LTPD

Consumer Risk

Establishing a tight control limit protects the buyer from receiving bad batches. When a factory utilizes LTPD, the sampling plan is structured to ensure that batches with defect rates exceeding this limit have a low chance of acceptance. This probability of accepting a bad batch is often set to ten percent.

Sampling Method

Quality inspectors draw a random sample from each incoming lot. Selecting the sample size according to LTPD ensures sufficient statistical power to detect unacceptable lots. This approach guarantees objective decision-making.

Purchase Contract

Cell supply contracts often include this parameter to protect the buyer against poor production runs. Specifying a low LTPD forces the cell manufacturer to maintain a very high level of process control to avoid costly lot rejections. This contractual mechanism aligns the incentives of both the supplier and the customer, reducing the frequency of disputes over incoming product quality and avoiding production line stoppages.