Eggs are graded based on both internal and external quality parameters. External quality considers shell texture, cleanliness, and shape, while internal quality looks at albumen viscosity and size of the air cell. Maintaining consistent shell quality requires a total quality management program. Common external defects include cracks, thin shells, body checks, and pimples, while internal quality decreases over time due to loss of water and carbon dioxide, causing a watery albumen. Factors like disease, temperature, and handling can also impact internal quality.