Occasionally we got questions on use of defect tracking system, my answer is "try not using them if the team is co-located". To back up my claim, I quoted from the two classic books below:
From 'Agile Testing' book, "New agile teams usually have a hard time believing it can be done." "The objective is not to get ride of a defect tracking system -- it is to not need to a defect tracking system. There is a big difference. This trick is to expose a defect the moment it occurs."
From 'Extreme Programming 2nd Edition', "At first, American workers can't believe this. Chet Hendrickson told me the story of his brother-in-law who worked at a Toyota plant in Kentucky. He saw a defective door go by. His buddy said, "Pull the cord." Nah, he didn't want to get in trouble. Another defective door. Another. Finally, he pulled the cord. He was praised for telling the truth and pointing out flaws. Unlike mass-production lines where someone "down the line" is responsible for quality, in TPS the goal is to make the quality of the line good enough that there is no need for downstream quality assurance. This implies that everyone is responsible for quality."