Final answer:
Jeremy is using the principle of exception to address production defects at Tech Farm Equipment. He has set a threshold of 200 defects per million as the point at which he should be alerted, indicating a serious deviation from standards.
Step-by-step explanation:
Jeremy is using the principle of exception. This principle states that managers should only be alerted or intervene when performance deviates significantly from the expected or desired standards. In this case, Jeremy has set a threshold of 200 defects per million as the point at which he should be notified, indicating a serious deviation from the standards. By applying the principle of exception, Jeremy is able to focus his attention on addressing the most significant issues and improving overall productivity.