Yield and Cost Improvements in Multistage Production Systems
نویسنده
چکیده
The aim of the paper is to address the issue of operational improvements in manufacturing firms, especially when yield losses result in a significant increase of the production cost. In a multistage production environment the firm must decide which production stage(s) should receive more “attention” in order to minimize the overall cost incurred from yield losses. Yield variability is a factor included in the decision to allocate resources to improve the production stages. The model presented in this paper considers a number of factors such as yield variability, production volumes, cost incurred from defects, and cost of improving the system. Results show that firms should focus their “attention” on production stages characterized with high yield variability since it significantly affects production cost.
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