As manufacturing leaders, we’re constantly pressured to increase throughput, reduce cost, and improve quality. But when it comes to test data—the vast pool of information collected every day from production lines—many companies are still operating in the dark. Or worse, they’re drowning in data but starving for insight.
At Circuit Check’s Smart Test Strategies event, I made the case for why using test data effectively is no longer optional—it’s financially essential.
From Gut-Driven to Data-Driven
I began by asking attendees to self-assess: Is your organization still driven by gut and tradition, or is data central to your decision-making? The answers mirrored broader trends—most companies fall somewhere in the middle. But top-performing organizations are pushing toward true data-driven cultures.
Using the Lean Six Sigma DMAIC approach (Define, Measure, Analyze, Improve, Control), I emphasized that many manufacturers are already measuring performance. The gap, I argued, is in using that data proactively—to improve first pass yield, reduce retesting, and avoid costly scrap or warranty issues.
Why First Pass Yield Matters
To translate the abstract into dollars, I introduced a first pass yield calculator that allows manufacturers to quantify the value of small yield improvements.
For example, moving from 90% to 92% first pass yield may sound minor, but depending on volume, retest time, and cost of goods sold, it could result in hundreds of thousands—or even millions of dollars in annual savings.
It’s not just about a better pass rate. It’s about reclaiming machine time, labor, and material that would otherwise be wasted. And most importantly, it’s about telling that story in a language your CFO understands.
Retesting: The Hidden Drain
Using anonymized customer data, I showed how often units are retested—sometimes several times, across multiple testers. Operators frequently distrust initial failures and rerun boards, hoping to prove a false negative.
The result? Wasted minutes per unit. Multiplied by thousands of units, the time lost is staggering. The WATS platform helps customers visualize this in real time—identifying where and when retesting happens, and how much it costs.
In one case study, WATS helped a European customer reduce retest costs by over €600,000 over four years—just by identifying unnecessary test loops.
Communicating with Finance
One of the key challenges I see for engineers is communicating value to the business side.
Engineers understand the problem but sometimes struggle to quantify the solution. Executives don’t care how elegant your test strategy is. They want to know: does it save us money?
Using WATS or similar tools, teams can calculate:
This makes it easier to justify funding for data analytics tools, automated reporting, or better test coverage.
Real Examples, Real Savings
Some of the numbers I’ve shared with customers are eye-opening:
And those numbers are conservative. They don’t include “soft” savings like reduced engineering firefighting, faster failure detection, or fewer warranty returns.
The WATS Advantage
WATS is designed to bridge the gap between raw test data and actionable insight. Key features include:
The goal? Equip teams with the tools to shift from reactive troubleshooting to proactive process improvement.
Final Takeaway
Data doesn’t solve problems—insight does. And insight requires the right tools, strategy, and culture.
Whether you use WATS or a homegrown system, the message is clear: small yield improvements can have massive financial impact. And when engineers can speak the language of ROI, they become not just problem-solvers—but profit drivers.
About Chris Nelson
With 29 years of B2B technical sales experience in automation, test, and measurement, Chris brings deep industry expertise and a passion for solving complex engineering challenges. A 1996 Mechanical Engineering graduate from the University of Wisconsin–Madison, he began his career in motion control before joining National Instruments (NI) in 2000. Over 22 years at NI, he held diverse roles in technical support, sales, and sales management in the Midwest. He now serves as Managing Director at Virinco, leading the America's expansion of WATS, Virinco's award-winning Test Data Management solution.