4. Prepared by:
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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
5. Case Overview:
โข LEGO Group โ A toy making
company
โข LEGO Stands for โlegโ (play) โgodtโ
(well)
โข Founded in 1932 in a small
carpenterโs workshop by Ole Kirk
Christiansen
โข Headquarters reside in Billund,
Jutland in Denmark
6. Overview - Continued
โข Worldโs 6th largest
manufacturer of toys
โข Products are sold in more
than 130 countries
โข Brick based toy company
โข Even though popular among
adults, the main target
customer are children
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8. 5 Targets set by LEGO
โข Zero Product Recalls
โข Top ten on employee safety
โข Support learning to 101
million children
โข Explore the opportunity of
becoming fully reliant on
renewable energy
โข Work towards elimination of
waste
9. Health and Safety Policy
โข 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.
โข LEGO Group Way:
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Safety
Health
Work Planning
Improvements
10. Product Quality Measures
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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
12. Safety Standards
โข Strict Safety Standards
โข Division = Preventive activities
Monitoring
Activities
โข Preventive Activities โ
Foreseeable misuse
โข Tests Conducted by LEGO
๏ Mechanical and physical tests
๏ Chemical Tests
๏ Ignitability and Flammability
๏ Electrical Properties
13. Safety Assessment Stage
โข Safety any stage of development process
โข Integrated part of product development
process
โข Better if early stage
โข the safety assessment must relate to the toy
that will finally be placed on the market
โข Risk assessments & Safety assessment
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15. Quality Control
โข Regular checks on the SCM
โข LEGOโs introduced Corporate Quality Control
Department
โข Internal Team for monitoring toy recalling
activity around the world
โข Safety measures for all its products (Quadro &
Duplo)
16. Internal Production Control
โข Continuously adapt to type of production and
experience
โข Where and during which phase could a โquality
dipโ have
serious effects (in warehouse, in production, after
production, etc)
โข Statistical sampling depending on experience, total
numbers
produced, sensitivity of production
โข 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
18. Promises made by LEGO
โข Play Promise
๏ Consumer Satisfaction
๏ Consumer Information
๏ Product Safety
โข People Promise
๏ Employee Survey
๏ Health & Safety
โข The Partner Promise
๏ Customer Pulse
๏ Code of Conduct
๏ Product Quality
19. Promises made by LEGO - Continued
โข The Planet Promise
๏ We Care and Share
๏ Care for children in need
๏ Care for Education
20. Corporate Policies in LEGO Group
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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
21. Future Prospects / Challenges
โข Increase competition from company like Mega blocks,
Tianjin coko toy company
โข Price strategies of competitors
โข LEGO outsources a large part of its production to
Flextronics
22. Future Prospects / Challenges (Contd)
โข LEGO future proofing โ โWe are beginning to see the
first outlines of a new business model โ 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.โ
โข In Flextronics LEGO has found a satisfactory partner