Pareto Analysis of Internal and External Costs Is a Tool

question 42

True/False

Pareto analysis of internal and external costs is a tool utilized during the analyze phase of DMAIC.

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Definitions:

Sources

Origins or points of procurement for materials, information, or inputs required for the production or operation process.

Destinations

The end points or locations to which goods, services, or information are sent or directed.

Optimal Solution

The best possible outcome or decision that maximizes efficiency, effectiveness, or utility in problem-solving or decision-making contexts.

Origins

The starting points or sources of products, materials, or movements in supply chain and logistics operations.