Operation Loss

Maintenance:

Equipment breakdowns due to inadequate maintenance will cause production loss, maintenance budget overruns, etc. The cause of the incident could be due to inadequate planning, skills, tools, services, work methods, task description, task scheduling, etc.

A repair takes longer than planned due to a lack of planning, skills, tools and services causing a loss in production, maintenance and production budget overspend to recover the lost production

A maintenance budget is reduced without identifying the production risks that will occur to cause loss in production, deliveries, administration, customer satisfaction, etc.

Operation:

Production schedules and deliveries are missed due to staff shortages and personnel skills leading to cancellation of orders
Manufacturing delays due to planning errors in production, transport resulting in delayed deliveries
Operating equipment above its capacity and capability leading to breakdowns which disrupt production and maintenance activities increasing costs in both activities

Construction:

A schedule is delayed due to late delivery of materials caused by delays in placing orders

An engineering solution does not deliver as designed causing a redesign which will affect schedule and
Personnel recruitment and skills development do not keep pace with the construction programme causing delays in commissioning and start-up. The loss incurred is due to retaining construction teams longer than planned and start up delays causing loss of revenue

Administration:

Late or missed attendance at a meeting will cause loss as the meeting will have to be rescheduled distracting the attendees from progressing their accountabilities.
Delays in placing orders for spares may result in missing schedule services leading to unscheduled equipment failures

Delayed decisions on starting a project may cause loss in reworking all the project activities to meet the original schedule

Conclusion

The approach to eliminating any loss in an organization is no different to the way safety loss is eliminated. Any loss will be directly linked to a behaviour that will be found not to be compliant to the organizations behavioural values. Compliance to the behavioural values will eliminate or mitigate loss