AskBiz Blog

Manufacturing Operations

2 AskBiz guides on manufacturing operations, covering Daily Operations, Weekly Operations and related operating decisions for SME founders.

2
guides
10
min total reading
1

Factories Lose 8% to Quality Issues They Don't Know About Until End-of-Day

A factory starts a batch at 8am with wrong material (thought it was Grade A, actually Grade B). By noon, 2,000 units have been produced incorrectly. QC checkpoint at 4pm catches it. Loss: 2,000 units × $12 cost = $24K scrap. But it was preventable if caught at 8:15am.

5 min read
2

Factory Yield Tracking: 2% Waste Per Batch Across 100 Batches = 20% Annual Loss

A factory producing 10,000 units monthly at $10 COGS per unit accepts 2% scrap = 200 units wasted monthly = $2,000 cost. Over a year: $24,000. But if scrap is from a fixable process issue (machine calibration, operator error), it's preventable waste. AskBiz tracks yield by batch to spot patterns.

5 min read