16 Losses in Production

What are 16 Major Losses in TPM?

→ Losses in the production process mean the greatest amounts of materials, money, energy, and time are wasted.

→ In Total Productive Maintenance (TPM), there are 16 defined set of criteria related to various losses, which is known as 16 Major Losses.

→ The names of these losses might be different in different organizations, but the categories and concepts are the same.

→ These 16 Major Losses in Total Productive Maintenance (TPM) impact on Product Quality, productivity, and profitability of the organization.

→ So we need to identify and eliminate these losses from the organization.

→ Some of the reasons for the losses can be summarized as below:

     ⇢ We are running production for excess timing.

     ⇢ Production is interrupted or stopped

     ⇢ Non -value-adding activity is performed

     ⇢ The machine is idle or we can say not planning

     ⇢ When a machine is not running as per the design rated speed

     ⇢ The machine is consuming additional time, money, energy than the specified requirement.

The 16 Major Losses in Production

→ The 16 Major losses in Total Productive Maintenance (TPM) are further divided into different categories as mentioned below

  1. Losses Impacting on Availability - 8 Losses (Refer 1 to 8 Losses in the below list)
  2. Losses Impacting on Performance - 5 Losses (Refer 9 to 13 Losses in the below list)
  3. Losses Impacting on Resources Consumption - 3 Losses (Refer 14 to 16 Losses in the below list)
→ For better understanding, You can refer to Overall Equipment Effectiveness (OEE).

16 Losses in TPM

→ The 16 Major losses in TPM are mention below

  1. Equipment Failure (Breakdown) Loss
  2. Set up & Adjustment Loss
  3. Cutting Tool/Blade Change Loss
  4. Start-up Loss
  5. Minor Stoppage & Idling Loss
  6. Speed Loss
  7. Defect & Rework Loss
  8. Shutdown Loss (Planned Maintenance Loss)
  9. Management Loss
  10. Motion Loss or Operating Motion Loss
  11. Line Organization Loss
  12. Distribution/Logistic Loss
  13. Measurement & Adjustment Loss
  14. Energy Loss
  15. Consumable Loss
  16. Yield Loss

Classification of 16 Losses in Production

8 Types of Losses - Impacting on Availability

01. Equipment Failure (Breakdown) Loss

→ Equipment Failure means the machine is under any kind of breakdown and not able to operate.

→ We can also include the failure - if the machine is not able to operate at rated capacity due to a technical problem.

→ Our target is zero breakdowns.

→ For this kind of failure generally, we are doing Breakdown Maintenance.

→ We can eliminate Equipment failure by implementing a Preventive Maintenance Plan.

02. Set up & Adjustment Loss

→ While we have any changeover on the machine at that time we have a loss that is called setup and adjustment loss.

→ The changeover includes product changeover, jig/fixture changeover, tool/die changeover, etc.

→ We can use the Single Minute Exchange of Die (SMED) technique for minimizing Setup & Adjustment Loss.

03. Cutting Tool/Blade change Loss

→ While we are changing or replacing the cutting tool/blade at that time the loss is created that is known as a Cutting Tool/Blade change loss.

→ We are changing various tools like a drill bit, grinding wheel, tap, rammer, cutter, etc.

→ We can use the Single Minute Exchange of Die (SMED) technique for minimizing Setup & Adjustment Loss.

→ Also, alternatively, we can develop a more durable cutting tool or Implement various Kaizens for reducing this loss.

04. Start-up Loss

→ A Startup loss occurs while we are starting the machine.

→ It includes stabilize the production and need to take approval from QA before continuing the production.

→ So this loss considers as a startup loss until the machine runs at rated speed.

→ As per the manufacturing product, the startup process may include the production process, cleaning, conditioning, stabilization.

→ We can reduce this loss by standardizing the processes and parameters.

05. Minor Stoppage & Idling Loss

→ While machine stops frequently for a very small time period and this activity occurs multiple times in a shift that is considered the minor stoppages and Idling Loss.

→ Minor stoppages might be possible due to malfunction of sensors, jamming of product, resetting parameters, etc.

→ Sometimes we stop machines for a job removing or resetting that is also an example of Minor Stoppage.

06. Speed Loss

→ If the machine is running less than the design speed then it is considered as the speed loss.

→ If the machine's rated design speed is 60 products per minute and we are getting the actual output is products per minute then there is a speed loss of 5 products per minute.

→ So our target should be the machine must be running at the design speed for minimizing the speed loss.

07. Defect & Rework Loss

→ If the machine is producing a defective product and we are spending time to rework the defective product that is called the Defect and Rework Loss.

→ For eliminating this loss we need to standardize processes and parameters.

→ For better understanding, you can refer to the 5S Methodology.

08. Shut down Loss (Planned Maintenance Loss)

→ When Equipment is shut down for the Planned Maintenance, the loss is considered a Shutdown Loss or Planned Maintenance Loss.

→ Sometimes the equipment should be shut down due to periodic inspection, statutory or regulatory compliance. 

5 Types of Losses - Impacting on Performance

09. Management Loss

→ The waiting losses that are caused by management are called Management Loss.

→ Some examples of management losses are waiting for materials, waiting for machine spares, waiting for tools, waiting for instructions, waiting for manpower, etc.

10. Motion Loss or Operating Motion Loss

→ If we take excess motion/steps for any process so that is known as a Motion Loss or Operating Motion Loss.

→ This happens mostly due to inefficient process layout.

→ To minimize or eliminate this loss we need to implement automation or optimize the process layout and steps.

11. Line organization Loss

→ Line balancing loss is the waiting loss at the process level.

→ Line balancing means if any product is manufactured in four steps then the speed of all steps or all stations should be the same.

→ The product should not be ideal at any stage of the process.

→ To eliminate this loss we need to use the Line Balancing or Bottleneck Analysis Concept.

12. Distribution Loss

→ Distribution Loss is related to man-hour losses due to transport of materials, semi-finished products, or finished products from one location to another.

→ To eliminate this kind of loss we can implement automation for material/product transportation at different levels.

13. Measurement & Adjustment Loss

→ The man-hour loss is due to frequent measurement & adjustment of machine settings to prevent the quality defects is called a Measurement & Adjustment Loss.

→ That is happening during continuous production.

→ So we can minimize this kind of loss by implementing various Poka Yoke and Process Standardization.

3 Types of Losses - Impacting on Resources Consumption

14. Energy Loss

→ The losses due to ineffective utilization of input energy like electric, gas, fuel oil, steam, air, and water, etc in processing is called Energy Loss.

→ Examples of Energy Loss are losses due to heat radiation, leakage of fuel, leakage of air, Leakage of oil, etc.

→ Energy loss has a high impact on total cost so we need to minimize this kind of loss.

15. Consumable Loss

→ The losses due to repair and replacement of any spare, die, tool, etc is called Consumable loss.

→ Spare get damaged after the service life so we need to change it - this is coming under the consumable loss.

16. Yield Loss

→ Sometimes the weight of the finished product is higher than the design specification that is due to maintaining the good quality of the product but it's a loss of the manufacturer that is called Yield Loss.

→ Sometimes instead of excess material, excess processing is required for a good quality product that is also a Yield Loss.

→ For better understanding we take one example - Increase casting wall thickness to avoid blow-holes defect leading to more machining time and loss of material.

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