Formula for calculating Money Value equivalent to 1% FPY (First Pass Yield)

[Radlerka]

Hi coleagues,

Have somebody met the formula for calculating money value which is equivalent to 1% FPY based on quantity of manufactured products? Just got this task from Business Director and have no idea how to deel with that.

Thank you in advance.

 

[DrM2u]

Re: Money value which is equivalent to 1% FPY

This can be a tricky calculation depending on how many parts you are dealing with and how your organization attributes value to each part at each process step. Once you can attribute a money figure to each part or to the parts in average then the rest is easy. I suggest that you ask you Business Director to give you the money figure per part or you can calculate/estimate and give him/her the number of parts equivalent to 1% FPY and let him calculate the rest of the value.

 

[Marc]

Re: Money value which is equivalent to 1% FPY

To clarify - FPY = ???

 

[Stijloor]

Re: Money value which is equivalent to 1% FPY

To clarify - FPY = ???

First Pass Yield.

Stijloor.

 

[AmitK Sharma]

Re: Money value which is equivalent to 1% FPY

FPY also refers to the First Time Quality (FTQ), & looking to your business directors question, this can be very well calculated at each stage of process. This is also called FTQ PPM.
Once this is calculated, you have to see CoQ to % of Sales, which is = CoGR/CoGS i.s. CoGR = Cost of Goods Rejected / Cost of Goods Sold.

In CoGR, you need to refer to the FTQ PPM data which is = rejection + rework + field/customer line rejects.

 

[JuneFoo]

Re: Money value which is equivalent to 1% FPY

This FTQ - is applicable for the new product only or every new lot of production run?