Analysis Quality in Production and Operation is a systematic standard based management approach which targets customer satisfaction by applying product inspection on process of production before use and on the operation during utilizing the specific product. The main purpose of this research is to analyze Quality transformers in production and Operations in using Transformers manufactured in Ethiopia by Tatek Transformer factory. The research covers only transformer type of distribution oil immersed. Protection methods are considered and also there is detailed analysis about distribution transformers in the testing, inspection and operational failure reasons. The Quality analysis in production and operation of distribution transformer analysis resulted Primary data for testing and inspection within the factory, secondary data collected from the EEU's maintenance center and site observation within the distribution network. The scientific approach to analysis these collected data are IEC standard parameters, Pareto and cause and effect analysis. The study addresses 20, 940, 22 transformers are deemed in sampling for testing within the premises of the factory the transformers, secondary data collected from EEU’s maintenance and site observations respectively. The voltage level and the capacity in kVAs deemed for this study are 15 and 33KVs and form 25-1250kVAs. I have received the report of 940 from the four regions of Addis Ababa, and this secondary data reveals that, among the reasons reported the issue of overload, lightening and unbalanced loading and earthlings fault were from the worst to the least in terms of reason. Over all, this study finalized and concludes that the failure rate is 9.6%, this show very high and beyond the expectation to be. Failure rate 0.05% is the accepted rate. The manufacturer share for damaging of transformer is 20.11% this is assured this much of transformers are found damage before energized to the existing distribution network. This is also can happened because of missing design test, there is no operational manual on how to loading and. The other 79.89% share for the failing of transformer is on the Utility side; this is also because of not using protection devices, unbalanced load, over current, improper usage of ratings and phase balance.