Process Yield - Meaning & Definition

Published by MBA Skool Team in Operations and Supply Chain Terms Last Updated: May 12, 2024Read time:

What is Process Yield?

Process yield is used in manufacturing to measure performance of the process. It can explained as the percentage of products that pass through the compliance check. That means they are not the defective one and are passed for selling.

Supposedly for example

Total Units produced=1000 units

Total units pass compliance check=800 units

Number of defective units=1000-800=200

Process Yield=800/1000=80%

This means the process yield of that particular product is 80% i.e 800 units are defect free and have passed compliance check successfully.

I. First Time yield

First time yield is defined as the number of defect free units that are produced in a particular work station divided by total number of units produced.

Hence First Time yield of overall process can be determined by multiplying the first time yields of all the work stations.

II. Final Yield

Final yield is defined as the overall defect free units produced (absolute number that is sum of defect free units of all work stations) divided by the total number of units produced

III. Throughput Yield (TPY):

Throughput yield is similar to final yield only difference is while dividing by the total number of units produced in TPY reworked and scrapped units are excluded

IV. Rolled Throughput Yield (RTY):

Rolled throughput is simply the probability that a particular unit will pass defect free at each work station. Or in other words it is simply the multiplication of throughput yield of each work station.

Hence, this concludes the definition of Process Yield along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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