Switching Rules
Meaning ~ Acceptance sampling protocols in industrial supply chains use dynamic severity adjustments to alter the size of inspected samples based on supplier performance.
Discontinuation of Inspection
Meaning
Regulatory cessation of quality oversight occurs when a supplier repeatedly fails to meet the requirements of a tightened inspection regime. This formal action indicates that the manufacturer has lost the trust of the buyer and that the quality system is fundamentally broken. Discontinuation of inspection remains in effect until the factory demonstrates that it has corrected the root causes of the recurring defects.
Failure Trigger
This state begins when ten lots fail to improve. The rule prevents wasting time on a failing factory.
Contractual Suspension
Procurement teams use this status to halt payments and stop the shipment of all pending orders. Because discontinuation of inspection is a breach of the agreed quality standards, the buyer often has the right to seek an alternative source. The manufacturer must bear the storage costs for any goods held during this period.
Reinstatement Pathway
Resuming the relationship requires a full audit of the production line and a series of successful trial runs. The supplier must prove that the new process control measures are effective before discontinuation of inspection is lifted. This rigorous verification ensures that the problems will not reappear in the next shipment.
Trust is rebuilt through data rather than promises.