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Manufacturing Loss Investigation

Context
Beverage manufacturing — PET preform production (organisation anonymised)
Status
Delivered
Tools
Excel dashboard, Production data analysis, Fishbone (Ishikawa) diagrams, Pareto analysis

Executive summary

An Industrial Engineering investigation into PET preform material losses in a manufacturing operation. Using production data and root-cause analysis, I quantified approximately US$10,000 in identified material losses and linked them to their causes, and delivered the findings as an Excel dashboard report that gave the operation a prioritised basis for corrective action.

  • ~US$10,000

    Material losses identified

    PET preform material losses quantified during the investigation

How to read this result. This figure is the value of losses identified. It is not recovered savings.

Business context

PET preforms are the moulded tubes later blown into bottles. Material that is scrapped, rejected or otherwise lost during production is a direct cost, and in high-volume manufacturing small loss rates accumulate quickly.

Challenge

The operation knew material was being lost but did not have a clear account of how much, where in the process, or why. Without that, corrective effort could not be prioritised.

My contribution

  • Gathered and organised production data relevant to material usage and losses.
  • Quantified the losses and expressed them in monetary terms.
  • Applied root-cause analysis to link losses to underlying causes.
  • Built the Excel dashboard report that presented the losses, their causes and the recommendations.
  • Prepared recommendations for addressing the main causes.

Investigation and methodology

The investigation followed a standard Industrial Engineering sequence: define the loss, measure it, then analyse causes. Losses were categorised so the largest contributors could be separated from minor ones (Pareto analysis), and cause-and-effect diagrams were used to trace each major category back through people, methods, machines and materials.

Solution design and implementation

The findings were delivered as an Excel dashboard report: an evidence-based account of material losses, a cause structure, and recommendations ranked by their share of the identified loss.

Results and business value

The investigation identified approximately US$10,000 in PET preform material losses. This is the value of losses identified, not money recovered. Its business value is in making a hidden cost visible and giving management a prioritised starting point for corrective action.

Technical details
  • Quantification: material loss volumes converted to monetary value to make categories comparable.
  • Prioritisation: Pareto ordering of loss categories.
  • Cause analysis: Ishikawa (fishbone) structure for the major categories.

Lessons, constraints and improvement opportunities

  • Putting a currency value on loss changes the conversation; it moves the issue from operations to management attention.
  • Identified loss is not saved cost — savings depend on implementation and should be measured separately.
  • Ongoing loss tracking per shift and per cause would show whether corrective actions hold.
  • Root-cause analysis
  • Industrial Engineering
  • Loss quantification
  • Operational analysis

Interactive demonstration

Explore a synthetic version

Built independently with generated data and illustrative business rules, to show the analytical approach without exposing any client system or record.

Illustrative demonstration using synthetic data. Not an original client system. Company, store and people names are fictional (Delta Polymers).

PET preform material-loss investigation

Weekly material losses across three fictional production lines, with cause categories, the relationship to downtime, and a root-cause structure that follows your filters.

Material lost
33,243 kg
Identified loss value (synthetic)
US$48.2k
Identified, not recovered
Loss rate
0.84%
of material processed
Downtime
360 h
1,278.6 kg lost per week on average
Material lost per week
All causes
05001,0001,5002,000W1W7W13W19W25
Show data table
WeekLoss (kg)
Week 11,565
Week 21,135
Week 31,560
Week 41,392
Week 51,228
Week 61,097
Week 71,363
Week 81,150
Week 91,333
Week 101,136
Week 111,432
Week 121,198
Week 131,356
Week 141,206
Week 151,080
Week 161,400
Week 171,001
Week 181,179
Week 191,408
Week 201,290
Week 211,275
Week 221,339
Week 231,186
Week 241,282
Week 251,297
Week 261,354
Loss by cause, largest first
Pareto ordering for the selected line and weeks
05,00010,00015,000Start-upscrap12,170Colourchangeover p…9,556Short shotsand voids6,439Contamination3,085Handlingdamage1,993
Show data table
CauseLoss (kg)Cumulative share
Start-up scrap12,17037%
Colour changeover purge9,55665%
Short shots and voids6,43985%
Contamination3,08594%
Handling damage1,993100%
Downtime against material lost
Each point is one line-week
02004006008000200400600Downtime (min)Loss (kg)
Show data table
Line-weekDowntime (min)Loss (kg)
Line 1, wk 1357513
Line 2, wk 1347494
Line 3, wk 1353558
Line 1, wk 2282426
Line 2, wk 2252341
Line 3, wk 2161368
Line 1, wk 3352520
Line 2, wk 3279426
Line 3, wk 3455614
Line 1, wk 4380488
Line 2, wk 4264395
Line 3, wk 4289510
Line 1, wk 5330454
Line 2, wk 5281416
Line 3, wk 5186358
Line 1, wk 6190327
Line 2, wk 6154268
Line 3, wk 6356501
Line 1, wk 7221307
Line 2, wk 7240338
Line 3, wk 7431718
Line 1, wk 8240370
Line 2, wk 8256339
Line 3, wk 8233441
Line 1, wk 9260387
Line 2, wk 9287421
Line 3, wk 9331524
Line 1, wk 10234384
Line 2, wk 10185295
Line 3, wk 10267457
Line 1, wk 11303424
Line 2, wk 11286463
Line 3, wk 11389545
Line 1, wk 12118295
Line 2, wk 12265433
Line 3, wk 12320470
Line 1, wk 13251376
Line 2, wk 13262369
Line 3, wk 13451612
Line 1, wk 14264442
Line 2, wk 14233398
Line 3, wk 14258366
Line 1, wk 15180324
Line 2, wk 15238279
Line 3, wk 15325477
Line 1, wk 16276419
Line 2, wk 16251374
Line 3, wk 16370607
Line 1, wk 1789178
Line 2, wk 17237364
Line 3, wk 17351458
Line 1, wk 18213344
Line 2, wk 18202333
Line 3, wk 18304503
Line 1, wk 19268387
Line 2, wk 19378516
Line 3, wk 19314505
Line 1, wk 20117238
Line 2, wk 20215356
Line 3, wk 20489696
Line 1, wk 21183250
Line 2, wk 21380524
Line 3, wk 21344501
Line 1, wk 22210346
Line 2, wk 22278451
Line 3, wk 22352542
Line 1, wk 23101241
Line 2, wk 23300472
Line 3, wk 23280474
Line 1, wk 24220341
Line 2, wk 24342472
Line 3, wk 24291469
Line 1, wk 25106272
Line 2, wk 25347427
Line 3, wk 25390598
Line 1, wk 26109281
Line 2, wk 26334513
Line 3, wk 26349561
Root-cause structure
Fishbone (Ishikawa) view; the selected cause is highlighted
Preformmaterial lossMethodStart-up scrapColour changeover purgeMachineShort shots and voidsMaterialContaminationPeopleHandling damage

Recommendations, ranked by share of loss

  1. 1Start-up scrap (37% of loss). Standardise start-up settings per mould and record first-good-shot time each shift.
  2. 2Colour changeover purge (29% of loss). Sequence production to reduce colour changes; measure purge volume per changeover.
  3. 3Short shots and voids (19% of loss). Review injection pressure and drying temperature checks; add a drying log.
  4. 4Contamination (9% of loss). Seal resin handling between silo and hopper; inspect regrind before reuse.
  5. 5Handling damage (6% of loss). Revise carton packing and train operators on handling at the take-off station.