Incoming inspection of complex microcircuits can be eliminated by improving product quality through supplier/manufacturer cooperation. Economic benefits are derived from reduced cycle times, elimination of excessive inventories, and reduction in capital and personnel resources. A product-quality improvement program involving Chrysler and RCA is directed toward these goals. Analysis of out-of-specification devices in a kit supplied to Chrysler identified areas for corrective action. As a result of these actions, out-of-specification devices were reduced from 6000 to less than 600 parts per million in nine months. It was then decided to evaluate the feasibility of eliminating incoming inspection of one device in the kit. Detailed analysis of out-of-specification devices identified areas for corrective action which can reduce the fallout by 50% and lead to eventual elimination of incoming inspection.