Abstract: Hospital equipment management plays a vital role in ensuring of good healthcare service in the region or country which indicates the need of properly managed hospital equipment in healthcare setting. Healthcare staff including doctors, nurses or other supporting staff cannot perform well to provide good health, without having properly managed hospital equipment. Delivery of poor quality health service may be resulted with the absence of well-developed hospital equipment management system which can leads to disability or death sometimes. Development of hospital equipment management system using Japanese 5S total quality management tool was propose with this paper. Although this is simple and cheaper method, can achieve dramatically significant change to healthcare system.