What are the Six Big Losses in OEE?
The Six Big Losses are the most common causes of lost manufacturing productivity: equipment failure, setup and adjustments, idling and minor stops, reduced speed, process defects, and reduced yield. They affect the three components of Overall Equipment Effectiveness (OEE): availability, performance, and quality. Identifying which losses consume the most production time helps manufacturers prioritize improvements that can increase throughput, reduce downtime, and improve OEE.
The Six Big Losses in manufacturing are:
- Equipment failure: Unplanned machine downtime that reduces availability
- Setup and adjustments: Production time lost during changeovers, setup, and machine adjustments
- Idling and minor stops: Brief interruptions that reduce performance without creating extended downtime
- Reduced speed: Production running below the equipment’s ideal cycle time
- Process defects: Defective products produced during normal operation
- Reduced yield: Scrap and defects generated during startup before stable production is reached
Equipment failure and setup losses reduce availability. Minor stops and reduced speed reduce performance. Process defects and reduced yield reduce quality.
Unplanned downtime, the first of the Six Big Losses, drains 11% of annual revenue from the world’s 500 largest companies, a $1.4 trillion bill Siemens measured across four industrial sectors. All six losses together hold the average plant near a 60% OEE score against a world-class benchmark of 85%. NIST priced the preventable share of that gap at $119.1 billion in US discrete manufacturing alone.
We analyzed the six losses one at a time, drawing on surveys and case studies, which let us rank each loss by its measured share. Each section below quantifies one loss group using the strongest available published measure, such as cost, production time lost, share of total losses, or impact on OEE.
Key Takeaways
- Reduced speed tops the loss ranking on more production lines than any other category, peaking at 58.1% of all losses on a six-machine plastics operation.
- Changeover accounts for 37% of OEE decline, more than any other single cause.
- Reactive-heavy plants lose 13.0% of planned production time to downtime. Predictive-heavy plants lose 4.0%.
- Unplanned downtime consumes 11% of revenue at the world’s 500 largest companies, a figure Siemens put at $1.4 trillion.
How Godlan Analyzed the Six Big Losses
Godlan reviewed published manufacturing studies, industry research, and production case studies measuring the Six Big Losses across discrete and process manufacturing environments. Because studies report manufacturing losses differently, we compared each loss using the strongest published measure available, such as the percentage of total losses, production time lost, OEE impact, defect rates, or financial cost. Results should be interpreted as industry benchmarks rather than expected results for an individual facility.
What Each of the Six Big Losses Costs
Every production loss is sorted into six categories that roll up into the three OEE factors. Each one demands a different fix. Our analysis below maps each loss to its OEE factor, along with the hardest verified number behind it.
| Big Loss | OEE Factor | What Measured Data Shows |
|---|---|---|
| Equipment failure | Availability | Heaviest reactive-maintenance quartile loses 13.0% of planned production time to downtime (NIST, 2020) |
| Setup and adjustments | Availability | Changeover drives 37% of OEE decline, the single largest cause (JMMP, 2020) |
| Idling and minor stops | Performance | Reached 62.73% of measured losses on a sheet-metal blanking line (IJIEM) |
| Reduced speed | Performance | Consumed 58.1% of all losses on a six-machine plastics line (MSPE, 2024) |
| Process defects | Quality | Quality rejections took 22.84% of total losses on a biscuit line (PES, 2020) |
| Reduced yield | Quality | Startup rejects before steady state, against a 1% world-class quality allowance (Vorne) |
Key Insights:
- Performance losses outranked availability losses on four of the five lines measured below, which upends the assumption that breakdowns dominate OEE.
- Operators clear minor stops in under two minutes. Plants without cycle-level monitoring never record them.
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Availability Losses: What Breakdowns and Changeovers Cost
Availability losses cost the most per event because they stop the line outright. Siemens priced those stopped hours. NIST measured the planned production time they consume. The table below prices both availability losses.
| Availability Metric | Figure | Source |
|---|---|---|
| Unplanned downtime as share of revenue, world’s 500 largest companies | 11% ($1.4 trillion) | Siemens, 2024 |
| Cost of one lost production hour, automotive | $2.3 million | Siemens, 2024 |
| Cost of one lost production hour, fast-moving consumer goods | $36,000 | Siemens, 2024 |
| Downtime incidents per facility per month | 25 in 2023, down from 42 in 2019 | Siemens, 2024 |
| Planned production time lost to downtime, heaviest reactive quartile | 13.0% | NIST, 2020 |
| Planned production time lost to downtime, lightest reactive quartile | 4.0% | NIST, 2020 |
| Changeover share of OEE decline | 37% | JMMP, 2020 |
Key Insights:
- Manufacturers cut downtime frequency 40% between 2019 and 2023. Cost per hour climbed anyway, so every remaining stop bills higher than the last.
- Changeover drives 37% of OEE decline, the largest share any study assigns to one cause, which rewards SMED discipline.
