Table of Contents
3.1 Explain how quality management can be measured
In order to exist in competitive market, any business need apply some methods to measure
quality for identifying what need to improve in their products. For Mattel, they can apply 3
methods as follows:
Benchmarking is the process of identifying “best practice” in relation to both products
and the processes by which those products are created and delivered (Riley, 2012).
Accordingly, Mattel can identify and evaluate the current position of organization
through measurement and comparison of their performances in both inside and outside
industry for identifying areas and means of performance improvement.
By using benchmarking, Mattel can compare their products with products of strong
competitors such as Hasbro, Lego. According to rank of Climate Counts about “Safety
toys and children’s equipment”, Mattel’s points (32 points) only lower than that of
Hasbro (73 points) while higher than many companies in the same industry
(climatecounts, 2013). It shows that quality of Mattel products is quite good but not the
→ Mattel can realize the good practices of Hasbro. It requires Mattel need to find out why
Hasbro is assessed the best in toy industry to find the ways of closing the gaps in
products. Therefore, Mattel can improve the quality of their products better.
3.1.2 Emphasis of approaches - Statistical Process Control
Statistical process control (SPC) is used to evaluate process output to decide if a process
is “in control” or if corrective action is needed. There are many tools of SPC such as
Pareto Analysis, Scatter Diagram, and Statistical Control Charts (Stevenson, n.d.)
Mattel may use Statistical Control Charts to monitor number of defects in each
manufacturing group. Assuming that Mattel have 6 manufacturing groups and Mattel
allowed only 10 defective points within 50 products in each manufacturing group,
Mattel receive result as follows:
Figure 1: Control chart about numbers of defect in Mattel product.
→ See the chart above, Mattel can easily see that the defects inside each group is almost
higher than standard. Therefore, it requires Mattel find out the reason why the number
of defects is over the control such as bad training, stress of employees or machine
breakdown Mattel will have solution to solve it such as upgrade technology,
training employee, create good environment during working time for employee.
3.1.3 Comparison with past performance
Comparison with past performance is one of the effective ways to measure the quality.
Based on evaluating past performance, the managers can assess current performance
whether are good or not for establishing plans, innovative strategy to improve it better
in the future.
Figure 2: Statistics of Mattel’s sales in 2012 (Mattel, 2012)
The chart shows that sales of Mattel decreased significantly in 2008. Decreasing sales
in 2008 derived from product recall in 2007 because it could pose a danger to children.
Mattel toys do not meet requirement about quality. In that period, Mattel tried to gain
customer trust back by providing information about what toys are being recalled, where
to bring recalled toys, and what Mattel’s three-point check system on the first page of
their websites for insuring that all their toys are safe for children …Therefore, sales in
2009 started increasing back.
→ From identifying past performance, Mattel can easy to recognize that safety is an
important element which they need to focus more to meet customer requirement and
create higher performance in the future.
In conclusion, there are many different methods to measure the quality. Therefore, the more
methods Mattel use to measure the product quality, the higher quality the company can
3.2 Evaluate the benefit of user and non-user surveys in determining customer needs
Understanding needs of user or non-user plays an important role in developing business.
Therefore, Mattel should make the survey for both user and non-user to determine
customers’ requirement for improving the quality products.
3.2.1 Users survey
Users are people who use products or services of the company. Thus, a user survey
“looks at a sample of the population of actual users of a product, system, or services”
(JcFlowers, 2013). Mattel can use CRM tools such as telephone, email survey, internet
survey, directly interaction to take survey and gather survey result from users.
Collecting information from user survey brings many benefits for Mattel:
Obtain information about users to identify current and potential market, identify
consumer preferences and habits to customize products and services.
Continuous improving products quality based on understanding actual strength and
weaknesses of their products.
Enhance the relationship with customers for building beautiful corporate image.
The information of users is gathered as follows:
Profile of users
Benefits to Mattel
What’s your gender?
What’s your job?
What’s your monthly income?
How many children do you
Divide customers into different groups
(demographic segmentation) make a
plan to adjust products to satisfy
different need of different group.
- How often do you buy Mattel’s
Mattel will know purchasing habits and
purchasing power of customers and
kinds of products which attract
customers the most Identify the most
potential customers and best products to
- Are you satisfied with Mattel’s Identify level of satisfaction about
products as well as actual strength and
Mattel’s - Give some suggestion about weaknesses of products to continuous
product features and
what you want to change in develop strength and correct defects of
Mattel toys for meeting customer
Table 1: Benefit of user survey to Mattel
- What types of product have
you ever/never purchased in
3.2.2 Non - user survey
Non-user survey is “a considered as a test of the expectations of those community
members who haven’t used the service” (Anon, 2012). There are 2 kinds of non-users:
Person who has never used products/ services of company before: Doing survey
is to identify why respondents do not choose Mattel products Mattel can know
their weaknesses to overcome and create innovative products, new strategies to
attract their attention based on their needs.
