Financial

acceptable quality level

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Acceptable Quality Level

The maximum number of defects a product can have to be deemed acceptable to sell to wholesalers or retailers. The acceptable quality level is important in the quality control of a product, especially when it is mass-produced.
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acceptable quality level (AQL)

an agreed standard for error-free products. AQLs are often denoted as a percentage, the lower the percentage agreed for errors then the fewer defects allowed in the final product. AQLs are typically applied also to the supply of raw material and components and penalty clauses are incorporated into supply contracts to minimize defective inputs. See ACCEPTANCE SAMPLING, QUALITY CONTROL.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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References in periodicals archive
The Acceptable Quality Level (AQL) recognizes that variations can happen and that 100 percent performance is not always possible.
Does the performance requirements summary prescribe a very strict standard and a very low acceptable quality level?
I am seeing low-volume castings coming in at acceptable quality levels and low costs.
The economics of quality require that management establish acceptable quality levels as performance standards.
The DOD recognizes that for too long it has concentrated excessively on product inspection and acceptable quality levels as guarantors for quality, and insufficiently addressed the process to design, develop nad manufacture the product correctly the first time.
Acceptable Quality Levels in the Textile Sector and their Effect on the Level of Competition, Fibres & Textiles in Eastern Europe, Vol.15, No.1(60), pp.16-23
The success of a PBSA is highly dependent on the effort and resources invested into monitoring performance by using many sophisticated tools and metrics including performance indicators and standards, quality assurance surveillance plans (QASP), performance requirements summaries (PRS), acceptable quality levels (AQL), and appropriate positive as well as negative incentives.
* Emphasize casting quality and develop programs to ensure meeting customers' acceptable quality levels. Evidence that high quality and innovation are particularly important in stagnant industries comes from analysis of the 1000 businesses in the PIMS (profit impact of market strategies) data base.
Methods such as wave soldering and post-wave soldering are becoming increasingly challenged to ensure through-hole interconnections at acceptable quality levels for complex mixed-technology assemblies.
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