Major Loss Formulae for Calculation 1 Equipment Failure Loss Loss = (Charge Rate x Hrs) + Cost of spares consumed

for breakdown + Cost of manpower for attending BD (Overtime + Contactor cost) 2 Process Failure Loss --do-3 Set up / Change Loss Loss = Charge Rate x Hours 4 Management Loss Loss = Charge Rate x Hours 5 Speed Loss Loss = Charge Rate x Hours 6 Minor stoppage/ Idling Loss Loss = Charge Rate x Hours 7 Defect & Rework Loss Loss = Quantity reprocessed x (Mfg. cost - Raw material cost) 8 Planned Shut Loss Loss = (Charge Rate x Hrs) + Extra manpower (Overtime + Contractor) cost 9 Yield Loss Loss = [(Actual RM used - Target RM consumption/T x Actual paper production) x Targeted Avg. rate] + [Trim Loss Quantity x (Target Machine charges + Target Finishing Charges)/Ton] 10 Consumption Loss Loss = (Target Consumption - Actual Consumption) x Actual Production x Target Rate 11 Energy Loss Loss = [(Target Consumption - Actual Consumption) x Actual Production x Target Rate] + Loss on lesser generation. 12 Repair & Maint. Cost Loss Loss = Repair & maintenance expenses over and above target 13 Inventory Loss Loss = (Total Inventory - Fixed/Minimum Inventory) x Inventory carrying cost (Interest + Insurance + Obsolete + Damage + Infrastructure cost) 14 Manpower Cost Loss Loss = Excessive salary/wages bill + Overtime cost + Welfare expenses + sub contractor cost 15 Purchase rate Loss Loss = (Actual Rate - Target Rate) x Actual consumption 16 Overheads Cost Loss Loss = (Actual Expenses - Target Expenses) 17 Fund Management Loss Loss = Actual Interest - Target Interest as per prevailing standard