Menu
The Six Big Losses of OEE: Definitions, Examples and Fixes

The Six Big Losses of OEE: Definitions, Examples and Fixes

Equipment failure, setups, minor stops, reduced speed, defects and reduced yield explained, and how Fabrico, an MES and OEE platform, tracks every stop.
The Six Big Losses of OEE: Definitions, Examples and Fixes

Key takeaways

  • The six big losses are the six most common ways manufacturing equipment loses productive time.
  • Two hit availability (equipment failure, setup and adjustments), two hit performance (small stops, reduced speed) and two hit quality (process defects, reduced yield).
  • OEE tells you how much time you lost. The six big losses tell you what kind of loss it was, and who can fix it.
  • A written short-stop threshold, for example two minutes, decides whether a stop counts against availability or performance.
  • In the example below, three of the six losses cause 75% of the lost time. That is where to start.

What are the six big losses?

The six big losses are a framework from Total Productive Maintenance (TPM) that sorts equipment losses into six categories.

Each category belongs to one of the three factors of overall equipment effectiveness (OEE).

LossAlso calledOEE factor
1. Equipment failureUnplanned stops, breakdownsAvailability
2. Setup and adjustmentsPlanned stops, changeoversAvailability
3. Idling and minor stopsSmall stops, micro stopsPerformance
4. Reduced speedSlow cycles, speed lossPerformance
5. Process defectsProduction rejects, scrap and reworkQuality
6. Reduced yieldStartup rejectsQuality

You will see both sets of names in plants and software. They describe the same six losses.

Why the six big losses matter

An OEE score of 70% tells you that 30% of planned production time was not fully productive. It does not tell you why.

The six big losses answer that question, and each one points to a different kind of fix.

  • Equipment failure usually needs maintenance work.
  • Setup and adjustments usually need changeover improvement.
  • Small stops and reduced speed usually need process and equipment tuning.
  • Defects and reduced yield usually need quality and settings work.

Without this split, a team argues about one number. With it, the team works on six specific problems.

Availability losses

Availability losses are stops: time when the machine was scheduled to run but did not.

1. Equipment failure (unplanned stops)

Any significant stop that was not planned.

  • Examples: breakdowns, tooling failure, unplanned maintenance, no operator, no material, starved by upstream equipment or blocked by downstream equipment.
  • How to measure it: record every stop longer than your short-stop threshold, with a reason.
  • How to reduce it: preventive maintenance on repeat failures, faster response and repair, better material flow.

Our playbook on how to reduce machine downtime covers 15 ways to cut this loss.

2. Setup and adjustments (planned stops)

Stops that were planned but still happened inside planned production time.

  • Examples: changeovers, major adjustments, cleaning, warm-up time, in-shift planned maintenance, quality inspections.
  • How to measure it: record the start and end of every changeover, by product pair.
  • How to reduce it: SMED, pre-staged tools and materials, standard settings.

See our guides to SMED and reducing changeover time.

Performance losses

Performance losses happen while the machine is running, but producing less than it should.

3. Idling and minor stops (small stops)

Short stops below your threshold, usually cleared by the operator in seconds or a minute or two.

  • Examples: misfeeds, jams, blocked or misaligned sensors, obstructed product flow, quick cleaning.
  • How to measure it: automatic data capture. These stops rarely make it into manual logs.
  • How to reduce it: count them by station, then fix the top causes one by one.

Our micro stops guide explains how to find them.

4. Reduced speed (slow cycles)

The machine runs, but slower than its ideal cycle time.

  • Examples: worn or dirty equipment, poor lubrication, material problems, operator inexperience, speed reduced "to be safe".
  • How to measure it: compare actual output during run time with output at the ideal cycle time.
  • How to reduce it: find out why the speed was lowered, fix the cause and restore the speed.

Not sure whether a loss is a small stop or a slow cycle? See reduced speed vs minor stops.

Quality losses

Quality losses are parts that were made but not right the first time.

5. Process defects (production rejects)

Scrap and rework made during a stable run.

  • Examples: incorrect settings, handling errors, material variation, process drift.
  • How to measure it: count rejects and reworked parts at the machine, not only at final inspection.
  • How to reduce it: control the process where the defect is created, for example with statistical process control.

6. Reduced yield (startup rejects)

Scrap and rework made from startup until the process runs stable, most often after a changeover.

  • Examples: trial-and-error settings after a changeover, rejects from warm-up cycles, waste made at startup by the process itself.
  • How to measure it: count rejects separately for the first part of each run.
  • How to reduce it: proven settings per product, better changeover standards, a shorter warm-up.

