Solagen Case Study

1) Why has Kodak learned so little about the gelatin manufacturing process in 150 years? Why is the learning curve so flat in gelatin manufacture?

The gelatin current process:

It was a almost a craft production

It has been passed from generations to generations

It has relatively worked well

The process was largely uninfluenced by new technologies

Why?

No one has stopped to look at the process with a scientific approach.

Kodak had a culture or people mentality that were averse to changes.

Maybe they thought they knew the process

They thought they did not need to understand the process because it was relatively working well.

2) Consider the advantages and disadvantages of the Solagen process from the point of view of Blanchard (CEO); Bolton (plant manager); of Carson (head of chemical processing).

Blanchard (CEO): if the project worked well, stockholders would see him as a great CEO; however if it failed, he would lose his job.

Bolton (plant manager): the project was a no-win situation. Management, from the CEO down, was already convinced that the new process was a success; thus, if managed the implementation successfully, his efforts would be perceived as no great accomplishment.

Carson (head of chemical processing): if the project worked well, he would be consider as a hero; however if it failed he would be seen as the one who was the mentor of the failed project, but due to his technical knowledge he would not be fired.

3) What should Bolten do?

He should ask for more time allowing R&D works more intense, specifically in the area of larger sample sizes

Why?

This process still has a great likelihood of working (shows very strong statistical evidence)

It will bring in higher revenue and immediately bring more value to the company

Kodak is exploring to find a core competency within an industry

If the new solagen process was not an option how would you proceed as a gelatin plant manager?

Study the Gelatin process in order to understand its variables.

Implement new technologies in the process to make it more reliable

Training employees and empower them in the decision making process.

Apply Total Quality Management principles to make the process leaner

4) How would you advise Kodak to proceed with regard to the solagen process?

Identification of larger statistical sample size data and the construction of a concrete process plan for production before this decision is made will be critical in achieving the originally set out goal of a .0011 yellow density, and an 80% yield

How should a new technology be evaluated?

Compare the results from the large batch size with the goals set in the beginning of the project that involves: yield, production time and quality standard.

Who should set the specifications that define success or failures?

The technical team and plant manager in consultation with the CEO all were involved to set the specifications that define success or failures.

Who are the principal players?

The company: Kodak - In 1878 when, at age 24, George Eastman decided to vacation in Santo Domingo, an engineer suggested he make a photographic record of the trip. Eastman was thus introduced to photography. Seven years afterwards, in 1885, Eastman started his own business in the field, registering the trademark "Kodak," a name he made up, three years later. In 1982, Eastman Kodak logged sales of $10.8 billion. Film, photographic paper, and more than 900 chemicals used in their processing were produced at the company's largest manufacturing plant, the Kodak Park Division in Rochester, New York. More than 30,000 people worked at this site which stretched over three miles and included nearly 200 major buildings.

Alex Blanchard was the chief executive officer of Kodak at that time. He was a stronger supporter of Kodak's R&D development and he considered innovation as a key factor to be in competitive edge. He was very enthusiastic about the Solagen project.

William Bolten: he became the superintendent in a short period of time.