What is Reduced Yield?

Reduced Yield is a crucial performance indicator for manufacturers as it provides a measurement of the efficiency of the production process. When the production line is started, it takes time to reach a stable production state. During this time, the output is considered Reduced Yield, which includes all scrapped parts and parts that need to be reworked. This metric is useful in identifying areas of improvement in the production process, including the initial setup and the quality of the raw materials used. By analyzing the Reduced Yield, manufacturers can identify the root cause of the problem and implement corrective actions to minimize the quality loss and increase the production efficiency.

The impact of Reduced Yield goes beyond the production line. It affects the overall quality of the products and the company's profitability. High Reduced Yield means higher production costs due to scrapped parts, rework, and longer lead times. It can also lead to lower customer satisfaction, increased returns, and a negative impact on the company's reputation. By measuring Reduced Yield, manufacturers can identify the underlying problems, reduce production costs, and improve customer satisfaction. This metric is, therefore, an essential tool for companies looking to improve their production efficiency and profitability.

Reduced Yield is not a static metric and can change over time, making it important to monitor regularly. By tracking the Reduced Yield, manufacturers can identify trends and changes in the production process, such as equipment wear and tear or changes in the quality of the raw materials. This can help them to identify potential problems before they become major issues and take corrective action. As a result, Reduced Yield is an essential metric for any manufacturing company looking to improve their production efficiency and maintain their competitive advantage in the market.

This metric takes into account the output rendered in a line from the start of a shift until the stable production state is reached. It consists of both scrapped parts and the ones to be reworked on, becoming another aspect of quality loss. Reduced Yield is also known as start up reject.