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1) The Pareto principle is a technique used to determine which quality control       problems in a particular process should be corrected. Which of the following       statements best represents the philosophy employed by this principle?

        In order to minimize financial losses from quality control problems, all problems, which have a measurable cost,                 should be corrected.

        The majority of defects are caused by a small percentage of the identifiable problems. Improvement efforts should                be reserved for these vital problems.

        In order to achieve zero defects, all quality control problems, including those that do not have a direct financial cost                should be corrected.
        Generally, 80% of the quality control problems are justifiable for correction via cost-benefit analysis. The remaining                20% are not financially worthy of improvement efforts.

2) A technique for resolving conflict in which the parties agree to have a neutral       third party hear the dispute and make a decision is called:






3) The cost of corrective action taken by the buyer (purchaser) and chargeable to       the seller (supplier) under the terms of the contract is known as:

        Payment authorization

        Bid cost consideration

        Release payment

        Back charge


4) Time-limited scheduling is best used when:

        There is negative total float

        Resources can be better utilized by taking advantage of existing free float

        A finish-to-start relationship exists



5) Generally an objective is said to be clear if:

        Top management proposes it

        Project workers formulate it

        It employs numbers

        Different people reading it hold a single view of its meaning


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