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Qualityforeveryone
Lesson 2 of 5≈ 2 min read
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The Hidden Factory: Why Final Yield Hides Rework

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The Hidden Factory: Why Final Yield Hides Rework

Final yield is the share of units that are eventually good when they leave a step, after any rework has been done. Most plants report this figure because it matches what ships. The trouble is that it can look excellent while a large amount of labour, test time and material is being burned fixing things. That unrecorded repair effort is called the hidden factory: a second production line inside your plant that produces nothing new.

Final Yield = (First-Time-Good + Reworked-Then-Good) ÷ Units Entering. FPY = First-Time-Good ÷ Units Entering. The gap between the two is exactly the rework rate. If final yield is 99.0 percent and FPY is 95.0 percent, 4 percent of everything passing through was touched twice. On a line making 800 harnesses a shift that is 32 units a shift, 160 a week, each costing repair minutes and a retest slot.

Tracking FPY alongside final yield makes the hidden factory visible. The repair bench stops being invisible overhead and becomes a measured loss with a cost attached, which is the only way to get a budget to remove it.

Key Concept
Final yield tells you what shipped; FPY tells you what it cost to get there, and the difference is the hidden factory.
Practical Example
800 finished harnesses entered electrical test on Tuesday. 760 passed on the first attempt. 32 failed, were sent to the repair bench for a re-pinned terminal, and passed on retest. 8 could not be repaired and were scrapped. Final yield = (760 + 32) ÷ 800 = 792 ÷ 800 = 0.990, or 99.0 percent. FPY = 760 ÷ 800 = 0.950, or 95.0 percent. The 4-point gap is 32 harnesses of repair and retest work per shift.

Standard Procedure

  1. 1Record first-time passes, rework-then-pass, and scrap as three separate tallies at each station.
  2. 2Calculate final yield using first-time passes plus reworked passes.
  3. 3Calculate FPY using first-time passes only.
  4. 4Report both numbers side by side and label the gap as rework.
  5. 5Multiply the rework count by average repair minutes to put a cost on the hidden factory.

Lesson Summary

  • ✓Final yield and FPY differ by the rework rate; a wide gap means a busy repair bench.
  • ✓Reporting both numbers is what turns rework from invisible overhead into a measured loss.

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