Case Study of Process Control at Polaroid (A)

Ming Chuan University

School of Management

Nimas Maylani Mikhael Rudy Nathaniel Farrel Alexander Juan

11576794 11116660 11116633 11116854

Operational Management
2023
A. Company Background

Polaroid Corporation was an American company founded in 1937 by Edwin H. Land, a

scientist and inventor who had a passion for optics and photographic technology. The company
originally started as Land-Wheelwright Laboratories in 1932, but changed its name to Polaroid
Corporation five years later. Polaroid became synonymous with instant photography, as it
revolutionized the industry by introducing a process that allowed photographs to develop within
minutes. The first instant camera, the Polaroid Land Camera Model 95, was introduced in 1948.
Over the following decades, the company expanded its product line, developing new instant
cameras and film formats. Some notable examples include the Polaroid Swinger (1965), SX-70
(1972), and the OneStep series. Polaroid also produced other optical products, like sunglasses
and polarized lenses.
Throughout the 20th century, Polaroid enjoyed significant success and popularity. Its
instant cameras became cultural icons and were used by both professional photographers and
everyday consumers. However, as digital photography started to gain traction in the late 1990s
and early 2000s, Polaroid faced increasing competition and struggled to adapt to the changing
landscape. The company filed for bankruptcy twice, first in 2001 and again in 2008. After the
second bankruptcy, the Polaroid brand and its intellectual property were acquired by PLR IP
Holdings, LLC. Since then, the brand has been licensed and used by various companies to
produce and sell a range of consumer electronics, including digital cameras, instant cameras, and
other products. However, the modern Polaroid brand is not the same entity as the original
Polaroid Corporation that existed during the time of this​case study.

B. Problem and Analysis

The main problem in the case study "Process Control at Polaroid (A)" revolves around
the challenges Polaroid faced in maintaining high-quality standards and process control in its
manufacturing operations, particularly for the R2 film line. The case highlights the need for
effective quality management and process control in a competitive market environment. The key
issues in the case can be summarized as follows:
1. Quality control issues. Polaroid experienced quality control problems in its manufacturing
processes, resulting in high defect rates and inconsistencies in its products.
● Process variations. Uncontrolled process variations can result in inconsistent product
quality and increased defect rates. Causes may include equipment wear and tear,
changes in raw materials, or fluctuations in environmental conditions.
● Equipment malfunction. Malfunction or failure in a critical piece of equipment used in
the R2 film production process could cause an increase in defects.
● Human error. Mistakes made by employees during the production process can
contribute to higher defect rates. Lack of proper training or supervision could
exacerbate these errors.
● Inadequate quality monitoring. Deficient quality monitoring systems may fail to detect
and prevent quality issues, allowing defects to reach customers and resulting in
dissatisfaction.

2. Increasing competition. The photography market was evolving rapidly, and Polaroid faced
rising competition from other companies, especially with the emergence of digital
photography. This put pressure on Polaroid to improve its product quality and maintain its
market share.
● Technological advancements. The rise of digital photography and other imaging
technologies presented significant competition, which put pressure on Polaroid to
innovate and adapt.
● Market shift. Consumer preferences shifted towards digital photography, making it
more challenging for Polaroid to compete with its instant film products.

3. Process control challenges. Polaroid needed to implement effective process control

measures to address the quality control issues and improve the efficiency of its
manufacturing processes. This required the adoption of new techniques, such as Statistical
Process Control (SPC) and Total Quality Management (TQM) principles.
● Identifying root causes. Polaroid needed to determine the root causes of the quality
control issues and address them effectively.
 ● Creating a culture of continuous improvement. For process control measures to be
effective, the company needed to foster a culture of continuous improvement and
employee engagement in quality control initiatives.

With the project greenlight, the quality of the product is not supposed to be going down
but based on this paper the defect rate is 10 times higher than the historical data that they have
tested before, why? The reasons for this sudden increase in the defect rate are not explicitly
mentioned in the case study. However, it is possible that there were some issues with the
implementation of the process control measures or with the quality monitoring systems.
Additionally, it could be due to changes in the production process, equipment or raw materials
used, or other factors contributing to process variations. It is also possible that the historical data
was not indicative of the current state of the manufacturing process.

