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First pass yield (FPY)
Strategic perspective
Operational processes and supply chain perspective
Key performance question this indicator helps to answer
How efficient are our internal operational processes?
Why is this indicator important?
Companies aim to optimise their internal processes to reduce defect rates and minimise any rework. Defects or rework of any sort that are generated when products pass through the internal operational processes will decrease operational effectiveness and increase costs.
By measuring first pass yield (FPY) companies can see the percentage of items that are moving through a process without any problems such as requiring rework or scrapping of items, which would lower the output. FPY will give companies ...
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