Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

1.4.2 Scrap Factor, Yield Factor, and Complaint Rate — Performance Indicators in the Target Area of Quality

Intended learning outcomes: Differentiate between the indicators scrap factor and yield factor. Present the indicator complaint rate.

Performance of logistics, operations, and supply chain management can have an impact, although a rather low impact, on indicators in the target area of quality; for example, on scrap factors and complaint rates of all kinds. The causes can be many and difficult to pinpoint. They may even be insufficient in quality of information.

Complaint rate and scrap factor in Figures and are related. The source of a complaint may turn out to be a cause that, if discovered sooner, would have entailed scrap. Scrap can lead to supplier com­plaints. The yield factor is complementary to the scrap factor. Hence, for a given reference object, the scrap factor plus the yield factor is equal to 1.

Fig.        The indicators scrap factor and yield factor.

Fig.        The indicator complaint rate.

Video (not yet available)

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The animations on the following pages show the Performance Indicators in the different Target Areas.
Click on the names of the indicators to get the accordant details.

Course section 1.4: Subsections and their intended learning outcomes