.Literally speaking, AQL standards for acceptable quality expectation limit: this means the worst quality that is tolerable or acceptable in a given sample of products according to the ISO 2859-1. This is basically the maximum amount of goods that an inspection team or buyer would accept that are of sub-standard quality.
If the number of defected goods exceeds this number, then the entire batch of goods is rejected.
AQL levels are perhaps most important for importers who are not physically present at the manufacturing site to oversee production and thus have to resort to inspection teams to carry out quality expectation control on their behalf. By setting different AQLs for critical, major, and minor defects, importers can ensure that each class of product is treated according to the standards that it requires.
Why do you require an objective measurement of quality?
Because most products require manual input and some sort of labor work, it is highly unlikely to expect any batch to have each and every product that is in-line with the specifications and requirements asked from it; there are bound to be a few defective products in every batch of products that you inspect.
Also keep in mind that even if the manufacturer claims that he has visually checked all products and found no defects, it is still worthwhile for you to carry out a detailed inspection of the products because there exist several defects that are visible only through a thorough inspection of the internal parts.
But the question arises, how do you exactly set the limit for the number of defective goods that you will accept in a batch? What kind of quality defects can you tolerate, and how many? Naturally, if you leave this all to intuition then you would have different results on every batch that you inspect. Therefore, it is extremely important to quantify the measurement of quality and that is where AQL helps you.
Commonly used AQL levels for a pre-shipment inspection
As explained in the beginning, AQL represents the worst quality level that you are willing to tolerate on an average batch over a period of time. most quality expectation inspectors categorize types of defects into three broad classes:
- 0% for critical defects (totally unacceptable: a user might get harmed, or regulations are not respected).
- 2.5% for major defects (these products would usually not be considered acceptable by the end-user).
- 4.0% for minor defects (there is some departure from specifications, but most users would not mind it).
Keep in mind that there are only general averages and may vary according to the product or the market conditions; for example, you would expect components used to being airplanes or sophisticated health machinery to have a much lower AQL limit than, let’s say, a piece of garment. It is also important to note that the AQL tool is used most commonly in the final pre-shipping inspection stage or during the production inspection when there are sufficient products present to seclude a sample size and carry out inspection.
Should you adjust your AQL standards depending upon your relationship with your supplier?
It is a common practice among suppliers to source from a number of suppliers instead of relying on just one: this helps you avoid potential risks such as delayed production, disruptions or other supply chain setbacks that may arise if one of your suppliers is delayed or unable to provide for you. You may wish to categorize your suppliers depending upon your relationship with them, such as ranking certain suppliers in your ‘tier 1’ category that you work with regularly and have confidence in as compared to ‘tier 2’ suppliers that you have reserved for peak seasons and work with occasionally.
It, therefore, makes sense that your relationship with each supplier will have a direct influence on the AQL level that you set for each supplier when you wish to inspect their facilities. You would ideally want to allocate the most of your QC resources towards the supplier with the highest risk associated with it, thereby setting the most strict quality standards for them.
New Suppliers/products
The first thing that you should keep in mind when working with a new supplier or a new product is to require a sample of the products to be delivered to you before mass production begins. This will make sure that you are satisfied with the specifications of the product, and that the supplier can replicate that sample for the entire shipment.
However, getting a good sample delivered to you does not mean that the end result will always match your quality expectation. You should, therefore, always be prepared to adjust your AQL to reflect the kind of quality that is delivered to you in the subsequent orders.
It makes sense to increase the frequency of inspections with newer suppliers who you do not have a lot of experience with. It will work to your benefit to have a higher frequency of inspection earlier on in your business with them because it is likely to give you a good idea of what kinds of precautionary measures you need to take in each supplier’s case, as well as what kind of quality concerns may arise through the production techniques employed by each supplier.
Experienced suppliers
In case of suppliers who you have worked with previously, it is essential to keep in mind the kinds of results that have been produced by him and then set your AQL standards accordingly. You must consider the previous inspection reports outlining that supplier’s performance: it would make sense to increase the frequency of inspections for suppliers with a poor history in inspection reports, as compared to one that has consistently passed inspections and produced good quality products. Inspection reports are able to show you the real quality of products which may differ significantly from what the supplier has promised.
Inspection Reports
You must evaluate your inspection reports thoroughly along with quality KPIs to determine:
- Overall inspection results, including inspection pass/fail rate
- Number and type of quality issues found during the inspection
- Any remedial actions the supplier took to address quality issues, such as product rework
- Adherence to production and shipping deadlines
Thus, if you find out that a supplier has been showing poor quality in the inspection reports, you might want to schedule a number of follow-up inspections in order to ensure that the products manufactured meet your specified requirements and set strict AQL standards for him; in case of any lack in quality, these inspection reports will give you the opportunity to apply any corrective measures that you deem appropriate.
These corrective measures become all the more important if the supplier is failing inspections because the number of defects being found in the products exceeds the AQL tolerance set by you.
However, if you find that your supplier has been consistently performing well on the inspection processes then may wish to provide him with slightly more lenient AQL standards. Keep in mind, no matter how well your supplier has performed, you must never get too lazy in the inspection process- otherwise, you’ll notice a decline in your product’s quality soon enough.
Does setting an AQL imply that your manufacturer is allowed to produce defective products?
A frequently asked question regarding the AQL is whether it gives the factory leverage to produce some defective goods?
