Measuring Product Yield Monthly

Yield gap and constraints
Analysis in Groundnut Production

A manufacturing company produces 32,000 units per month, 78% are free of defects. The percentage of defective units that can be reworked is 25%. The direct manufacturing costs for each unit are $8.69. It costs $1.74 to rework a defective unit.

a) Determine the monthly yield.
b) Compute the manufacturing cost per unit.
c) Determine the manufacturing cost per unit if the percentage of good-quality units is increased from 78% to 96%.

Good unit = 78% * 32000 = 24,960.00
Defective unit = 22% * 32000 = 5,491.20
Rework unit = 25% * 5.491 = 1,372.80

Y = [(I)(%G)] + [(I)(1-%G)(%R)]

Y= Yield
I= Number units started in production
% G= % good units
% R= % of defective units reworked

Biogas Production-optimal conditions affecting gas yield

The monthly yield
y = [(32000units)(78%)+(32000 units)(1-78%)(25%)]
y = 26,720 units/week

product cost = [(direct manufacturing cost per unit)(input)]+
[(rework cost per unit)(reworked unit)] /yield

product cost = [($8.69)(32000 units) ] + [ ($1.74)( 1372,80 units) ] / 26,720 units

Product cost = $10.52

If good quality increases from 78% to 96%, the manufacturing cost per units:

The monthly yield
y = [(32000units)(96%)+(32000 units)(1-96%)(25%)]
y = 31.040 units/week

Good unit = 96% * 32000 = 30,720
Defective unit = 4% * 32000 = 1,280
Rework unit = 25% * 1280 = 320

product cost = [($8.69)(32000 units) ] + [ ($1.74)(320 units) ] / 31.040 units

product cost = $8.98

Celana Jogger Kargo