CPIM Practice Exam

In terms of yield, what is the calculation based on?

1. The percentage of resources consumed

2. The final amount of acceptable material divided by the initial amount

3. The number of good units produced

4. The speed of production lines

The correct answer is: The final amount of acceptable material divided by the initial amount

The calculation of yield is fundamentally centered on assessing the effectiveness of the production process. Yield is determined by taking the final amount of acceptable material produced and dividing it by the initial amount of raw materials or inputs used in the process. This calculation provides a clear measure of how much of the initial investment in resources is converted into usable outputs, thus reflecting both the efficiency and effectiveness of the operation. In a manufacturing context, a higher yield percentage indicates that a larger proportion of the inputs are successfully transformed into acceptable finished products, whereas a lower yield suggests more waste or rework. This measurement is critical for continuous improvement efforts, as organizations aim to minimize waste and improve productivity. Understanding yield in this manner helps organizations identify areas for improvement within their processes, such as quality control issues or inefficiencies, ultimately leading to better resource management and cost savings.