Process Control at Polaroid (A)

Harvard Business School Case #693-047

Case Software #XLS-292
Copyright 2011 President and Fellows of Harvard College. No part of this product may be
reproduced, stored in a retrieval system or transmitted in any form or by any meanselectronic,
mechanical, photocopying, recording or otherwisewithout the permission of Harvard Business
School.

Exhibit 1 Polaroid Recent Financial Results ($ millions)

Income Statement
Sales
United States
International
Net Sales
Cost of Goods Sold
S, G & A
Income from Operations
Interest Income
Other Income
Interest Expense
Pre-tax Earnings
Taxes
Net Earnings
Earnings per Share

1980

1981

1982

1983

1984

791.8
659.0
1450.8
831.1
483.9
135.8
24.0
1.4
17.0
144.2
58.8
85.4
$1.30

817.8
601.8
1419.6
855.4
520.8
43.4
46.1
3.1
29.9
62.7
31.6
31.1
$0.47

752.5
541.4
1293.9
769.6
472.6
51.7
43.8
1.7
35.5
61.7
38.2
23.5
$0.37

730.1
524.4
1254.5
698.3
462.1
94.1
32.4
0.1
26.5
100.1
50.4
49.7
$0.80

743.5
528.0
1271.5
735.2
492.6
43.7
37.3
2.2
20.9
62.3
36.6
25.7
$0.42

Balance Sheet
Current Assets
Net Property, Plant, & Equip.
Total Assets
Current Liabilities
Long Term Debt
Shareholder's Equity
Total Liability & Equity

1980
1041.8
362.2
1404.0
319.9
124.1
960.0
1404.0

1981
1101.8
332.9
1434.7
352.3
124.2
958.2
1434.7

1982
1041.8
281.8
1323.6
296.4
124.3
902.9
1323.6

1983
1042.1
277.0
1319.1
273.1
124.4
921.6
1319.1

1984
1039.4
306.6
1346.0
305.2
124.5
916.3
1346.0

Exhibit 3 Base-line Data for Pod Weight and Finger Height

Pod Weight
(grams)
Day
20 July
21 July
22 July
23 July
24 July
27 July
28 July
29 July
30 July
31 July

1
2.792
2.774
2.797
2.819
2.754
2.784
2.844
2.806
2.843
2.816

2
2.810
2.783
2.790
2.787
2.793
2.781
2.799
2.786
2.766
2.790

3
2.777
2.799
2.785
2.809
2.820
2.733
2.781
2.836
2.795
2.823

Sample Number:
4
5
6
2.799 2.803 2.788
2.820 2.812 2.807
2.795 2.866 2.826
2.862 2.823 2.816
2.846 2.823 2.807
2.801 2.823 2.844
2.802 2.820 2.813
2.815 2.836 2.808
2.778 2.835 2.783
2.802 2.780 2.804

Mdia Amplitude
mdia da mdias
2.795
0.033 Med. Amplitude
2.799
0.046
2.810
0.081
2.819
0.075
2.807
0.092
2.794
0.111
2.810
0.063
2.815
0.050
2.800
0.077
2.803
0.043

3
2.049
2.099
1.955
2.068
2.032
2.105
2.019
1.970
1.976
1.863

Sample Number:
4
5
6
1.959 2.107 1.875
2.269 2.193 2.193
2.125 1.988 2.009
2.143 1.979 2.278
1.955 2.018 2.007
2.037 1.957 1.881
2.154 2.104 1.830
2.067 2.088 1.903
2.228 2.036 1.949
2.183 2.020 1.889

Mdia Amplitude
mdia da mdias
2.028
0.283 Med. Amplitude
2.141
0.433
2.041
0.211
2.136
0.299
2.035
0.212
2.017
0.227
2.058
0.472
2.066
0.286
2.047
0.279
2.034
0.397

Finger Height (mm)

Day
20 July
21 July
22 July
23 July
24 July
27 July
28 July
29 July
30 July
31 July

