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This paper describes preliminary findings on an expert system that uses both operator and transducer inputs in ‘almost’ real-time to diagnose scrap type and recommend corrective action to reduce/eliminate further production of this scrap type. During the development of the expert system, equal consideration was given to hardware installation and debugging; system architecture, logic, and triggering; and knowledge acquisition. The system is applied to a specific manufacturing process; however, the ideas are applicable to a wide range of problems in the production environment.