My company follows MIL-STD-45662. This standard requires that we provide our own definition of "significant out of tolerance condition" as applied to gage calibration. If a gage fails calibration and meets this definition, action is to be taken to correct possible nonconforming product. What is a good definition of significant out of tolerance condition? How does industry perceive this definition and what factors should be considered? Our current definition is to take the calibration tolerance of the gage and add a certain percentage. I would like some information that could be used as a "benchmark".