Cumulative Yield

Cumulative yield, which is defined on the routing, affects labor and machine hours when you run the cost simulation. Enough hours must be expended to obtain 100 percent yield at the last operation. In a series of routings, the hours must be adjusted accordingly.

This example illustrates how the costing of hours is affected by a cumulative yield of 85 percent:

Yield	Labor	Machine	Setup
Without Yield	5	5	5
With Yield	5.88	5.88	5

For each operation, the labor and machine hours are adjusted by dividing the hours by the cumulative yield. Setup hours are not affected.