LEARN / GLOSSARY
Yield
The share of production that meets specification. A line running below its mature yield has lower effective capacity than its rating states, which makes yield a capacity measure rather than a quality measure.
Definition
Yield is the proportion of units started that emerge acceptable. It is expressed as a percentage and can be measured at each step of a process or across the whole of it, in which case the compounding across steps matters: a sequence of five operations each yielding 95 percent delivers roughly 77 percent overall.
Why the dictionary version is insufficient
Yield is filed under quality, which invites the assumption that it concerns defects rather than output. In capacity terms it is a multiplier on the rating. A line rated at a thousand units per week running at sixty percent yield delivers six hundred, and a plan built on the rating is short by four hundred for as long as the ramp lasts.
Why it matters for capacity
New lines do not start at mature yield. Early production carries scrap and rework while process parameters are refined, and the ramp can run for months. This is why announced capacity and available capacity diverge even after a facility opens: the announcement cites the rating and the schedule should cite the ramp.
Related terms
Qualification · Tooling · Capacity utilization
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Sources
- Federal Acquisition Regulation Part 46, Quality Assurance. acquisition.gov
- U.S. Census Bureau, Construction Spending. census.gov