Hidden manufacturing waste: Geoff Ellis on yield, rework, and capacity
A finished batch can hide what it took to make it. Geoff Ellis, COO of Wherefour, on what rework really costs a food and beverage plant.
CPAI Editorial
Research, field notes, and practical guidance from the CPAI community.
3 articles
A finished batch can hide what it took to make it. Geoff Ellis, COO of Wherefour, on what rework really costs a food and beverage plant.
The true cost of rework is the incremental cost of making a nonconforming unit acceptable again, not simply the material in the hold area. Start with added material, rework labour, QA or retest, processing and machine time, and the cleaning, maintenance, or documentation work the event creates. Add capacity opportunity cost when the rework displaces […]
First-pass yield (FPY) is the percentage of units that meet requirements without a later rework pass. The basic formula is first-pass-good units divided by the units entering the batch, multiplied by 100. Final or blended yield can be higher because it may include units accepted after rework. Rolled throughput yield (RTY) answers a different question: […]