Understand TOC – Theory of Constraints. This process identifies what the factor is, which stands in your way of achieving your goal – for most businesses this is profit. Your constraint can be many things – equipment, policy or marketplace.
Think about Lean Manufacturing. This process eliminates waste aka cost from the manufacturing. This type of waste is usually measured using OEE (Overall Equipment Effectiveness) and another process known as the Six Big Losses (breakdowns, set-up and adjustments, reduced speed, small stops, start-up rejects and production rejects).
Also think about the internal and external loss that occur during your manufacturing process. When you think about external loss, identify your manufacturing processes steps and the reason for your loss. This will give you a better understanding of the losses that really matter.