Polaroid’s Project Selection Criteria: A Snapshot
Polaroid’s endeavor to reach Six Sigma quality levels by 2001 is one of the most remarkable case studies in implementation of the Breakthrough Strategy. One reason for this is the criteria by which Polaroid Black Belts (or, in the company’s parlance, “Variability Reduction Leaders”) select projects. The company breaks its criteria into three primary categories:
- Low Yield Rate. When one or more of the company’s processes produce low yield on a continual or unpredictable basis.
- Cost of Poor Quality. This criterion measures products and processes that require continuous and unusually high levels of inspection or quality-related intervention in order to deliver products or services to the consumer. This factor can be compared against revenues to determine the need for a Six Sigma project.
-Capacity. Undercapacity means that a company does not have the facilities, tools or human resources to produce products on time. While this hasn’t been a concern for Polaroid to date, the company feels it is an appropriate criterion for selecting a Six Sigma project.