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Frequently Asked Questions
QWhat are the most common hidden losses at automotive suppliers?
The five most common hidden losses are: micro-stoppages (unlogged machine pauses under 5 minutes), first-time quality failures during changeover startup, staffing overhead on non-value-added tasks, WIP carrying cost from inventory that sits too long, and overtime to cover preventable capacity shortfall. Together, these losses typically amount to $50,000–$150,000 per month at mid-size facilities.
QWhat are micro-stoppages and why do they matter?
Micro-stoppages are machine pauses of 30 seconds to 4 minutes that occur without being logged as downtime events. Because they are small enough for operators to manually restart the machine, they never appear in the CMMS. However, 40–80 micro-stoppages per shift can add up to 60–120 minutes of lost production time — the equivalent of a major breakdown, but invisible in standard reports.
QHow do automotive suppliers reduce startup scrap after changeovers?
Reducing startup scrap requires separating startup yield from steady-state scrap rate in reporting, establishing written changeover procedures with parameter settings, implementing first-part verification protocols before running production quantities, and tracking startup scrap as a separate metric with a specific improvement target.
QWhat is the cost of preventable overtime at a manufacturing facility?
Overtime to cover preventable capacity shortfall — caused by micro-stoppages, slow performance, or unplanned downtime — typically costs $100,000–$200,000 per year at a 150-person automotive supplier facility. This is avoidable overtime distinct from planned overtime for volume increases, and it is eliminated by improving real-time performance visibility and response time.