Table of Contents

1.1 The definitions of quality in terms of business and services provision: ............................. 2
1.2 The processes of inspection and assurance:.......................................................................... 3
1.2.1 Quality Assurance:........................................................................................................... 3
1.2.2 Quality control: ................................................................................................................ 3
1.3 The approaches to quality management: .............................................................................. 4
1.3.1 The Deming philosophies: ............................................................................................... 4
1.3.2 The Juran philosophies: .................................................................................................. 6
1.3.3 The Croby philosophies: ................................................................................................. 6
1.4.1 The similarities: ................................................................................................................ 6
1.4.2 The differences: ................................................................................................................ 6
2.1 The customer satisfaction: ..................................................................................................... 7
2.1.1 Internal customer: ........................................................................................................... 7
2.1.2 External customer:........................................................................................................... 7
2.1.3 The voice of customer: ..................................................................................................... 8
2.1.4 Customer supplier chain: ............................................................................................. 8
2.2 The meaning of continuous improvement: ........................................................................... 8
2.2.1 Quality Gaps: ................................................................................................................... 9
2.2.2 The mature years of continuous quality improvement: ............................................. 10
2.3 The type of added value: ...................................................................................................... 10
2.3.1 Lower cost and reduce waste: ....................................................................................... 10
2.3.2 Saving times:................................................................................................................... 10
2.3.3 Customer loyalty: ........................................................................................................... 11
2.4 The type of information for customer and the important of effective marketing: ......... 11
References:................................................................................................................................... 12

1.1 The definitions of quality in terms of business and services provision:
In business, the quality have many definitions and different organization also has many different
ways defining quality. Mattel, INC is the worlds premiere toy company began in USA so the
quality of product should be at the top priority objectives of company. Their vision is providing
the product with high quality and premiere price to make friendly competition in the market. The
quality is standard and characteristics of product or services that meet the customers
satisfaction. In business, the market research is very important to find out what customer need
and expect. Mattel is a toy manufacturer so they maintain the quality control program to ensure
the product achieve safety requirement. It is the most important to help them create the best
image to customer especially parent of children. Collecting customers information from survey
or feedback and building a suitable strategy is the way to provide high quality of product at
premium prices. The biggest problem of Mattel is product recall because it could effect on the
companys reputation and the sales of product in around the world. There are a several of
definition of quality are given below:
According to ISO 9000: Quality is the degree to which a set of inherent characteristics fulfills
requirement. The standard defines products requirement as need or customers expectation. The
customers requirements include well design, well functionally, reliable and consistency.
Therefore, company must identify customer need to success in business. Total Quality
Management (TQM) approach will help company improve the quality of product and services.
The basic concept of TQM is continuous process of improvement include a range of stage to
change quality to be better.
Quality at Mattel should be defined by design, performance, durability and reliability of
experiences, safety and perception. For the toy industry, the safety is the biggest concern of
customer. Therefore, the toy should have good design and material that cannot effect on
childrens health. It is very important issues for the success business in the worldwide
competition. Children can use and play with their toy with feeling comfortable and funny so it is
the quality of Mattel. In addition, Mattels product should have achieve some customer
dimension that given below:
Performance: It involves "fitness for use" that the product and service is ready for the
customer's use when they purchase. Other considerations are availability, which is the
probability that a product will operate when needed; reliability, which is freedom from failure
over time; and maintainability, which is the ease of keeping the product operable.
Features: Identifiable features or attributes of a product or service are psychological, time
oriented, contractual, ethical, and technological. For the childrens toy, it must have special
feature that attract them to pay money. Mattels toys will allow children design, create and
customize their toys as well as.
1.2 The processes of inspection and assurance:
Mattel is one of the largest toy manufacturing so the company will apply the mass production
and mass inspection in business. The inspection is the process of checking and testing the quality
of product to reject the imperfect product. Thus, these process will contribute to raising the
quality and output of product and services. There are a lot of different process used in inspection
and assurance of quality in enterprise.
1.2.1 Quality Assurance: It is a planned process include inspection and quality control,
reviewing and monitoring plan-enabling to ensure the productions agreement in term of quality
standard. The main mission is help production quality meet the customer requirement in
systematic. However, QA cannot guarantee the quality. Thus, the company should have clear
policies on quality with measurable objectives to raise the customer satisfaction. It develop and
compliant processes and procedures effective. In addition, QA provide training for all employees
to help them understand the importance of quality. Thus, the product must satisfy the essential
requirement in the regulation.
1.2.2 Quality control: This process identify the product or services do not meet the companys
standard and remove the poor performance. It is the operational techniques and activities which
deal with assurance and failure testing to fulfill all national and international requirement
governing play materials. The first step is purchasing and checking the quality of raw materials.
Thus, manager or supervisor should apply some basics tool include Pareto diagrams, control
chart, flow chart, cause and effect diagrams to manage QC effectively. Two big reasons for recall
of Mattel is the faulty magnet and high levels of lead-based paint. It is the biggest problem of
quality control system in Mattel. Therefore, company should review the whole process to
identify the existing problems and design potential solutions. It is vital to the successful
implementation of Mattel business.
1.3 The approaches to quality management:
In quality management, there are three basic quality philosophies that manager need to
understand include Deming, Juran and Crosby.
1.3.1 The Deming philosophies: This approach include 14 key point on quality management to
improve the effectiveness of business. According the Deming philosophies, quality determined
by the useful of product to help customer enjoy. The philosophy advises manager should engage
employees involves in decision-making process. It focus on producing the high quality product
that customer desire and help manager how to achieve success. Thus, the firm choose the PDCA
method for continuous improvement. This method include four steps are Plan-Do-Check-Act that
enable Mattel control more easily and flexibly. This method applied in quality management to
improve and enhance the quality of product and work. The first step is based on the result of
previous circles to determine the existence problem then so many times applying the quality will
improve gradually. The detail of four step will show in the following:

