05 Rolled Throughput Yield

05 Rolled Throughput
Yield
Six Sigma
Green Belt Training
Measure Control Improve Analyze Define Recognize
2004 American Society for Quality. All Rights Reserved.

2004 American Society for Quality.
All Rights Reserved.
Analyze Measure Control Improve
Page 2 RTY Version 2.1
Define Control Improve Analyze Measure Define
About This Module . . .
Rolled Throughput Yield (RTY) shows the effect of
variation on both rework and scrap. Rework is known as
the Hidden Factory.
Six Sigma, A Quest for Process Perfection
Attack Variation and Meet Goals
\DataFile\RTY.xls
What We Will Learn
1. The importance of using RTY
2. How to calculate RTY
3. Using e
-dpu
to estimate RTY
4. How complexity affects RTY

Variation, Rework, and Scrap
All stable processes have natural or common-cause variation
which is predictable.
Unstable processes have special-cause variation which is
unpredictable.
Variation may cause rework and scrap in manufacturing and
transactional processes.
Rework and scrap have a financial impact. For example:
Cost of new equipment when processes are already running at
full capacity
Cost of expediting, etc.
Cost of overtime and support services (computers, etc.)
Cost of lost businessreal, but difficult to measure
The goal of Six Sigma is to eliminate rework and
scrap by eliminating variation!
The Hidden Factory
Started
Scrapped Started Number
= = =
Started Number
Shipped
N
S
Y Yield, Classic
Rework
Scrap

Operation

Inspection

N S
Rework:
The Hidden
Factory
Classic Yield does
not account for
rework

Inspection

Rolled Throughput Yield, RTY:

Rework
N S
Rolled Throughput Yield (RTY)
steps process of number N
free) (defect yield pass first FPY
FPY FPY FPY FPY RTY
N 1
=
=
- - - - =
3 2

Scrap

Operation

Inspection

Rework
Scrap

Operation

FPY includes
no defects
Rework accounts
for differences
between Classic
Yield and RTY
Rolled Throughput Yield (RTY)

Receiving Inspection:
First Pass Yield #1 = 0.955

Machining Operations:

