LEGOs are well-known to numerous members of the MIT community. Faculty, staff, and students alike have fostered a passion for construction and mechanics while engaging with the iconic plastic blocks. Within mere hours, a pile of bricks can transform into a house, a vessel, an aircraft, or even a cat. This straightforward nature encourages creativity and resourcefulness, inspiring many MIT faculty members to incorporate LEGOs into their curriculum, notably in class 2.S00 (Introduction to Manufacturing), where students utilize LEGO bricks to understand manufacturing techniques and systems.
It was perhaps no surprise that the auditorium at the MIT Schwarzman College of Computing was filled with students, faculty, staff, and visitors eager to hear Carsten Rasmussen, chief operating officer of the LEGO Group, deliver a speech as part of the Manufacturing@MIT Distinguished Speaker Series on March 20.
During his captivating and motivating presentation, Rasmussen posed one of the key questions in manufacturing: How do you strike a balance between innovation and sustainability while maintaining a complex global supply chain? He stressed that achieving success in contemporary manufacturing is not solely about reducing expenses; it involves generating value throughout the entire network and integrating all facets of the business.
Successful manufacturing hinges on equilibrium
The perception of success within the toy industry is changing, Rasmussen noted. Previously, an emphasis on “cost, quality, safety, delivery, and service” might have sufficed, but the current environment is significantly more challenging. “Now, it’s about availability, customer satisfaction, and innovation,” he stated.
Rasmussen, who has been part of the LEGO Group since 2001, began as a buyer before advancing to various leadership positions within the company. Currently, he directs the LEGO Group’s operational strategy, which includes manufacturing and supply chain planning, quality assurance, engineering, and sales and operations planning.
“The way we can inspire the builders of tomorrow is fundamentally, whatever we create, we can manufacture, and we can market,” he remarked.
The LEGO Group’s operations are complex. Emphasizing areas such as capacity and infrastructure, network efficiency, analysis and design, and sustainability, keeps the company aligned with its mission “to inspire and develop the builders of tomorrow.” Within the organization, departments are mindful of how their choices impact the broader company. To achieve this, effective communication is essential.
Intuition and experience significantly contribute to sound decision-making
In an era where data analytics heavily influences decision-making in manufacturing and supply-chain management, Rasmussen stressed the necessity of combining data with intuition and experience.
“A lot of the decisions you have to make are quite intricate,” he clarified. “Much of the data you’re going to provide me is rooted in the past. What occurred in history does not necessarily reflect what you’re facing at the moment. Thus, you must effectively combine strong data with your intuition and experience to arrive at a decision.”
This evolution mirrors a wider trend in industries where leaders are starting to recognize the advantages of transcending purely data-driven decision-making. With global supply chains disrupted by unforeseen events such as the Covid-19 pandemic, there is an increasing acknowledgment that historical data may not be the finest predictor of future outcomes. Rasmussen suggested that the audience practice blending their intuition and expertise with data by asking themselves: “Does it make sense? Does it feel appropriate?”
Emphasizing sustainability
Rasmussen also showcased the LEGO Group’s ambitious sustainability objectives, asserting that innovation should not compromise environmental accountability. “There is no justification for us not to leave a healthier planet for the next generation, for the next century,” he affirmed.
With an aspiration to produce its items from more renewable or recycled materials by 2032 and to abolish single-use packaging, the company seeks to lead a transition in manufacturing trends towards more environmentally sustainable practices, including efforts to convert waste into bricks.
Innovation doesn’t occur in isolation
Throughout his presentation, Rasmussen emphasized the significance of innovation. The only way to remain at the forefront is to continually consider new ideas, he noted.
“Are you bold enough to launch new products in the marketplace?” he inquired, noting that simply inventing a unique product or method is insufficient. The feasibility of its implementation within the existing system is crucial as well. “Our challenge, which you need to assist me with,” he directed at the audience, “is how can we introduce innovation, because we can’t become stagnant either. We also need to be prepared for the future… that is genuinely one of our larger challenges.”
He reminded the audience that innovation is a non-linear journey. It entails risk, occasional failures, and continuous development. “Resilience is absolutely essential,” he stated.
Q&A
Following his talk, Rasmussen engaged with Professor John Hart for a brief Q&A session, followed by inquiries from the audience. Among Hart’s questions was how he would react to a designer presenting a model of an MIT-themed LEGO set, claiming it would achieve record sales. “Oh, I’ve heard that many times,” Rasmussen chuckled.
Hart inquired about the time frame required to turn a concept into reality. “How long does it take from bricks to having it at my doorstep?” he asked.
“Typically, a new product requires between 12 to 18 months from conception to its market release,” explained Rasmussen, indicating that the process necessitates a considerable amount of integration and extensive planning to ensure that new concepts can be executed across the organization.
Then, the microphone was made available to the audience. The initial questions came from Emerson Linville-Engler, the youngest attendee at just 5 years old, who asked about the most challenging LEGO set to create (the Technic round connector pieces) and Rasmussen’s favorite LEGO set (complex builds, like architectural models or Technic designs).
Other questions highlighted how much LEGO has inspired the audience. One member asked Rasmussen if it ever felt tiresome being informed that he worked for a company that ignites the inner child. “No. It inspires me each day when you engage with them,” he replied.
Through the Q&A session, the audience also delved deeper into the manufacturing process, from concept to execution, as well as whether Rasmussen felt threatened by competitors (he welcomes healthy competition but not direct copies), and if the LEGO Group intends on reintroducing some beloved favorites (they are discussing the possibility of bringing back older sets, although no concrete plans are established at this point).
For the aspiring manufacturing leaders and innovators present, the message of Rasmussen’s presentation was unmistakable: Success relies not only on making the correct decision but on comprehending the entire system, possessing the daring to innovate, and being resilient enough to navigate unforeseen challenges.
The event was organized by the Manufacturing@MIT Working Group as part of the Manufacturing@MIT Distinguished Speaker Series. Previous speakers have included TSMC founder Morris Chang, Office of Science and Technology Policy Director Arati Prabhakar, Under Secretary of Defense for Research and Engineering Heidi Shyu, and Pennsylvania Governor Tom Wolf.