Understanding the Six Big Losses in Manufacturing: A Roadmap to Greater Efficiency
Understanding the Six Big Losses in Manufacturing: A Roadmap to Greater EfficiencyWhen you step onto a production floor, you’re immediately immersed in an atmosphere of intensity and focus. It’s a space where every individual, machine, and process is aligned with a singular purpose: maximizing output. Love it or not, this relentless pursuit of efficiency forms the core of manufacturing operations.In this high-pressure environment, companies rely on metrics to track and enhance productivity. Among these, one metric stands out as the gold standard: Overall Equipment Effectiveness (OEE). OEE is a universal benchmark in manufacturing, measuring how well a production process performs using the formula:OEE = Availability × Performance × Quality.This formula distills productivity into three essential components, providing a comprehensive view of where improvements can be made. The concept of OEE was introduced by Seiichi Nakajima, a visionary in manufacturing and the creator of the Total Productive Maintenance (TPM) system in the 1960s. His work laid the foundation for Japan’s global...