Product Yield

Improving quality will increase good

output and reduce inputs.

by reducing defects
Product yield is a measure of
output used as an indicator of
productivity
Problem # 1: The Colonial House Furniture Company manufactures two
drawer oak file cabinets that are sold unassembled through catalogs. The
company initiates production of 150 cabinet packages each week. The
percentage of good-quality cabinets average 83 percent per week, and the
percentage of poor-quality cabinets that can be reworked is 60%. Determine
the weekly product yield of file cabinets.

a. 110 c. 130
b. 120 d. 140
Problem # 2: The Colonial House Furniture Company manufactures two
drawer oak file cabinets that are sold unassembled through catalogs. The
company initiates production of 150 cabinet packages each week. The
percentage of good-quality cabinets average 83 percent per week, and the
percentage of poor-quality cabinets that can be reworked is 60%. If the
company desires a product yield of 145 units per week, what increase in the
percentage of good quality products must result?

a. 91.67% c. 89.67%
b. 90.67% d. 88.67%
Problem # 3: The Colonial House Furniture Company manufactures two
drawer oak file cabinets that are sold unassembled through catalogs. The
company initiates production of 150 cabinet packages each week. The
percentage of good-quality cabinets average 83 percent per week, and the
percentage of poor-quality cabinets that can be reworked is 60%. If the
company desires a product yield of 145 units per week, what increase in the
percentage of rejection rate products must result?

a. 7.33% c. 8.33%
b. 6.33% d. 9.33%
 In problem above, we determined
productivity measures for a
SINGLE PRODUCTION PROCESS.
Product quality could also be monitored
throughout the production process at
VARIOUS STAGES
𝒀𝒊𝒆𝒍𝒅 = 𝑰 %𝑮𝟏 %𝑮𝟐 %𝑮𝟑 . . . . . %𝑮𝒏
Problem # 1: At the H&S Motor Company, motors are produced in a four-stage
process. Motors are inspected following each stage, with percentage yields (on
average) of good-quality, work-in-process units as follows. The company wants
to know the daily product yield for product input of 100 units per day.

ANSWER: Yield = 78.84 units per day

Problem # 2: At the H&S Motor Company, motors are produced in a four-stage process.
Motors are inspected following each stage, with percentage yields (on average) of good-
quality, work-in-process units as follows. It would like to know how many input units it
would have to start with each day to result in a final daily yield of 100 good-quality units.

ANSWER: Input = 126.8334 units per day

Group Study
Problem # 1: A manufacturing company has a weekly
product input of 1700 units. The average percentage of
good-quality products is 83%. Of the poor-quality products,
60% can be reworked and sold as good-quality products. (1)
Determine the weekly product yield. (2) Determine what %R
the company should have if the it wants a 1700 weekly
production yield? ANSWER: Yield = 1584.4 units per week
%R = 100%
Problem # 2: The Colonial House Furniture
Company manufactures four-drawer oak filing
cabinets in six stages. In the first stage, the boards
forming the walls of the cabinet are cut; in the
second stage, the front drawer panels are
woodworked; in the third stage, the boards are
sanded and finished; in the fourth stage, the boards
are cleaned, stained, and painted with a clear finish; The cabinets are produced in weekly
production runs with a product input for 300
in the fifth stage, the hardware for pulls, runners, units.
and fittings is installed; and in the final stage, the a. Determine the weekly product yield of
cabinets are assembled. Inspection occurs at each good-quality cabinets.
Yield = 185.3732 units per week
stage of the process, and the average percentages b. What would weekly product input have to
be in order to achieve a final weekly
of good-quality units are as follows. product yield of 300 cabinets?
Input = 485.5071 units per week
References:
• Operations Management by William Stevenson

• Operations Management by Russell and Taylor