# Oracle EBS Operation Yield and Job Start Quantity Calculator

> Source: https://netray.co/tools/oracle-ebs-operation-yield-start-quantity-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Turn routing operation yields and component shrinkage into the start quantity and component requirement for a job.

## Category

oracle

## Erp

Oracle E-Business Suite

## Industry

Discrete Manufacturing

## Audience

- EBS BOM consultant
- Process engineer
- EBS planner

## Tool

**Kind:** calculator

**Inputs:**

#### Good units required

**Key:** demand

**Type:** number

**Default:** 1000

**Min:** 0

**Step:** 10

**Unit:** units

#### Operation 10 yield

**Key:** yield_10

**Type:** number

**Default:** 98

**Min:** 1

**Max:** 100

**Step:** 0.1

**Unit:** %

#### Operation 20 yield

**Key:** yield_20

**Type:** number

**Default:** 97

**Min:** 1

**Max:** 100

**Step:** 0.1

**Unit:** %

#### Operation 30 yield

**Key:** yield_30

**Type:** number

**Default:** 99.2

**Min:** 1

**Max:** 100

**Step:** 0.1

**Unit:** %

#### Component yield

**Key:** comp_yield

**Type:** number

**Default:** 98.5

**Min:** 1

**Max:** 100

**Step:** 0.1

**Unit:** %

**Help:** Component yield factor on the BOM line, as a percent.

#### Component qty per assembly

**Key:** qty_per

**Type:** number

**Default:** 3

**Min:** 0

**Step:** 0.1

**Unit:** units

#### Component unit cost

**Key:** comp_cost

**Type:** number

**Default:** 1.85

**Min:** 0

**Step:** 0.01

**Unit:** $

**Outputs:**

#### Cumulative routing yield

**Key:** cum_yield

**Expr:** yield_10 * yield_20 * yield_30 / 10000

**Format:** percent

**Description:** Product of the operation yields.

#### Job start quantity

**Key:** start_qty

**Expr:** ceil(demand / (cum_yield / 100))

**Format:** integer

**Primary:** true

**Description:** Units to start so that the expected good output equals demand.

#### Expected scrap units

**Key:** scrap_units

**Expr:** start_qty - demand

**Format:** integer

#### Component quantity required

**Key:** comp_req

**Expr:** ceil(start_qty * qty_per / (comp_yield / 100))

**Format:** integer

**Primary:** true

**Description:** Start quantity times quantity per, grossed up for component yield.

#### Component cost for the job

**Key:** comp_cost_total

**Expr:** comp_req * comp_cost

**Format:** currency

#### Component cost caused by yield loss

**Key:** yield_cost

**Expr:** (comp_req - demand * qty_per) * comp_cost

**Format:** currency

**Description:** Spend above the no loss requirement.

**Chart:**

#### Start quantity vs Operation 20 yield

**Type:** line

**X:** yield_20

**From:** 85

**To:** 100

**Steps:** 30

**Series:**

- start_qty
- comp_req

**Disclaimer:** Assumes independent yields that multiply and scrap occurring at the end of each operation. Check how your routing yields and the component yield factor are used in your MRP and WIP settings.

## Content

**Intro:** Yield and shrinkage decide how many units you must start to ship the quantity the customer ordered. This calculator multiplies the operation yields on a routing, grosses up the component requirement for the BOM component yield and shows what the loss costs.

**Sections:**

#### How to use it

**Body:** Enter the good units you need, the yield percentage for each operation from the routing, the component yield and the quantity per assembly. The tool gives the cumulative routing yield, the number of units to start in the job, the expected scrap, and the component quantity to release. Use the chart to see how sensitive the start quantity is to the weakest operation. Sliding the yield of operation 20 from 100 down to 85 shows quickly why a single poor step can dominate your material demand.

**Bullets:**

- Use yields measured from scrap transactions, not targets
- Enter percentages such as 98, not 0.98
- Keep component yield separate from operation yield to avoid double counting

#### The method

**Body:** If each operation has an independent yield, the cumulative yield is the product of the individual yields. Start quantity equals required good units divided by the cumulative yield, rounded up. Component requirement equals start quantity times quantity per assembly divided by the component yield, because a component yield of 98.5 percent means 1.5 percent of what you issue is lost before it is used. Oracle bills of material carry a component yield factor for this reason, and routings can carry operation yield, which feeds the planning of start quantity.

#### Worked example

**Body:** With 98, 97 and 99.2 percent, cumulative yield is about 94.3 percent, so 1,000 good units need 1,061 units started, 61 of them expected scrap. At 3 components each and a 98.5 percent component yield the job needs about 3,231 components, versus 3,000 in a perfect process. At 1.85 each, the yield loss costs roughly 430 dollars on this one job, which adds up across many jobs a month.

#### Common mistakes

**Body:** Applying yield twice, once as scrap in the routing and again as a shrink factor on the same loss, inflates demand. Setting yields to 100 percent because the data is missing hides real scrap. Using yields from a different product family is another trap. Review yield from actual scrap transactions every quarter, and remember that a cumulative yield below 90 percent usually points to a process problem that deserves engineering attention more than a larger start quantity.

**Cta:** Netray can calculate actual operation yields from your EBS scrap and move transactions and compare them with the values in your routings.

**Faq:**

#### Is yield the same as scrap?

**Answer:** They are two sides of one number. A 97 percent yield means 3 percent of units are lost. Scrap transactions in WIP record actual loss, while the routing yield is the planning assumption used to size the job.

#### Where is component yield set in EBS?

**Answer:** On the bill of material component, there is a component yield factor. It scales the requirement so the quantity issued covers the expected loss before the component is consumed in the assembly.

#### Should operation yields be multiplied?

**Answer:** If scrap at each step is independent and happens after the operation, yes. The cumulative yield is the product. If a later step reworks earlier loss, or the yields are not independent, model it explicitly.

#### Why round the start quantity up?

**Answer:** You cannot start a fraction of a unit, and rounding down leaves you short of the customer's demand. Rounding up is the safe choice. Some sites then apply a lot multiple on top.

## Search terms

oracle ebs operation yield, cumulative yield routing oracle, oracle bom component yield, start quantity from yield calculator, oracle wip scrap planning, routing yield calculator, component yield factor oracle bill of material

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