Thank you for the clarification. What is the heat treat process being used (quench and temper? annealing?) and what type of furnace is being used? Your range is not unheard of for small parts in a continuous, mesh-belt process, but would be extraordinary for parts processed in vacuum furnaces with high pressure gas quenching. Are you required to be certified according to QS-9000 or ISO/TS 16949? If so, continuous improvement is a requirement, and therefore you should be working on methods for reducing the fallout rate.