A Systematic Methodology to Reduce Losses in Production with the Balanced Scorecard Approach

Abstract

Efficiency in the industrial production has been one of the most discussed topics over the last years. Due to the direct link between efficiency and reduction of losses, several concepts have been introduced focusing on these losses. Furthermore, the suggested optimization approach is based on the factors of production theory and combines these input factors with the stated and newly identified losses. This paper offers a methodology to reduce these losses by using the balanced scorecard methodology. A case study in the polymer industry is given showing how to identify and measure losses in a production system.