Person who has been a user but has discontinued using company’s products
and services: Objectives of non-user surveys is to understand why the respondents
stop using Mattel toys for finding out the way to get them back.
The information of non-users is gathered as follows:
Profile of nonusers
Benefits to Mattel
- What’s your gender?
- What’s your job?
- Identify ability to buy Mattel products for
communicating with non-user to deliver
valuable information (strengths compared
with competitors) about products for them.
- Identify potential people to create good
relationship with non-users for attracting
Finding out the reasons why they do not
use Mattel toys anymore or never used it to
- Give the suggestion and help non-users
have opportunities to interact directly or
use trial products of Mattel.
- Correct mistakes, defect what derived
from Mattel toys to satisfy these people for
Identify respondents’ demand about Mattel
products or services (features, customer
hotline services..) Mattel can meet their
requirement to attract them.
Barrier to access
Do you have children?
Have you ever heard
information about Mattel
Have you ever bought
Why don’t you choose
Mattel toys? It derived from
product’s features or price?
recommendation for Mattel
in order to attract you?
Table 2: Benefits of non-user survey to Mattel
In general, user and non-users survey is useful tool in order to measure the customer
satisfaction and identify their need to improve the company products effectively. From
that, company can keep existing customers, attract new customers and create competitive
advantage in the market.
3.3 The methods of consultation employed in one quality scheme to encourage
participation by under-represented groups
3.3.1 Definition of Underrepresented group
Under-represented groups are groups that “are typically underrepresented and
underserved and whose voices are often not included in planning or heard on issues”
Mattel consist of two type under-represented group:
Internal under-represented groups:
- Workers from factories in China: China is main raw material supplier of
Mattel with abundant cheap labor resources, so Mattel placed most of their
production factories in China. However, Mattel use English for almost
business transactions which lead to language barriers It is difficult for
Chinese worker can voice up, understand and receive information from the
management. In addition, they almost have low education background,
therefore their ideas are often underestimated, and easy to be rejected by
managers who have higher education level They are afraid to express their
External under-represented groups:
- Disable customer: They are people who absence of legal capability to
perform an act Difficult for them to purchase Mattel’s products and lack of
effective communication channel, tool for disable people to communicate
directly with Mattel.
3.3.2 Methods of consultation employed to encourage the participation for
a) Consultant method for internal under-represented groups
Application to Mattel
Workers can discuss in
the small group with
similar people (the
same education, the
comfortable to speak
out their ideas.
efficiency of process
translated into Chinese
It is ease for worker
to do the survey and
give their opinions
All the information of
the meeting such as
information of Mattel
translated into Chinese
so it breaks the
Worker can understand
and feel more confident
to speak out their
• Cheap and
• Many people
• Require skill
• Quick to
• Give publicity
to the issue
low and not
• Activities to
b) Consultant method for external under-represented groups
Application to Mattel
Mattel can use telephone
survey for customers who
are blind because they
cannot ability to response
Mattel in writing
When disable customers
need any information about
Mattel products or have any
ideas, comments or want to
buy Mattel toys, they can
easy to implement it
through forum, online
ordering of Mattel website.
For customers who difficult
• The area is not
• Annoy people
• High cost
• Respondents feel
free to voice up.
• Collect useful
Link can be
website at the
• Many people can
in walking, Mattel sent
directly survey through
postal to help them can
receive the information and
feedbacks for Mattel easily.
join so can collect •
the feedback from
the large numbers
3.4 Identify the value of complaint procedures and analyses how they may be used to
Complaint procedure is a prescribed method of lodging a complaint to an institution
(Collin, n.d.). In the case of Mattel, it is the process that Mattel receive feedbacks/
complaints from their customers.
3.4.2 Mattel customers’ complaint procedures flow chart
1. Customer fills all the blanks in complaint letter form
2. Letter complaint received from customer
3. Complaint put into the electronic records system and
forwarded to appropriate manager
4. Manager ensures that the email/letter is acknowledged
within 2 days
5. Manager conducts the investigation & provides a report
with recommendations to their general manager
6. The general manager provides a response to the customer
7. If the customer is not satisfied they may request the issue
be referred to the Chief Executive Officer for reviewing
Flow chart 1: Customers’ complaint procedures
3.4.3 The value of Mattel customer’s complaint procedures
In general, complaint procedure brings many values for Mattel Corporation and it is
very important with Mattel. Below are some specific values that complaint procedure
brings for Mattel Corporation.
