1. Identifying problems - Realisation of the existence of economic loss which is hidden under
conventional cost accounting; highlights conventionally uncontrolled material losses which only
on-site operators are normally aware of; and assists in identifying material loss reduction options.
2. Recognizing points for improvement - No appropriate improvement measures in place even though
the company is aware of material losses; and reasons for not taking improvement actions.
Management general attitude and perception is that “standard operation”, “capital investment not
likely to be retrievable”, “insufficient human resources”, or it is ‘technologically impossible’.
The refusal to take action to break through technology is the direct cause of problems that are
identified.