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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?
A. Both 1) In order to minimize financial losses from quality control problems, all problems which have a measureable cost should be corrected and 2) 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.
B. in order to achieve zero defects, all quality control problems, including those which do not have a direct financial cost should be corrected.
C. the majority of defects are caused by a small percentage of the identifiable problems. Improvement efforts should be reserved for these vital problems.
D. In order to minimize financial losses from quality control problems, all problems which have a measureable cost should be corrected
E. 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.
Answer: C
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C. Fixed Term Deposit
D. Cash Flow Instrument
E. Commercial Paper
Answer: B,C,E
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B. Joins with one or more companies, but retains its autonomy and relies on the other companies to perform specific functions
C. Chooses to contract with vendors who provide specific functions that would otherwise be performed in-house, such as paying claims
D. Merges with one or more companies to form an entirely new company
Answer: A
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