Increase customer satisfaction and customer loyalty: Customer complaint procedure
helps company response for customer in the only 2 days so customer more satisfied
with Mattel. In addition, the way customers’ complaint was handled will influence
customers’ satisfaction with company. If handling customers’ problem makes them
satisfy, customer will come back and buy company’s products.
Evaluate the quality of product and services: Based on the complaint of customer,
Mattel can understand the mistake and the gap in their product and services so they
know their product and services are good, normal or not good in customers’ perception.
Understanding about the ability of staff based on the way that staffs give to deal the
problem of customers, Mattel’s directors can evaluate the strengths and weaknesses of
managers and employees in company so it helps Mattel can use right person for each
part of work to bring the best performance for Mattel Corporation.
3.4.4 Mattel use complaint procedure to improve quality
1. Customers complete the complaint form
and send it for Mattel
2. Mattel’s customer support centre received
letter complaint from customers
3. Customer support centre put complaint
into the electronic records system and
forwarded to appropriate manager
4. Manager ensures that the email/letter is
acknowledged within 2 days
5. Manager conducts the investigation &
provides a report with recommendations to
deal customers’ complaint to their general
6. The general manager provides a response
to the customer
How it to improve quality
Understanding what part of product or services
that make customer do not satisfy fix and
improve in correct part
Recording helps Mattel keeps and update
information about need and want of customer
have plan to change or improve product such as
develop product, add new features in product
that suitable with customers’ expectation
Limited time for manager to help customer will
have response in short time improve
customers services so increase the Mattel’s
performance and customers’ satisfaction
More way to handle customers’ complaint,
Mattel can find the best way to deal customers’
problem improve the customer service quality
and increase the level of customers’ satisfaction
Show the important of customer with company
build the good relationship between Mattel
and customer so improve the performance of
company and gain more satisfaction and loyalty
7. If the customer is not satisfied they may
request the issue be referred to the Chief
Executive Officer for reviewing
Ensure customer will receive the best way to
dealing their problems show the respect of
Mattel with customer so can improve the quality
of customer services and reputation of Mattel
under customers’ perception.
Table 5: Way steps of complaint procedures improve quality
In conclusion, complaint procedure is very important with a corporation. It brings many
values for Mattel such as increase the customers’ satisfaction and customers’ loyalty evaluate
the level of product and services and helps director understand about the ability of employee.
Moreover, complaint procedures are used to improve quality of Mattel’s product and
services. Through the feedback of customer, Mattel can realize the weaknesses in their toy
and customer services so they will change or fix these weaknesses to be suitable with
customers need and want. As a result, the quality of product and services are improved.
4.1 The role of self-assessment in order to determine an organizations’ current state of
According to McKay, by comprehensively reviewing the activities and performance of
an organization, Self-assessment helps organization can measure itself, identify and
examine any gap. There are some methods to review an organization’s activities namely:
Benchmarking, Baldrige Framework, Total Quality Management.
4.1.2 Role of self-assessment
There are 3 main roles of self-assessment in Mattel: Determine strengths and
weaknesses, find out opportunities for improvement, monitor and measure the process.
Determine strengths and weaknesses
Mattel has assessed the level of success they achieve as well as the failures and their
mistakes, thereby determining the strengths and weaknesses. The method Mattel use
for this role is Baldrige Framework; this method develop the strengths and
eliminate the weaknesses; after that it help company launched the new strategic
plan which has more effective in the future to improve the state of health of
→ For example, Mattel use Baldrige Framework on process management. In 2009,
in order to design the process that can meet all the key requirements. Mattel creates
a new science department which can identify the strength of new raw material.
Besides, to eliminate the weaknesses, Mattel order new cost control technology
from Japan to increase the productivity of process. By using this method of selfassessment, Mattel successes in reducing their cost 4% in the 2009 (Mattel, 2009).
Find opportunities for improvement
Mattel can identify the areas for improvement when they compare its current
condition of business activities with model criteria. The method which Mattel use is
Benchmarking, by compare with the same process in the past; Benchmarking not
only helps Mattel identify the opportunities for improvement but also through
improvement, contribute to optimizing business performance.
→ For instance, from 2009 to 2013, the stock price of Mattel rise dramatically from
$20 to $45 million, the reason of this good performance come from self-assessment
when Mattel benchmark the time to test sample product in 2013 with 2009 (Big
Charts, 2013). By applying a new technique, the testing-time reduced more than 4
hours per week. To benchmark with the same process in the past, Mattel could
know how they can find new opportunity to improve in the future.
