Warehouse Layout Design Improvement through 5S Implementation and ABC Classification: A case study at a gas manufacturing company

Ineffective warehouse management often leads to various types of waste, hindering operational efficiency. This study aims to evaluate and improve the warehouse system of the Bulk and Supply Chain Department at a gas manufacturing company by applying the 5S methodology and ABC classification. The initial 5S audit scored 55 out of 75, indicating that the implementation was still below the expected standard. The study identified waste in three key warehouse activities: item retrieval, placement, and manual inventory recording, which led to issues such as excess motion, waiting time, and inventory buildup. Improvements were proposed for each 5S pillar: Seiri was supported by a holding area and red tag usage, Seiton was enhanced with an optimized layout based on ABC analysis, Seiso was reinforced with cleanliness standards, Seiketsu was sustained through a digital dashboard for real-time inventory control, and Shitsuke was strengthened via waste segregation and 5S awareness posters. These efforts are expected to reduce waste, streamline warehouse processes, and establish a culture of continuous improvement.