QUALITY MANAGEMENT IN BUSINESS ASSIGNMENT

Mattel is the world largest manufacturing toy corporation in the world. The purpose of this report is to provide information about Mattel’s quality management.Báo cáo về quy trình quản lý chất lượng tại công ty sản xuất đồ chơi Mattel

QUALITY MANAGEMENT IN BUSINESS

Title page

Prepared for: Ms Doti Chee

Mr Jubred Peñano

Mattel Quality Management System Banking Academy, Hanoi BTEC HND in Business (Finance) Prepared by: Snake group Class: F05B

Number of words: 3,693 Submit day: 27th, December 2013

Table of content

Introduction 1

3.1 Explain how quality management can be measured 1

3.1.1 Quality management of Mattel 1

3.1.2 The measurement about Mattel’s QM 2

3.2 Evaluate the benefit of user and non-user surveys in determining customer needs 3

3.2.1 User survey: 3

3.2.2 Non-user survey 3

3.3 List the methods of consultation employed in one quality scheme to encourage participation by under-represented groups 4

3.3.1 Definition of under-represented groups 4

3.3.2 Quality scheme 4

3.3.3 There are two types of under-represented groups: 4

3.3.4 Consultation methods for internal under-represented groups 5

3.3.5 Consultation methods for external under-represented groups 6

3.4 Identify the value of complaint procedures and analyze how they may be used to improve quality 6

3.4.1 Definition 6

3.4.2 Mattel’s complaint procedures: 6

3.4.3 Evaluation about Mattel’ complaint procedure 7

4.1 Report on the role of self-assessment in order to determine an organization’s current ‘state of health’ 8

4.1.1 Definition of self-assessment 8

4.1.2 Self-assessment have importance role 9

4.2 Evaluate the importance of communicate and record keeping 10

4.2.1 Communication 10

4.2.2 There are several elements that depend on effective communication 11

4.2.3 Record keeping 12

4.3 Guidelines on stages of staff consultation necessary for implementation of quality scheme 12 4.3.1 Definition of staff consultation 12

4.3.2 Set of scenario 12

4.3.3 Quality scheme 13

Conclusion 15

Introduction

Mattel is the world largest manufacturing toy corporation in the world The purpose of this report

is to provide information about Mattel’s quality management The report is divided into 8 parts:

 Explain how quality management can be measured

 Evaluate the benefit of user and non-user surveys in determining customer needs

 List the methods of consultation employed in one quality scheme to encourage participation by under-represented groups

 Identify the value of complaint procedures and analyse how they may be used to improve quality

 Report on the role of self-assessment in order to determine an organisation’s current ‘state

of health

 Evaluate the importance of communicate and record keeping

 Follow guidelines on the stages of staff consultation necessary for effective implementation

of a quality scheme

 Propose new systems or modifications to existing systems that could improve service quality

The information about the report is researched from various sources such as book, website, case study and the other communication Due to the limited scope, timing and available resource, the research has only been able to give the general information about consultation methods The future research will analyze more deeply consultation methods in order to improve under-represented groups

3.1.Explain how quality management can be measured

3.1.1.Quality management of Mattel

"A quality management principle is a comprehensive and fundamental rule / belief, for leading and operating an organization, aimed at continually improving performance over the long term

by focusing on customers while addressing the needs of all other stake holders" (Global Quality Village, n.d.)

During August 2007, Mattel had a serious problem – recalling unsafety toys because of loose magnets and excess lead It can be seen clearly that Mattel actually had poor quality

management However, by taking many actions which involve to improve the quality of products, Mattel gets the ordinary position – number 1 spot on the toy market in the world In

2012, Mattel also is ranked among Corporate Responsibility Magazine's "100 Best Corporate Citizens" and the "World's Most Ethical Companies." (Yahoo Finance, 2013)

