Operation Management

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Week 02 - Management of Quality and Quality ControlToys Inc. Mini Case Analysis |

Raquel Ramirez | 3/9/13

| | MGT713 Operations Management |

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Week 02 - Management of Quality and Quality ControlToys Inc. Mini Case Analysis |

Raquel Ramirez | 3/9/13

| | MGT713 Operations Management |

|

Toys Inc. Mini Case Analysis

A little history on the company named Toys Inc. it has been in business for about 20 years and has built its reputation on quality and innovation. Even though the strong history in the toy business, it looks like the sales have seemed to stay at a standstill and or even have fallen below their regular sales margin. So as a consultant called in for advice by the president of the company, I see several problems in the company’s production as well as quality control. I feel that the decline has less to do with the so called “economy” and more in Toys, Inc’s approach to their management of quality. As Stevenson (2012) reminds us, “top management has the ultimate responsibility for quality” (pg. 377).

It looks like the recent moves to improve production costs and layoffs in the design and development departments are going to do more harm than good to the company’s profits. These moves might reduce costs but they will have little to no impact on sales and without sales, there is little profit to be achieved let alone increased.

Then you as a company will also have customer complaints on the quality and performance of one of their product lines and Toys Inc. is in the midst of experiencing all the consequences of poor quality because of reducing employees on the line so you will have less people working the line and more than likely not able to keep up or put more time in that product thus, impacting on the quality.

Poor designs or defective products can result in loss of business. Failure to devote adequate attention to quality can damage a profit-oriented organization’s reputation and lead to a decreased share...