Figure 1 PDCA Cycles
Plan: In the first step, Mattel manager and his team analyse and identify the cause of problem in
process. Therefore, manager can design new plan to improve the quality and performance
effectively. From August to September 2007, Mattel recalled 19 million toys which is the biggest
recall in the companys history. The two main reason for recalled are because of faulty magnets
and the high levels of lead-based paint on the surface of many toys. The root cause of problem is
the production process of China manufacturer that is Mattels partnership. However, they cannot
contact with other partner because the option is limited.
Do: Next step, planner will identify the action or solution that can help solve the problem.
Firstly, Mattel will contact all registered owners with instructions on how to obtain the corrected
labels and manuals, free of charge for customer.
Check: Assess the measurement and report to manager who make decision. The manager
monitor the new process by using some basic quality tools such as histogram, control charts,
scatter diagram, etc.
Act: The final step, manager will decide to do the changes if it necessary for improving and
make sure the problem solved.
Producing high quality of product with competitive price is the key for any organization to stay
in business. The better quality will decrease cost and less work. Therefore, Mattel can expand the
business in other market.

Improve
quality
Decrease
cost
Improve
productivity
Competitive
price
Market
expansion
Stay in
business
Provide
employment
Figure 2 Deming chain reaction
1.3.2 The Juran philosophies: According to Juran, this philosophy based upon the companys
current strategic planning. It focus on three aspects include quality planning, quality control and
quality improvement. The quality standard must be set up by manager or organization.
Quality planning: Mattel will prepare the plan to meet the quality goals such as reduction in
failure cost, higher productivity. It is necessary to understand the customer need and develop
products features.
Quality control: This process ensure the quality of product during operations.
Quality improvement: In this process, company will identify the most area of improvement to
make the change.
1.3.3 The Croby philosophies: In quality management, it based upon the basic element of
improvement include determination, education and implementation. Besides that, the only
performance standard is zero defect within measure by cost of quality. It implies the behavioral
aspects in quality for changing culture and attitudes than relying on statistical techniques.
1.4 The contrast between different methods:
1.4.1 The similarities:
There are many similarities among different methods. Every quality method is based on the
particular quality standard of the product and services. Therefore, three philosophies is very
important for customer requirement as standard and production process. They have the
responsible for quality management to support manager or leader to ensure the standard.
1.4.2 The differences:
Deming philosophies Juran philosophies Crosby philosophies
Define quality The problem of quality
is not worker, but the
main cause is whole
system of company.
Fitness for use that
mean the quality will
define by customer
satisfaction
The quality standard
must set up by
management.
Goal of quality Meeting the customer
need and requirements
Continuous
improvement
Continuous
improvement by
setting zero defect
production
Cost of quality Decrease the cost to
increase the sales and
provide more jobs
The cost of poor
quality and internal
failure cost
Measurement of
quality is the price non
conformance
Improvement
basic
Applying PDCA
cycles to analyze and
find the solution for
existing problem
Quality improvement
increase the quality
performance to meet
customer requirement
Building quality
improvement on
getting all employer do
the thing right time.

Table 1 The differences of three philosophies
2.1 The customer satisfaction:
The customer satisfaction is defined as customer happy with product and services provided by
