Select one example of adaptive creativity and explain why it is not 'innovatively creative'.

$$\begin{array}{|l|l|} \hline \textbf { Adaptive creativity examples } & \textbf { Innovative creativity examples } \\ \hline \text { Cameras in mobile phones } & \text { VolP (e.g. Skype) } \\ \hline \text { ATMs } & \text { Online banking and insurance } \\ \hline \text { iPad mini } & \text { iTunes } \\ \hline \text { Airbus A380 } & \text { Jet airliners } \\ \hline \text { Flat beds in business class } & \text { Low-cost airlines } \\ \hline \end{array}$$

Define the term ‘lean production’.

Why does ‘cutting waste’ help increase business efficiency?

Define what is meant by the term ‘quality assurance’.

An electrical assembly business, located in Europe, produces several products. The following data (in US dollars) are available for two of its key components, X and Y:

$$\begin{array}{|l|c|c|} \hline \textbf{ Products } & \mathbf{ X } & \mathbf{ Y } \\ \hline \text { Direct labour costs per unit } & \$ 5 & \$ 7 \\ \hline \text { Direct material costs per unit } & \$ 4 & \$ 12 \\ \hline \text { Fixed factory costs directly allocated to each product (monthly) } & \$ 2000 & \$ 3000 \\ \hline\text { Business overhead costs (administration and marketing) } \\ \text { allocated to each product (monthly) } & \$ 6000 & \$ 8000 \\ \hline \text { Current monthly output (units) } & 500 & 1000 \\ \hline\text { Unit cost of product if bought-in from supplier (including } \\ \text { transport costs from Asia) } & \$ 11 & \$ 24 \\ \hline \end{array}$$

Calculate the unit direct cost of making product X and product Y.

With reference to one organisation that you have studied, compare and contrast the importance of innovation and globalisation in operations management.

Define the term ‘crisis management’.

What would be meant by the term ‘optimal location’ for a new Walmart supermarket?

Workers at a factory in Guangdong province have complained about low pay and aggressive and verbally abusive behaviour from managers. British-owned luxury goods manufacturer Burberry has pulled production of its bags from a factory in the Guangdong province of China.

The move follows concerns that working hours and conditions at the factory, operated by the Korean company Simone Accessories Collection, were in possible violation of Burberry's ethical guidelines. The China-based factory makes handbags for several Western clothing and accessory brands.

There's a big potential upside to GM's insourcing effort - if managed correctly. 'Higher productivity, lower management burden, reduced travel costs, improved quality, reduced 'rework', increased convenience of shared working hours and better cultural fit are all tangible benefits experienced by organisations that have repatriated roles,' says F. B. Mack, director of operations for outsourcing advisory Sylvan Advisory.

Discuss GM’s and Burberry’s decisions to insource more of their operations.

Define the term ‘research and development’.

The last meeting between the marketing and operations directors of TTF was very heated. They each blamed the other for the disappointing rise in customer complaints and the fall in unit sales. The marketing director had complained that 'The number of faulty tractors leaving our factory has increased. Our reputation is being damaged by these faults and many former customers are now buying imported tractors. We have just lost a government order for $15$ tractors as our competitor was able to boast about their ISO $9000$ certificate.' The operations director had replied by saying that customers were becoming much more demanding and it was up to the marketing department to provide good after-sales service. ‘I have increased the number of quality-control engineers from five to eight and we are correcting more faults in finished products than ever before.’

$$\begin{array}{|c|c|c|} \hline & \textbf { TTF customer complaints } & \textbf { TTF sales in units } \\ \hline 2012 & 53 & 2345 \\ \hline 2013 & 78 & 2124 \\ \hline \end{array}$$

Describe two problems TTF experiences because of low-quality products.

Define the term ‘trademark’.

Define the term ‘batch production’.

Define the term ‘joint venture’.