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AOQ and AOQL: Average Outgoing Quality

AOQ (Average Outgoing Quality) measures the average fraction defective in accepted lots, accounting for the fact that rejected lots are 100% inspected and defects replaced. The AOQL is the worst-case AOQ — the peak of the AOQ curve.

The AOQ formula

AOQ = (Pa × p × (N − n)) / N Where: Pa = probability of lot acceptance at incoming defect rate p p = incoming defect fraction N = lot size n = sample size Simplified (when n << N): AOQ ≈ Pa × p

Why AOQ goes to zero at both extremes

Worked example

N = 1000, n = 80, Pa at p = 0.02 is 0.85 AOQ ≈ 0.85 × 0.02 = 0.017 (1.7%) At a different p = 0.05, Pa drops to 0.30: AOQ ≈ 0.30 × 0.05 = 0.015 (1.5%) AOQL is approximately 0.018 at p ≈ 0.03 for this plan.

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