1
2.021
1.836
2.004
2.177
2.167
2.016
1.939
2.179
1.962
2.260

2
2.158
2.256
2.166
2.171
2.032
2.108
2.302
2.189
2.128
1.990

A2=

0.483
Limites base

2.80515
0.0671

2.06035
0.310

Limites 3

D3
D4

LSCx
LCx
LICx

2.837559
2.80515
2.772741

LSCr
LCr
LICr

0.134468
0.0671
0

0
2.004
Limites 3

LSCx
LCx
LICx

2.210032
2.06035
1.910668

LSCr
LCr
LICr

0.62104
0.3099
0

Exhibit 6 Sample Statistical Process Control

Measurements
Pod Weight
(grams)
Day
3 August

4 August

Shift

6 August

10 August

11 August

13 August

1Validao
0

0.1100

0.0390
0.0390
0.0990

0
0

0.0290
0.0460
0.0250

0
0

A
B
A
B
C
A
B
A
B
C
A
B
C
A
B
A
B
C
A
B
A
B
C

17 August

A
B
C
A
B
C
A
B
C
A
B

20 August

2.750 2.820 2.850 2.740 2.850 2.790 2.8000

2.768 2.807 2.807 2.804 2.804 2.803 2.7988
2.841 2.802 2.802 2.806 2.807 2.807 2.8108

14 August

19 August

B
C

18 August

0.0450

C
12 August

2.800 2.799 2.760 2.802 2.805 2.803 2.7948

C
7 August

Sample Number:

C
5 August

Legenda
False
1

2.801 2.770 2.833 2.770 2.840 2.741 2.7925

2.778 2.807 2.804 2.804 2.803 2.804 2.8000
2.760 2.804 2.804 2.806 2.805 2.806 2.7975
2.829 2.804 2.805 2.806 2.807 2.807 2.8097
2.741 2.850 2.744 2.766 2.767 2.808 2.7793
2.814 2.804 2.803 2.805 2.807 2.804 2.8062

0
0
0

2.787 2.802 2.805 2.804 2.805 2.804 2.8012

0.1090
0.0110
0.0180

2.766 2.805 2.804 2.802 2.804 2.806 2.7978

2.774 2.801 2.805 2.805 2.805 2.804 2.7990
2.770 2.801 2.833 2.770 2.840 2.741 2.7925

0.0400
0.0310
0.0990

0
0
0

2.832 2.836 2.794 2.843 2.813 2.743 2.8102

2.829 2.846 2.760 2.854 2.817 2.805 2.8185
2.850 2.804 2.805 2.806 2.807 2.807 2.8132
2.803 2.803 2.773 2.837 2.808 2.808 2.8053
2.815 2.804 2.803 2.804 2.803 2.802 2.8052

0.1000
0.0940
0.0460
0.0640
0.0130
0.0240

0
0
0
0
0

0.0290
0.0610
0.0940

0
0

2.782 2.806 2.806 2.804 2.803 2.802 2.8005

2.779 2.807 2.808 2.803 2.803 2.803 2.8005
2.815 2.815 2.803 2.864 2.834 2.803 2.8223
2.846 2.854 2.760 2.829 2.817 2.805 2.8185
2.767 2.804 2.834 2.803 2.803 2.803 2.8023
2.850 2.804 2.804 2.804 2.804 2.804 2.8117

0
0
0

2.810 2.820 2.814 2.794 2.798 2.787 2.8038

0.0670
0.0460
0.0330

2.850 2.820 2.750 2.740 2.850 2.790 2.8000

2.750 2.765 2.850 2.760 2.790 2.840 2.7925
2.830 2.770 2.848 2.760 2.750 2.830 2.7980

0.1100
0.1000
0.0980

0
0
0

2.740 2.770 2.833 2.770 2.840 2.800 2.7922

2.753 2.807 2.805 2.804 2.802 2.804 2.7958
2.851 2.751 2.752 2.773 2.849 2.806 2.7970
2.845 2.804 2.803 2.806 2.805 2.806 2.8115
2.844 2.777 2.754 2.791 2.833 2.811 2.8017
2.806 2.839 2.805 2.804 2.850 2.740 2.8073
2.849 2.801 2.804 2.762 2.814 2.791 2.8035
2.820 2.793 2.812 2.833 2.853 2.812 2.8205
2.790 2.780 2.764 2.843 2.843 2.818 2.8063
2.850 2.806 2.805 2.814 2.807 2.807 2.8148
2.767 2.831 2.808 2.793 2.836 2.811 2.8077
2.833 2.825 2.793 2.813 2.823 2.766 2.8088

