First Pass Yield (FPY)

First Pass Yield (FPY)

KPI Details

First Pass Yield (FPY) is an indicator that gauges the production and quality performance of a Manufacturing group, based on the number of good vs. defective units produced. FPY can be a good measure of a company's progress in continuous improvement efforts, since continuous improvement is often concentrated on the reduction of inefficiencies and waste. Relatively low values for this KPI may suggest that the Manufacturing function is using flawed materials for its production inputs, has ineffective manufacturing processes or is utilizing faulty machinery. A low value for FPY will lead to high scrap costs and rework costs. An FPY that is constantly fluctuating indicates that the company does not have reliable manufacturing processes in place and may not be able to meet demand or fulfill customer orders on a consistent basis. FPY is also one of the components of Overall Equipment Effectiveness (OEE).

KPI Definition

The number of good units produced (output) by a manufacturing process without any rework divided by the total number of units that went into production (input) over the same period of time, as a percentage.

KPI Best Practices

• Preventative maintenance performed regularly on manufacturing equipment
• High quality raw materials to minimize defective output
• Well-trained manufacturing programmers (CAD, CAM, etc.)

KPI Calculation Instructions First Pass Yield (FPY)?

Two values are used to calculate this KPI: (1) the number of good units that the Manufacturing function produces, and (2) the total number of units that go into the manufacturing process during the measurement period. Good units are defined as units that pass inspection and are approved for sale or use as a component in another production run. The measurement of this KPI can be segmented by company, product, factory, etc. The number of units that go into the manufacturing process is defined as the number of units that would be produced if none of the output units are scrapped or reworked. Do not include any units that are scrapped or reworked in the numerator of this calculation.

KPI Formula :

(Number of Good Units Produced / Total Number of Units Going Into Production) * 100