16 major losses

Loss Tree
16 major losses during production activities




Why required to control this 16 major losses during production activities?



-  To reduce over all cost of production
- to reduce material loss, energy loss, effort loss
- manufacturing cost it is also a part of the quality plus competition



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Loss Tree
16 major losses during production activities






(A) machine related losses that reduce overall equipment efficiency




1. Failure losses (also known as breakdown loss) 


Machine is schedule for production but not running due to some failure (breakdown) or some sort

down time longer than two minute should have a reason associated with it and it shall be considered equipment failure

Examples: unplanned stop /downtime,  tooling failure, breakdown, unplanned maintenance, no operator or materials, problem with upstream equipments, downstream is blocked, bearing failure due to wear, mechanical / electrical fault



2. Setup and adjustment losses (also known as changeover losses ) 


This losses occurs during changeover between products /size

It defined as the amount of time taken to change a process over from the last part of a production run to the first good

Examples: changing the product / size

Adjustment loss is tooling adjustment, equipment adjustment, example quality inspection



3. Cutting blade and jig changing losses 


Time loss occurs during replacing any consumable tooling when it has became worn, ineffective or damage

Examples: cutting / grinding tools changing



4.  Startup losses 


Losses occurs while starting up equipment until  production process stabilize after breakdown or stop



5. Minor stoppages in idling losses 


Losses occurs when equipment temporally stops or idle due to sensor actuation or jams of the work

Usually less than 1 minute duration, regular repeated problem

Examples: Misfeeds, material jams, obstructed product flow, incorrect setting, miss aligned, blocked sensors, equipment design issues, periodic quick cleaning


6. Speed reduction losses 


This loss occurs due to operating at a speed less than design speed

Examples: line speed reduced due to quality shoes for mechanical problems

Common reasons for reduced speed include dirty or worn out equipment, poor environmental condition, operator inexperience, startup and shutdown



7. Defect and Rework losses 


Losses due to defect and reworking

Examples: out of spec product, poor surface finish, incorrect labelling



8 shutdown losses


Losses due to planned equipment stoppages at the production planning level

Examples: routine maintenance, periodic inspection, statutory inspection





(B) worker efficiency related losses


9. Management losses


This is waiting losses generated by management problems

Examples: failure to provide materials, spare parts, tools, dollies/ trolleys, manpower resources, utilities, work instructions



10. Motion losses 


Motion losses occurs due to unnecessary movement and transportation, as a result of poor layout and work organisation

Examples: walking loss, wasted motion, unnecessary reaching andl Lifting




11. Line organisation losses


This loss occurs from shortage of operater on the line and operator having to work on more equipment than was originally planned

No additional manpower cover for break time and uncertainty



12. Distribution losses 



Distribution losses occurs due to transport of of materials, processed product, dollies - trolleys from one machine to another machines



13. Measurement and adjustment losses


This losses occurs due to frequent measurement and adjustment to prevent the the reoccurrence of of nonconformity problems


(C) production resources related losses


14. Energy losses


Losses due to ineffective utilisation of input energy (electricity, gas, fuel, oil etc) in in processing.




15. Die, tool and jig losses


It occurs due to repairs of of dies, jigs, and tools due to aging beyond service life or breakage




16. Yield losses


This is the total loss between the input of raw material and output finished goods


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