2. NATURE OF LOSSES - Breakdown stoppage loss
(Equipment & Die).
LOSS DEFINITION - Stoppage due to breakdown of
equipment / Die.
EXAMPLE - Machine / die stoppage due to mechanical /
electrical system failure.
CALCULATION FORMULA - Break down time X Charge
rate.
3. NATURE OF LOSSES - Set Up & Adjustment.
LOSS DEFINITION - Time loss happening during setup for
switch over of product to first ok piece comes out.
EXAMPLE - Time consumed till first ok sample piece after
change of product Model.
CALCULATION FORMULA - Stoppage time X Charge rate.
4. NATURE OF LOSSES - Tool Change Loss.
LOSS DEFINITION - Time loss due to change of tool on
account of damage or non availability of material for existing
Tool.
EXAMPLE - Time consumed during Jig, Fixture, Insert, Drill,
Cutter change.
CALCULATION FORMULA - Stoppage time X Charge rate.
5. NATURE OF LOSSES - Start up Loss.
LOSS DEFINITION - Loss happening at the start of
work.
EXAMPLE - Warming up time to attain initial
parameter of process plant.
CALCULATION FORMULA - Loss time X Charge rate.
6. NATURE OF LOSSES - Process trouble Loss.
LOSS DEFINITION - Equipment, Fixture, Die or not In B /
D but stoppage time more than 10 minutes.
EXAMPLE - Chattering during turning & grinding, Jamming
of tool in power press & rectified without unloading the tool.
CALCULATION FORMULA - Loss time X Charge rate.
7. NATURE OF LOSSES - Management Loss.
LOSS DEFINITION - Time for which equipment could not
be operated for management or organisational reasons.
EXAMPLE - Waiting for Raw material & instruction fro
management.
CALCULATION FORMULA - Loss time X Charge rate.
8. NATURE OF LOSSES - Minor Stoppage.
LOSS DEFINITION - There is no breakdown but equipment
stops (< 10 minutes).
EXAMPLE - Power change over, Operator not available due
to natures call.
CALCULATION FORMULA - Loss time X Charge rate.
9. NATURE OF LOSSES - Speed Loss.
LOSS DEFINITION - Loss due to performance, below rated
speed.
EXAMPLE - Output loss than designed capacity without any
stoppage.
CALCULATION FORMULA - (Available time- Std. CT X No.
of pcs. Produced X Charge rate) / 3600.
10. NATURE OF LOSSES - Defect & Rework Loss.
LOSS DEFINITION -
(a) Stage wise rejection due to defect.
(b) Rework Loss due to defect.
EXAMPLE -
(a) Raw material & Value addition up to that process.
(b) Salvage cost.
CALCULATION FORMULA -
(a) Raw material + Value addition .
(b) Consumable + labour cost.
11. NATURE OF LOSSES - Inventory carrying Loss.
LOSS DEFINITION - Cost incurred in Carrying inventory of
finished goods, WIP & raw material.
EXAMPLE - Keeping of RM / WIP / FG.
CALCULATION FORMULA - 23 % of total Inventory Carrying
cost / 12.
12. NATURE OF LOSSES - Yield Loss.
LOSS DEFINITION - Loss due to less output in comparison
to designed output.
EXAMPLE - Chips / Scrape / End cuts.
CALCULATION FORMULA - {(input - output) X Cost per
Ton} - Scrap cost.
13. NATURE OF LOSSES - Energy Loss.
LOSS DEFINITION - Loss generate due to excess
consumption of energy.
EXAMPLE - Higher energy consumption for making one MT
of product.
CALCULATION FORMULA - (Actual Energy Consumption
- Target Energy Consumption) X Unit price X Produced Qty.
14. NATURE OF LOSSES - Logistic Loss.
LOSS DEFINITION - Losses due to higher transportation,
warehousing, manpower & packaging cost & production loss
due to fork lift availability.
EXAMPLE - Delivery through premium Mode, under
utilization of vehicle capacity.
CALCULATION FORMULA - Actual - Target
(Transportation + labour + packaging) & Machine charge
rate.
15. NATURE OF LOSSES - Inspection Loss.
LOSS DEFINITION - Loss generated due to cost incurred in
carrying out off line inspection.
EXAMPLE - 100 % Inspection Activity carried out by an
Inspector.
CALCULATION FORMULA - (Inspection time X labor
cost)+Material cost if applicable + conveyance.
16. NATURE OF LOSSES - Consumable Loss.
LOSS DEFINITION - Loss generated due to excess
consumption.
EXAMPLE - Steel Shots, Paints, Q.Oile.
CALCULATION FORMULA - (Actual-planned) X Rate.
17. NATURE OF LOSSES - Office Loss.
LOSS DEFINITION - Losses in offices due to higher
consumables, travelling cost, communication cost &
manpower cost.
EXAMPLE - Stationary, Taxi, Meeting time,
communication loss & Manpower loss.
CALCULATION FORMULA - (Actual - Planned) X Rate.
18. NATURE OF LOSSES - Purchase Loss.
LOSS DEFINITION - Losses due to higher cost paid for same
material or Single Source & Excess Purchasing.
EXAMPLE - Cost of RM / Consumables / Spares.
CALCULATION FORMULA -
A.) Rate difference X Quantity.
B.) Target Budgeted Saving - Actual Saving.
19. NATURE OF LOSSES - Manpower Loss.
LOSS DEFINITION - Loss generated due to excess
manpower.
EXAMPLE - Extra manpower deployed for completing
work.
CALCULATION FORMULA - (Targeted Productivity -
Actual Productivity) X Production X Cost of one
manpower.
20. NATURE OF LOSSES - Outsourcing Loss.
LOSS DEFINITION -Despite In-House capability
subcontracting some part of process.
EXAMPLE - Out source SPVC activity.
CALCULATION FORMULA - Rate difference X Quantity.
21. NATURE OF LOSSES - Planed Shutout.
LOSS DEFINITION - Loss due to planned shutdown of
equipments.
EXAMPLE - Shutdown as per production plan.
CALCULATION FORMULA - Stoppage time X Charge
rate.
