THE EFFECT OF FACILITY LAYOUT CHANGES AND 5S IMPLEMENTATION ON KPIS ON REWORKS USING MULTI-CRITERIA DECISION-MAKINGMCDM: A LEAN IMPLEMENTATION CASE STUDY AT H4A PTY LTD

Abstract

ABSTRACT Small and medium-sized enterprises (SMEs) in the manufacturing sector often struggle with inefficiencies, defective products, and weak employee–management collaboration, all of which weaken their competitiveness and long-term sustainability. This case study explores the implementation of a lean implementation program at H4A Pty Ltd, a composite manufacturing plant in response to persistent reworks, and delays which affect productivity. The study aims to assess how 5S, facility layout and workplace cooperation impact the achievement of key operational performance indicators. The lean approach adopted in the study aligns closely with Sustainable Development Goals 4 and 8, supporting SMEs in enhancing their sustainability, responsibility, and competitiveness through quality education thereby contributing to the advancement of a more resilient and sustainable economy. The study focuseds on 5S methodology, facility layout changes using multi criteria decision making (MCDM) Analytical Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and improved monitoring to the elimination eliminate of defective products monitoring as part of the lean implementation program. Implementation involved structured employee training, participatory decision-making workshops, and management support to ensure sustainability. Results demonstrated significant improvements in efficiency, including a marked reduction in defective products, improved workflow due to optimized facility layout, and stronger communication between management and staff. Defect rates were reduced to zero during the implementation phase, while key performance indicators (KPIs) for productivity showed consistent upward trends. Although the study was limited to only one firm, productivity. Tthe findings suggest that integrating 5S with MCDM-based facility layout provides a replicable strategy for manufacturing the combined approach of the new facility layout and 5S can be an effective strategy for manufacturing firms seeking to improve productivity, meet KPIs, and foster a cooperative workplace environments., while advancing sustainable development objectives.