Mattel and the Toy Recalls

Mattel and the Toy Recalls

role of global Corporation

Mattel was founded by Harold Matson and Elliot Handler in 1944. The company started by manufacturing doll house furniture, and picture frames. Their first mass produced product was the music box, and this was the product which established Mattel in the toy business. Company growth was propelled by the introduction in 1959 of Barbie. Ken was introduced two years later. Harold Matson sold his share of the company to Elliot Handler and his wife. In 1948, Ruth Handler wife to Elliot Handler incorporated the company. Mattel went public in 1960. To reduce production costs, the company had established several contracts with different principal vendors in China. These vendors manufactured toys for Mattel. The principal vendors would use other smaller companies for the partial or full production of the toys. Because of this subcontracting, the supply chain became long and complex. Mattel only had direct contact with its principal vendors.

When it came to corporate responsibility, Mattel was an industry leader. The safety of their products was a key issue and the company tried to ensure that all its products meet all quality standards, and are not hazardous. The company's image was tarnished in 2007 when it was discovered that some of its products contained high levels of lead, than the permissible levels by the U.S. federal toy policy. This lead to a massive recall of the toys manufactured in China between April 2007 and July 2007.

The problems Mattel faced

There are two main problems that the case study identifies, case study, excessive amount of lead on the toys, and loose magnets. Loose magnets were used mostly in building block toys and jewelry for kids. The availability and cheap prices of the powerful magnets had attracted the toy manufacturers to use them on the building blocks and play sets. On some of the products, the magnets would come loose, and the child might swallow the magnets. The major risks with magnets are that if a child swallowed two magnets, they could get attached and cause perforations to the intestines or block the intestine which could be fatal. Mattel had to recall 2.4 million play sets of its Polly Pocket. The recall was prompted by reports of 170 cases of children who had swallowed the magnets, and three children who required surgical care to remove the magnets swallowed. The play sets recalled were sold from May 2003 and September 2006. The recall announcement was made on November 21, 2006.

Lead in children products is a serious hazard as exposure to high levels of lead affects every organ in the human body. Exposing children to high levels of lead can cause them to have attention deficit hyperactivity disorder, IQ deficit, reaction time, and motor skills. In consideration of the damages caused by lead to humans, especially children, there is a limited amount of lead permissible by the U.S. government. All children products should not have lead amounts in excess of 600 ppm. In the developing countries, the use of lead is not restricted or banned. Many manufacturers will use paint that has a high percentage of lead as it is highly corrosion resistant, and bright which makes it appeal to consumers.

Mattel had to recall all its products that were manufactured by the Chinese company Lee Der between April 2007 and July 2007. This was because during this period the company had used a yellow pigment paint which contained high levels of lead. Another product that was discovered to contain high levels of lead was the Sarge cars paint. The product was manufactured by Early Light Industrial Company for Mattel. The company was based in Hong Kong, but the products were manufactured in China. Initially it was estimated the company had manufactured around 250,000 Sarge cars.

Solutions to the problems

To ensure that the magnets used on the Polly Pocket play sets did not come loose, Mattel had to reinforce the magnets instead of gluing them. The reinforcement involved locking the magnets in the toys. By locking the magnets in the toys, Mattel ensured that the magnets will not come loose when the children are playing with the toys. To ensure this rule is enforced always Mattel will have to come up with strict manufacturing processes, which will test all the products manufactured by it vendors before the products are released for sale. Recall of the play sets might have sorted out the initial problem, but there have been other reports of loose magnets on products sold before the recall dates. These shows there were major failures in the manufacturing process from the start. Correcting this manufacturing process by laying down strict guidelines will ensure products manufactured for the U.S. market meet the necessary standards of the market.

The lead paint that was used by Lee Der had been sourced from a company that was not approved by Mattel, which required Lee Der to test each batch of paint before it was used on the products. Lee Der failed to perform this test, and this resulted in its use though it had high levels of lead. The long supply chain that Mattel had of its vendors was mainly the cause of this recall. Allowing its principal vendors to use small companies for the manufacture of its products made it difficult for Mattel to directly manage the supply chain. The solution to the lead problem is breaking down the complex supply chain of China. Ensuring that the principal vendors do not contract smaller companies for the production of its toys would allow Mattel to manage better its products quality and safety standards.