How to classify a stop in three questions

Most arguments about the six big losses are really arguments about one stop. Use the same three questions every time.

QuestionIf yesIf no
1. Was production planned at this time?Go to question 2Not an OEE loss (it is outside planned production time)
2. Was the stop longer than the short-stop threshold?Go to question 3Loss 3: idling and minor stops
3. Was the stop planned, such as a changeover or cleaning?Loss 2: setup and adjustmentsLoss 1: equipment failure

Write the threshold down, for example two minutes, and give every stop longer than that a reason.

The exact number matters less than using it consistently.

For a deeper look at the boundary, read availability loss vs performance loss.

Worked example: one week, six losses

A line has 2,250 minutes of planned production time in a week (five shifts of 450 minutes). The losses were recorded automatically.

LossMinutesShare of lost time
2. Setup and adjustments18030%
1. Equipment failure15025%
3. Idling and minor stops12020%
4. Reduced speed9015%
5. Process defects305%
6. Reduced yield305%
Total lost600100%

What that means for OEE

  • Availability = (2,250 - 180 - 150) ÷ 2,250 = 1,920 ÷ 2,250 = 85.3%
  • Performance = (1,920 - 120 - 90) ÷ 1,920 = 1,710 ÷ 1,920 = 89.1%
  • Quality = (1,710 - 30 - 30) ÷ 1,710 = 1,650 ÷ 1,710 = 96.5%
  • OEE = 1,650 ÷ 2,250 = 73.3%

The quality minutes are rejects multiplied by the ideal cycle time, which matches the count-based formula when every product has the same ideal cycle time.

Where to start

Changeovers, failures and small stops cause 450 of the 600 lost minutes, or 75%.

That gives three projects: a SMED workshop, preventive tasks on the repeat failures, and a hunt for the most frequent small stops.

For a plan to work through them, see our guide on how to improve OEE.

The six big losses and the seven wastes

The six big losses come from TPM and focus on equipment.

The seven wastes come from lean and focus on the whole process, such as inventory, motion and transport.

They work well together. Our comparison of the six big losses vs the seven wastes explains how.

Common mistakes

  • Leaving changeovers out of planned production time. It hides what is often one of the largest losses.
  • No short-stop threshold. The same stop ends up in different categories on different shifts.
  • A large "other" category. If "other" is in your top three, your reason list needs work.
  • Blaming reduced speed on operators without checking equipment condition and material.
  • Counting startup scrap as normal production scrap. They have different causes and different fixes.
  • Tracking the losses monthly. By then, nobody remembers why a stop happened.

How Fabrico helps

Fabrico is a cloud-based MES and OEE platform for manufacturers, with maintenance management (CMMS) built in.

It records stops and counts from PLCs, IoT sensors and AI cameras, detects micro stops, and calculates availability, performance, quality and OEE in real time.

Downtime, MTTR and MTBF are shown by machine, so the losses are measured rather than estimated.

When a loss needs fixing, your team can open a work order or add a task to a preventive maintenance plan in the same platform, and track it to completion.

See your own losses on a live OEE dashboard: book a demo. To turn the losses into a score, read our OEE calculation guide.

Frequently asked questions

What are the six big losses in OEE?

Equipment failure, setup and adjustments, idling and minor stops, reduced speed, process defects and reduced yield.

The first two reduce availability, the next two reduce performance, and the last two reduce quality.

Where do the six big losses come from?

They come from Total Productive Maintenance (TPM), the improvement system developed in Japan in which OEE is a core equipment measure.

Is a changeover a loss?

Yes. A changeover inside planned production time is loss 2, setup and adjustments, and it reduces availability.

It may be necessary, but it can almost always be made shorter.

What is the difference between minor stops and equipment failure?

The length of the stop. Stops shorter than your threshold count as minor stops, a performance loss.

Longer unplanned stops count as equipment failure, an availability loss.

Which of the six big losses is usually the biggest?

It depends on the process. In many discrete plants, changeovers and breakdowns are large, while on fast lines small stops often dominate.

Measure all six for a few weeks before you decide.

How do I track the six big losses?

Capture stops and counts automatically, assign a reason to every stop above your threshold, and compare output with the ideal cycle time.

Then group the minutes into the six categories and rank them.

See how Fabrico unifies OEE and maintenance in one platform.

Request a demo
Track OEE and downtime in real time

Related articles

Latest from our blog

Define Your Reliability Roadmap
Validate Your Potential ROI: Book a Live Demo
Define Your Reliability Roadmap
By clicking the Accept button, you are giving your consent to the use of cookies when accessing this website and utilizing our services. To learn more about how cookies are used and managed, please refer to our Privacy Policy ve Cookies Declaration