Cost of quality: what getting it wrong actually costs
Cost of quality adds up prevention, appraisal and failure. Why the invisible categories dominate, how to estimate them, and what the ratio tells you.
First pass yield measures what got through without rework. Why it is harsher than scrap rate, how to calculate it across steps, and what a high figure can conceal.
First pass yield is the proportion of units that complete a process correctly the first time, without rework, repair or adjustment. It is deliberately unforgiving: a unit that was fixed and then passed does not count, because the effort of fixing it was real and the usual quality measures make it disappear.
For a single step it is units passing first time divided by units started. Across a sequence the honest version is the rolled figure — multiply the individual yields together — and the result is usually sobering. Five steps each running at ninety-five per cent give a rolled yield of about seventy-seven, which means roughly a quarter of everything needed intervention somewhere even though no single step looked troubled. That multiplication is the main argument for measuring per step rather than at the end.
Count the attempt, not the unit. The commonest way this measure gets quietly inflated is by recording a reworked unit as a pass once it finally conforms, which converts the one number designed to expose rework into another one that hides it.
Ettex Sheets is enough to hold attempts and passes per step, which is all the rolled calculation needs and more than most small manufacturers currently record. Where the figure moves, the cause usually sits in the same place as the changeover and setup time, since first attempts after a change are where most of the losses concentrate.
Units passing first time divided by units started, per step. Across a sequence, multiply the step yields together for the rolled figure.
No. Counting it is the commonest way this measure gets inflated, and it defeats the entire purpose of tracking it.
Because step yields multiply. Five steps at ninety-five per cent give about seventy-seven per cent overall, even though no single step looks like a problem.
Cost of quality adds up prevention, appraisal and failure. Why the invisible categories dominate, how to estimate them, and what the ratio tells you.
Payback period measures how quickly an investment returns its cost. How to calculate it, what it deliberately ignores, and when it is the right test.
Lead time is how long something actually takes from order to arrival. How to measure it rather than quote it, why the average is the wrong figure, and what variation costs.