Quality and Safety Practices at LEGO

            
 
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Case Details:

Case Code : OPER062
Case Length : 13 Pages
Period : 1916-2007
Organization : LEGO Group
Pub Date : 2007
Teaching Note :Not Available
Countries : Global
Industry : Toys

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"We have installed safety monitoring procedures that begin in the earliest stages of design and continue beyond the point when our favorite consumers, your children, begin playing with our products."

- Michael Larsen, Senior Product Safety Consultant at the LEGO Group, in the early 2000s.1

"Because of the uniqueness of their (LEGO's) product, they've been able to carve out a niche for themselves."

- Anita Frazier, an NPD analyst, in 2005.2

Safety First

In September 2006, the LEGO Group (LEGO) announced the recall of one of its toy products, the LEGO Explore Super Truck, because of safety issues. LEGO found the truck to be unsafe, as its wheels could come off and pose a choking hazard for children during play.

The company offered a refund of $153 to all the customers who could verify that they had bought the truck.4 The truck was manufactured at LEGO's factory in the US, and had been sold only in the North American market through stores like Wal-Mart and Toys "R" Us. It had been a part of a LEGO set that also contained the company's Duplo line of building bricks.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Denmark-based LEGO was the sixth largest toy company in the world by sales.5

The company's core product was its plastic building bricks, around which it had developed several different product lines appealing to different age groups (Refer to Exhibit I for LEGO's product categories). LEGO's uniqueness lay in the bricks' functionality and versatility. Children could build anything they wanted with the bricks, and there was no 'one right way' of doing things. LEGO was especially favored by parents as it was believed that building things helped develop creativity and imagination in children. Besides, the bricks were known for their high quality and durability, and could easily withstand any amount of rough play, with the children themselves suffering no harm.

Quality and Safety Practices at LEGO - Next Page>>


1]  http://assets.lego.com (accessed on April 6, 2007)

2] Spencer E. Ante, "For LEGO, an Online Lifeline," BusinessWeek, August 23, 2005.

3] Dollars ($) refers to US dollars.

4] The actual price of the set was $19.99, but LEGO was only refunding $15, as the set also included building bricks that were not being recalled.

5] It was behind Mattel, Hasbro, Bandai, MGA, and Tomy/Takara. (www.lego.com)

 

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