What is Rolled throughput yield?

Rolled throughput yield in production economics is the probability that a process with more than one step will produce a defect free unit. It is the product of yields for each process step of the entire process.

For any process, it is ideal for that process to produce its product without defects and without rework. Rolled throughput yield quantifies the cumulative effects of inefficiencies found throughout the process. Rolled throughput yield and rolled throughput yield loss are often used in Six Sigma.