The 4-point system is the most widely used fabric inspection system globally. It assigns penalty points based on defect size, with larger defects receiving more points. Common defects include contamination, slubs, missing yarn, and dye spots. To calculate the rating, the total penalty points are multiplied by a conversion factor and divided by the fabric area. Standards for shipment vary by fabric type, with denim allowed 18 points per 100 square yards on average.