Chain of Custody Credit Allocation Ledger Audit Procedures
Verify credit allocation ledgers by auditing dock scale moisture corrections, empirical conversion yield factors, and the rolling 24-month expiration limit.
Net Product Yield
Output Metric
Efficiency measurements in the paper converting industry calculate the ratio of usable finished goods to the total amount of raw material consumed during production. A high net product yield indicates a process that minimizes waste from trim, set up and quality rejects. This figure is expressed as a percentage and is a primary indicator of the cost effectiveness of a manufacturing run.
Calculation Process
Calculating this value requires subtracting all scrap and waste from the total weight of the paperboard rolls loaded onto the machine. The remaining weight of the finished cartons or sheets is then divided by the starting weight to find the yield. Losses often occur during the initial adjustment of the die cutter or when the edges of the roll are trimmed to the correct width.
Monitoring these losses in real time allows operators to make adjustments that reduce the amount of material sent to the pulper for recycling. This data also helps in estimating the environmental footprint of the packaging by showing how much raw material is actually required for each unit.
Financial Performance
Improving this yield directly reduces the cost of goods sold for the converter. It is a fundamental target for any lean manufacturing program in the packaging sector.