Six losses, three factors, and six different owners.

The taxonomy that turns an OEE percentage into an action — plus the three losses that are consistently under-recorded, and why one of them gets misdiagnosed as a speed problem.

The six big losses are the standard taxonomy for what OEE measures, and they map two-to-each onto the three factors. Their usefulness is not conceptual — it is that they tell you which department owns a problem, which is what converts a percentage into an action.

This article sets out the six, how they roll up into the OEE loss tree, and which of them Indian plants most consistently under-record.

The loss tree

How total time becomes good output.

ALL TIMEPlant timeEverything. The basis for TEEP rather than OEE.
PLANNEDPlanned production timeLess shifts not run, breaks and planned maintenance. The OEE denominator.
RUNActual production timeLess breakdowns and setup — the availability losses.
NETNet operating timeLess micro-stops and reduced speed — the performance losses.
GOODFully productive timeLess startup rejects and production rejects — the quality losses.

Each arrow is a loss category, and every category has an owner. The tree is more useful than the OEE figure itself, because a supervisor can act on a box in this diagram and cannot act on a percentage.

The six, and who owns each

#LossFactorTypical ownerCommonly under-recorded?
1BreakdownsAvailabilityMaintenanceNo — these get logged
2Setup and changeoverAvailabilityProduction and planningPartly — often logged as one block, not analysed
3Small stops / idlingPerformanceProduction supervisionYes — the largest blind spot
4Reduced speedPerformanceProcess engineeringYes — invisible without a valid standard
5Startup rejectsQualityProcess and setupYes — rarely attributed to the change that caused it
6Production rejectsQualityQualityNo — these get counted

The pattern in the right-hand column is consistent across Indian plants we have deployed on: the losses that get recorded are the dramatic ones. Losses 3, 4 and 5 are quiet, continuous and collectively larger.

Loss 3 deserves its own section

Small stops — under five or six minutes each — are the single most under-recorded loss in manufacturing, and the reason is entirely practical: writing them down costs more time than they take. A machine that stops for four minutes forty times a month has lost more than two and a half hours, and not one of those stops will appear in a manual log.

They also get misdiagnosed. Because they are too short to be classified as downtime, they are absorbed into the performance factor, where they look like a speed problem. An engineer then investigates feeds and speeds on a machine whose actual issue is chip clearing and material presentation — a different fix with a different owner.

Separating them requires stop detection finer than human logging can achieve, which is the strongest practical argument for automatic collection. It is covered in manual vs automated OEE.

Using the taxonomy without drowning in it

Six categories is the right number to start with and too few to act on for long. The usual progression is to begin with the six, discover that one or two dominate, and then subdivide only those — 'setup' becomes 'tool change', 'fixture change', 'first-off approval' once you know setup is the problem.

Resist subdividing everything at once. A reason tree with forty entries at commissioning produces operators selecting the first plausible option, which gives you detailed data that is confidently wrong. Start coarse, act on what dominates, then refine.

Questions

Straight answers.

What are the six big losses?
Breakdowns and setup losses under availability; small stops and reduced speed under performance; startup rejects and production rejects under quality. Each maps to a factor and has a different owner.
What is the OEE loss tree?
A cascade from total plant time down to fully productive time, with each step removing one loss category. It is more actionable than the OEE figure, because a supervisor can act on a box in the tree but not on a percentage.
Which losses do plants most often under-record?
Small stops, reduced speed and startup rejects. All three are quiet and continuous rather than dramatic, and collectively they usually exceed the breakdowns that dominate discussion.
Why are small stops so important?
Because a four-minute stop occurring forty times a month is over two and a half hours that no manual log will capture. Worse, being too short to classify as downtime, they get absorbed into performance and misdiagnosed as a speed problem.
How detailed should a reason tree be?
Start with the six. Discover which one or two dominate, then subdivide only those. A forty-entry tree at commissioning makes operators pick the first plausible option, which produces detailed data that is confidently wrong.
Do startup rejects count against quality?
Yes, and they are rarely attributed back to the changeover that caused them — which means the true cost of a changeover is routinely understated.
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