Scrap, rework, and defects are direct margin losses.
Manufacturing is all about COGS (cost of goods sold) and yield. You'll learn production yield (what % of input becomes saleable output?), scrap rate (how much do you throw away?), first-pass yield (do units get made right the first time or do they need rework?), and how to calculate whether a 1% improvement in yield is worth the investment. You'll understand that OEE (overall equipment effectiveness) is the key metric — it combines availability, performance, and quality into one number that shows whether your operation is truly profitable.
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Article from AskBiz Academy
Follow this learning path to master manufacturing & production: quality margin math.
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