Understanding Yield by Operation in PeopleSoft Manufacturing

In many manufacturing processes, some parent items (such as subassemblies, primary items, or final assemblies) are lost during manufacturing. This loss manifests itself as assembly scrap, which can result from breakage, poor quality, or nonconformance to specifications. Operation yield enables you to specify the quantity of goods expected to make it through the process. The expected lost can then be incorporated into the cost of the usable end items. Additionally, planning can take into account process yield and increment the demand by the expected loss so that demand is still met once the manufacturing process has been completed. This function enables you to specify a yield percentage on the routing operation step and calculates the additional resources necessary to meet the scheduled quantity with the anticipated yield loss.

The system calculates the quantities required at the beginning of each operation sequence based on the yield percentage. When you create new production, you can enter either the beginning or ending quantities, and the system calculates the other quantity automatically.