Subject category:
Production and Operations Management
Published by:
Harvard Business Publishing
Version: 5 February 2007
Length: 21 pages
Data source: Field research
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Abstract
Kodak must decide whether to make a major investment in a production facility designed around a new technique for producing the gelatin critical to so many film and paper products. Currently, gelatin making is an arcane art, unchanged in 150 years and heavily dependent upon the sensory skills of experienced foremen. The new process, in a pilot stage now, is a chemical reaction which reduces the process time for one step from 6 months to 48 hours and which is much more ‘scientific.’ However, the old plant is fully paid for, the new process is only one potential avenue for improvement, and demand for gelatin is falling.
Location:
Industry:
Size:
Fortune 500, USD10.8 billion sales
Other setting(s):
1982-1983
About
Abstract
Kodak must decide whether to make a major investment in a production facility designed around a new technique for producing the gelatin critical to so many film and paper products. Currently, gelatin making is an arcane art, unchanged in 150 years and heavily dependent upon the sensory skills of experienced foremen. The new process, in a pilot stage now, is a chemical reaction which reduces the process time for one step from 6 months to 48 hours and which is much more ‘scientific.’ However, the old plant is fully paid for, the new process is only one potential avenue for improvement, and demand for gelatin is falling.
Settings
Location:
Industry:
Size:
Fortune 500, USD10.8 billion sales
Other setting(s):
1982-1983