Gain in profitability against reduction in hidden factory achieved through Rolled Throughput Yield
- Publication:
- Quality Management Journal
- Date:
- April 2025
- Issue:
- Volume 32 Issue 2
- Author(s):
- Apte, Dhananjay, Abhijit Rege, Reshma, Pradhan, Vishal, Ambekar, Suhas A.
Abstract
This case study investigates a previously unidentified rework process within a cashew processing industry, utilizing the Lean Six Sigma (LSS) methodology to determine the rolled throughput yield (RTY). The research demonstrates the impact of this rework on RTY and its subsequent effect on cashew output productivity and profitability. A comparison of RTY and traditional yield metrics underscores the importance of RTY as a performance indicator. Results indicate that increasing the RTY from 39 percent to 47 percent has the potential to generate annual savings of INR 950,000.00. This study highlights the potential for micro, small, and medium enterprises (MSMEs) to recognize and mitigate losses associated with process rework by applying the RTY framework. RTY makes it possible to reexamine the procedures and aids in creating a suitable workplace organization. The straightforward application of RTY enables process owners to effectively identify, analyze, and address process-related issues and associated financial losses across multiple stages of production.