Performance Losses: What Slow Cycles and Minor Stops Cost
Performance losses hide because the line keeps running. Machines drift below rated speed while the shift report still shows full uptime. Our data indicates this quiet loss outweighs every other category on most lines.
| Production Line | OEE | Performance Rate | Reduced Speed Loss | Idling and Minor Stops |
|---|---|---|---|---|
| Plastics, six machines (MSPE, 2024) | No data | No data | 58.1% of all losses | Study groups these in 12.73% disruptions |
| Beverage bottling (OPSI, 2025) | 69.35% | 70.9% | 28.48% of loading time | 0.24% of loading time |
| Biscuit capper (PES, 2020) | 69.47% | 91.24% | 26.23% of losses | 10.56% of losses |
| Plastic injection moulding, worst month (JMMP, 2026) | 53.9% | 71.4% | Cycles ran 53-60s against a 45s target | No data |
| Sheet-metal blanking (IJIEM) | 71% | 84% | No data | 62.73% of losses |
Key Insights:
- Reduced speed topped the ranking on three lines across three industries, making it the most consistent OEE thief in the published record.
- The injection moulding line ran cycles of 53-60 seconds against a 45-second target while quality held above 99%, proof that a clean quality report hides a bleeding performance rate.
Convert Recovered Hours Into a Payback Number Your CFO Will Sign
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Quality Losses: What Defects and Startup Scrap Cost
Quality losses destroy machine time twice over. Vorne sets world-class quality at 99%. In our analysis below, quality separates process control from equipment condition.
| Production Line | Quality Rate | Defect or Scrap Measure |
|---|---|---|
| World-class benchmark (Vorne) | 99% | 1% of net run time |
| Beverage bottling (OPSI, 2025) | 99.9% | 0.0895% of loading time |
| Plastic injection moulding (JMMP, 2026) | Above 99% | Peak monthly scrap 0.94% |
| Biscuit capper (PES, 2020) | 85.77% | Rejections took 22.84% of total losses |
| Heaviest reactive-maintenance quartile (NIST, 2020) | No data | 16.0 times more defects than lightest quartile |
Key Insights:
- A 14-point quality gap separates the best line we reviewed from the worst. That gap moves OEE 14 points on its own.
- NIST tied defect rates to maintenance strategy, so quality losses trace back to the machines generating availability losses.
What Manufacturers Recover When They Attack the Six Losses
IJPHM measured the penalty plants pay for running machines to failure. The table below shows what a maintenance strategy shift returns.
| Change in Approach | Measured Result | Source |
|---|---|---|
| Predictive and preventive over reactive maintenance | 52.7% less unplanned downtime | IJPHM, 2021 |
| Predictive and preventive over reactive maintenance | 78.5% fewer defects | IJPHM, 2021 |
| Predictive over preventive maintenance | 18.5% less unplanned downtime | IJPHM, 2021 |
| Predictive over preventive maintenance | 87.3% fewer defects | IJPHM, 2021 |
| Structured OEE program, injection moulding line | OEE climbed from 53.9% to 95.8% | JMMP, 2026 |
Key Insights:
- Predictive and preventive programs together cut unplanned downtime 52.7% against run-to-failure, the largest single lever in the verified data.
- One injection moulding line gained 42 OEE points through structured measurement, finishing past the 85% world-class mark.
Which of the Six Big Losses Should Manufacturers Address First?
There is no single Six Big Loss that costs every manufacturer the most. The largest loss depends on the equipment, production process, maintenance strategy, product mix, and operating environment.
Across the studies analyzed by Godlan, however, performance losses frequently exceeded availability losses. Reduced speed ranked as the largest measured loss across several production lines, while minor stops accounted for as much as 62.73% of measured losses on one sheet-metal blanking line.
The practical answer is to measure all six losses before choosing where to invest. A plant experiencing frequent breakdowns may benefit most from predictive maintenance, while another facility may recover more capacity by reducing changeover time, minor stops, or slow cycles.
How Manufacturers Can Track the Six Big Losses in Real Time
Identifying the Six Big Losses requires more than calculating OEE at the end of a shift. Manufacturers need visibility into the machine events, cycle times, downtime reasons, production counts, and quality data behind the OEE score.
Godlan helps discrete manufacturers connect shop-floor production data with Infor CloudSuite Industrial (SyteLine) using Prophecy IoT®. Cycle-level machine data can feed live OEE dashboards that help manufacturing teams identify:
- Unplanned equipment downtime
- Setup and changeover losses
- Recurring minor stops
- Actual versus ideal cycle time
- Production running below target speed
- Scrap and quality losses
- OEE trends by machine, line, shift, or work center
This gives operations teams visibility into why OEE is falling, rather than simply reporting the final OEE percentage.
Godlan brings more than 40 years of manufacturing ERP experience and the world’s largest Infor CloudSuite Industrial services team to manufacturing technology deployments.
Start with the ERP Selection Criteria Checklist to determine what shop-floor visibility and manufacturing data integration your operation requires.
Further Reading
- OEE Benchmarks by Manufacturing Industry Vertical: 2025 Data
- How to Reduce Downtime in Manufacturing
- 10 Manufacturing KPIs and How to Track Them Accurately
- Predictive Maintenance for Manufacturers: A Practical Guide
- How to Optimize Shop Floor Management with ERP
Take This Report to Your Next Operations Review
Every figure on this page traces to a named source below. Manufacturing leaders hand this report to finance to settle which loss deserves the next investment. Request a PDF copy of this report. We send the full source data with it.
Sources
- Siemens
- NIST
- International Journal of Prognostics and Health Management
- Management Systems in Production Engineering
- Journal of Manufacturing and Materials Processing, 2026
- Journal of Manufacturing and Materials Processing, 2020
- Proceedings on Engineering Sciences
- OPSI
- Indonesian Journal of Industrial Engineering and Management
- Vorne Industries