Sprint Team driven Process Improvement
at The Hershey Company
Presentation
• Hershey’s Continuous Improvement Model
• Understand the Sprint Team Process
• Example of a successful Sprint Team
Draft
Hershey’s Global Operations Vision
st
d
Co tage
n
va
Ad
Deliver Hershey
world-class standards
of safety, quality and
performance
Re
lia
ble
Deliver low-cost advantaged product consistently to meet the unique needs of
global customers
Leverage scale and
market presence to
create low cost
competitive advantage
Best
End-to-End
Delivered Value
Integrated
Manage across the internal and external
value chain to deliver on business strategies
* Hershey’s Global Operations division includes all Manufacturing Plants, DCs, and supporting
groups: Continuous Improvement/Indus Engg, Engineering, Packaging, S&OP, R&D, Quality, etc.
3
Core Global Operations Strategies
1.
Optimize end-to-end supply chain responsiveness,
reliability and asset utilization (ROIC).
2.
Deliver annual controllable cost reduction
3.
Continuously improve business processes across the
organization to increase visibility, integration and
effectiveness.
4.
Strengthen product quality processes and systems.
5.
Create an environment that fosters employee
engagement and a culture that is agile, adaptable,
aligned and accountable.
* ROIC = Return on Invested Capital = (Net Operating Profit less Adjusted Taxes)/(Invested Capital = Operating Working
Capital1 + Net PP&E + Goodwill)
Quality &
Safety
Draft
To achieve these goals, we need…
An ONGOING PROCESS
to drive the results and create ownership for
improvement
•
To be aligned as an organization to work on the most
important opportunities
•
To standardize processes which maintain accountability
to what our (internal and external) customers value.
•
To develop working (“operating”) methods which promote
agility and adaptability by:
» Focusing on delivering customer value
» Eliminating waste; Reducing variation
» Promoting collaboration/communication
» Enhancing knowledge and learning
The ongoing process for improvement is established in the
framework of Hershey’s Continuous Improvement System
The Hershey Continuous Improvement System
KNOW THE CUSTOMER VALUE
KNOW THE PROCESS
Continuous Improvement
Identification
Prioritization
Agree
which opportunity
to focus on
Realize
the opportunity as
effectively as
possible
Organizational
Behavior
Resource
Management
Improvement
Tools
QUEST FOR PERFECTION !
A philosophy to
actively engage
employees in
improving
performance
daily.
Now, let’s understand what is a Sprint
Team and its relation to Hershey’s
Continuous Improvement Model
A Sprint Team is…
…a cross-functional group…
…which targets a specific opportunity…
…to realize a large value in short time…
…by challenging existing constraints, …
…identifying the root causes…
…and implementing solutions…
…that are permanently sustained over time.
MARATHON OPPORTUNITY:
Delivers Results in the Future
Long Time
Invested
$$$
Full Benefit
Gained
$$
$
Marathon Activities produce the gains over the long term and do not produce
tangible financial results, but they do significantly contribute to overall returns.
* By Marathon we mean 5S, Standard Work, Visual Factory tools, etc.
9
SPRINT OPPORTUNITY:
Delivers Results Immediately
Short Time
Invested
$$$
Benefit
Gained
$$
$
Sprint Activities have focused outcomes which are directly measurable
and usually produce a noticeable and rapid return.
10
Taylor
7 Steps of a Sprint Team
1
Charter the
Team
2
Build
Pareto
& Radar
3
4
Understand
Key
Constraints
Problem
Solving
Loop
5
Implement
-ation
Plan
6
Implement
Verify &
Sustain
7
Re
-Application
Opportunity
Step 1: Charter the Team
Step 2: Build Pareto & Radar
Step 3: Understand Key Constraints
Step 4: Problem Solving Loop
Majority of Sprint
Team’s time is spent
in this step
Step 5: Implementation Plan
Step 6: Implement & Verify
Step 7: Reapplication Opportunities
Ian
Sprint Team and the CI Model
The Hershey Continuous Improvement System
KNOW THE CUSTOMER VALUE
KNOW THE PROCESS
Continuous Improvement
Identification
Prioritization
Agree
which opportunity
to focus on
Realize
the opportunity as
effectively as
possible
Organizational
Behavior
Resource
Management
Improvement
Tools
QUEST FOR PERFECTION !
Sprint Teams use the full
Hershey Continuous
Improvement System Model
Sprint Team and the CI Model
The Hershey Continuous Improvement System
KNOW THE CUSTOMER VALUE
KNOW THE PROCESS
Continuous Improvement
Identification
Prioritization
Agree
which opportunity
to focus on
Realize
the opportunity as
effectively as
possible
Organizational
Behavior
Resource
Management
Improvement
Tools
QUEST FOR PERFECTION !
Clarify the process used
•SIPOC, Process Maps, Value
Stream Maps
Identify the key outputs for the
process
•SIPOC, Constraint Analysis
Apply the customer point of view of
value to the process
•Zero-Based Analysis
•Value added and non-value
added
* Zero Based Analysis (ZBA) calculates the total opportunity in a perfect world (zero defects/
waste, zero efficiency loss, most optimum labor, etc.).
