Finesse is a specialty molder of plastic jar covers for the cosmetics industry. Because the products sold are expensive cosmetics, the large cosmetic companies who purchase the jar covers are highly sensitive to the appearance of the product. Any cuts, nicks, abrasions, or pieces of dirt embedded will result in rejection of the units. The company spends a significant amount of time in the quality control area. The following list of sub-activities has been developed for quality control: NumberActivity Description Move units from production area to inspection area Quality Control inspector reviews lots Quality Control inspector determines lots to be inspected Each unit is physically inspected Defective units are returned to production area for rework Good units are sent to shipping for packaging and shipment to final customer Record of units inspected is recorded in production office 3.4 3.5 The sub-activities of this company indicate that: O The company has many value added activities because customers do not want to be shipped defective units O The company has many non-value added activities. The company should concentrate on eliminating defects during the production process The company has both many nonvalue-added activities and should concentrate on eliminating production defects