Six Big Losses in Lean Manufacturing

Equipment maintenance is a priority in any manufacturing facility. Machine operators, technicians, and other staff must ensure that everything is running efficiently to produce products in a timely manner.

However, that may not always be possible due to unexpected events like equipment failure. That’s where understanding the six big losses proves helpful.

Developed as a way of categorizing the types of equipment-related issues that can slow down manufacturing, the six big losses help manufacturers identify areas for improving production processes and productivity on the factory floor.

This philosophy is rooted in total productive maintenance (TPM), which has the goal of maximizing equipment effectiveness by involving all employees, from assembly line workers to management. In 1971, Japanese entrepreneur Seiichi Nakajima developed both TPM and the six big losses as a framework for reducing waste and bringing more value to the customer. Today, these core objectives are still among the guiding principles of lean manufacturing.

If you’re interested in learning what the six big losses are and how to eliminate them, read on as we discuss:

What are the six big losses?
How to reduce losses in production processes
Reducing the six big losses with Augmentir’s connected worker solution

What are the six big losses?

As we mentioned, the six big losses were defined as a way to help manufacturers identify and categorize equipment failures and slowdowns. Using those insights, they can improve production processes and worker productivity.

The six losses are:

Planned stops
Unplanned stops
Small stops
Slow cycles
Production rejects
Startup rejects

The losses are split into three categories for measuring overall equipment effectiveness (OEE): availability loss, performance loss, and quality loss. The actions you take to address each type can help you minimize reductions in product availability, performance, and quality.

The table below explains the six big losses in lean manufacturing and identifies which OEE category (type of loss) each falls into:

Big Loss	OEE Category	Description
Unplanned stops	Availability loss	As the name implies, unplanned stops occur when equipment is scheduled for production but isn’t working because of some unplanned event (such as equipment failure, a broken part, not enough operators or unscheduled maintenance).
Planned stops	Availability loss	Planned stops happen when the equipment scheduled for production isn’t running because of a planned event. Examples include changeovers, planned cleaning, scheduled maintenance and inspections. Keep in mind that some businesses classify breaks and meetings as planned stops.
Small stops	Performance loss	These stops occur when equipment stops for a brief time (usually one or two minutes) but is quickly resolved by the operator. Small stops happen frequently and may be the result of misfeeds, equipment issues, material jams or blocked sensors.
Slow cycles	Performance loss	Slow cycles are the result of equipment running slower than their ideal cycle time, which is the average time it takes to complete a process. For example, poor lubrication, dirty or old equipment and operator inexperience are all factors that can lead to slow cycles.
Production rejects	Quality loss	These are all the defective parts created during production. Production rejects may occur because of operator or equipment handling errors or wrong machine settings.
Startup rejects	Quality loss	Startup rejects are faulty parts produced during production. They usually occur during the start of production or after changeovers, which is the time it takes to prepare a production line or machine to work on a new product. The rejected items are often scrapped or reworked into new parts.

How to reduce losses in production processes

Having to deal with production losses can be a hassle. Thankfully, there are steps you can take to mitigate them, which we’ve listed below.

Try to minimize unplanned and planned stops.

Encourage operators and other maintenance staff to perform cleaning, inspection, and lubrication tasks when production processes are not underway. Doing so will reduce equipment downtime. This may not always be possible, but it’s worth implementing as a management best practice.

Adopt a connected worker solution.

The six big losses may be hard to track if you’re using paper-based reporting. Fortunately, a connected worker solution, which is a cloud-based operations system, can digitize and optimize your manufacturing processes.

Connected worker software gathers data from connected sensors as well as machine operators and technicians to provide an overview of how well your tools, equipment, and other assets are performing. This feature works to identify equipment defects and where they are located.

Better yet, this software makes it easier to assign and track tasks, and also notify workers whenever deficiencies are found.

Implement digital work instructions to reduce defects.

It’s all too common to miss a step when turning on a complex machine or process. Over time, these errors can affect product quality and cost companies both time and money.

That’s where digital work instructions come into play to minimize mistakes. A connected worker solution that includes tools to create digital work instructions helps ensure workers complete everyday tasks safely and correctly.

For example, interactive digital step-by-step checklists inform employees how to perform certain tasks. These directions can include images, videos, and other multimedia to show workers how to do a procedure correctly.

Reducing the six big losses with Augmentir’s connected worker solution

Today’s evolving workforce needs continuous learning and performance support to deliver effective on-the-job performance. That’s where our connected worker solution comes in.

Our software is designed with your business in mind. We provide complete digital workflow authoring tools that digitize your paper-based processes and work to reduce the six big losses in lean manufacturing.

Interested in learning how Augmentir’s suite of connected worker tools can help you reduce loss and implement Lean within your manufacturing operation? Get in touch with us for a free demo.