We have an excellent quality control system, because we inspect the finished goods as soon as they come off the production line. Products that don't pass inspection are sent back to the beginning of the production line for rework. A few, however, are scrapped, said Jerry Sellers, production manager at Orico, a manufac- turer of semiconductors.

Required: Explain what's wrong with Mr. Sellers' quality control system. Why may such a system result in excessive scrap and rework? Describe a more effective way to ensure that good products go into finished goods.