How does working patiently and persistently to eliminate the 16 Big Losses not only have the benefit of driving up OEEs, but also help greatly to drive down costs? If a plant has been working flat-out to meet demand, for example, with its operators doing overtime and holiday work, increasing its efficiency can make it possible to save labour, energy and other costs by meeting the production requirements during normal working hours.

Big cost savings can also be made even when a plant is under-utilized owing to insufficient demand, since raising OEEs can allow production to be consolidated on fewer equipment units while still meeting the targets. Factories need loss-cost matrices like the one in slide, clearly showing what costs will decrease as a result of reducing what losses.

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