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  1. 1. Quality & Safety Measures at LEGO
  2. 2. Prepared by: • • • • • • • • • • Akash N Parikh Ankit Shah Anshu Sharma Bhavika Dodia Manali Hanmante Mit Shah M.S.Srivamsee Nikita Kale Tarit Registrar Venkatesh Iyengar 11BSP0061 11BSP1302 11BSP0137 11BSP1377 11BSP1799 11BSP1626 11BSP0540 11BSP1501 11BSP1066 11BSP1114
  3. 3. Case Overview: • LEGO Group – A toy making company • LEGO Stands for “leg” (play) “godt” (well) • Founded in 1932 in a small carpenter’s workshop by Ole Kirk Christiansen • Headquarters reside in Billund, Jutland in Denmark
  4. 4. Overview - Continued • World’s 6th largest manufacturer of toys • Products are sold in more than 130 countries • Brick based toy company • Even though popular among adults, the main target customer are children
  5. 5. 5 Targets set by LEGO • Zero Product Recalls • Top ten on employee safety • Support learning to 101 million children • Explore the opportunity of becoming fully reliant on renewable energy • Work towards elimination of waste
  6. 6. Health and Safety Policy • Objective: The Occupational Health & Safety policy shall ensure that all activities of the LEGO Group are planned and executed in accordance with a healthy and safe working environment. Compliance with national and international legislation and other standards which the LEGO Group has adopted is considered a minimum requirement. • LEGO Group Way:     Safety Health Work Planning Improvements
  7. 7. Product Quality Measures • • • • • • • • • • Quality Policy To be the best in all the areas of business in which they participated Durability and versatility Highest quality of ABS (Acrylonitrile Butadiene Styrene) Plastic 20 other types of plastics are used LEGO Toys are passed through generations Manufactured under controlled conditions Moulds were precisely engineered Worn out moulds were buried Emphasis on packaging & Raw Materials (EU CE Symbol & ASTM Standards
  8. 8. Environmental Issues • • • • ISO 14001 standards Recycle of plastic materials Sorting of Plastics Use of Eco friendly raw materials
  9. 9. Safety Standards • Strict Safety Standards • Division = Preventive activities Monitoring Activities • Preventive Activities – Foreseeable misuse • Tests Conducted by LEGO  Mechanical and physical tests  Chemical Tests  Ignitability and Flammability  Electrical Properties
  10. 10. Safety Assessment Stage • Safety any stage of development process • Integrated part of product development process • Better if early stage • the safety assessment must relate to the toy that will finally be placed on the market • Risk assessments & Safety assessment
  11. 11. Quality Control • Regular checks on the SCM • LEGO’s introduced Corporate Quality Control Department • Internal Team for monitoring toy recalling activity around the world • Safety measures for all its products (Quadro & Duplo)
  12. 12. Internal Production Control • Continuously adapt to type of production and experience • Where and during which phase could a “quality dip” have serious effects (in warehouse, in production, after production, etc) • Statistical sampling depending on experience, total numbers produced, sensitivity of production • Example: Small parts is critical in assembled toys for children under three. Therefore LEGO applies 100 % tension test check on heads of DUPLO-figures and wheels of DUPLOwagons
  13. 13. Internal Production Control
  14. 14. Promises made by LEGO • Play Promise  Consumer Satisfaction  Consumer Information  Product Safety • People Promise  Employee Survey  Health & Safety • The Partner Promise  Customer Pulse  Code of Conduct  Product Quality
  15. 15. Promises made by LEGO - Continued • The Planet Promise  We Care and Share  Care for children in need  Care for Education
  16. 16. Corporate Policies in LEGO Group • • • • • • • • • • • Communication Policy Environmental Policy Finance Policy Health & Safety Policy IT Policy Legal Policy People & Culture Policy Product Safety Policy Quality Policy Responsibility Policy Risk Management Policy
  17. 17. Future Prospects / Challenges • Increase competition from company like Mega blocks, Tianjin coko toy company • Price strategies of competitors • LEGO outsources a large part of its production to Flextronics
  18. 18. Future Prospects / Challenges (Contd) • LEGO future proofing – “We are beginning to see the first outlines of a new business model – moving from a tradition, integrated model towards a partnership model. In future we will focus our own efforts on the key processes relating to our brand such as innovation & marketing and source expertise in other areas from strategic partners. In doing so, we will derive important financial benefits in the very difficult market in which we operate.” • In Flextronics LEGO has found a satisfactory partner