Well no, not in theory at least. To put simply, AQL recognizes the fact that it is nearly impossible for a factory to churn out products that are 100% free of defects all the time. you are bound to come across cases where there are defective goods in the shipment; the AQL helps you decide the cutoff point beyond which you need not accept the shipment due to quality concerns.
So in practice, this means that you understand that the factory will most likely make some defects in a few of the products, but you wish to look at the greater picture and that is regarding the general quality level of the whole batch.
Quality Expectations
When deciding on the optimal AQL standard for your goods. It is important to keep in mind that the quality standards. That you set should adequately represent the quality expectations that your customers have regarding your goods. If you’ve marketed them as being of top quality and free of defects. You would set a much lower tolerance for defects than would someone selling cheap, low-quality goods.
AQL depending on the target market and customers
The manner in which consumers intend to use your product is also a major determinant. In deciding upon the AQL standards. The riskier a product is for the health or physical well-being of a product. The more you should invest in inspections and avoid any kind of defect in it. According to the usage of your product. You may set tolerances regarding how many defects are acceptable in a sample of products.
For example, you may set a higher tolerance for defects in consumer products. That do not pose a threat to the actual well-being of a person, such as disposable cups. However, for extremely sensitive products such as hearing aids. the number of defects that you can tolerate. Might be close to zero because it has a direct impact on the psychological and physical health of the user.
The AQL should reflect the price point
You would also want to decide the AQL standards for your products depending upon the monetary value. For very highly-priced products,. It would make sense to spend more on quality control and inspections. And thereby tolerate lower defects, for products that are high in value as compared to low-priced products.
What many importers make the mistake of doing is that they think of quality inspections as a completely separate cost. That brings down their profit margin. However, it would be a better approach to consider the cost of quality expectation inspection. Compared to no inspection- where no inspection would mean poor quality.
How much are you exposing yourself to lose in monetary value. If you allow higher defects in your products? The pricier your product is. The more you have to lose if the quality is substandard and the products are rejected by the buyers.
Inspection Costs
For this reason, inspection costs are also known as appraisal costs in the quality control industry. Because it is integral for the success of the business for the products to be of adequate quality.
If you find any defects in your products at the site of production, they can be repaired or reworked immediately. In contrast, without a pre-shipment inspection. You are likely to receive defected products which you will then have to spend an additional amount on to transport.
Back to the supplier for the rework. If not, you would have to spend on the rework yourself. Keeping this in mind, it is much better to invest in quality inspection than to spend on rework and repairs. This is costly not only in terms of monetary value but also in terms of loss of customers. Who are unsatisfied with your products.
AQL should reflect Customer expectations
For any successful business, you must align your customer’s expectations with your own priorities and the actual product. Otherwise, the business is not likely to last very long. In order to avoid any such problems from arising, you must meet (or ideally exceed) your customer expectations.
You must thoroughly examine what kind of product features or services your business is known for. And then make sure to not compromise on any of those. For example, if your business is known for exceptional quality features and quality-oriented propositions. Then you must be aware that decreasing the quality will result in loss of sales. And a bad reputation for your business.
It is beneficial for you to carry out a market research survey. And find out exactly what your customers expect of you. And then make sure you deliver those. Negative feedback can be extremely detrimental to your business.
Hence, always make sure to be aware of your customer’s quality expectation. And provide your quality inspection team with a thorough QC checklist regarding any specifications and requirements. That are necessary for your products. This will help you in deciding just how many defects you can tolerate in your product. Without causing dissatisfaction among your consumers.
Legal AQL requirements
There are certain products that require you to meet certain quality standards. In order for them to be sold in the market. This is very common for products that have the potential to pose a threat to the safety. And well-being of the consumers. For example, the U.S. Food and Drug Administration’s (FDA) Code of Federal Regulations requires surgeon’s gloves to meet a 1.5 AQL standard, while patient examination gloves must be inspected to meet a 2.5 AQL standard.
It’s always important to check for legal requirements in each of your intended markets, as they often vary across locations. For instance, while the FDA imposes a 2.5-AQL standard on patient examination gloves, the European Union enforces its own stricter 1.5-AQL industry standard.
Managing quality
There may be a common misconception that the number of defective goods per sample is the sole. Or most important criteria for quality inspectors when approving or rejecting a sample. However, it is only one of the several factors that quality inspectors have to consider. Sometimes referred to as ‘quality findings’ which determine the overall quality expectation of the products. These include, but are not limited to, the following:
- Whether the packaging is according to the required specifications of the importer, including factors such: as barcodes, inner packaging, cartons, and shipping marks.
- Visual conformance: if it can be visibly seen that the products are made in green color instead of orange, as ordered, then there need not be any quality inspection because all of the products are clearly in violation of the specifications. The shipment will be therefore rejected.
- The importer may instruct the manufacturer to carry out certain specific tests that will be pre-defined in the inspection checklist.
Conclusion
When it comes to setting AQL standards. There are a number of factors that you should keep in mind such as your previous relationship with the supplier. And the intended usage of your product. In certain cases you may need to set strict quality expectation standards. To ensure the safety of your customers and meet with their quality expectation.
However, in other cases you may set slightly more lenient standards depending upon the type of product. That you are selling. AQL provides you with a cohesive way to decide what kind of quality you expect from your suppliers. So that there is no major discrepancy between the quality of one shipment to another.