The purpose of this paper is to explore the principle of 5S methodology for identification of waste in construction organisation. Efficient material management is essential in managing a productive and cost effective site. In this working career, the author has been observing inefficient labour productivity practices, resulting from poor site material management, and handling. In this paper, therefore an attempt has been made to rectify these activities in construction organization. Primary objective of the study is to improve the labour productivity on residential building sites, which needs to bring down substantially by devising suitable method. A case study follows that demonstrates, how 5S methodology can ameliorate the productivity.