Definition The percentage of products or services that fail to meet quality standards.
Example 20 faulty units out of 2,000 gives a defect rate of 1%.
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Why it matters Defects cost money in rework, returns and lost trust.
Where it is used Quality dashboards and supplier reviews.
How to calculate it Defective units ÷ total units × 100
Worked example 20 faulty units out of 2,000 gives a defect rate of 1%.
