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.
OEE measures how well manufacturing equipment is utilised. Learn the formula, benchmarks, and how to improve your score.
5 min read · Advanced
Part of this AskBiz Academy learning path.
AskBiz Academy
Gross margin tells you how much money is left after paying for what you sold. It's one of the most important numbers in any business.
4 min read · Beginner
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Lead time is the time from placing an order to receiving it. It's the critical input for any stock replenishment decision.
3 min read · Beginner
Inventory turnover measures how many times you sell through your stock in a year. High turnover means efficient capital use; low means dead stock.
3 min read · Intermediate
Break-even analysis tells you exactly how many units or hours you need to sell to cover all your costs. Use it to evaluate pricing changes, new hires, and product launches.
5 min read · Beginner
Follow this learning path to master manufacturing & production: quality margin math.
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