First Pass Yield (FPY)

It measures how often parts come out right the first time — rework is hidden factory cost.

Formal definition

First pass yield equals good units produced without rework or scrap, divided by total units started, expressed as a percentage.

Why it matters

A few points of FPY loss can wipe out job margin on tight quotes; lean programs obsess over this number.

Where you see it

• OEE dashboards
• Quality management systems
• ISO audit reports
• Six Sigma training
• Make-to-order ERP modules

Worked example

1. Units started: 10,000.
2. Good units first time: 9,600.
3. FPY = (9,600 ÷ 10,000) × 100 = 96%.
4. Interpretation: 4% required rework or scrap on the line.

How Business metrics calculates it

Units good on first pass ÷ Units started × 100.

The range we use for status labels

On Business metrics, the status band for this KPI is roughly 95 to 100. Higher values are generally healthier in this band. Your niche can sit outside it honestly — the label is a prompt to read the coaching, not a certificate.

Where people fool themselves

First-pass yield that ignores units still in inspection at month-end will bounce. Use a closed-lot definition.

Run it on your own numbers: the Manufacturing calculator.