Each batch (50pcs - 1,000pcs) is tested for Rockwell, edge angle, lock strength (breaks the pc). Newer models (older models, 1 in 10), each pc is checked for sharpness, fit and finish, action, lock up (open and closed, safety is a big issue with Spyderco). Each knife is given a sharp rap of the tip (open knife) on the edge of a table to test for defeat. Play in blade, vertifcal play and any unusual anomalies. Our QC dept is very conscientous (and quite adamant). The genral rule is, "You have just purchased this knife for $.$$, would you be satisfied with it?"
In addition, each member is reponsible for their own QC. Putting through a marginal pc is embarrassing. "Best effort" is pushed hard. The old concept of "good enough" is rarely "good enough". There is a large gap between "just over the good enough line" and best effort. A lot of hubbub? yes. Appreciated, also yes. Expensive, also true. Like Chris Reeve says, "no secrets, we're just willing to make less profit".
sal