In a production environment, it is essential to account for every minute of operating time and ounce of input material to ensure they are being used effectively. There are many ways to do that but one of the most basic and commonly used measures is First Pass Yield.
Understanding and optimizing First Pass Yield (FPY) can help manufacturers enhance operational efficiency, reduce costs, and elevate overall product quality. Let’s explore how to calculate FPY, why it matters for your organization, and practical steps for improving it.
What is First Pass Yield?
First Pass Yield (FPY) is a metric that measures the number of quality products an organization manufactures compared to the total number of units produced. Understanding this metric is important for determining the efficiency of production processes.
A high FPY indicates that your process is “better” at producing products that meet quality standards and specifications than a low FPY. When a higher percentage of produced units are able to be sold, it means less waste and more efficient use of sources including energy, labor, and materials.
How to calculate First Pass Yield
The first pass yield formula is a simple percentage. Take the number of defect-free parts or products and divide it by the total number of units produced over the same period of time. Multiply that number by 100 to get your FPY percentage.
FPY = (Defect-free units produced / Total units produced) x 100
For example, a company that manufactures circuit boards produced 1,000 units during a recent run. They found that 156 of those units were defective or did not meet quality specifications. To calculate their FPY, they would take the following steps:
- Identify the number of defect-free units: If 156 units were defective or required rework, the team is left with 844 units that meet quality standards on the first attempt, without requiring rework.
- Count the total units produced: 1,000
- Calculate the First Pass Yield. FPY = (844 / 1,000) x 100, therefore the FPY is 84.4%.
Some of the defective units may be able to pass inspection with a little rework and still meet quality standards for sales. But, those wouldn’t qualify for the FPY measurement since they didn’t meet quality standards on the first try.
What is considered a “good” FPY?
As with many metrics that measure operational performance, the number itself is less important than what you do with it. While some sources say that an FPY of 90-95% is good to great, it will vary based on industry, as some industries are simply prone to more defects than others.
Organizations are better served by paying attention to trends within their own operations, especially if they are just beginning to measure efficiency and work toward performance improvement. An FPY of 80% is great if you start out at 72% because it shows that efforts taken to improve efficiency are working.
Why you should start measuring First Pass Yield
The purpose of FPY is to track manufacturing efficiency. It helps identify and reduce defects that occur early on in the production process, leading to cost savings and improved product quality. It is also a good indicator of how much waste is involved in operations.
If a company continuously has low FPY or an FPY that drops dramatically, there’s likely an underlying issue with production. When you look into and solve the problems behind FPY, you can start to see some real benefits
Why work to improve First Pass Yield
Improving FPY is important for several reasons, and the benefits extend across multiple areas of manufacturing and business operations.
Enhanced quality control and reduction in costs
Improving FPY means fewer defects in the production process. This directly results in lower rework and scrap costs, saving the company a lot of money. Plus, better quality control enhances the overall effectiveness and efficiency of production.
Example: A company that manufactures electric components might discover that FPY is lower than expected due quality issues with their soldering method. By investing in better soldering equipment and staff training, they can improve product quality, resulting in higher FPY and reduced rework costs.
Increased customer satisfaction and reduced warranty claims
High FPY leads to products that meet quality inspections consistently, resulting in high customer satisfaction. Satisfied customers are more likely to purchase again and recommend your products to their friends and family, which boosts your brand reputation. Also, if fewer defects make it to the field, you’ll have fewer warranty claims and lower costs associated with returns and repairs.
Example: An auto parts manufacturer might identify inconsistencies in the materials they receive from various suppliers, resulting in a low FPY. Collaborating with and consolidating suppliers to ensure higher quality raw materials with stricter quality checks can increase FPY. This leads to more reliable products, enhancing customer satisfaction and reducing warranty claims.
Improved operational efficiency
Good FPY reduces bottlenecks and downtime associated with reworking defective products, increasing overall production throughput. This allows companies to better meet production targets, leading to more efficient use of resources and time.
Example: A textile manufacturer realizes that a significant portion of their fabric keeps failing quality checks because of inconsistencies in dye application. By investing in a more advanced and automated dyeing solution, they are able to achieve more consistent results in the first pass.
Cost savings and increased profit margins
When companies improve their FPY, they can significantly reduce costs related to rework, scrap, and additional labor. The savings can then be reinvested into the business to drive further improvements and increase profit margins.
Example: A toy manufacturer discovers that many of its plastic parts don’t fit together correctly due to small deviations in mold accuracy. By recalibrating its molds and implementing stricter quality assurance measures, it reduces the defect rate and saves on all the waste from the defective mold as well as the labor needed to rework defective products.
Waste reduction and sustainability
Better FPY results in fewer defective products and therefore, less waste. Sustainability may be a buzzword, but it’s also important for maintaining compliance with regulations, reducing costs, and keeping customers happy. FPY aids in achieving your sustainability goals.
Example: A food packaging company discovers that a large percentage of its products are being discarded due to incorrect labeling. Upgrading to a more reliable labeling system and providing training programs for its operators reduces the labeling errors that contribute so much waste.
Employee morale and engagement
Improving FPY creates a more positive, efficient, and safe work environment. When employees don’t have to continuously rework defective products, they are likely to feel more successful, motivated, and engaged as they see higher-quality outcomes. This can also lead to higher job satisfaction and lower turnover rates.
Example: A furniture manufacturer experiences frequent rework due to assembly errors, which frustrates its employees. By investigating this concern and discovering that low-quality tools are causing assembly errors as well as potential safety concerns, the company is able to fix the issue. Providing better tools, comprehensive training, and clear assembly instructions helps significantly reduce the error rate and consequently lowers employee frustrations.
How to improve First Pass Yield
All of the benefits a company can gain from a good FPY begin with an investigation. Measuring FPY is the first step, but if you discover that your FPY is less than ideal, additional information is needed to find and fix the root cause.
Here are a few tips for improving First Pass Yield in your organization.
- Review and optimize processes: Conduct regular process audits, adopt lean manufacturing principles, and standardize operational procedures in order to ensure that tried and tested practices are being followed to achieve the greatest efficiency.
- Gather accurate data on a regular basis: Implement a robust data collection system to monitor other KPIs and key metrics that put FPY into context and point to potential causes of lower-than-expected FPYs.
- Track equipment performance: Implement a preventive maintenance program to keep equipment in optimal condition. Monitor machine uptime, downtime, and overall equipment effectiveness (OEE) to help address issues immediately.
- Conduct root cause analysis: Use root cause analysis like Failure Mode and Effects Analysis (FMEA), Fishbone Diagram, and the 5 Whys to identify the root causes of defects and come up with corrective actions.
- Invest in employee training: Provide ongoing training and development programs that focus on quality control, process improvement, and equipment handling.
- Improve supplier quality management: Collaborate with suppliers to ensure they meet your quality standards. Also consider implementing quality audits and performance reviews for your suppliers.
- Implement advanced quality control techniques: Techniques like automated inspections, inline testing, and real-time monitoring can help detect defects early so you can make continued improvements to FPY.
- Foster a culture of continuous improvement: Improving FPY is not a one-time deal. Encourage continuous improvement by recognizing and rewarding employees who contribute to quality improvements.
Use Limble CMMS to improve First Pass Yield
Limble CMMS is a Computerized Maintenance Management System (CMMS) created to help manufacturers like you optimize their operational processes. Its automated data collection assists in tracking key metrics on maintenance and team performance, providing the insights you need to gain a greater understanding of what underlies your FPY.
Its capabilities include asset management, automated work order creation, real-time data monitoring, and centralizing processes that support continuous improvement and much more. Learn more by getting started with our free demo!