Exhibit 1 in the "Process Control at Polaroid (A)" case study shows Polaroid's recent
financial results, including the company's income statement and balance sheet over the period
from 1980 to 1984. From the exhibit, it can be seen that the financial results suggest that
Polaroid was facing significant challenges during the period, including quality control issues and
increasing competition in the photography market. Thus, we can learn about the importance of
maintaining product quality and implementing effective process control measures to remain
competitive and sustain profitability in a rapidly changing market. We can also learn the
significance of continuously monitoring financial performance to identify potential issues and
take appropriate corrective actions.

Exhibit 4 titled "Types of Defects” shows a random sample of defects listed on August
6th and 7th, 1985, where Assembly Operator has less defects compared to Auditor. It is because
the operators already know the “game”, so they did not record all of the defects they found.

Exhibit 5 shows a table of statistical process control measurements for various stages of
the film production process. The table presents data on the average, range, and standard
deviation of the measurements taken during the production process. The measurements listed in
the table include parameters such as pod weight and finger height, which are critical factors that
affect the quality of the finished product. By monitoring these parameters, Polaroid was able to
detect and correct deviations from the target values before they led to defects in the finished film.
The use of statistical process control techniques allowed Polaroid to identify trends and patterns
in the production process, enabling them to make continuous improvements and optimize their
manufacturing process. This exhibit provides a snapshot of the type of data that Polaroid
collected and analyzed to ensure the quality of their film products.

C. Suggestions
The case study on "Process Control at Polaroid (A)" explores the company's efforts to
address quality control issues and improve efficiency by implementing process control measures,
such as :
1. Statistical Process Control (SPC)
SPC is a statistical technique that helps monitor and control manufacturing processes to
ensure consistent product quality and reduce variability. Polaroid implemented SPC in its
manufacturing processes, particularly for the R2 film line, by taking the following steps:
● Establishing control charts. Control charts were used to monitor key process variables
and detect any deviations from the established limits. This allowed the company to
identify when a process was going out of control and take corrective action before
producing defective products.
● Collecting and analyzing data. The company collected data on critical process parameters
and analyzed it to identify the sources of variability and potential causes of defects. This
information was used to make data-driven decisions on process improvements.
● Training employees. Polaroid trained its employees in SPC techniques, enabling them to
understand the importance of maintaining process control and empowering them to
identify and address potential quality issues.

2. Total Quality Management (TQM)

TQM is a management philosophy that focuses on continuous improvement and customer
satisfaction through the involvement of all employees in the organization. Polaroid adopted
TQM principles to address quality control issues and improve efficiency, taking the following
steps:
● Cross-functional teams. The company established cross-functional teams that brought
together employees from different departments to work on quality improvement projects.
This enabled better communication and collaboration, leading to more effective
problem-solving.
● Customer focus. Polaroid emphasized the importance of meeting or exceeding customer
expectations in terms of product quality and performance. This focus on customer
satisfaction guided the company's decision-making and improvement efforts.
● Employee empowerment. The company empowered its employees to take responsibility
for identifying and addressing quality issues, fostering a sense of ownership and
accountability for maintaining high-quality standards.

By implementing SPC and TQM principles, Polaroid aimed to address quality control
issues and improve the efficiency of its manufacturing processes. These techniques allowed the
company to monitor and control its processes more effectively, reduce defects, and foster a
culture of continuous improvement.

We also think that standard requirements are really important in production and
management for several reasons:
● Consistency. Standard requirements provide a consistent set of guidelines and criteria for
products, processes, or services. This consistency ensures that the same quality and
performance standards are maintained across different products, processes, or services.
● Compliance. Standard requirements often have legal or regulatory implications.
Compliance with these standards is necessary to meet legal or regulatory requirements
and to avoid penalties or fines.
● Continuous improvement. Standard requirements provide a basis for continuous
improvement. By setting a benchmark for quality and performance, standard
requirements provide a goal for companies to strive towards, leading to the identification
of areas for improvement and the development of more efficient and effective processes