Overcoming 16 major losses to improve OEE

Written by Ravinder Singh

Dec 1, 2025

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The notion of the ’16 major losses’ is fundamental to any plant seeking to optimize its overall equipment efficiency (OEE). By overlooking these losses, companies miss out on significant potential gains in productivity and profitability. Understanding and dealing with these losses is crucial in an increasingly competitive environment, where every minute of downtime or inefficient operation can have a heavy impact on operating profit. Ignoring these losses can lead to a drop in OEE, a vital indicator for industrial optimization.

The causes of the 16 major losses can be divided into three categories: downtime, performance and quality. These losses include unplanned downtime, poor maintenance and inappropriate settings, leading to operational inefficiencies. The immediate consequence is a reduction in OEE, accentuated by longer production cycles and rising costs. Poor-quality end products also erode reputation and increase non-compliance costs, directly impacting the company’s competitiveness.

To remedy these losses, companies can adopt a structured approach based on continuous improvement and digitalization. Implementing solutions such as TeepTrak offers real-time TRS/OEE monitoring, facilitating the identification and analysis of stoppages. In addition, Total Productive Maintenance (TPM) is an effective strategy that generates significant improvements by minimizing downtime and optimizing performance. By combining these methods with detailed data analysis, managers can monitor key performance indicators, reduce waste and consequently improve equipment efficiency.

Here’s a case in point: an automotive parts manufacturing plant integrated TeepTrak to monitor its performance. Thanks to this tracking solution, the plant was able to pinpoint points of production downtime caused by misalignment of its machines, which contributed to 20% of total downtime. By readjusting equipment and adopting better planning, they saw a 15% increase in their OEE. The rapid return on investment motivated the company to extend the use of TeepTrak to other production lines in search of efficiency gains.

For plants wishing to overcome the challenges of the 16 major losses, the key is to start with a precise audit of their current equipment performance, followed by the implementation of adapted tools such as TeepTrak. By prioritizing shop-floor digitization and continuous improvement, the results are convincing: fewer stoppages, improved quality and increased productivity. By structuring an OEE project, plants can turn these losses into opportunities for growth and innovation.

FAQ

Question 1: How do you identify the 16 major losses in a plant?

Identifying the 16 major losses requires a precise audit of current equipment performance. The use of real-time monitoring tools, such as those offered by TeepTrak, makes it possible to quickly visualize points of weakness and inefficiency.

Question 2: What is the impact of major losses on OEE?

Major losses have a direct impact on OEE through prolonged downtime, sub-optimal performance and the production of inferior products. They reduce profitability and increase production costs.

Question 3: Where do you start to reduce major losses?

Start by measuring and tracking your OEE with solutions like TeepTrak. Then deploy continuous improvement methodologies and implement effective maintenance strategies to minimize downtime and optimize performance.

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