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Rolled Throughput Yield (Training)

RTY is a metric that calculates the percentage of units that can pass through a manufacturing process without defects by taking into account rework and scrap from each process step. In contrast, FPY only looks at the output of individual steps. Calculating the RTY for a three step process revealed the true yield was 57.16% versus over 90% suggested by looking only at the final step's FPY. RTY exposes problems and inefficiencies across the entire production line that can be addressed through continuous improvement efforts.

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Madhavan Ram
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352 views

Rolled Throughput Yield (Training)

RTY is a metric that calculates the percentage of units that can pass through a manufacturing process without defects by taking into account rework and scrap from each process step. In contrast, FPY only looks at the output of individual steps. Calculating the RTY for a three step process revealed the true yield was 57.16% versus over 90% suggested by looking only at the final step's FPY. RTY exposes problems and inefficiencies across the entire production line that can be addressed through continuous improvement efforts.

Uploaded by

Madhavan Ram
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The hidden factory

RTY is the probability (%) that a single unit can pass through a series of process steps free of defects It is used to assess the true yield of a given process, with additional consideration given to rework and scrap RTY exposes what is often called the hidden side of the factory that plagues so many organizations and (sadly) is sucking profit right off their financial statements It is one of the most powerful operational metrics an organization can use to monitor its performance

First Pass Yield (FPY) simply calculates the # of good units produced / by the # of total units going into a process step, or FPY = Good Units / Total Units

Rolled Throughput Yield (RTY) adds the consideration of rework and scrap and multiplies the yields from each process step, or RTY = (FPY1) (FPY2) (FPY3)

PROCESS #1 100 parts went through this process and 84 good parts left this process (16 were scrapped) First Pass Yield (FPY): 84% PROCESS #2 With some WIP laying around, 110 parts went through this process with 82 good parts passing (10 were scrapped and 18 were reworked) First Pass Yield (FPY): 74.54%

PROCESS #3 With even more WIP laying around this process, 138 parts were produced with 126 parts passing (12 were scrapped) First Pass Yield (FPY): 91.30%

Since the manufacturing manager only cares about what goes out the door the process they would be most concerned with is the last one, or Process #3 Process #3 yielded over 91%, so they must have had a great day, right?

NOT QUITE
There are some fundamental flaws with this technique. The most obvious is the fact that they are ignoring all the scrapped / reworked parts that Process #1 and Process #2 created. This is the hidden factory that RTY can uncover.

LETS RECAP:
PROCESS #1 = 84 / 100 parts and FPY of 84% PROCESS #2 = 82 / 110 parts and FPY of 74.54% PROCESS #3 = 126 / 138 parts and FPY of 91.30%

SO:
RTY = (FPY1) (FPY2) (FPY3)

WHEN CALCULATED:
RTY = (.84)(.7454)(.913) = 57.16%

This value (57.16%) is a more accurate representation of how this production line is performing, and takes into account the rework and scrap from all process steps More importantly, this value is our opportunity as lean and six sigma practitioners to identify the true root causes of problems and fix them permanently We must not kid ourselves into believing we are performing better than we actually are By focusing on RTY, we can be sure we stay focused on the true pulse of the organization

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