3.1.2.The measurement about Mattel’s QM

3.1.2.1.Toy industry standards

After recalling, some problems were recognized so Mattel applied several methods to achieve the standards in toy industry in order to improve the quality of its products Mattel brought many changes in its design with a view to dealing with the loose magnets and other issues so that the quality would be increased We design our toys to meet standards such as ISO 8124, ASTM F963 and EN 71 on toy safety (Iso, 2013) Based

on following these international standards about safety toys, the quality management of Mattel has become more effective Therefore, Mattel can build relationships with, and loyalty among, its customers, whatever age

3.1.2.2.Quality control

Mattel maintains a quality control program to help ensure compliance with various US federal, state, and applicable foreign product safety requirements (Mattel, 2009) As a result, Mattel could define all the problems which occur in manufacturing process to ensure that there is no defective toys In addition, the actual operating performance of Mattel would be measured easily by analyzing the data from tests It means that the quality of Mattel’s toys would be raised and the quality management can be enhanced 3.1.2.3.Procedures for all operation

One reason for recalling is excess lead in the paint so Mattel have improved its procedures to make sure that that this dispute would not happen again in the future To

do this, Mattel applied a number of procedural changes in choosing paint suppliers including: Supplier certification requirements, Testing requirements and Inspections (Mattel, 2009) Based on this process, Mattel actually want to assume responsibility for non-lead paint and all products’ quality would be improved Consequently, Mattel quality management is improved

In general, the quality management of Mattel have been developed so much and become more effective in controlling the problems which directly involve to the quality of Mattel’s toys In fact that the net sales of Mattel has grown by 4.7% from $5,970,090 in

2007 to $6,266,037 (in thousands) in 2011 (Mattel annual report, 2007, 2011) This shows that the quality of Mattel’s products is increased a lot and it makes the sales of Mattel go up

3.2.Evaluate the benefit of user and non-user surveys in determining customer needs

3.2.1.User survey:

Definition of user survey: User survey is performed people using the product and service Furthermore, user survey helps to understanding about the customer’s needs and want, the requirement and the expectation of customer about the product and service

The benefit of using user survey for Mattel:

 Current satisfaction’s evaluation: Mattel can collect the information about the situation

of the business based on the feeling of user about the product and service in current time It helps the company make the timely decision and solve the user’s problem in the earliest time

 Tracking changes in evaluating: Mattel can compare the change in level of satisfaction

of customer about product and service in previous time and in current time with same type of question It helps Mattel improve the product and service to meet the user’s expectation

 Collect users’ suggestion: Mattel can receive the useful information about improving the product and service in a better way from the users Furthermore, it helps Mattel retain user and enhance the user’s satisfaction and loyalty

3.2.2.Non-user survey

Definition of non-user survey: Non-user survey is performed people who are not using the particular product and service It helps to understanding why the customers do not want to use the product and service

 Barrier to access: Mattel can take the reason why non-users do not use the product and service of the company such as the unreasonable price, the bad quality about the

product and service Based on these, Mattel need to improve the product and service to attract non-user and enhance Mattel’s value

 Expectation of product and service: Mattel can take the information from non-user about their expectation of product and service Based on this information collected, Mattel need to improve the product with reasonable price and enhance the high service quality It helps Mattel attract the non-user group and meet non-user’s need and want

 Awareness about the company: Based on the information which is collected about non-user’s feeling for company, Mattel can understand some of the reason that non-users

do not satisfy about the company such as the problem about product and service Therefore, Mattel needs to improve the quality of product and service through inspection, control and assurance quality in order to enhance their perception about company

3.3.List the methods of consultation employed in one quality scheme to encourage participation

by under-represented groups

3.3.1 Definition of under-represented groups: the groups that are typically underrepresented

and underserved in your city and whose voices are often not included in planning or heard on issues Interestingly, these groups are often disproportionately affected by some of the issues or problems that affect a city’s overall population (Blueprintforchangeonline, 1994)

3.3.2 Quality scheme: Mattel should use ISO quality scheme model to encourage

participation by internal under-represented groups (focus on involvement of people) and external under- represented groups (focus on customer)