Finishing Operations:
RTY = FPY
1
x FPY
2
x FPY
3
RTY = 0.955 x 0.970 x 0.944 = 0.875
Parts
Receiving
For every 1,000 parts
received, only 875
reach this point
without rework
Dollars lost to
rework and scrap
Rolled Throughput Yield: Example
The Classic Yield is 95% and scrap cost is only 4% of
the total. Rolled Throughput Yield is 67% and the
Hidden-Factory cost is 17% of the total.
Step #1 Step #2 Step #3 Step #4 Step #5 Shipped
Start 100 99 97 96 95 95
Accept 90 85 95 90 90
Rework 9 12 1 5 5
Scrap 1 2 1 1 0
Classic Yield 0.95
First Pass Yield 0.90 0.86 0.98 0.94 0.95
Rolled Throughput
Yield 0.90 0.77 0.76 0.71 0.67
Step Cost/Unit $100 $100 $100 $100 $100
Rewwork Cost/Unit $200 $200 $200 $200 $200
Scrap Cost/Unit $400 $400 $400 $400 $400 Total Costs
Step Cost $10,000 $9,900 $9,700 $9,600 $9,500 $48,700
Rework Cost $1,800 $2,400 $200 $1,000 $1,000 $6,400
Scrap Cost
$400 $800 $400 $400 $0 $2,000
4%
17%
Scrap/Total
(Rework + Scrap)/Total
Item
Process
Defective Units versus Defects per Unit
First Pass Yield and Fraction Defective account for 100% of the
output from each step:
First Pass Yield + Fraction Defective = 1.00
If you can count the number of defective units after each process
step, then you can calculate the Rolled Throughput Yield as
RTY = FPY
1
x FPY
2
x --- x FPY
N
where N = number of process steps
If you can only count the number of defects after each step, then
you must estimate the First Pass Yield using the Poisson
approximation
step process per defects average the is dpu where
e FPY
dpu
=
Estimating RTY with e-dpu
Example:
A transactional process has three steps
At the end of each step, the defects are counted and the defects
per step are recorded
Step #1 0.045 defects per step
Estimated RTY using the Poisson approximation
0.877 e e
e e e e RTY
(0.131) 0.056) 0.030 (0.045
) dpu dpu (dpu dpu dpu dpu
3 2 1 3 2 1
= = =
= =
+ +
+ +
Effect of Complexity on RTY
As steps are added to a process, it becomes more complex
For a constant FPY at each step, RTY decreases as complexity
increases
0.9 0.95 0.99 0.999
1 0.900 0.950 0.990 0.999
2 0.810 0.903 0.980 0.998
3 0.729 0.857 0.970 0.997
4 0.656 0.815 0.961 0.996
5 0.590 0.774 0.951 0.995
6 0.531 0.735 0.941 0.994
7 0.478 0.698 0.932 0.993
8 0.430 0.663 0.923 0.992
9 0.387 0.630 0.914 0.991
10 0.349 0.599 0.904 0.990
Number of
Steps
FPY
RTY Exercise: Situation
A process step is represented by a target.
The raw material is a deck of cards.
A team member drops the deck cards in not more than three portions
aiming at the inner circle of the target. Other team members can make
helpful suggestions about aiming, etc.
Dropping the cards physically changes themthat is, the process step
adds value.
The result of each drop is the number of cards in ACCEPT, REWORK, or
SCRAP in accordance with the ground rules.
There are as many steps in the process as there are members on the
team.
Each team members drops the cards once.
After each drop, record ACCEPT, REWORK, or SCRAP.
Note: After each drop, the number of SCRAP cards is removed from the
deck!

RTY Exercise: Ground Rules
DEFECTIVE:
REWORK
DEFECTIVE:
SCRAP
NON-
DEFECTIVE:
ACCEPT

ACCEPT
ZONE
REWORK
ZONE
SCRAP
ZONE
DROP THE CARDS
FROM SHOULDER
HEIGHT WITH THE
TARGET ON THE
FLOOR
Classic Yield and Rolled Throughput Yield
When all of the cards have been dropped and the data have been
collected, calculate the Classic Yield and the Rolled Throughput
Yield
A possible data sheet is

Step #1 Step #2 Step #3 Step #4 Step #5 Shipped
Start
Accept
Rework
Scrap
Classic Yield
First Pass Yield
Rolled
Throughput Yield
Item
Process
RTY Exercise: Useful Equations
deck! the from removed is (SCRAP) drop, card each after : Remember
#1 Step in Started Number
Y Yield, Classic
N
process in the steps of number N
FPY RTY Yield, Throughput Rolled
N # Step in Dropped Number
N # Step in ) (
FPY N, # Step for Yield Pass First
Shipped
2 1
=
=
=
=
where
FPY FPY
ACCEPT
Number
N
Remember: After each card drop, (SCRAP) is removed from the deck!
Deliverables:
Calculate Classical Yield, Y
Calculate Rolled Throughput Yield, RTY
You Have 20 Minutes

Supplemental Slides
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 10 100 1,000 10,000 100,000 1,000,000
Number of Operations
R
o
l
l
e
d

T
h
r
o
u
g
h
-
p
u
t

Y
i
e
l
d

3o 4o
5o
6o
Process
centered on
the target
How Process Sigma Affects RTY
Process Sigma Affects RTY (cont.)
Number of Operations
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 10 100 1,000 10,000 100,000 1,000,000
R
o
l
l
e
d

T
h
r
o
u
g
h
-
p
u
t

Y
i
e
l
d

3o 4o 5o 6o
Process
shifted 1.5 o
from target

05 Rolled Throughput Yield

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