The fast changing economic conditions such as global competition, declining profit margin,customer demand for high quality product, product variety and reduced lead–time etc. had amajor impact on manufacturing industries and also defect rate of product plays a veryimportant role for the improvement of yield and financial conditions of any company.Actually defects rate causes a direct effect on the profit margin of the product and companiesstrive to decrease the defects rate of the product during the manufacturing process as much aspossible. Gafat Armament Industry is the one which faced this problem due to highdefective/rejected product during the manufacturing process.The main objective of this thesis was to identify the root cause of critical problem andreduce the amount of defective product in the factory by applying basic statistical quality control tools and show how to reduce the problems by taking preventive action againstany defects produced during the process. To meet these objectives the product with lessannual performance and component with highest rejection rate were considered for detailanalysis. The existing manufacturing system and the problem of armament part production and control section of gafat armament industry which aretaken as a case for the study were assessed by collecting the data from both primary andsecondary sources.In the analysis, it had been found that final product of ET-97/1 automatic rifle has lessannual performance and Breech block production line has the highest rejection rate. Toalleviate the problems basic SQC tools like control check sheet, control chart, Pareto chart, cause and effect diagram are utilized. The analysisindicates; manufacturing method, machine tool problems, operator‟s error (skill gap) arethe main root causes for rejection. Action plans were suggested and tested by applying modelimplementations and also possible preventive actions and alternative solutions had beenrecommended for critical problems.Finally, this research paper introduced systematic way of finding the root causes of anyproduction process and quality related problems, The success of the study not only enhanced quality of the industry but also reduced the production cost of the final product by vi minimizing defective/rejection of products thereby increased quality as well as competitiveness.