First Pass Yield (FPY) is one of manufacturing KPIs that in my mind should always be treated with caution. One could argue that it’s just a number representing ratio products made right first time against total output (batch, shift, order etc.). However, this number holds valuable information about several surrounding processes.

You can tell a lot about the business if you look closer at FPY and ask specific questions.

• What is the cost of FPY?
• How do you ensure the accuracy of FPY?
• Who collects the data?
• How is data collected?
• How do you track and manage scrap and rework?

Today I will take you on a tour of FPY. I will show you how to determine the need for urgency. How to collect relevant data and how to win people to your idea of improvement.

Collect relevant data

You may find that FPY is already measured. I have been once told not to use data that has not been verified. It would be my advice to you as well. Do all due diligence to ensure the following:

• Data collection is repeatable and reproducible
• All factors that may affect FPY have been taken into account

You are welcome to download a FREE copy of the “FPY daily report” from the PREMIUM LIBRARY. Click on the icon below.

 

Engage people in the First Pass Yield analysis

I have learnt that the most effective way to get people on board when it comes to process improvement is to let them contribute as much as possible. Sounds like a formula for disaster? Not necessarily. We like to be listened to, and that’s a fact. Why don’t use this as an opportunity to improve then?

Here is an example of a “First Pass Yield (FPY) daily report” that can be distributed to all manufacturing cell. Every day operators will complete the form with the following information:

• Total number of products made
• Total number of defective products
• Number of specific issues
• A plot of the FPY

“Failure descriptions” are the key to success. Here is why. Before you launch the FPY improvement project agree with the team on the initial list of failures they usually encounter. Then add a few empty lines for additional issues that may occur. The team will not be limited by the fixed choice, and you may get extra feedback that would typically be missed.

Agree on the timescale for FPY measurement

Many factors will determine the most suitable period for data collection. The rule of thumb is to get meaningful (representative) results in the shortest time possible.

A simple way to justify the FPY improvement

Yes, you have to justify the project. Even when the unacceptable level of FPY has been acknowledged by the business, it will only improve once issues are rectified. It can happen if an improvement plan is developed and resource is allocated. That sounds like expenditure so financial gain would need to be of a particular value.

You will get support from the top management team once the financial justification for the project is sound. That requires a reliable baseline to calculate potential cost savings.

Here is a simplified example of a potential cost saving calculation made for one manufacturing line. We assume that any defective product gets scrapped.

Current FPY = 91%

Target FPY = 99%

X – a number of operators working in one manufacturing cell (let’s take 2)

Y – a number of working hours per day (let’s take 8)

Z – an internal labour cost per hour (let’s take 10.00eur)

Labour cost per manufacturing cell = X*Y*Z*working days

Monthly / Annual labour cost (100% FPY) – 2*8*10*20 = 3,200.00eur / 38,400.00eur

Monthly / Annual labour cost (99% FPY) = 3,232.00eur / 38,784.00eur

Monthly / Annual labour cost (91% FPY) = 3,488.00eur / 41,856.00eur

Improving FPY by 8% could bring potential annual cost saving of 3,072.00eur

 

Please remember that complete calculation would take into account the following:

• Labour
• Raw material
• Internal processing (e.g. painting)
• Cost of investment
• etc.

I got the data and now what?

You will need a robust action plan to ensure gains. Here are some key points to consider:

• Build the plan around issues highlighted in the FPY reports
• Prioritise actions (e.g. Pareto Chart)
• Agree on the timescale for implementation
• Ensure responsibility and accountability for actions in clearly defined
• Engage all stakeholders (line operators are of great importance)
• Define review meetings frequency

It is usually quite easy to kick off with the new initiative (or is it?). Everyone is excited about potential cost savings and improvements. It is far more challenging to keep everyone engaged and active during the entire project.

Avoid costly mistakes

Here are some common mistakes that may lead to a disastrous end of the FPY improvement project:

• Actions are long overdue
• People skip review meetings
• It takes too long to see positive results
• Team members are being told what to do rather than asked for input

Easy tricks to help You succeed

• Ensure easy wins – people get frustrated and lose interest if the goal is to far away
• Listen to all team members – let people speak to peak up some valuable comments and feedback
• Manage by example – start every review by telling the team what You have done to move the project forward
• Ensure people participate in review meetings – never let the room be empty – make sure people delegate if they can’t attend

As always you are welcome to download your FREE copy of the “First Pass Yield daily report” from the PREMIUM LIBRARY. Click on the icon below.