EVALUATION THE IMPACT OF 5S IMPLEMENTATION ON BUSINESS EXCELLENCE PERFORMANCE PARAMETERS THROUGH STRUCTURAL EQUATION MODELLING JUGRAJ SINGH RANDHAWA 1 , INDERPREET SINGH AHUJA 2 AND KANWARPREET SINGH 3 1 Ph.D. Scholar and Assistant professor, Department of Mechanical Engineering, Global Institute of Management & Emerging Technologies, Amritsar, India. Email: jrandhawa304@gmail.com 2,3 Department of Mechanical Engineering, Punjabi University, Patiala Abstract: The extreme global competition among the manufacturing organizations has created challenges of intense pressure from their competitors and customers in manufacturing sector. The rapid changes due to turbulent manufacturing environments necessitate consistent melioration in organization’s performance dimensions like improved productivity, good quality, ensured delivery, termination of wastage and cost optimizations for realizing customer satisfaction and trust towards their products. Various LM initiatives adopted by manufacturing organizations include kaizen, 5S, quality circles, Poka-Yoke, visual controls, cellular design, total quality management, total productive maintenance, quick changeover, pull scheduling and value stream mapping. The purpose of this paper is to deploy structural equation modelling (SEM) technique to empirically validate the interrelationships amongst significant variables of 5S implementation and business excellence performance parameters (BEPP) in SEM_5S model. Keywords: 5S, Indian manufacturing organizations, structural equation modelling (SEM), Business Excellence. and to eliminate non-value adding processes [9]. The origination of lean production in the Chinese companies considered that 5S, TPM, Error-proofing and SMED were the effective tools initially adopted by the companies[4]. 5S has been considered to be a major component facilitating lean manufacturing initiatives, while any organization envisioning to implement. The 5S philosophy has been enacted as a base foundation for the lean culture in the organization and becomes facilitator for successful implementation of the other lean management tools and technique in manufacturing organizations [18]. A considerable number of authors have proclaimed that 5S is the significant tool required for the successful implementation of other quality programs. 5S methodology has become a baseline prerequisite and relevant tool for the implementation of various other quality programs like Lean Manufacturing, TQM, Kaizen, Kanban, SMED, Poke Yoke ISO 9000, ISO 14001, and OHSAS18001, Total Productive Maintenance (TPM), Just in Time (JIT), Toyota Production System (TPS) and Six Sigma.[2] [9] INTRODUCTION: 5S, A TOOL FOR LEAN 1. MANUFACTURING The ever increasing competition in the marketplace has been putting enormous pressures on organizations because of more refined markets, changing client decision and worldwide rivalry [7] [23]. This led to continuously improve the quality of products and services for sustained organizational growth in order to enhance their position and reputation. The organizations, are confronting rivalry both from imports and multinational organizations in the local markets [7] [22] [19]. The manufacturing organizations who are not focusing holistically on these business excellence performance parameters have failed to attain profitability and survival in the competitive world [10] [17]. It has become imperative for organizations to continuously meliorate at quicker rate in order to sustain better position amongst the competitors in global manufacturing market in 20th century. A systematic methodology and specific Lean thinking tools like 5S are suggested to identify value I J A M R © Serials Publications 9(2) 2017 : July-December • pp. 17-25