What is the correct choice: maximum production with 90% quality? or normal production with 99% quality?

None of them. The corect answer is maximum production with100% quality.

In case of quality,1% waste is unaccepable as well as the10%. If a factory produces1 million cars in a year,1% is10,000 waste. Would you drive one of them? Or would you accept if your mother gets sick of a medicin, which was in the1% waste. In the production quality, there is no tolerance at all.

In case of Production, you also need to achieve the highest available speed, otherwise you will not be profitable.

The solution is coming from Japan, called Poka Yoke. You have to organize your production flow on that way, that the next process in the sequance must automatically control and doublecheck the previous one(s).

My anwer is to go with NORMAL PRODUCTION with99% quality. Since quality rate is the part of EE. e.g. if performance rate is85% for maximum production and for normal production its75% even then when we calcuate the EE its only2%(85*0.90=76.5 ,75*0.99=74.25) but there are chances of customer claims so I will recommend that we must go with the2nd option as quality and safety should be the top priorities in the production management.

Quality then Quality .. with maximum Quality you always can survive in the market ,, low quality will destroy all your efforts in marketing then production ... but Quality sells itself 

You just cannot obtain maximum production with maximum quality, also in a production environment its very rare to achieve % quality production. In my opinion is that try to obtain the maximum  quality in a normal working environment where operators feel at ease to produce to their best ability.

Not all operators can work under pressure and its up to the manager to decide who can take the extra work load

Correct Choice is Maximum Production with Minimum Quality so better maximum with99% Quality and this need good arrangement before starting the maximum to ensure quality level not reduced so instead of spending money as a cost of repair or rejection cost spend it in improving the procecess at maximum to achive99% quality