0.1000
0.0540
0.1000
0.0420
0.0900
0.1100
0.0870
0.0600
0.0790
0.0450
0.0690
0.0670

0
0
0
0
0
0
0
0
0
0
0
0

C
A
B
C

21 August

2.824
2.778
2.801
2.770

2.799
2.775
2.832
2.787

2.790
2.799
2.758
2.744

2.764
2.805
2.759
2.766

2.817
2.833
2.773
2.807

2.805
2.772
2.814
2.803

2.7998
2.7937
2.7895

0.0600
0.0610
0.0740

0
0
0

2.7795

0.0630

X^--

2.8025
R-

0.0640

Finger Height
Day
3 August

4 August

5 August

6 August

7 August

10 August

11 August

12 August

13 August

14 August

17 August

18 August

19 August

Shift
A
B

1
1.90
2.15

Sample Number:
2
3
4
5
1.95 1.94 2.00 2.05
2.17 2.11 2.13 2.02

6
2.16
2.03

2.000

R1Validao
0.260
0

2.102

0.150

1.73

1.90

2.07

1.89

1.76

1.88

A
B

2.30
2.28

2.41
2.16

2.54
2.19

2.37
2.08

2.32
2.25

2.16
2.24

1.872
2.350

0.340
0.380

1
1

2.200

0.200

1.92

2.24

2.11

1.89

1.88

2.17

A
B

2.39
2.11

2.28
2.21

2.10
2.24

2.36
2.21

2.54
2.17

2.25
2.24

2.035
2.320

0.360
0.440

0
1

2.197

0.130

1.89

1.90

1.73

2.07

1.89

1.76

A
B

2.51
2.22

2.25
2.19

2.08
2.22

2.35
2.24

2.29
2.01

2.32
2.23

1.873
2.300

0.340
0.430

1
1

2.185

0.230

1.89

1.90

1.78

2.07

1.89

1.76

A
B

1.95
2.08

2.07
2.03

2.25
2.27

1.95
2.23

2.11
2.24

2.16
2.13

1.882
2.082

0.310
0.300

1
0

C
A
B
C
A
B
C
A
B
C
A
B
C
A
B
C
A
B
C
A
B
C
A

2.31
2.23
2.23
1.73
2.21
2.17
2.01
2.08
1.93
1.84
2.23
2.19
1.96
2.27
1.92
1.78
2.31
2.02
1.76
2.06
1.76
2.25
2.28

1.90
2.25
2.21
2.00
2.11
2.19
1.90
2.19
2.09
2.12
2.01
2.22
2.05
2.00
1.78
1.65
2.35
1.97
1.91
2.14
1.83
1.88
2.15

1.86
2.21
2.05
1.79
2.21
2.15
1.90
2.28
1.90
1.90
2.25
2.18
2.16
2.06
1.76
2.04
2.25
1.81
2.01
1.91
1.79
2.11
2.17

1.91
1.89
2.19
1.75
2.44
2.04
1.81
2.29
1.95
1.89
2.11
2.15
1.87
1.97
1.77
1.63
1.99
1.73
1.85
2.06
1.79
2.18
2.18

1.89
2.15
2.07
1.84
2.17
2.07
2.06
2.21
2.04
2.01
2.39
2.23
2.13
2.13
1.78
1.75
2.27
1.77
1.78
2.08
1.77
2.02
2.44

1.87
2.11
2.16
1.74
2.30
2.22
1.89
2.45
2.09
1.75
2.15
2.04
1.90
2.05
1.87
1.83
2.11
1.82
1.64
2.09
1.94
1.86
2.00

2.163
1.957
2.140
2.152
1.808
2.240
2.140
1.928
2.250
2.000
1.918
2.190
2.168
2.012
2.080
1.813
1.780
2.213
1.853
1.825
2.057
1.813
2.050
2.203

0.240
0.450
0.360
0.180
0.270
0.330
0.180
0.250
0.370
0.190
0.370
0.380
0.190
0.290
0.300
0.160
0.410
0.360
0.290
0.370
0.230
0.180
0.390
0.440

