are encouraged to make
suggestions for improvement. 
Raising General Awareness:
Most employees will not be aware of how their daily actions and
activities at work affect energy use and impact the environment.
Increasing awareness can be an effective way to gain greater support
for energy management initiatives. 
For new employees, basic information on energy use should be
provided during orientation program.
Improving Facility Energy Awareness:
Even individuals working in or managing a facility may have little
understanding of the facility energy performance. For awareness
programs, the following information may be imparted: 
• Energy use statistics (overall energy costs, operating cost of
equipment etc.)
• Energy use of equipment (energy performance of equipment or
processes) 
The different methods of communication include informal dialogue,
regular work group meetings, posters, newsletters, bulletin boards
and intranet sites.
Training 
Training is the key to sustain energy conservation. It is the
management responsibility to ensure that technical and operating
personnel are trained to operate the equipment safely and
efficiently.
Effective training is not accomplished in a single session that once
completed, may be quickly forgotten. Training must be continuous
to help not only to inform but also to change attitudes. 
Top management must give proper support to its Energy
Committee, and to the Energy Manager in the form of training.
Training allows the staff to explore new ideas, interact with experts
and with other trainee participants, and feel more comfortable with
the role they must fulfil.
In turn, trained technical and management staff should be
encouraged to provide in-house training to operators and lower
level technical staff. 
Staff training is the primary tool by which awareness is generated
and knowledge is transmitted. As part of the Energy Management
program, management needs to address two major areas for
employee training:
1. To develop new skills in technologies (in-house or outside
training)
2. To adopt new attitudes towards energy wastage and reduction of
waste. 
The introduction of new technologies, process equipment, operating
and maintenance procedures and energy documentation methods
require training at many levels.
There is a need to train new as well as experienced personnel in
energy efficient operation of company facilities. The need for
training in each should be reviewed periodically to assure that all
new personnel are properly trained and skills of existing personnel
are refreshed.
Use of knowledge and Information System 
Computer based information system provide an excellent means of
sharing information on best practices, technologies and operational
manuals and guidance in the field of energy management.
These systems can vary from complex knowledge based database to
simple intranet site. They are centralized for easy accessibility within
an organisation.
Awareness and Motivation 
Top management or energy manager should determine strategies on
how to motivate their staff so that they are encouraged to give
cooperation in energy savings taking into account environmental
impact, depleting natural resources and increasing energy price. 
Motivation of people to save energy is a challenging job of the
energy manager. It is an opportunity for energy manager to be
accepted by the top management if he/she is successful. 
Building morale and encouragement 
• Ask staff what they think or know about energy losses and how to
reduce them 
• Agree on objective, target and results of energy audit 
• Give incentives, rewards to any responses 
Good practices for building awareness and motivation 
• Top management gives strong attention to energy conservation, sets up
and announces energy conservation policy. 
• Top management support energy conservation team and activities. 
• Top management gives incentives, rewards or recognition to individual
or team who succeed in energy conservation projects. 
• Follow up the projects and announce results of energy conservation to
all employees. 
• Try to get participation from all the people concerned in every steps i.e.
suggestion, making decision,  implementation, follow up and
evaluation. 
• Inform all the key staff of the organization about energy losses and
convince them the benefit of  energy savings. This would draw
attention of the remaining staff to participate.
• Working group consisting of representatives from each division would
encourage and support their staff to implement energy saving measures.
• At the end of every month there would be an evaluation of energy
consumption and energy saved  in comparison with that of the
past 
• Organize in house training by utilizing inside and outside
qualified speakers 
• Organize energy conservation week once a year with various
activities e.g., seminars, exhibitions, contests etc. 
Evaluating Energy Performance
Tracking and monitoring 
Energy Action Plans are tracked on a periodic basis for meeting goals
and targets. The actual energy use is compared with expected
consumption to spot deviations. Accordingly, appropriate responses
are planned.
For effective monitoring, metering and sub-metering have to be
introduced. The measured results are shared with the entire
organization. This disclosure is expected to further promote
consciousness for improved energy efficiency through healthy
competition among various departments.
Information System - Designing 
Information system can be used for effective and current tracking. A
system for tracking performance can range from a simple
spreadsheet to detailed databases and IT system.
In developing an appropriate tracking system, the following features
may be considered:
• Design of tracking system will depend upon the level and scope of
information to be tracked and frequency of data collection (daily
or weekly or monthly).
• Tracking system must be easy to use, update and maintain.
• Tracking system must be used to communicate energy
performance to all parts of the organization to motivate change.
• Formats must be developed so that they are understandable across
the ogranisation; good tracking system should make reporting
easy.
