Losses vs. Waste: defining and measuring

 11/10/2016
By Dr. Alin Posteucă

The continuous improvement of productivity and quality requires first a continuous process measurement. Some companies measure losses and waste in order to identify ways for improvement. In this context, what are the most common definitions for losses in connection with waste? Also, how are losses measured in connection with waste?

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Dr. Alin Posteucă is the founder and CEO of Exegens®, a global consulting firm specializing in operational excellence, cost improvement and business performance improvement. He helps his customers create and implement profitable strategies and cost improvement programs that ensure a unit cost improvement of at least 6% per year for each of the next 5 years by maximizing the efficiency and effectiveness of operations.

He is the author of the Manufacturing Cost Policy Deployment (MCPD) concept published in three books at Productivity Press - Routledge/CRC. The latest, Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios, centers on his core belief that annual and multiannual target profit can be achieved regardless of the evolution of sales volumes, increasing or decreasing.