Losses in Production System

Figure “How The Losses Inherent in Production Systems (The 16 Big Losses) Are Structured” shows the structure of the losses inherent in a typical production system. These losses can be split into three main categories:

  • those preventing equipment from being used as efficiently as it could (The 8 Big Equipment Losses, at the upper right of the diagram),
  • those preventing labour from being used as efficiently as it could (The 5 Big Labour Losses, at the upper left of the diagram),
  • and those preventing resources from being used as efficiently as they could (The 3 Big Resource Consumption Losses, at the bottom of the diagram). These sixteen losses are collectively referred to as The 16 Big Losses.
16 Big Losses
How The Losses Inherent in Production Systems (The 16 Big Losses) Are Structured

Making Plant and Equipment More Efficient

The losses holding back the efficiency of fabrication, assembly, or packaging operation employing mainly non-process-type equipment will be different from those in an operation that employs mainly storage tanks, columns, heat exchangers, and similar process plants. The two types of operation will therefore be discussed separately, beginning with the former.

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