Jessica Jane A. Gonzales
BSBA MMIV-B
ASSIGNMENT in TQM
CASE STUDY: Unsafe for Children: Mattel’s Toy Recalls and Supply Chain Management
Discussion Questions: 1. Why do firms contract overseas for production of products they sell?

There are several reasons for the companies to outsource some of their non-core business functions. Outsourced company will become a strategic partner who will be coordinating with the company. It has many advantages and helps the company to concentrate on their main business rather than distracting their efficiencies in different directions. Sometimes companies outsource because the company have expertise in that business area. Another reason behind the outsourcing can be the lack of resources in a company, which lead it to outsource to be performed better by an outsourced company. Outsourcing can help to reduce the excess capital expenses and a company will not need to invest in its non-core business through partnering with other company.

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

There were many issues which became the primary cause of Mattel recalling its goods. There were initially two problems in the Mattel’s toys which were lead excess paint and defective design. According to the recalling volume of Mattel’s goods, most were recalled due to defective design in which small magnets were attached that could become loose. While on the other side, recalling of goods due to excess lead was comparatively low with the defective design. The reason behind the defective design was simply due to the company’s product development process and this had to be focused by them.
The primary cause of the Mattel’s recall was the design of the toys. Recalls was necessary because products were faulty it’s their bad design by Mattel. Plus, the Manufacturers did not comply Mattel’s standards and Mattel did not realize about that

3. What actions were taken and by whom to deal with the recall problems? Do you think these actions were the right ones? Why or why not?

4. What should Mattel do now? What should China do now?

5. How can accountability be increased and better managed when production is moved overseas to other firms in the supply chain?