Loss Tracker vs. Traditional Tracking Methods: What's the Difference?
From the article “ 3 Common Problems Factories Face and How Loss Tracker Can Solve Them Immediately,” we’ve discussed the meaning of Loss Tracker and how to solve problems in your factory in depth. Today, Solwer will take you to get to know Loss Tracker more deeply and compare the differences between using Loss Tracker and traditional tracking methods to provide a clear picture of how technology can revolutionize the efficiency improvement process in your factory. To help you not only see the picture but also be able to actually “revolutionize the process”, Solwer has summarized all the strategies and steps in detail in a special edition E-book “[E-book name]”, which is a complete guide that will take you into practice and turn everyday waste into tangible profits.
Why is measuring "loss" important for factories?
At the heart of every factory’s operations is the goal of maximizing productivity and reducing costs. But the most crucial challenge every factory faces isn’t addressing the obvious, major problems, but rather combating the hidden “losses” inherent in day-to-day operations. By “losses,” we mean not just machine downtime or scrap, but all non-value-added activities, such as minor interruptions, slower speeds, or waiting times. These small issues, when repeated, can add up to enormous costs that undermine an organization’s competitiveness.
Classic Problem: The Challenge of Finding the True Root Cause
One of the most classic problems in manufacturing is the difficulty of identifying the “root cause” of a problem. In a busy and complex jobsite, what we often see are only the “symptoms” of the problem, not the actual “cause.” For example, when a machine stops working, the immediate cause may be a warning light, but the root cause may be substandard raw materials from a previous process, or it may be that workers took too long to find a tool. Addressing the root cause cannot prevent a problem from reoccurring. The lack of accurate and timely information causes teams to waste time guessing and solving improper problems.
Two approaches are recommended: traditional tracking vs. modern technology.
To address this challenge, there are generally two main approaches to tracking and measuring loss, reflecting different eras and tools:
- Traditional Method: This approach, which relies on observation, manual record keeping, stopwatches, and data collection to produce daily or weekly reports, was the foundation of early improvements, but was limited by accuracy and delays.
- Modern Technology with Loss Tracker: It is a revolutionary approach that uses Internet of Things (IoT) technology to collect data by directly connecting to machines to automatically collect all the data and display it in real time. This approach is designed to remove the limitations of traditional methods and provide accurate insights for rapid improvement.
In this article, we’ll take a close look at the two approaches to show how cutting-edge technology like Loss Tracker can help your factory discover and solve problems without limits, and become a Smart Factory. But first , let’s take a look at what Loss Tracker is and what it aims to do.
Loss Tracker: A revolution in tracking with "IoT" and "real data"
To overcome the limitations of traditional tracking methods that are slow and inaccurate, Loss Tracker was born as a technology that will completely revolutionize the efficiency monitoring process in the production line. Its key definition is “automated real-time data collection directly from the machine.” This means using a network of sensors and Internet of Things (IoT) devices to connect and extract real-time performance data from every machine every second, resulting in the most transparent and realistic data possible for unprecedented analysis and improvement. It has three key strengths:
1. Real-time information: See problems as they occur.
The first and most powerful advantage is the “immediacy” of the data. In traditional systems, teams might have to wait until the end of the day or week to collect data and create a summary report. By the time a problem is discovered, it may be too late. Loss Tracker works differently. The system displays machine performance data on the dashboard as it occurs in real time, similar to the dashboard in a car that immediately alerts when something unusual happens, such as a low-fuel light or an overheated engine. This allows operators to immediately recognize problems, whether they are machine downtime, longer than usual cycle times, or falling short of target production. This ability to see problems immediately allows teams to quickly investigate and initiate corrective actions, reducing the time it takes for losses to impact the overall production line.
2. 100% accurate data: Eliminate human error.
The second key point is the “reliability” of the data. Data collected using traditional methods using human note-takers is inevitably prone to human errors such as incorrect time recording, estimation, or even personal bias, which can lead to inaccurate data and potentially inaccurate analysis.
