Eastman Kodak Equipment Manufacturing : Three Scenarios
نویسنده
چکیده
Kodak equipment manufacturing and, specifically, the role of Kodak Apparatus Division (KAD), are examined. KAD, Kodak's shared and captive parts supplier organization, competes with outside vendors to supply Kodak Lines of Business (LoBs) with a variety of fabricated parts, ranging from commodity parts to leading edge optical subassemblies and electronic components. KAD has in recent years suffered from a customer perception of low viability compared to much of its competition. Reviews of Kodak history, culture, and business environment are given, and their effect on KAD manufacturing is discussed. It is proposed that KAD's relatively high cost structure is in large part a result of a shift in product from high volume strategically important camera parts to a wide range of complex, cost sensitive, and low volume equipment parts, coupled with a company culture that favored stability and thus relative inflexibility towards these changing conditions. Three alternate organizational forms for Eastman Kodak equipment manufacturing are identified and evaluated: Scenario I: KAD remains captive supplier to Kodak LoB customers exclusively but develops its design, fabrication and assembly capabilities to enable it to provide subsystems, instead of single parts or components. Control of KAD resides in a Board comprised of LoB, KAD, and corporate executives. Scenario II: KAD becomes a number of autonomous and selfcontained companies, which have varying degrees of Kodak
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