Improved rolled throughput yield: A novel method for performance measurement

Abstract

The quality level measurement of a given process is essential to six sigma process improvement. Indicators such as rolled throughput yield and six sigma level have been applied to estimate the efficiency of total process in a certain organization. As an effective indicator, however, rolled throughput yield has not thoroughly explored in scarce studies undertaken. In this paper, we develop an Improved Rolled Throughput Yield (IRTY) that takes the effect of appraisal cost and external failure cost of each sub-process on process weights into account. Moreover, the rework and scrap cost are also incorporated into the proposed approach. The uniqueness of the proposed approach is that the determination of process weights is based on the cost of poor quality. A numerical example is illustrated to present the procedure and the effectiveness of the proposed approach.