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Defect-Forced Go-Live Dilemma

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Your question is Defect-Forced Go-Live Dilemma. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

The Managing Director insists a project with major defects must go live; what is your course of action at DPD?