Business Economics

Acceptable Quality Level (AQL)

Published Aug 4, 2023

Definition of Acceptable Quality Level

Acceptable Quality Level (AQL) is a term that is commonly used in manufacturing and inspection industries. It refers to the maximum number of defective products that are considered acceptable in a batch or lot. That means AQL is a method for determining the quality of a product by comparing the number of defects with a predetermined threshold.

Example

To illustrate AQL, consider a toy manufacturer producing a batch of 10,000 toy cars. Based on the requirements of the company, the maximum allowable defective toys must not exceed 3%. That means the AQL for this batch is 3% or 300 defective toys.

After the toys are produced, a sample of 200 toys is selected for inspection. If the number of defective toys found in the sample is less than or equal to the predetermined AQL level of 3%, the entire batch is considered acceptable. However, if the number of defective toys found in the sample is higher than 3%, the entire batch is considered defective, and all the toys must be rejected.

Why AQL Matters

AQL is important in manufacturing and inspection industries, as it helps ensure that consumers receive products of acceptable quality. By setting a specific threshold for defects in a batch, companies can improve quality control and reduce the number of faulty products that reach customers. This, in turn, leads to increased customer satisfaction, fewer product returns, and a better reputation for the company.

Additionally, AQL helps manufacturers identify areas that require improvements in the manufacturing process, which can further enhance the overall quality of the product.