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Product binning
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Product binning
Product binning is the categorizing of finished products based on their characteristics. Any mining, harvesting, or manufacturing process will yield products spanning a range of quality and desirability in the marketplace. Binning allows differing quality products to be priced appropriately for various uses and markets.
In order to undergo binning, manufactured products require testing, usually performed by machines in bulk. Binning allows large variances in performance to be condensed into a smaller number of marketed designations. This ensures coherency in the marketplace, with tiers of performance clearly delineated. The immediate result of this practice is that, for legal and reputational reasons, products sold under a certain designation must meet that designation at a minimum. Individual products may still exceed advertised performance. Different bins may even be assigned different model numbers and prices. Examples are listed in the sections below for various product categories.
An everyday example of product binning occurs with agricultural products, such as fruits, nuts, and vegetables. The yield from a harvest may vary considerably in quality, from near-inedible to ideal photographic appearance. The produce is sorted into quality categories which may be based on nutrition and safety, but also often have criteria that are based on cosmetic appearance. The best quality items may be classified into categories such as "Choice" or "Grade A", and are sold at a premium price for table presentation and consumption.
Items that are less visually appealing or damaged may be binned for incorporation into frozen, dried, canned, or otherwise-processed foods. Consumers rarely see these lesser categories for sale in a raw, unprocessed condition.
Foods of even lower quality may be processed into pet food or animal feed, or composted into fertilizer.
Semiconductor manufacturing is an imprecise process, sometimes achieving as low as 30% yield. Defects in manufacturing are not always fatal, and in many cases it is possible to salvage part of a failed batch of integrated circuits by modifying performance characteristics. For example, by reducing the clock frequency or disabling non-critical parts that are defective, the parts can be sold at a lower price, fulfilling the needs of lower-end market segments.
This practice occurs throughout the semiconductor industry on products such as CPUs, RAM, GPUs, and SSDs.
In 2020, when Apple launched their new Apple silicon M1 chip, they offered parts with 8 GPU cores as well as 7 GPU cores, a result of binning parts that had shortcomings.
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Product binning AI simulator
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Product binning
Product binning is the categorizing of finished products based on their characteristics. Any mining, harvesting, or manufacturing process will yield products spanning a range of quality and desirability in the marketplace. Binning allows differing quality products to be priced appropriately for various uses and markets.
In order to undergo binning, manufactured products require testing, usually performed by machines in bulk. Binning allows large variances in performance to be condensed into a smaller number of marketed designations. This ensures coherency in the marketplace, with tiers of performance clearly delineated. The immediate result of this practice is that, for legal and reputational reasons, products sold under a certain designation must meet that designation at a minimum. Individual products may still exceed advertised performance. Different bins may even be assigned different model numbers and prices. Examples are listed in the sections below for various product categories.
An everyday example of product binning occurs with agricultural products, such as fruits, nuts, and vegetables. The yield from a harvest may vary considerably in quality, from near-inedible to ideal photographic appearance. The produce is sorted into quality categories which may be based on nutrition and safety, but also often have criteria that are based on cosmetic appearance. The best quality items may be classified into categories such as "Choice" or "Grade A", and are sold at a premium price for table presentation and consumption.
Items that are less visually appealing or damaged may be binned for incorporation into frozen, dried, canned, or otherwise-processed foods. Consumers rarely see these lesser categories for sale in a raw, unprocessed condition.
Foods of even lower quality may be processed into pet food or animal feed, or composted into fertilizer.
Semiconductor manufacturing is an imprecise process, sometimes achieving as low as 30% yield. Defects in manufacturing are not always fatal, and in many cases it is possible to salvage part of a failed batch of integrated circuits by modifying performance characteristics. For example, by reducing the clock frequency or disabling non-critical parts that are defective, the parts can be sold at a lower price, fulfilling the needs of lower-end market segments.
This practice occurs throughout the semiconductor industry on products such as CPUs, RAM, GPUs, and SSDs.
In 2020, when Apple launched their new Apple silicon M1 chip, they offered parts with 8 GPU cores as well as 7 GPU cores, a result of binning parts that had shortcomings.