For the past few weeks I have been thinking about the best way to put a value to a 5S and Visual Management program.  I'm sure if you've scoured the internet for the ROI of a 5S program like I have, you have found numerous posts about the difficulty of justifying a workplace organization system based upon ROI alone. 

The metrics that I am working with to better place a value on 5S and Visual management are:

1 - Time saved from a decrease in searching for materials, tools, and documentation

2 - Cost of Quality reduction

3 - Employee Turnover cost reduction

I would love to get some input from the community on how you go about valuing your Workplace Organization programs and/or what metrics you are using to gauge effectiveness. 

Thanks

Wes

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Comment by David Visco on January 20, 2012 at 1:56pm

I think you have chosen three good metrics. Certainly measuring foot traffic reduction is quite easy. One of our customers measured daily output improvement as well. Another metric to capture is the number of improvement suggestions per employee. While this may not have a direct dollar value, increasing employee involvement is always a good thing.

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