Loss Management System


Most asked questions:

Is it only for Manufacturing companies ?
The short answer is no. Companies like: Industrial, Service, Food, Construction, Chemical, Hospitals etc. can use this tool for Loss Capturing
What is a Loss or Waste ?

The simplest way to describe Losses or waste is as “Something that adds no Value.” Our customers would not be happy to pay for any action that we take that does not add value to what they actually want and nor should we be.

Would you be happy if you received a bill in a restaurant that included a meal that was prepared in error? No; you would argue and demand that it was removed from your bill; yet if you buy a product in a store the price that you pay will contain costs that you would not want to pay. Would you want to pay for the machine operators wages whilst they sat idle waiting for a delivery, or for the rework processes that had to be undertaken because the machine was incorrectly set, or even for storing your product for three months before it was delivered to the store?  These Losses and wastes are included within the cost of your products, either inflating the price you pay or reducing the profit of the company.

The 7 major lossesThe 7 major losses
Overproduction: The most serious of all of the seven wastes; the waste of overproduction is making too much or too early. This is usually because of working with oversize batches, long lead times, poor supplier relations and a host of other reasons. Overproduction leads to high levels of inventory which mask many of the problems within your organization.
The aim should be to make only what is required when it is required by the customer, the philosophy of Just in Time (JIT), however many companies work on the principle of Just in Case!

Extra Processing Steps:  This occurs when it is hard to see when something is complete. For instance, grinding, sanding, and polishing can be overdone, because a sense of completion is hard to gauge from one person to the next. Redundant effort or steps, and excessive checking and verifying, are examples of extra processing steps. If operators need to unpackage parts from suppliers on the production line before installing those parts, they are extra processing steps.

Motion: Unnecessary motions are those movements of man or machine which are not as small or as easy to achieve as possible, by this I mean bending down to retrieve heavy objects at floor level when they could be fed at waist level to reduce stress and time to retrieve. Excessive travel between work stations, excessive machine movements from start point to work start point are all examples of the Losses and Waste of MotionAll of these wasteful motions cost you time (money) and cause stress on your employees and machines, after all even robots wear out.

Waiting: How often do you spend time waiting for an answer from another department in your organization, or waiting for a delivery from a supplier or an engineer to come and fix a machine? We tend to spend an enormous amount of time waiting for things in our working lives (and personal lives too), this is an obvious waste.
The Waste of Waiting disrupts flow, one of the main principles of Lean Manufacturing, as such it is one of the more serious of the seven wastes or 7 mudas of lean manufacturing.

Transportation:  Transport is the movement of materials from one location to another, this is a Loss or waste as it adds zero value to the product. Why would your customer (or you for that matter) want to pay for an operation that adds no value?
Transport adds no value to the product, you as a business are paying people to move material from one location to another, a process that only costs you money and makes nothing for you. The Waste of Transport can be a very high cost to your business, you need people to operate it and equipment such as trucks or fork trucks to undertake this expensive movement of materials.

Inventory:  Inventory costs you money, every piece of product tied up in raw material, work in progress or finished goods has a cost and until it is actually sold that cost is yours. In addition to the pure cost of your inventory it adds many other costs; inventory feeds many other wastes.
Inventory has to be stored, it needs space, it needs packaging and it has to be transported around. It has the chance of being damaged during transport and becoming obsolete. The waste of Inventory hides many of the other wastes in your systems.

Defect / rework: The most obvious of the seven wastes, although not always the easiest to detect before they reach your customers. Quality errors that cause defects invariably cost you far more than you expect. Every defective item requires rework or replacement, it wastes resources and materials, it creates paperwork, it can lead to lost customers.
The Waste of Defects should be prevented where possible, better to prevent than to try to detect them, implementation of pokayoke systems and autonomation can help to prevent defects from occurring uality errors that have become costly and were not prevented.

What is OPE ?
OPE stands for Overall Plant Effectiveness. Below you can see a typical deployment of hours, and how to calculate OPE
What is OPEOPE CalculationOPE Calculation
How do we learn to setup the system ?
This is a part of the training we will give when you buy the Loss Management System
How does the system work ?
The Data flowdata flow is as below picture illustrate.
From Interface goes the data into a Lossbase, and from that, all the graphs is created automatically
Can we make changes in the code, ore do we need help to that ?
Yes, you will be able to change all the code at Level 2 and 3
How do we know the system is relevant for us ?
If you already work with Continuous Improvement eg. TPM, WCM, TPS, TQM, this Loss System is a perfect match. Otherwise you just give us a call at +4520239085, and we will together find out if it´s relevant for your company
What are the Benefit if we choose this tool ?
The Benefit for you will be as below:
  • One single tool across company
  • Make common understanding and awareness for losses Involve the hole company
  • Easy to get company and department overview
  • Easy to understand status of one particular loss in company and save lots of time in making deployment, data, graphs, reports etc.
  • Eliminate many other documents, resulting time saving on deployment and focus will be given on loss eradication instead
How do we secure that all important fields are filled out ?
All Mandatory fields (red fields) has a lock on it, so you can´t send any data to Lossbase before thise fields are filled out - Se eg. belowHow do we secure that all important fields are filled out
How do we get the Loss Management System ?
You just give us a call at +4520239085, ore send us an e-mail This email address is being protected from spambots. You need JavaScript enabled to view it. and we will discuss further steps

 Did you not get answer to your questions?

Please give us a call, or send us an e-mail, as below information, and we will get back to you ASAP - Thank you