Causal and resultant losses poster

A causal loss is one that starts a chain, such as a breakdown. Resultant losses are what follow from it: scrap made during the failure, extra checks, setup and restart, slow running afterwards, spare parts, energy used while nothing is made, people waiting and overtime to catch up. Counting only the stop hides most of the cost. This poster shows one breakdown and the eight losses that follow it, so a team costs the whole chain and attacks the cause.

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Causal and resultant losses poster — 24 x 36 in18 x 24 inA2A3LetterA4PNG 300 dpi

The words on the poster

One breakdown, many costs

A causal loss starts the chain. Resultant losses follow it. Count them all, fix the cause.

Causal loss: the line stops for a breakdown. That is where the bill starts, not where it ends.

Resultant losses that follow

Scrap and rework Parts spoiled by the failure and the restart.
Extra checks More inspection until the line is trusted.
Setup again Re-setting and adjusting after the repair.
Slow restart Unstable, slower running after the stop.
Spare parts Parts and materials used in the repair.
Energy Ovens, air and lights on while nothing is made.
People waiting Operators idle, or moved to other work.
Overtime Extra hours to catch up the lost output.

Causal and resultant losses after Yamashina and Kubo, Manufacturing cost deployment (2002).

On the floor

How to use it

Putting the Causal and resultant losses poster to work

1
Pin it by the downtime board, so a stop is costed with everything that followed it.
2
Use it when ranking losses: a small causal loss can carry a large resultant cost.
3
Ask the team which of the eight followed the last big stop, and how much each cost.
4
Pair it with the free cost deployment matrix and equipment downtime log.

Where the poster goes and how to teach with it, in the order to try them.

Which size to print

24 x 36 in or A2: a main wall or team board, read from a few metres away.
18 x 24 in or A3: a station or notice board. The A3 file also fits 11 x 17 in paper.
Letter or A4: a clipboard, binder or handout, on any office printer.

Every PDF is vector, so it stays sharp at full size. Nothing runs to the edge of the page, so no bleed is needed.

Sources and notes

H. Yamashina and T. Kubo, "Manufacturing cost deployment", International Journal of Production Research (2002): the seven steps from total cost to an improvement plan, and the split into causal and resultant losses.