0
0
0
0
1
1
0
0
1
0
0
0
0
0
0
1
1
1
1
1
0
1
0
0

20 August

21 August

B
C
A
B
C
A
B
C

2.31
1.87
2.16
2.06
1.80
1.75
1.90
1.80

2.27
1.89
2.38
2.08
1.71
2.00
1.90
2.01

2.16
2.03
2.20
2.14
1.65
2.04
1.81
1.73

2.10
1.69
2.25
2.24
1.68
2.00
1.86
1.89

2.24
1.75
1.98
2.26
1.96
2.15
1.98
2.01

2.28
2.04
2.23
2.18
2.05
2.06
1.81
1.91

2.227
1.878
2.200
2.160
1.808
2.000
1.877

N
a
ov

0.210
0.350
0.400
0.200
0.400
0.400
0.170

1
1
0
0
1
0
1

1.892
0.280
X-2.092733

d
m
ia

RX--

2Nova Media

2.1088
R-

X-3Nova Media

0.2828

0.2763
2.1143

R-

0.2727

Legenda
Dentro dos limites
Fora dos limites
Valid. Com turnos

turno
A

x^-###

R0.0547

B
C

###
###

0.0717
0.0656

LSCx

LCx

LICx

2.8316 2.8052 2.7788

2.8372 2.8026 2.7679
2.8314 2.7997 2.7680

0
0
0
0

A2=

0.483
Limites base

2 limites

0
0

Limites 3

Limites 3

0
0
0

Pod weight
LSCx
LCx

Pod weight
2.8376
2.8052

LICx

2.7727

0
0
0

LSCr
LCr

0.1345
0.0671

0
0
0
0
0

LICr

D3
D4

2.0040

0
0
0

Limites 3

0
0
0

Finger weight
LSCx
2.2100
LCx
2.0604

LICx

1.9107

0
0
0

LSCr
LCr

0.6210
0.3099

0
0
0
0
0
0
0
0
0
0
0
0

Finger weight

LICr

0
0
0
0

2 validao
0
0

3Validao 4 validao
0
0
0

0
Com amostra total:
turno
x^--

LSCx
R### 2.3482

2.1750

B
C

Mdia

2.0700 ### 2.1634

1.9012 ### 2.0680
2.0487 0.2991 2.1932

Depois 1 validao
turno
x^--

LSCx
R### 2.2705

2.1057

B
C

0
0
0
0

0
1
0
0

Mdia

2.1467 ### 2.2400

1.9833 ### 2.1532
2.07858 0.2954 2.2212

0
1

0
1
0
0
0
0

0
0
0
0

0
0
0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

LSCr

LCr

LICr

0.1096

0.0547 0.0000

0.1438
0.1315

0.0717 0.0000
0.0656 0.0000

2 limites
Limites 3
Pod weight
LSCx
LCx

2.8334
2.8025

LICx

2.7716

LSCr
LCr

0.1283
0.0640

LICr

3 limites
Limites 3
Finger weight

4 limites

Limites 3
Finger weight

Limites 3
Finger weight

LSCx
LCx

2.2293
2.0927

LSCx
LCx

2.2422
2.1088

LSCx
LCx

2.2460
2.1143

LICx

1.9561

LICx

1.9754

LICx

1.9826

LSCr
LCr

0.5667
0.2828

LSCr
LCr

0.5536
0.2763

LSCr
LCr

0.5465
0.2727

LICr

LICr

LICr

Valid. Por turno

1
0
LCx

LICx

LSCr

LCr

LICr

0
1

2.1750

2.0018 0.7188

0.3587

0.0000

2.0700
1.9012

1.9766 0.3874
1.7344 0.6920

0.1933
0.3453

0.0000
0.0000

0
0

2.0487

1.9043 0.5994

0.2991

0.0000

LCx

LICx

LSCr

LCr

LICr

0
0

2.1057

1.9410 0.6836

0.3411

0.0000

2.1467
1.9833

2.0533 0.3874
1.8135 0.7047

0.1933
0.3517

0.0000
0.0000

0
0

2.0786

1.9359 0.5919

0.2954

0.0000

0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
1
0
0
1
0
0
1
0
0

1
0
0
0
0
1
1
0