The goal of TPM is to combat losses. The Japan Institute of Plant Maintenance (JIPM) offers a list of 16 Major Industrial Losses, independent of industry or company size.
Each company faces the challenge of investigating how each of these losses impacts its own organization, quantifying them, and eliminating them. Here's a condensed version of what our training covers.
“Loss is anything that exceeds the minimum amount of equipment, materials, parts, space, and people's time that are absolutely essential to adding value to the product.”
Shoichiro Toyoda – Toyota Co.
Muri Mura Muda: A Systemic View of Losses in TPM
LOSSES CAUSED BY EXTERNAL FACTORS
0. Losses caused by factors outside of Manufacturing
- Holidays
- Factory shutdown days due to lack of demand
The company decides not to operate. This may be due to demand restrictions or legislation that prevents it from doing so.
Although in the initial stage of TPM implementation, factors outside the manufacturing plant are often not considered losses and are therefore excluded from the OEE calculation, these factors should be taken into account as the implementation program progresses and substantial improvements in competitiveness are achieved.
LOSSES THAT PREVENT THE EFFECTIVENESS OF EQUIPMENT
PLANNED STOPS
1. Losses from Planned Shutdowns
This type of loss corresponds to the periodically scheduled shutdown of a line or equipment for the execution of planned maintenance, parts replacement, inspections, in-depth checks, cleaning, refreshments, TPM meetings, training, various tests, etc.
2. Losses from Product Change, Start-ups and Adjustments (Set-up)
This refers to the time required to prepare or adjust equipment between a shutdown and its return to full operational operation. It is measured from the moment the equipment is shut down until it is back at design speed, or failing that, at the planned production speed, producing compliant products.
UNPLANNED STOPS
3. Losses due to Breakdowns (Bankruptcy/Failure) in Equipment
The most significant obstacle to achieving equipment effectiveness is the losses caused by breakdowns (bankruptcies/failures) that occur in the equipment.
4. Losses due to Process Breakdowns
It refers to the time lost due to stops caused by factors other than the equipment.
These are losses caused by problems in the production process, such as molds that are not filled properly due to mixing problems, changes in the chemical or physical properties of the processed materials, operating errors, obstructions that trigger safety mechanisms, etc.
5. Losses from Adjustments and Start-up
These are lost time due to unplanned changes of cutting tools and/or wear parts. These changes require the line to be shut down to replace these elements due to normal or accelerated wear and tear. This loss includes the replacement of molds, drill bits, dies, blades, etc.
6. Losses from Small Stops
Short-stop losses are different from other losses because they involve short-term downtime or inactivity (less than 5 or 10 minutes) due to temporary problems. This type of loss tends to be considered a "secondary problem" and is normally not recorded.
7. Losses due to reduced speed
Speed losses correspond to the difference between the theoretical speed designed by the manufacturer for the operation of the equipment and the actual speed of its operation.
8. Losses from Manufacturing Defective Products and/or Rework
This type of loss occurs when defects are found that make the product non-compliant (second-hand product, broken, etc.).
LOSSES THAT PREVENT THE EFFECTIVENESS OF HUMAN WORK
Although the eight losses that constitute obstacles to the effectiveness of equipment are the best known, it is important to highlight that losses associated with human labor often accompany them.
The quantity/frequency of work-related losses depends on the capacity (skills) of the workers, the operating methods, the physical location of the operators in the work area, and the competency level of the management in charge of the industrial production area, among other things.
9. Losses due to Management Deficiencies
Losses due to management deficiencies are caused by wait times for materials, personnel, instructions, restarts after breaks or shift changes, inefficiencies in Third Party Services, parts that require rework, poorly performed repairs, etc. That is, periods of downtime due to disorganization.
10. Losses from Movements (Deficiencies in the Operation of Equipment)
These losses consist of lost personnel time performing various operations, such as adjustments, mold changes, etc. This may be due to a lack of training and/or different levels of experience among operators.
11. Losses due to inefficient organization on the production line.
It refers to lost time of people as a result of improper line balancing.
12. Losses Due to Lack of Automatic Systems. Logistics Deficiencies
These are losses due to a lack of automated technology, which requires more people than strictly necessary.
13. Losses Due to Excessive Measurements, Controls and Adjustments.
They are losses of time due to excessively frequent measurements, controls and adjustments made by the operator as a result of unstable processes.
LOSSES THAT PREVENT THE EFFECTIVE USE OF PRODUCTION RESOURCES
14. Energy Losses
Energy losses consist of invested energy (water, electricity, gas, fuel, forklift gas, steam, compressed air, etc.) that is not used efficiently in industrial processing. This category includes drive losses, temperature losses during processing, and idle time losses.
15. Loss of Performance of Productive Materials
These are losses associated with the difference between the weight of the raw materials used in manufacturing and the weight of the respective finished products with approved quality (compliant products).
16. Loss of Performance of Accessory Materials
Losses in the performance of accessory materials are the additional money spent to replace tools and spare parts or recondition dies, molds and templates, resulting from both breakage and wear and tear.
Eng. Raul A. Perez Verzini
TPM Instructor No. 723 – JIPM
Master in Organizational Development and Behavior
Note: An expanded version of this text appears in our Training Deliverables.
