Yield learning and the sources of profitability in high technology manufacturing and process development

A numerical model that identifies the high-leverage variables associated with profitability in high technology manufacturing is presented. Varying the parameters of the model demonstrates that a rapid yield-learning rate determines profitability more than any other factor does. Factors such as ramping up to production early, adding factory capacity, maximizing quality, and increasing the robustness of product designs all yield diminishing returns. The model also suggests the preparations in the early stages of process development are the key to successful yield learning.