Unsafe for Children - Mattel’s Toy Recalls and Supply Chain Management

Derick Ralph F. Tabi                                                                FEB. 6,2017

BSBA-FM/III

Case Study 2

Unsafe for Children: Mattel’s Toy Recalls and Supply Chain Management

I. Problem

        Manufactured toys in China which contains excessive amount of lead paint and using of small magnets that could loose and ingested by children. Causing a serious problems for Mattel and for manufacturers in China.

II. Case Facts

        Lead was commonly used in paint until the 1970s. It is a neurotoxin, and it is particularly harmful to developing brains in young children. Repeated exposure can cause problems ranging from reduction in IQ to serious brain damage. Children frequently chew on toys, ingested paint, and exposing them to lead. Pigment was a common source of lead in paint. When the toxic effects of lead had become apparent, pigment based on titanium dioxide generally replaced those based on lead. In using of magnet on toys are very harmful. When a child ingested more than one magnet, the ingested magnets could bind together across intestinal fold, eventually perforating the intestine and causing serious injury or death.

III. Analysis / Hypothesis

         If this mistake did not resolve, there would be a lot of children that is suffering on the decease get on lead painted toys. There would be lot of death if every children ingested small magnets and bind together at their intestine.  

IV. Alternative Courses of Action

        Manufacturers and toy makers had to be careful when designing their products to ensure that toys intended for very young children did not have loose small parts, and that any small parts attached to toy could not be detached. Manufacturers should make toys without lead paint and make sure that it cannot detached so that it can’t affect the young children. They have to be sure that their suppliers are legally protected and well inspected annually.

V. Recommendation and Conclusion

        Therefore I conclude that manufacturing a product with quality raw materials can strengthen the reputation of any company. It maximizes the quantity of production, domestic and overseas, and it also maximizes the profit of the company. One little mistake on manufacturing a product can force a company to shut down and whatever happen on every company it can affect the economic stability of the country. It can affect also the customers decision to buy and use the product we are selling.

Discussion Questions:

1.) Why do firms contract overseas for production of product they sell?

Answer:         The firms contract overseas for production of product they sell to gain certain advantages from the different countries. One of the biggest advantages is cheap labor that cut down the cost of products. To get the advantage of the cheap fuel prices and the raw materials to make the products at effective cost. The companies can get tax benefit and other government policy advantages by producing their products at overseas.

2.) What were the primary causes of Mattel’s recall problem?

Answer:         There are several causes for the recall. But the primary causes are the problem on: manufacturing, design and usage. One primary cause is the use of lead paint on toys. Lead was commonly used in paint. Repeated exposure can cause serious brain damage. Second cause for recall was defect in product design. That was the result of increasing used of small powerful magnets in children’s toys. Some recalls were due to the potential for misuse. Some features of toys generally were not a cause for concern if children used the toy in intended         way, but children often found creative ways to play that were anticipated by designers.