CandleFocus Glossary Editor
Yield variance is a key performance metric used in manufacturing and production planning for the purpose of gauging how efficiently the production process is running. It is an important measure of how much waste and scrap is being generated in the production process, and it is one way in which businesses can attempt to optimize their production processes.
At its core, yield variance is the difference between the actual output of a given production or manufacturing process and the expected output based on standards and production history. Yield variance will be either positive (if the actual output exceeds expectations) or negative (if the actual output falls short). It focuses on the quantity of output achieved and helps to identify losses or inefficiencies.
Yield variance is typically expressed as a percentage of the overall standard yield rate. This allows the actual performance of the process to be compared to a baseline established by past performance or industry norms. A yield variance of 10% or greater can be an indication that further investigation is needed to identify production inefficiencies or losses.
Yield variance is distinct from mix variance, which measures the difference between the actual and expected overall material usage. Both yield variance and mix variance are important for efficient production, and it is important for businesses to understand how the two vary from each other in order to accurately gauge and optimize the efficiency of their operations.
Yield variance is an important performance metric for manufacturers and those involved in production planning. It helps to identify losses and inefficiencies in the production process, and it allows businesses to make more informed decisions about how to optimize their operations. By understanding and monitoring yield variance, businesses can maximize the efficiency of their operations and reduce waste and scrap.
At its core, yield variance is the difference between the actual output of a given production or manufacturing process and the expected output based on standards and production history. Yield variance will be either positive (if the actual output exceeds expectations) or negative (if the actual output falls short). It focuses on the quantity of output achieved and helps to identify losses or inefficiencies.
Yield variance is typically expressed as a percentage of the overall standard yield rate. This allows the actual performance of the process to be compared to a baseline established by past performance or industry norms. A yield variance of 10% or greater can be an indication that further investigation is needed to identify production inefficiencies or losses.
Yield variance is distinct from mix variance, which measures the difference between the actual and expected overall material usage. Both yield variance and mix variance are important for efficient production, and it is important for businesses to understand how the two vary from each other in order to accurately gauge and optimize the efficiency of their operations.
Yield variance is an important performance metric for manufacturers and those involved in production planning. It helps to identify losses and inefficiencies in the production process, and it allows businesses to make more informed decisions about how to optimize their operations. By understanding and monitoring yield variance, businesses can maximize the efficiency of their operations and reduce waste and scrap.