1. Zero Loss Thinking & Loss Analysis

2. Agenda Zero Loss Thinking Safety & Readiness Moment 3 minutes
Quick Intros 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?

3. Quick Introduction round – 3 minutes!

4. 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?

5. 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)

6. Learning to See

7. 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

8. 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

9. Loss Categories: Example of Definition
Breakdown example

10. Household Example activity
Zero Loss Landscape
Household Example activity

11. Business X Loss Data

12. Business X Loss Pareto

13. Stratification Example
Analysis activities
Improvement activities

14. 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

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