Zero Loss Thinking & Loss Analysis

Agenda Zero Loss Thinking Safety & Readiness Moment 3 minutes Quick Intros 10 minutes Zero loss overview 15 minutes Household activity 10 minutes ADM example 10 minutes Small group activity 60 minutes Reflection and wrap up 5 minutes How could ZLT change your leadership / management style?

Quick Introduction round – 3 minutes!

Zero Loss Thinking! The Paradigm Shift Measuring against zero loss is the only way to evaluate true performance What does zero loss mean? How could ZLT change your leadership / management style?

What is Zero Loss? Actual Cost Total real dollars spent to manufacture a product The difference between actual cost and ideal cost Loss Cost Reduction Opportunity Ideal Cost (zero-based) Absolute minimum cost required to manufacture a product (theoretical cost)

Learning to See

Business “x” Loss Categories 5 losses Compliance Inspection/Testing Preventative Maintenance Activities Training Optimization Customer Experience Procurement & Logistics Usage Deviation Equipment Failure Product Development & Research Waste Final Product Downgrade Production Scheduling Yield Material Handling Time Loss Breakdown example

Determining the Loss Value Agree on definition of each loss and appropriate tracking measure Define Calculate downtime $ / machine hour loss by area / department Calculate DT $/hr. Determine frequency cost of loss category Calculate Frequency Cost Breakdown example

Loss Categories: Example of Definition Breakdown example

Household Example activity Zero Loss Landscape Household Example activity

Business X Loss Data

Business X Loss Pareto

Stratification Example Analysis activities Improvement activities

Zero Loss Landscape Small group activity Group by ?? (industry) Create list of losses Report out Create calculations for 1 loss Pareto all losses Stratify top loss

Reflection – what is your next step back at work? Questions? Thank you!!