Case Study - How Chinese Toymakers Respond to Recalls

1089 WordsJun 7, 20115 Pages
Case Study - How Chinese Toymakers Respond to Recalls I. Introduction In 2007, the US Consumer Product Safety Commission CPSC announced five different recalls of Mattel’s toy because of the below two issues: 1. 9.3 million play-sets with small magnets inside toys could be swallowed by young children and it may have potential of fatal accident. They included Polly Pocket dolls and Barbie and Tanner 2. Exceed of lead contain of the paint by US safe limit 0.06% of paint. They included 1.5 million Fisher Price infant toys and 253000 of Mattel “Sarge” die cast car. Such recalls has sharpened the concern whether industry and governments can stop and control Chinese manufacturer from using lead paint. From those cases, we should not only…show more content…
Moreover, whoever they used from the list or not, they should take incoming quality control of the paint to ensure the paint should fulfill the required standard. Although quality control will cause the increase in cost, it can help to maintain the quality standard and reputation of the company. Le Qu – Le Qu focused on too much on product development and paid less attention to manufacturing quality. However, when they received the recall from Mattel, Le Qu woke up suddenly and realized that the importance to follow the regulation from customer. It was too late to react and cause the failure of the company. ELI- ELI has a good management team to monitor the quality control as well as the company strategy of development that so they can monitor the quality standard from subcontractor. Also they know that problem of any mistake from subcontractors are harmful to the company, so they have a planning to build own factory to integrate all the process from in-house process so as to minimize any potential mistake from outsourcing. For sure such measure and improvement need to have a huge investment and will not see the return immediately. But it can help to control product quality and maintain the reputation from customer. It will help for the long term business return.

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