Analysis of hidden costs in production losses

The aim of this paper is to present a case study of the seven wastes found in the production sector of a metallurgical company. The methodology used in this study was a bibliographical survey on the subject, on-site and in-situ checks of the waste in the production process, the application of questionnaires aimed at providing data on how much the waste influenced and was influenced by the other losses and, finally, an empirical measurement of the production costs of one of the company’s most popular products, with the aim of demonstrating that the waste embedded in the process affects the costs of the products and, consequently, their profitability. As a result, this work presents the empirical measurement of costs and waste in each production sector and suggestions for improvement that can be adopted by the company.