What does average outgoing quality (AOQ) represent?

Average outgoing quality (AOQ) represents the expected average quality level of outgoing products after they have been processed through a system that includes inspection and potential rework. It is a statistical measure used in quality control to estimate the proportion of good items in a batch of products, accounting for any defective items that might be present after processes such as acceptance sampling or quality improvements have been applied.

The significance of AOQ lies in its ability to provide an average benchmark for the quality of products that leave the production facility. By understanding AOQ, managers can assess the effectiveness of their quality management systems and make informed decisions about processes, inspections, and improvements needed to enhance product quality over time. This metric helps organizations determine if their quality control efforts are yielding the desired results and whether they need to adjust processes to achieve better outcomes.

In contrast, the other choices—predicted levels of defectives, maximum quality levels of input materials, and total quality level over a production period—do not specifically capture the essence of AOQ, which is centered around the quality of outgoing products post-process and how well the production and quality assurance processes perform in actual scenarios.