3.3.3 There are two types of under-represented groups:

Under-represented groups

Barriers

Internal Low salary

employees, the cleaners

For example, the low salary employees and the cleaners in Mattel think their working do not make the big influence for Mattel operating Therefore, they do not want to contribute their voice about the company

External Low income

customer, remoteness area

High price Religion Difficult to approach Mattel’s products because of lack of information

3.3.4 Consultation methods for internal under-represented groups

Methods Advantages Disadvantages Time for using

Survey

(Face-to-face)

Maximize the quality of data collected

Can take a wider range of answer

Time-consuming- especially data analysis

Member participating survey

is fewer than the other surveys method

questionnaire)

Research more deeply the level of satisfaction

of under-represented groups about the working environment, salary, etc…

Group

discussion

Discussion can helps the group contribute more ideas to make the right decisions

Each member of under-represented group can feel more confident when participating

in discussion

Time-consuming Pressure from the discussion because of the difference of the opinion with another member within group

Refer to opinion of each member of under-represented group about the company It helps Mattel can understand thinking of them and make the right decision for the company

3.3.5 Consultation methods for external under-represented groups

Methods Advantages Disadvantages Time for using Questionnaire Easily to manage

Low cost of performing the survey

Collect the data from a lot of respondents in the short time

The reliability of survey data may be low

The respondents can be chosen in order to deal with the survey, it maybe create biased opinion

Need to collect the opinion from a lot of member of under-represented groups and make the decision at the short time

In-depth

interview

Easy to ask for each member of

under-represented groups in wide area

The complicated problem can be solved quickly

High rate of refusing to participate in survey because of calling can

be disturbed each person of under-represented groups

High cost of conducting this survey

Need to collect the detail opinion and nearly exacted from

under-represented groups

in widely area

3.4.Identify the value of complaint procedures and analyze how they may be used to improve quality

3.4.1.Definition: A written or spoken statement in which someone says that somebody has done something wrong or that something is not satisfactory (Dictionary Cambridge, n.d.) 3.4.2.Mattel’s complaint procedures:

To be able to solve all customers’ complaints, Mattel has built a procedure to help customers satisfied The procedure will be shown through a diagram as follows:

3.4.3.Evaluation about Mattel’ complaint procedure

1

Customers

Making

Complaint

Customers can easily make complaints about Mattel’s products or service by official website, phone number or postal address This shows which parts of products or service of Mattel is defective or not good

2

Collect &

Record

Complaints

Classification

Mattel can know exactly its weakness through customers’ views, so Mattel can classify the same problems about its quality and then brings the right solution quickly Furthermore, by analyzing the data, Mattel can find out common fault of its products or service which make the quality lower As a result, the quality management will be improved immediately to meet the requirement of customers

3

Solutions of

Mattel’s

managers

Mattel will rely the complaints with 2 weeks (10 working days) (Mattel, 2001) This is an opportunity for Mattel’s managers evaluate their performance and look for different methods to improve the quality of products or service Moreover, Mattel can apply new quality management approaches to increase its quality

4

Report to top

managers of

Mattel

If customers are not satisfied with the reply of managers, the complaints will be reported to higher level managers to settle the disputes After that, the top managers can find the most effective quality management for the situation of Mattel

In general, customers’ complaints brings a lot of benefits to Mattel’s performance In fact that the complaints to the company are made by only approximately 4% of dissatisfied customers Therefore, if customers are not interested in Mattel’s toy, they will not point out the faulty in the products or the problems which occurs in Mattel’s service Consequently, the mistakes would be repeated and make the quality of products and service lower Furthermore, the customers’ complaints is a challenge for Mattel about its quality management Based on these complaints, Mattel could discover the ways to achieve higher quality in its products and service in order to make customers delighted In addition, the internal system and process of Mattel will be tested by how managers handle these complaints, so Mattel can improve its performance and take advantages to competitors In brief, complaints are not only usefulness but also the opportunity for Mattel to recover all the faults and develop the quality of its service and products

4.1.Report on the role of self-assessment in order to determine an organization’s current ‘state of health’

4.1.1 Definition of self-assessment: the first stage of the career planning process It is the