Examples of yield
Example 1
When manufacturing light bulbs, only 98% of the produced light bulbs works properly, on average. In other words: the yield is 98%.
If you want to produce 1000 properly functioning light bulbs, you must plan for 1020 (=1000/0.98) light bulbs. You can achieve this by setting the yield percentage at 98%. The yield type is Discrete.
When the operation is reported completed, you must record the quantity of the rejected light bulbs.
Example 2
Six steel wires are twisted together to produce a steel cable. The net requirements for 1000 yards of cable is 6 x 1000 yard wire. 1000 yard wires produce only 750 yards of cable, due to the twisting effect. The yield is set at 75%.
When you report the operation completed, you do not have to report a rejected quantity of 6 x 250 yards of cable, because the yield type is Continuous.
Example 3
In a mixing operation the total weight of a product is reduced because of evaporation. The yield reflects the lost quantity. The yield type is Continuous.