Planning for Yield Losses
Production yield loss occurs when the produced output is less than the theoretically achievable amount of product, or when more material than estimated is required to produce the planned product quantity. Production yield loss occurs at different stages of the overall process for the manufacture of the product. The ability to estimate the amount of yield loss is critical in ensuring that adequate material is ordered the fulfill the material requirement for the planned production order quantity.
Yield losses are distinguished into Fixed (setup) losses, which is invariable irrespective of the production order size, and Percentage losses, which is proportional to the size of the production order. In addition, the occurrence of Fixed and Percentage losses at different stages in the process need to be planned for. Yield losses estimates can be defined at each of these different stages of the production process:
- BOM Line Loss: losses in a specific input material related to its usage in product (specified on the BOM line)
- Input Loss at Operation: losses in the product at the input stage of a specific operation (specified on the routing operation)
- Output Loss at Operation: losses in the product at the processing or output stage of a specific operation (specified on the routing operation)
All estimated yield losses are used to gross up the material that is required by a production order to ensure that, in spite of all the estimated yield losses, enough material is ordered to complete the production order.
Enter a support ticket to inform DemandCaster Support to enable the required internal Business Node settings.
Once the necessary configuration is completed and the data tables populated with the yield estimates, the Requirement Planning Logic will utilize the estimated yield loss factors to compute the amount of raw material that is required for each manufactured suggested order or production order, and ensure that enough material is available to overcome the yield losses.
The yield loss is estimated in various stages of each operation as shown below:
Planned Input Quantity Current Operation - Yield Losses Input of the Operation -> Planned Output Quantity Current Operation
Planned Output Quantity Current Operation - Yield Losses Output of the Operation -> Planned Input Quantity Next Operation
Planned Input Quantity Current Operation x Quantity of BOM Component Current Operation + Estimated Yield Losses for BOM Component -> Quantity Requirement of BOM Component Current Operation
See Technical Documentation for more details on the calculation of Yield Losses