CPIM Practice Exam

What signifies a high yield percentage?

1. High input costs

2. A small amount of good material produced

3. A substantial amount of acceptable material obtained

4. Low operational hours used

The correct answer is: A substantial amount of acceptable material obtained

A high yield percentage indicates that a significant proportion of the input materials used in a production process results in acceptable or good-quality output. This means that the process is efficient, as it maximizes the material that meets the desired quality standards while minimizing waste or non-conformities. When a substantial amount of acceptable material is obtained, it signifies that the production methods and controls in place are effective, effectively converting raw materials into products that fulfill specifications. This high yield is often a sign of well-optimized processes, appropriate technology, and skilled labor, leading to greater profitability and reduced overall production costs. In contrast, high input costs, a small amount of good material produced, and low operational hours do not directly signify high yield percentages. High input costs may indicate inefficiencies or expensive resources that do not contribute positively to yield, while a small amount of good material produced implies a poor yield. Low operational hours could relate to machine downtime or inefficiencies, which do not necessarily correlate with high material output quality.