Defect rate reduction is done in several ways as follows:
When the defect rate is tolerable (that is, within the AQL or the "Acceptable Quality Level"), the data is recorded and put under monitoring. When the defect rate is not tolerable (in this case, it is above the AQL), the problem is reported in a "LOT OUT" procedure for the concerned entity to investigate the root cause and implement measures. On a monthly basis, the defect rate data is gathered and analyze with the use of the PARETO graph. The top 5 problems are identified. The top five problems are then acted upon with measures implemented and monitored for improvement in the succeeding months. This is reported in a monthly quality meeting and is discussed for further improvement action.