Maximizing efficiency and minimizing waste is the cornerstone of a successful manufacturing operation. Understanding the six big losses in manufacturing is crucial for identifying areas of improvement and implementing effective strategies. 

Read on to uncover these key loss categories and learn how addressing them can significantly enhance your production process.

Introduction to the Six Big Losses in Manufacturing

The Six Big Losses framework is a key approach to tackling productivity issues in manufacturing, focusing on problems related to equipment. This idea was first introduced by Seiichi Nakajima in 1971, who developed Total Productive Maintenance (TPM) at the Japanese Institute of Plant Maintenance. Nakajima’s innovative concept suggested that maintaining equipment isn’t just a technician’s job but involves everyone, advocating for teamwork to boost equipment effectiveness.

This approach is closely linked with Overall Equipment Effectiveness (OEE), providing detailed insights into the specific causes of OEE losses. The original categories of the Six Big Losses are:

• Equipment Failure
• Setup and Adjustments
• Idling and Minor Stops
• Reduced Speed
• Process Defects
• Reduced Yield

For easier understanding and adoption, we propose simpler names:

• Equipment Breakdowns (Unplanned Downtime)
• Planned Stops
• Small Stops
• Slow Cycles
• Production Rejects
• Startup Rejects

Each name directly reflects one of the three pivotal OEE factors, guiding a straightforward route to improving operational performance.

The Six Big Losses in Manufacturing in Detail

The six big losses in manufacturing categorize the most significant sources of productivity loss in a production environment. Each category highlights a specific area where operations can be optimized to enhance Overall Equipment Effectiveness (OEE).

Availability Loss

Equipment Breakdown (Unplanned Downtime)

Equipment Breakdown, often referred to as Unplanned Downtime, occurs when machinery fails unexpectedly and ceases to operate. This type of downtime is particularly disruptive because it happens without warning, leading to immediate halts in production. The causes can range from mechanical failures, electrical issues, to software malfunctions. Addressing these requires swift action to repair or replace the faulty components to minimize the impact on production schedules and costs.

Planned Stops

Planned Stops are scheduled interruptions in the production process for necessary activities like maintenance, cleaning, setup changes, or inspections. Although these stops are intentional and scheduled to minimize disruption, they still contribute to non-productive time. Effective planning and optimization of these activities can reduce their frequency and duration, thereby increasing available production time.

Performance Loss

Small Stops

Slow Cycles refer to operating speeds below the ideal or designed capacity of the machinery. Various factors, including suboptimal settings, wear and tear, or operator inefficiency, can cause this. By identifying and addressing the root causes of slow cycles, manufacturers can improve the speed of operations closer to optimal levels, enhancing throughput.

Slow Cycles

Slow Cycles refer to operating speeds below the ideal or designed capacity of the machinery. Various factors, including suboptimal settings, wear and tear, or operator inefficiency, can cause this. By identifying and addressing the root causes of slow cycles, manufacturers can improve the speed of operations closer to optimal levels, enhancing throughput.

Quality Loss

Production Rejects

Production Rejects are items produced that fail to meet quality standards. These defects require rework or result in scrap, both of which represent a loss of materials, time, and effort. Root causes can be diverse, including incorrect machine settings, poor material quality, or operator errors. Implementing quality control measures and continuous monitoring can help reduce the occurrence of production rejects.

Startup Rejects

Startup Rejects occur at the beginning of a production run or after a changeover. During this period, the process may not be stabilized, leading to a higher rate of defective products until optimal operating conditions are achieved. Minimizing startup rejects involves improving the setup and stabilization processes, such as better training for operators and fine-tuning equipment settings more effectively.

Key Insights for Each Big Loss

Key insights for addressing the Six Big Losses in manufacturing can empower organizations to significantly enhance their operational efficiency and productivity. Understanding these insights is crucial for developing effective strategies to mitigate these losses. Here are key insights for each of the Six Big Losses:

Equipment Breakdown (Unplanned Downtime)

• Preventive Maintenance: Regular and predictive maintenance schedules can preemptively address issues before they lead to equipment failure.
• Root Cause Analysis: Understanding why breakdowns occur can help implement long-term solutions rather than temporary fixes.

Planned Stops

• Efficient Scheduling: Aligning planned stops with production schedules minimizes impact and maximizes uptime.
• Quick Changeover Techniques: Implementing methods such as SMED (Single-Minute Exchange of Dies) can drastically reduce setup and adjustment times.

Small Stops

• Sensor Optimization and Calibration: Regular checks and calibrations ensure sensors and equipment work as intended, reducing false stops or slowdowns.
• Operator Training: Skilled operators can quickly address minor issues without significant downtime.

Slow Cycles

• Continuous Improvement: Regularly reviewing and optimizing operational parameters can help maintain optimal speeds.
• Equipment Upgrades and Maintenance: Keeping machinery in top condition or upgrading to more efficient models can eliminate slow cycles.

Production Rejects

• Quality Control Systems: Advanced quality control measures, including real-time monitoring and feedback loops, can detect and correct issues promptly.
• Process Standardization: Ensuring all operations follow standardized procedures minimizes variability and defects.

Startup Rejects

• Thorough Preparation and Setup: Proper preparation and precise setup reduce the time it takes to reach stable production.
• Early Monitoring: Close monitoring at the start of a production run can identify and correct issues before they result in significant waste.

General Insights

• Data-Driven Decision Making: Collecting and analyzing data on when, where, and why losses occur can inform more effective strategies.
• Employee Involvement: Engaging operators and maintenance personnel in problem-solving and preventive measures ensures a collective effort towards minimizing losses.
• Technological Integration: Utilizing technology, such as IoT (Internet of Things) devices and AI, can offer real-time insights and predictive analytics to preempt potential losses.

By leveraging these key insights, manufacturers can tackle the Six Big Losses more effectively, leading to improved OEE, reduced waste, and higher productivity levels.

What You Should Do Next

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