Monitor and measure the process
The method of self-assessment which Mattel use for this role is Total Quality
Management. Mattel implemented this method to monitor and measure the
progress of its improvement initiatives. Besides, according to the 2012 annual
report, they also measure its fragmented attempts to introduce various quality
initiatives and to identify the link with the company’s business results.
→ For example, because of the good monitor and measure the process, Mattel already
achieved many international awards: ISO 9000 certificate for their products in
2008 and Toy Safety Certification. Mattel apply Process management of TQM in
Inspection and assurance process. All process of Mattel must through 3 quality
inspection phases: material checks, sample test checks, after production checks.
After that, Mattel record each sample which needs to be measured and tested.
Summarize and evaluate each issue in process, and compare the feature with the
4.2 Evaluate the important of communication and record keeping
Communication is the transfer of a message (information, idea, emotion, intent,
feeling…) that is both received and understood (Umoh, 2000).
Types of information
Figure 1: Types of information employed in business organization
With each type, it has different important role and brings different benefits for Mattel as
Important roles of communication
- Verbal: face to face Leadership:
• Useful for management: Mattel’s
of - Written: letter, report
upper management can receive
specific information related to
production, financial situation for
the bottom levels of
making decision easier and quick.
an organization to
• Useful for employees: Mattel’s
employees have opportunities to
express their requirements, ideas,
feeling, and expectation.
Horizontal: face to face - Verbal: face to face
• Teamwork: Mattel can promote
communication between - Written:
department or people on
departments create friendly
the same level in the - Electronic:
atmosphere, close relationship to
managerial hierarchy of
have better performance and bring
an organization (Kirit,
high work efficiency.
• Conflict resolution: By promoting
understanding one another Mattel
can reduce unnecessary conflict
Diagonal: Refers to
• Break the barrier between the
different departments for open
managers and workers
communication and encourage the
located in different
• Save time: Mattel can save time by
reducing the intermediary steps
between upper management and
Exchange - Verbal: Face-to-face
• Strengthen relationship: Mattel can
stakeholders to give necessary
between business and its
information into public for built
major audiences, such
good image and create long term
customers, - Written:
relationship with them.
• Customer focus: information about
products and services is transmitted
Telephone, direct mail,
directly towards customers build
trust and attract customers
Table 6: Important of communication to Mattel Company
With good communication, Mattel will have good leadership, high teamwork
performance for doing better job, and get good results.
4.2.2 Record keeping
Record keeping is “the activity of organizing and storing all the documents, files…
relating to the daily business transactions or organization’s activities” (dictionary, n.d.)
The reasons leading to important role of record keeping is derived from their benefits
bring for the company in aspects as follows:
Quality of record keeping: By taking notes and storing detail about quality
inspection and assurance procedure as well as condition of equipment through
inspection report, quality assurance record keeping, equipment report, Mattel can
control whether Mattel toys meet requirements or not and identify when
equipment need to repair or procure new equipment for improving the quality.
Thus, recordkeeping is considered as key to Quality Management System.
Sale record keeping: Mattel can find out actual consumption performance over
time to identify reasons lead to fluctuation in sales to make plans to overcome the
shortcomings and promote innovative strategies in selling Mattel products.
Database record keeping: By tracking and storing customer database efficiency,
Mattel can provide personalized services; collect customers’ feedbacks if
necessary through email address, telephone number for retaining existing
customers and building loyalty.
If Mattel do not have good record keeping, Mattel can face many difficulties in
operating business. Therefore, in order to run business effectively and want to exist in
competitive advantages, it is necessary for Mattel to have good record keeping system.
4.3 Follow guideline on the stages of staff consultation necessary for effective
implementation of a quality scheme
Staff consultation is the process by which management and employees or their
representatives jointly examine and discuss issues of mutual concern (Acas, n.d.)
4.3.2 A scene situation in Mattel
The situation in Mattel: “Improving and changing weak management team of
Due to the poor of management team, Mattel had problems in product quality and some
product was recalled. It influences on Mattel’s reputation in customers’ perception.
Therefore, Mattel should improve and change the quality of management team in order
to increase the performance of company. Staff consultation is the best way to help
Mattel achieve their objectives in improving and changing management team. Investors
In People (IIP) is quality scheme that Mattel will use it to increase the performance of
management team in company.