Loss Tracker eliminates this problem entirely. It pulls data directly from sensors, PLCs, or machine control systems—pure, unbiased information—to the point of being accurate to the second. This uncontroversial, factual information creates a “single source of truth” that everyone on the team agrees on and uses as a basis for analysis. This makes problem-solving meetings more effective because everyone is talking on the same facts.
3. See every problem: Detect all types of losses.
The final key point is the “coverage” of data collection. Traditional tracking methods often only spot the obvious, major problems, such as machine breakdowns that cause extended downtime, but overlook “hidden losses,” which are the smaller, persistent problems that can have significant long-term impacts.
Loss Tracker is designed to detect all types of losses, no matter how big or small. For example:
- The machine stops waiting for raw materials for 15 seconds.
- The belt speed is reduced by 3% for 5 minutes.
- It took employees 45 seconds longer than the standard to change equipment.
The system can record all these small “hiccups” and visualize how often they occur, allowing factories to address these hidden issues, which are often the biggest source of lost efficiency.
What is the goal of Loss Tracker?
The most important goal of Loss Tracker is to accelerate and more accurately implement the “continuous improvement cycle,” or Kaizen, by turning invisible problems in the production line into real, actionable data that can be immediately addressed.
1. To make all losses "visible" (Visualize Loss)
The first and most fundamental goal of Loss Tracker is to turn the invisible into the visible. Traditional manufacturing is full of “hidden losses” which are the most dangerous efficiency killers because they are difficult to measure, such as:
- Machine A may have to stop and wait for a workpiece from Machine B for 30 seconds every 5 minutes.
- The conveyor belt may run 5% slower than the standard speed.
- It may take the operator 10 minutes longer than it should to change the mold.
These minor issues may seem insignificant when they occur once, but when they recur throughout the day, they can accumulate into massive losses. Loss Tracker, which uses IoT technology to connect directly to machinery, automatically detects and records all of these anomalies. The system then visualizes this raw data via a dashboard in the form of graphs or Pareto charts that prioritize issues, enabling everyone on the team, from operators to executives, to instantly see the biggest issues that need to be addressed.
2. To "Accelerate Kaizen"
The most important goal that directly impacts efficiency is to accelerate the Kaizen (Continuous Improvement) cycle to a daily or hourly level, rather than a monthly or quarterly level.
The traditional Kaizen process is very time-consuming, especially the “data collection” stage. It can take weeks to manually collect the data, analyze it, and plan solutions. By the time the problem is implemented, it has already caused damage for a long time.
Loss Tracker eliminates this lag by providing real-time problem intelligence to the team. Imagine seeing a graph on your dashboard in the morning that Machine C is experiencing unusually high levels of minor stoppages. They can call a quick meeting on the jobsite, review historical data to analyze the root cause, and implement corrective actions or improvements all within the same day, instead of waiting for a monthly report. The goal is to turn Kaizen from an occasional “project” into a daily activity, quickly restoring production to peak performance.
3. To "support decision-making with real data" (Data-Driven Decision)
The strategic goal of Loss Tracker is to enhance the decision-making of executives and supervisors by being more informed and accurate, supported by real-world data.
In factories without insights, important decisions are often based on insufficient experience, intuition, or detailed reports. This can lead to poor decisions, such as investing in unnecessary new machinery or planning production that is either over or under-planned.
Loss Tracker provides essential information for strategic decisions such as:
- Investment: Instead of guessing which machines to replace, data pinpoints which machines are the primary source of loss and least efficient, maximizing investment decisions.
- Production Planning: Actual Performance data enables planners to set ambitious yet achievable production targets.
- Evaluation: Managers can clearly measure the results of improvement projects with before-and-after data to assess their value and make further progress.
Loss Tracker vs Traditional Tracking Methods
1. Data Collection
- Traditional: Manual, cyclical, prone to errors Traditional methods require a lot of human resources to collect data. Employees or engineers must walk to the machines with paper and stopwatches to record data periodically, such as measuring cycle time every hour or recording the number of defects in each shift. This process has many limitations, ranging from human error to capturing only short periods of data (snapshots) that may not reflect the real problem. Most importantly, there is a chance that important data may be missed completely, especially for problems that are fleeting or occur when no one is observing.
