Meaning
Manufacturing performance metrics calculate the percentage of non-conforming units relative to the total number of parts produced.
Process Efficiency
Variations in the amount of waste generated between different machines or shifts reveal opportunities for optimization. Through scrap rate yield analysis, managers can identify if a particular mold or die is nearing the end of its useful life. This data supports the decision to pause production for tool repair rather than continuing to produce defective parts that must be discarded.
Cost Impact
Financial losses associated with wasted raw materials and the energy used to process them are quantified to determine the true cost of production. The scrap rate yield analysis provides a basis for adjusting the unit price of a product to reflect the actual efficiency of the factory. If the yield is lower than the industry average, the manufacturer may need to invest in better training or more advanced machinery to remain competitive.
Quality Trend
Long term tracking of the percentage of good parts allows for the detection of subtle shifts in the manufacturing environment. This scrap rate yield analysis identifies seasonal fluctuations in material performance that might be caused by changes in temperature or humidity in the factory. By understanding these trends, the quality team can implement corrective actions before the scrap rate exceeds the allowable limit set by the customer.