company. Customer have a strong power to select what products they want to buy that why they
are the most important factors for the success of enterprise. Therefore, company should increase
awareness and create the positive feeling about product to convincing customer purchase their
product. Most manufacturing and services organizations are using customer satisfaction as the
key measure of quality. There are two kind of customers are internal and external in business
given below:
2.1.1 Internal customer: Every function or department within company working together for
providing product or services for external customer. Therefore, each department should achieve
the companys standard to bring the best quality.
2.1.2 External customer: The customer satisfaction will led the company profitability and brand
image increase. In order to achieve the satisfaction, company must change changes in new
technology, demands of health and safety, stricter legislation and the need to respond to different
working patterns. In addition, Mattel should research what inspires customer to make them buy
product more times. Company offers a diverse range of product for children of all ages and
family to meet the customer need.
2.1.3 The voice of customer: In order to meet the customer expectation, Mattel must make sure
that marketing, design, production and distribution reach to standard. Company can listen
customer through survey market, feedback, questionnaire then they can identify their qualitys
problem.
2.1.4 Customer supplier chain: The concept of customer supplier chain include two
separate paths are internal and external. For external environment, company will research and
collect information to understand what customer need. After that, they contact with supplier to
provide the suitable material for new product. In the internal, company purchase raw material
then send to production department to begin produce. The next step is distribution include
introduce and delivery product to customer.

Figure 3Customer-Supplier chain
Finally, the customer satisfaction will bring a lot of advantages for business. Company can create
the customer loyalty that will leads to profitability. In addition, the power of word-of-mouth
marketing is great method to help Mattel increase sales and reputation. The great quality of
product will motivates people to tell other their good experiences. It is also a big advantage over
competitors product. Thus, the customers satisfaction is the importance to Mattel. It will be
achieved by two dimensions are quality of design and quality of conformance.
2.2 The meaning of continuous improvement:
Continuous improvement is the companys effort to improve the quality and services and reduce
the cost. It recognize the importance of external and internal customer then promote the need for
objective date to improve process. Before making a purchase, customer will check to ensure the
quality that meet their need and expectation. Mattel must check and review product to identify
the most risk of product then testing and revising solution. The demand of customer change very
quickly so company need a flexibility strategy to adopt with the problem. It will ensure the
effective and efficient management of quality process. This is very necessary for supplier
maintain documented evidence of continuous improvement for review upon request from
Mattels representation.
2.2.1 Quality Gaps: It is the difference between customer expectation for product or services
and their perception of delivery. Although the differences may from many factors but the quality
will probably make up gap. In the case of Mattel, they apply the computer integrated
manufacturing in operation process. Although many of their processes are completely automated,
those that require human intervention have quality control checks (via barcodes) to ensure
product meet the customer requirement. The order should be carefully checked with the correct
profile, material, colour, length, punch pattern, marking, packaging and delivered to the correct
location at the right time.