- Loss Tracker: Automatic, 24/7, No Missings Loss Tracker completely changes this approach by installing sensors and connecting directly to the machine’s control system to automatically and continuously collect all data 24 hours a day, whether on holidays or during unattended nights. The system records every event that occurs to the second, ensuring that all data is collected 100% completely, without missing anything and without any errors caused by human factors.
2. Problem Visibility
- Traditional: Seeing only the most severe problems that cause machine breakdowns Traditional methods only see the “tip of the iceberg” – they only see the most severe and obvious problems, such as a machine breakdown that requires an extended production stop or a large amount of waste that is visible to the naked eye. However, these problems are often only a small fraction of the total losses that actually occur.
- Loss Tracker: See all hidden losses Loss Tracker helps us see the “iceberg” beneath the surface. It’s designed to detect “hidden losses,” those small, recurring issues that really undermine efficiency. For example, a machine waiting 15 seconds for raw materials, a 5% reduction in production speed for 10 minutes, or an operator taking 2 minutes longer than standard to set up a machine. These are issues that traditional methods can’t see, but Loss Tracker clearly shows.
3. Speed of improvement (Speed of Kaizen)
- Traditional: Improvement cycles are “monthly” or “weekly.” Because data is delayed and requires long data collection and analysis, traditional Kaizen improvement cycles tend to be more like occasional “projects,” such as monthly problem-solving meetings to find solutions. This makes it slow to respond to daily issues.
- Loss Tracker: Whether the improvement cycle is “daily” or “hourly,” Loss Tracker turns Kaizen into a daily “activity.” With real-time data displayed on a dashboard, teams can see issues in the morning, hold a quick meeting to analyze the data, and implement a fix or experiment in the afternoon. This allows for rapid recovery of productivity and significant reductions in potential losses.
4. Decision Making
- Traditional Model: Relying on the Supervisor’s “Experience” and “Gut Feeling” When there is a lack of clear information, decision-making to solve problems often depends on the supervisor’s or manager’s experience or “Gut Feeling”, which can lead to inconclusive arguments because each person has a different perspective and may lead to inaccurate solutions.
- Loss Tracker: Based on a “Fact-Based” Everyone Sees the Same Loss Tracker creates a “Single Source of Truth” that everyone on the team agrees on. Clearly displayed information eliminates unnecessary arguments and shifts the conversation from “I think the problem is caused by…” to “The data shows the problem is caused by…”, enabling more accurate, sharper, and faster decision-making.
5. Company Culture
- Traditional: Troubleshooting is the job of “engineers” or “managers.” In traditional structures, field staff are often tasked with simply “reporting the problem” and waiting for the engineering or manager team to analyze and issue fixes, which can leave them feeling disengaged and unmotivated to improve.
- Loss Tracker: Everyone can see issues and contribute to improvements. By making data transparent and accessible to everyone, Loss Tracker fosters a culture of empowerment. Frontline employees can see the impact of their work directly, identify issues, and propose solutions based on real-world experiences. This gives them a sense of ownership and shifts them from being just “operators” to being truly “part of the improvement team.”
Many factories continue to face challenges from unseen losses, delayed improvements due to speculation and inaccurate decision-making due to a lack of clear information. These problems are major obstacles that hinder growth and reduce competitiveness.
DENSO Loss Tracker is the answer to revolutionize your work process by turning invisible problems into tangible, real-time data, accelerating Kaizen cycles, and empowering every decision in your factory to be driven by real data – the key to increasing productivity and becoming a Smart Factory. Learn in-depth strategies and real-world cases on how to use IoT technology to reduce losses and increase profits sustainably. Download the free e-book “Smart Factory Guide : Reduce Losses and Increase Profits with IoT” from Solwer today.