Addressing the 'Six Big Losses': A New Approach to Old Problems in Process Manufacturing

March 28, 2011

As many executives already recognize, knowing that production efficiency and capacity problems exist is one thing. Effecting real and lasting change through a continuous improvement (CI) initiative is another. Often the challenge lies in determining the root cause and the full extent of operational problems, making it difficult to determine where—and how—to begin the CI program. But increasingly, manufacturers are discovering a surprisingly effective framework from which to tackle the CI challenge: the “Six Big Losses.”

Developed in the 1970s by the Japan Institute of Plant Maintenance (JIPM), this framework enables companies to examine their efficiency problem with an unprecedented level of granularity. It also provides the necessary structure for tackling the problems, improving efficiency and capacity, reducing manufacturing costs and improving profitability. Citing examples from process manufacturers that have successfully leveraged this proven framework, this white paper examines how approaching a CI initiative through the Six Big Losses can help improve CI success and, in turn, business performance.

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