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Understanding the Six Big Losses in Manufacturing

The six big losses in manufacturing are —Equipment Failures, Setup and Adjustments, Idling and Minor Stops, Reduced Speed, Process Defects, and Reduced Yield—can significantly impact production efficiency. This blog post provides a detailed analysis of each loss and offers strategies to mitigate them.

Overall Equipment Effectiveness (OEE) is a vital metric in manufacturing that measures the efficiency and productivity of equipment. To enhance OEE, it's crucial to understand and address the Six Big Losses in manufacturing that commonly affect production operations.

The Six Big Losses

1. Equipment Failures

Description: Equipment failures, also known as breakdowns, occur when machinery stops functioning unexpectedly, leading to significant downtime and production halts.

Impact: These failures can cause prolonged downtime, leading to delays in production schedules and increased maintenance costs.

Mitigation Strategies:

  • Preventive Maintenance: Implement regular maintenance schedules to inspect and service equipment before failures occur.

  • Predictive Maintenance: Use predictive analytics and IoT sensors to monitor equipment health and predict failures before they happen.

2. Setup and Adjustments

Description: Setup and adjustments refer to the time spent preparing machines for production, including changeovers and adjustments for different products.

Impact: These activities can lead to significant downtime if not managed efficiently.

Mitigation Strategies:

  • Standard Operating Procedures (SOPs): Develop and implement SOPs for setup processes to ensure consistency and efficiency.

  • SMED (Single-Minute Exchange of Dies): Use the SMED method to streamline and reduce setup times.

3. Idling and Minor Stops

Description: Idling and minor stops occur when machines temporarily stop working due to minor issues such as jams or misfeeds.

Impact: Although each stop is short, frequent occurrences can accumulate to significant downtime.

Mitigation Strategies:

  • Operator Training: Train operators to quickly identify and address minor issues to minimise downtime.

  • Automation: Implement automated systems to handle routine checks and address minor stoppages.

4. Reduced Speed

Description: Reduced speed happens when machinery operates below its optimal speed, often due to wear and tear or suboptimal settings.

Impact: This can lead to decreased production efficiency and lower output rates.

Mitigation Strategies:

  • Regular Calibration: Ensure machinery is regularly calibrated and maintained to operate at optimal speeds.

  • Performance Monitoring: Use real-time data analytics to monitor and adjust machine performance.

5. Process Defects

Description: Process defects result in products that do not meet quality standards, leading to rework or scrap.

Impact: Defects increase production costs and waste, reducing overall efficiency.

Mitigation Strategies:

  • Quality Control: Implement stringent quality control measures and regular inspections to catch defects early.

  • Root Cause Analysis: Conduct root cause analysis to identify and address the underlying issues causing defects.

6. Reduced Yield

Description: Reduced yield occurs when the production process results in fewer good parts than expected, often due to startup losses or incorrect machine settings.

Impact: This leads to lower output and higher production costs.

Mitigation Strategies:

  • Optimise Startup Procedures: Develop and implement optimised startup procedures to reduce initial waste.

  • Continuous Improvement: Use continuous improvement practices like Lean or Six Sigma to identify and eliminate inefficiencies.


Visual Representation of the Six Big Losses

Understanding and addressing the Six Big Losses in OEE is crucial for improving manufacturing efficiency and productivity. By implementing the strategies outlined above, manufacturers can significantly reduce downtime, improve product quality, and enhance overall operational performance. GlobalReader will help you collect and visualise your factory data.


Get In Touch to Eliminate the Six Big Losses in Manufacturing

GlobalReader offers comprehensive tools and solutions to help manufacturers tackle these losses effectively. From real-time data monitoring to predictive maintenance and performance analytics, GlobalReader can support your journey towards optimal OEE. Contact us today to learn more about how we can help improve your manufacturing processes.

Visit our blog for more insights and detailed case studies.

By systematically addressing each of these losses, manufacturers can achieve higher levels of efficiency, lower production costs, and better product quality, driving overall business success.  

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