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Zero Loss Thinking & Loss Analysis

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Presentation on theme: "Zero Loss Thinking & Loss Analysis"— Presentation transcript:

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!!


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