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:
• 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
6. 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
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8. 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
9. 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
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
• 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
13. 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
14.
15. 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)
16. 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
18. 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
19. Promises made by LEGO - Continued
• 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
• 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
22. 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