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Zero Loss Thinking & Loss Analysis
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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?
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Quick Introduction round – 3 minutes!
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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?
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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)
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Learning to See
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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
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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
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Loss Categories: Example of Definition
Breakdown example
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Household Example activity
Zero Loss Landscape Household Example activity
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Business X Loss Data
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Business X Loss Pareto
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Stratification Example
Analysis activities Improvement activities
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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
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Reflection – what is your next step back at work?
Questions? Thank you!!
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