How to calculate loss and waste analysis? Is this equally important for project selection?? 

Hi Shraddha

 

Not sure if I understood the question correctly. Could you elaborate what you imply by loss and waste analysis?

What is difference between loss and waste? What is the best way to calculate loss and waste analysis?? Loss and waste can we consider as one form of VOB?? Or it will come under COPQ ?

Hi Shraddha, 

 

Congratulation on getting the top score in Mumbai Green Belt recently. 

 

With respect to your question - I would say that the objective is important. The question usually is - "Why should one want to consider assessment of loss and waste?" 

 

Usually the answer to that question is "To improve the efficiency or turnaround time of a process". In Lean Six Sigma world, we like to select processes of business interest and then calculate waste in those processes through Process Cycle Efficiency (PCE) or Value Added %.

 

It is generally not advisable to calculate waste for the whole organization. 

 

We recently had a discussion on PCE  on the link below - 

You may also like to look at the following for modification of definition of waste - 

 

 

Hope this helps. 

 

Thanks for your wishes.

Got clarification about the concept.