
This article is adapted from Chapter 8 of my book, Measuring Manufacturing Effectiveness.
The book explores how manufacturing organizations define and use performance metrics, and how those definitions influence operational decisions, improvement efforts, and management behavior. While the chapters form a connected framework, each is written to address a specific aspect of manufacturing effectiveness and can be read independently.
Performance loss is often described in overly simple terms—the equipment is running slower than it should. While speed is certainly part of the story, this narrow view hides a much broader set of losses that affect output, flow, and stability.
Chapter 8 expands the discussion of performance loss beyond basic speed shortfalls. It examines how interruptions, minor stops, micro-downtime, variability, and operating practices contribute to lost performance—even when equipment appears to be running continuously.
By broadening how performance loss is defined and observed, this chapter aims to improve how organizations diagnose problems and select effective improvement actions.
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