This study presents a implementation of lean construction theory by using 5'S methodology as tool in construction management. 5’S is a systematic technique used by organizations comes from five Japanese words, Seiri (sort), Seiton (set in order), Seiso (shine), Seiketsu (standardize), and Shitsuke(sustain). This system helps to organize a workplace for efficiency and decrease wasting and optimize quality and productivity via monitoring an organized environment. It also provides useful visual evidences to obtain more firm result. There is a real need for empirical studies in field of new management systems and their impact on construction management performance. As importance role of continuous improvement in today’s organization, and lack of sufficient evidence to show the positive impact of 5’S on organizational performance. The results show that 5’S is an effective tool for improvement of management, inventory control, quality of work, decrease in time as well as cost of construction. In this study the 5'S methodology is applied on actual construction activity of residential building to minimize the wastage of material on construction site and which will be results into lean construction