Announcement
 
September 12, 2007
 
"Toy Recalls – is China the Problem?” asks Ivey study

A study on toy recalls in the U.S. by Ivey Professor Paul Beamish has generated international attention with the conclusion that design flaws lead to more recalls than manufacturing flaws.

Paul Beamish and co-author Hari Bapuji at the University of Manitoba have been quoted in the New York Times, the Washington Post, CNN Money, National Post, South China Morning Post, Singapore Straits Times as well as newspapers across Canada and websites around the world.

"Toy Recalls – is China the Problem?”* has just been released by the Asia-Pacific Foundation of Canada.

After examining 20 years of toy recalls from the U.S. Consumer Product Safety Commission (CPSC), Beamish and Bapuji found that the number of defects attributable to design issues is much higher than those attributable to manufacturing problems.

“The distinction between design and manufacturing is important particularly in the context of the toy industry because the design of toys is performed by companies such as Mattel, whereas manufacturing is done by overseas manufacturers,” the report says.

The researchers suggest that toy companies must be accountable to improve their product designs and that global standards should be developed to enhance product safety.

The authors say that those two different kinds of problems which affect toy safety require different solutions. Problems in design can be avoided by improving organizational learning. Manufacturing problems can be avoided by setting global standards and improving management practices - including robust systems for quality control.

The report looks at Mattel's recalls, finding that the largest portion of recalls by Mattel involved design flaws - the problem of small magnets - but that a large share of blame was placed on the Chinese manufacturers. "By placing blame where it did not primarily belong, there is a danger of losing the opportunity to learn from the errors that have occurred. The first step to learn from errors is to know why and where the error occurred."

The report also notes that management practices need to be improved to handle the complexity of global supply chains. "The companies offshoring their manufacturing to China (and similar countries) cannot rely on intermediaries and agents in Hong Kong or Singapore to coordinate production and ensure quality."

This new study follows on a large series of TV, radio and print interviews which Ivey Professors Paul Beamish and Shih-Fen Chen did several weeks ago on the subject of product recalls and outsourcing.

For more information please contact Paul Beamish at 519-661-3237, pbeamish@ivey.ca  or Hari Bapuji at 204-474-8432, bapuji@cc.umanitoba.ca

*Download "Toy Recalls - Is China the Problem?" (pdf)