Figure 4 The quality gaps
2.2.2 The mature years of continuous quality improvement: The continuous improvement
process should follow the same basic process as used for corrective and preventive actions.
Corrective action is taken by both quality control and quality planning schemes to minimize the
poor performance. After that, when these improvements are made, a new level of compliance
will be established.

Figure 5 Mature year of continuous improvement
2.3 The type of added value:
Added value is the benefit for organization for adopting a positive approach toward managing
quality in business. There are many different types of added value that company could be gained.
2.3.1 Lower cost and reduce waste: It will gained by eliminating waste and error allow the
price could be lower so company can increase sales. In addition, Mattel should apply Just-In-
Time (JIT) approach to increase efficiency and decrease waste. In the effort of reduce
manufacturing costs, Mattel has concentrated production of most of its core products in
company-owned facilities and generally uses third-party manufacturers for the production of
non-core products. Besides that, Mattel also create more project to reduce waste effectively. For
example, Mattel replaces electrical heaters at die-cast machines with liquid natural gas and
saving 25% on electricity cost.
2.3.2 Saving times: Applying the quality management system, company can find a lot of ways to
save productions time. In the process of improving quality, Mattel will use some method to
change the problems. First, the production can increase by duplication of the assembly line will
decrease the time of produce. Moreover, company improve by applying more automation, adding
more machines, more robots and more equipment then the worker can work more effectively.
Mattel should change and find the suitable solution for their process. It is one of the best added
value of quality management.
Rejection Disposition
Corrective
action
Preventive
action
Continuous
improvement
2.3.3 Customer loyalty: In the tough economic times, it is important that company can create
the group of customer loyalty. It will secure the long-term benefits and revenue of company.
Applying the 80-20 rule that 80% sales come from 20% customer and client is support Mattels
manager design the marketing strategy. By opening more programs such as special promotion or
VIP member then Mattel can maintain the relationship with customer. There are the process to
create the customer loyalty as given below:
Step 1: Customer acquisition
Step 2: Customer development
Step 3: Customer commitment
Step 4: Customer retention
2.4 The type of information for customer and the important of effective
marketing:
Before decide to purchase any kind of product or service, customer want to know the detail
information as much as possible. Therefore, Mattel provide necessary information that buyer can
know the specification and value of product. The company must warrant that the information
contained in their product is correct. Because the correct information is essential in building trust
among customer and investors. There are a several kind of media formats that company can
make available to raising awareness.
Mattel has an official website on which people can access to various kinds of information such as
customer services, the list of available toy and warranty. From this, customers have general view
about Mattel and they can read the detail feature for each product. Therefore, it will contribute
effectively to the marketing for Mattel. The information is very important because it will raising
the awareness to customer about product. In addition, Mattel also create the social network
account such as Facebook and Twitter to connect will people around the world. Thus, customer
will have more channel to get companys information and communicate directly about problem
or customer services.
Company should also create the suitable strategy advertisement for different market
segmentation because it play an important role in business venture. During 2013, the promotion
program include in-store displays, sweepstakes, merchandising materials, and major events
focusing on products and tie-ins with various consumer products companies. The advertising can
keep the image of product in the customers mind and they will buy when they see it. It will
make customer pay attention for their product as much as possible. In addition, creating true
images is also the best way to attract new buyer and build a strong brand. Mattel is a toys
company so their logo and image should be designed to suitable for children and recognize
easily.

Figure 6 The Mattel's gross sales
According to Annual report 2013, Mattel can target the main international customer then they
have a suitable strategy for each market segment. It is clearly that Europe is the potential market
to expand business and increase sales. Products within the International segment are sold directly
to retailers and wholesalers in most European, Latin American, and Asian countries, and in
Australia and New Zealand, and through agents and distributors in those 7 countries where
Mattel has no direct presence. In addition, one of the biggest Mattels customer is retailer and
supermarket are Wal-Mart at $1.2 billion, Toys R Us at $0.7 billion, and Target at $0.5 billion.
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