4.3.3 Staff consultation flow chart
Improving and changing management team plan (Pre-consultation)
Give decision in improving and changing management team
Review about the decision
Accepted by staff
Flow chart 2: Staff consultation flow chart
4.3.4 Explain the detail of each stage in staff consultation
There are four main steps in staff consultation about improving and changing management
team in Mattel. Below is a table about the detail of each step in staff consultation process.
team plan (Preconsultation)
Detail of steps
- Give benefits of staff consultation
to help employees aware the
important of their consultation for
increasing performance of company
- Provide the real situation about
quality of management team
- Give the goals and objectives of
management team performance in the
- Provide some plans for this
- Staffs give their agreement and
disagreement of some plans that were
provided in previous step.
- If they disagree, they provide for
Mattel other plan that they think it is
suitable with company situation and
strategies of company in management
team and explain benefits of their
Apply IIP quality scheme
These two steps connect with the Plan step in
Through 2 steps, Mattel can develop their
performance of management team based on
their staff idea and response about this
Mattel will gave more understanding about
ability of each staff, about strengths and
weaknesses so Mattel will have right plan in
using human resources in company
Give decision - Based on the opinion of staff, Links with step Do in IIP quality scheme.
Mattel director will decide the way Mattel will predict the performance and
improving and (plan) to increase the performance of effective of management team in the future
team in Mattel
management team in company.
(after they change) base on their decision.
- Evaluate the benefits of plan that
- Measure the agreement of staff with The last step connects with Review step in IIP.
the decision that Mattel decided in - Review again about the effective plan of
company through evaluates strengths of
- If staff do not agree, come back step improving and changing management team
2 and do again
Table 7: The detail of each step in staff consultation process in Mattel
4.3.5 Benefit of staff consultation guideline for Mattel
Staff consultation is very important with every company especially with a large
company as Mattel. It will bring many benefits for company if company follows this
staff consultation process.
Staff consultation helps company increase employee satisfaction. Through
consultation, staff can speak out their idea and show the respect of company with
company’s employee. It makes employees feels comfortable when working for
company so the staff satisfaction is increased and keeps talent people for company.
Staff consultation helps Mattel increase the relationship between managers and
employees when managers take time to listen and discuss about the idea of
employees. As a result, company can maintain more trust from their employees.
Based on the opinion of each staff in staff consultation, director of Mattel can
understand about the ability of each staff, the strengths and weaknesses of them so
he can have plan in using staff to helps increase the result of project and the
performance of company.
4.4 New systems or modifications to existing systems that could improve service quality
Products recall in 2007 has set alarm bells ringing about quality management system of
Mattel. It requires Mattel need find out problems in quality management system which
lead to product recall and take corrective actions to get customers trust back before it is
4.4.1 Problems in Mattel’s existing system
Figure 3: Flow chart for inspection and quality assurance process
One of the main reasons that Mattel toys were recalled was because high levels of leadbased paint were found on the surface of many toys. Painting process was implemented
by their Chinese material suppliers before it was delivered for Mattel. Although Mattel do
not directly cause this serious problem, they still owed the liability due to negligence in
checking and inspecting the materials which received from their suppliers. Mattel has
been criticized for placing too much confidence in their relationship with China and
slacking on quality checks at the manufacturing sites (Mattel, 2007). Moreover, one part
derived from lack of modern technology; as a result, Mattel fails in identifying poisonous
chemical in paints. Thus, it requires Mattel to update their quality management system to
make sure that their toy is safety for children’s health.
4.4.2 Suggest improvement to Mattel’s current system
Strengthen and enforce strictly Mattel’s three-point check system and for ensuring
that all their toys are safe for children:
Make sure that manufactures only use paint from certified supplier and Mattel
will test every single batch of paint from all vendors. If the paint is not up to
Mattel standards, it will not be used.
Increasing control on every level of the production process and conducting
random inspections at all vender facilities.
Pledging to test all finished toys vigorously before they reach the consumer. The
toys must meet a series of strict safety standards before they are put on the
market (Mattel, 2007).
Investing more machinery to support for inspection process: Mattel needs to
invest more in inspecting machines for supporting for inspection staffs in checking
materials. X-ray fluorescence (XRF) is the emission of fluorescent X-rays from a
material that has been excited by bombarding with high-energy X-rays or gamma
rays. X-ray Fluorescence analysis is widely used for elemental analysis and chemical
analysis, particularly in the investigation of metals, glass, ceramics and building
materials, and useful for lead testing (azom, n.d.). This machine can help Mattel
check and analyze whether exist lead in paint or not accurately.
Install the monitoring system in manufacturing factories in China: In order to
control activities in the production process of their suppliers, Mattel can install
monitoring cameras. By using it, Mattel spot out abnormal activities in different
stages in production process in order to prevent wrongful acts timely as well as easy
to find out the reasons lead to defects in their products.
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