Evaluate Progress in meeting goals and targets 
It is a more formal review of both energy use data and assessing
achievement against the set goals and targets, It is the process of
comparing overall energy performance, especially goals against the
established baselines for assessing energy and cost savings.
Review Action plans 
After reviewing the overall energy performance data, it is time to
introspect on what worked well and what did not, in order to identify
the best practices. 
The next step is to understand the factors affecting the results as well
as benefits of improved energy performance. Periodic review of
energy management initiatives will help energy managers to: 
• Measure the effectiveness of projects and programs implemented
• Make informed decision about future energy projects
• Reward individuals and team for accomplishments
• Document additional savings opportunities as well as non-
quantifiable benefits 
After one cycle of program is completed, the report should be
prepared and submitted to the top (senior) management.
The results shall be assessed and analyzed and the lesson learned
shall be utilized as a feedback in the subsequent plans/programs.
Thus, the activities are repeated to form a cyclic movement.
Recognize Achievements 
Providing recognition to those who helped the organisation achieve
the results motivates the staff and employees and brings positive
exposure to the energy management programs.
a) Internal Recognition 
Key steps in internal recognition are: 
Recognition levels: The decision about who should receive
recognition. Common recognition levels are
Individual – Acknowledges the contribution and accomplishment of
specific people
Teams - Recognizes the achievement of teams, departments and other
groups
Facility- Rewards the accomplishment or performance of entire
facility
 
Recognition criteria:
Criteria might include mention of achievement such as:
• Offered the best energy saving idea
• Achieved the highest energy use reduction
• Increased savings by quantified amount 
Determine recognition type:
There are a variety of ways to provide recognition and rewards.
Forms of recognition can range from formal acknowledgements and
certificates, to salary increases and cash bonuses, to simple forms of
appreciation such as shields. 
Senior management should provide the recognition through formal
means such as award ceremony.
b) External recognition 
Recognition from a third party can provide validation for an
organisation's energy management program.
It provides not only satisfaction to those involved in earning the
recognition, but also enhances the organisational public image.
The solid reputation contributes to organization's competitive
advantage by making it more attractive to customers, business
lenders and other stakeholders.
Getting a National Energy Conservation Award is an example of
external recognition.
Management Tools for Effective Implementation
Development of human capacity is very important to generate new
and innovative ideas in-house for promoting energy management.
The companies should develop specific training modules related to
energy efficiency and energy management as part of its HRD policy.
This can be done by encouraging the plant personnel to participate in
both internal and external training programs/workshops on these
topics.
The staff should be encouraged to publish achievements in energy
management in both external and internal publications.
Management tools covered in this part of chapter are 5S, Kaizen,
Small Group Activities, TPM, TQM and ISO 50001.
What is 5S? 
5S, abbreviated from the Japanese words Seiri, Seiton, Seiso, Seiketsu,
and Shitsuke, are simple but effective methods to organize the
workplace. 
The 5S, translated into English are: housekeeping, workplace
organization, cleanup, maintain cleanliness, and discipline. They can
be defined as follows: 
• Housekeeping. Separate needed items from unneeded items. Keep
only what is immediately necessary item on the shop floor. 
• Workplace Organization. Organize the workplace so that needed
items can be easily and  quickly accessed. A place for everything and
everything in its place. 
• Cleanup. Sweeping, washing, and cleaning everything around
working area immediately. 
• Cleanliness. Keep everything clean in a constant state of readiness. 
• Discipline. Everyone understands, obeys, and practices the rules when
in the plant.
Potential Benefits of 5S 
Implementing 5S methods in the plant would help the company to
reduce waste hidden in the plant, improve the levels of quality and
safety, reduce the lead time and cost, and thus, Increase Company's
profit. 
The potential benefits of 5S can be summarized by PQCDS: 
PQCDS: 
• P - Increase productivity. 
• Q- Improve product quality. 
• C - Reduce manufacturing costs. 
• D - Ensure on-time delivery. 
• S - Provide a safe working environment.
 
Implementation Procedure of 5S 
Depending on company's situation, the 5S can be implemented in
different manners. However, many companies felt that the following
PDCA procedure is quite effective: 
1. Organize the program committee. (PLAN)
2. Develop a plan for each S. (PLAN) 
3. Publicly announcement the start of the program. (PLAN)
4. Provide training and education to employees. (DO)
5. Select a day when everybody cleanups his/her own working area.
(DO)
6. Select a day when everybody organizes his/her own workplace.(DO)
7. Evaluate the results of 5S. (CHECK)
8. Self-Examination and Take corrected actions. (ACTION) 
The 5S can be successfully implemented following a generic PDCA (Plan
-> Do -> Check -> Action) procedure. The relationship between 5S and
PDCA can be depicted as in Figure.