What is a yield ratio and its role in manufacturing?

A yield ratio is specifically defined as a metric that indicates the percentage of good products produced relative to the total amount of products manufactured. In manufacturing, this measure is crucial as it directly impacts quality control and helps identify how effectively resources and processes are being utilized.

When analyzing production efficiency, the yield ratio helps companies assess their performance in terms of producing saleable products versus defective ones. A higher yield ratio signifies that a larger proportion of the output meets quality standards, leading to reduced waste and increased profitability. Therefore, monitoring the yield ratio is essential for continuous improvement efforts and resource optimization in manufacturing processes.