Lost Cost Matrix

Planned Shutdown Loss

Breakdown Loss
Setup & Adjustment Loss
Startup Loss
Minor Stops Loss
Speed Loss
Idling Loss
Quality Defects Loss
Rework Loss
Replanning Loss
Management Loss
Motion Loss
Line Balance Loss
Non Automation Loss
Adjustment Loss
Inventory Loss
Energy Loss
Consumables Loss
Yeild Loss
Labour Effectiveness
Quality Losses
Resource
Consumption
Effectiveness
General
Administrative
Costs
I
n
t
e
r
e
s
t

C
h
a
r
g
e
s
A
d
m
i
n
i
s
t
r
a
t
i
v
e

C
o
s
t
s
E
q
u
i
p
m
e
n
t

E
f
f
e
c
t
i
v
e
n
e
s
s
Downtime
Losses
Performance
Losses

L
o
g
i
s
t
i
c
s

C
o
s
t
s
Total Manufacturing Costs
T
o
t
a
l

L
o
s
s
D
i
r
e
c
t

L
a
b
o
u
r

C
o
s
t
s
I
n
d
i
r
e
c
t

L
a
b
o
u
r

C
o
s
t
s
M
a
i
n
t
e
n
a
n
c
e

&

R
e
p
a
i
r

C
o
s
t
s
D
i
e

C
o
s
t
s
Fixed Costs Variable Costs
R
a
w

M
a
t
e
r
i
a
l

C
o
s
t
s
F
u
e
l

C
o
s
t
s
P
o
w
e
r

C
o
s
t
s
Production Costs
C
o
n
s
u
m
a
b
l
e
s

C
o
s
t
s
Cost Structure
Loss Structure
Total Cost
Manufacturing
Cost
Production
Volume Cost
Equip.
Efficiency
Man power
Efficiency
Material &
Energy
All OH
Rates of
RM,Utly & Pak.
Variable
Cost
Fixed Cost
COST tree analysis (Cost
affects Manufacturing and
Production volume)
(Rs. In lacs)
200
500 250 600
80% of OEE
650
B/S
Std.
Based on zero
based cost/
Best of the best)
175
400 150 400
100% of OEE
450
700
1200
1900
Diff.
Cause
Prod A Prod B Prod C Prod A Prod B Prod C Prod A Prod B Prod C