Production yield is calculated by dividing the number of good units produced by the total number of units started in the production process. This calculation provides a percentage that represents the effectiveness of your production process.
However, it's crucial to remember that a high yield percentage doesn't automatically guarantee an efficient and cost-effective operation. It's important to consider the following nuances:
Understanding the Production Yield Formula
The basic formula is:
*Production Yield = (Number of Good Units Produced / Total Number of Units Started) 100%**
For example, if you start with 1000 units and produce 900 good units, your production yield is:
(900 / 1000) * 100% = 90%
Key Considerations for Accurate Yield Measurement
While the formula is straightforward, accurate yield measurement requires careful attention to the following:
- Defining "Good" Units: Clearly define what constitutes a "good" unit. This involves establishing quality standards and acceptance criteria.
- Rework and Re-testing: As the provided reference states, a high yield can be misleading if a significant portion of the "good" units required rework or re-testing. Track rework and re-testing efforts separately to gain a more accurate picture of your initial production efficiency. Consider calculating a "first-pass yield" which excludes units requiring rework.
- Accounting for Scrap: Properly account for scrapped units. These are units that are irrecoverable and cannot be reworked.
- Consistent Measurement: Ensure consistent measurement throughout the production process. This includes using calibrated equipment and standardized procedures.
- Tracking Data: Implement a system for tracking production data, including the number of units started, the number of good units produced, the number of units reworked, and the number of units scrapped.
Why Production Yield Matters
Production yield is a critical metric for several reasons:
- Efficiency Measurement: It provides a quantifiable measure of production efficiency.
- Cost Control: Lower yields translate to higher production costs due to wasted materials, labor, and resources.
- Process Improvement: Analyzing yield data can help identify areas for process improvement.
- Capacity Planning: Accurate yield data is essential for effective capacity planning and forecasting.
- Customer Satisfaction: Higher yields often lead to improved product quality and customer satisfaction.
Beyond the Basic Calculation: First Pass Yield
As mentioned, First Pass Yield (FPY) is a more granular metric. It measures the percentage of units that successfully complete the production process without requiring any rework or repair. This metric is very valuable in measuring the overall quality of the manufacturing process
*First Pass Yield (FPY) = (Number of Units Passing the First Time / Total Number of Units Started) 100%**
FPY offers a clearer picture of the initial production quality and helps pinpoint areas needing improvement before rework occurs.