Sprint Team and the CI Model
The Hershey Continuous Improvement System
KNOW THE CUSTOMER VALUE
KNOW THE PROCESS
Continuous Improvement
Identification
Prioritization
Agree
which opportunity
to focus on
Realize
the opportunity as
effectively as
possible
Organizational
Behavior
Resource
Management
Improvement
Tools
QUEST FOR PERFECTION !
Identification & Prioritization
•Identify the main opportunities
•Identify the key constraints
•Use measurements, analysis and
facts to drive decisions
•Use of a formal prioritization tool
(Radar) to focus on the highest value
and lowest complexity opportunities
first
Sprint Team and the CI Model
The Hershey Continuous Improvement System
KNOW THE CUSTOMER VALUE
KNOW THE PROCESS
Continuous Improvement
Identification
Prioritization
Agree
which opportunity
to focus on
Realize
the opportunity as
effectively as
possible
Organizational
Behavior
Resource
Management
Improvement
Tools
Tools/ Behaviors
•Use the standard tools to make
improvements
•Live the Hershey Values (formally
defined; heavily emphasized)
•Practice improvement mindsets
•Incorporate marathon (long-term
improvement) behaviors into daily work
QUEST FOR PERFECTION !
Resource Management
•Use Goals and Action Lists to drive
results
•Work only on the “pink” opportunities
•Follow standard meeting agendas
•Clear roadblocks
Sprint Team and the CI Model
The Hershey Continuous Improvement System
KNOW THE CUSTOMER VALUE
KNOW THE PROCESS
Continuous Improvement
Identification
Prioritization
Agree
which opportunity
to focus on
Realize
the opportunity as
effectively as
possible
Organizational
Behavior
Resource
Management
Improvement
Tools
QUEST FOR PERFECTION !
Quest for Perfection
•Re-apply solutions to all applicable
areas of the company.
•Seek to break all constraints
(eventually)
Sprint Team Roadmap/ Timeline
• Sprint Team Tools which support tie-in of Sprint Team
with CI Model are shown in greater detail in the next
slide.
• This is the recommended road-map when a Sprint Team
is resourced to capitalize on an opportunity
• Consider this roadmap also as a principle which can be
applied to even smaller problems on a daily basis
Have a problem?
- Analyze the problem
- Resource it
- Improve/study
- Put controls to sustain
The Sprint Team occurs in 7 phases
Sprint Team Structure
Sprint Team Structure
• Usually 4-8 members
• Usually full-time for 4-8 weeks
– Can be part-time for a longer period
• Initiated by a Steering Group
• Always has a sponsor representing the Steering
Team
• Works on specific goal
Sprint Organization
Steering Team
Sponsor
Facilitator
Sprint Leader
Sprint Team
Steering Team
• Usually a management group
– Sr. VP Staff
– Directors/Plant Managers Staff
– Managers/Business Unit Teams
• Owners of a radar of opportunities
– Opportunities driven by corporate goal or the key
radar areas: People/Quality/Service/Cost
• Manage an overall improvement plan
• Empowers the Sprint Team to act
Sponsor
• Represents the Steering Team at the Sprint Team
• Helps set the goals and plans for the team
• Maintains controls to ensure team progress
• Makes some of the resource ($$$) decisions for the
team
• Removes roadblocks
Sprint Team Facilitator
• Usually the CI Integration Manager or Plant
Industrial Engineer
• CI Subject Matter Expert
– CI Tools
– Sprint Team “Super User”
• Aids/ coaches a Sprint Team Leader (but not full
time)
Sprint Team Leader
• Functional leader of the team
– Sets the daily and weekly direction of
team
– Sets goals
– Gets assistance from support resources
• Holds team accountable to complete
actions
• Communicates with affected groups
• Models Mindsets
Role of Sprint Team
members at different
stages of the Sprint
Team process
Sprint Team Management
Time Management & Schedule
• At the beginning of each week confirm
time allotted by each member of the team
• Post a team meeting schedule
• Follow the standard meeting plan if
possible
MEETING SCHEDULE
MEETING SCHEDULE
• 20 minute daily startup meeting
• 30 minute daily wrap-up meeting
• 60 minute weekly review meeting
* A Sprint Team generally runs from 4-8 weeks
7am Daily: (20 min)
7am Daily: (20 min)
Clarify day’s actions
Clarify day’s actions
3pm Daily: (30 min)
3pm Daily: (30 min)
Review metrics
Review metrics
Review progress (action list)
Review progress (action list)
Develop new actions
Develop new actions
1pm Thursday: (1 hr Review)
1pm Thursday: (1 hr Review)
Review metrics
Review metrics
Review progress (weekly goals)
Review progress (weekly goals)
Discuss roadblocks
Discuss roadblocks
Develop goals for next week
Develop goals for next week
Share the workload
• Assign responsibilities to team members
– Update metrics
– Progress board
– Communication boards in work areas
– Action List
– etc
Set weekly goals
•
•
•
•
•
Specific
Measureable
Achievable
Relevant
Time-Bound
Status
Goal
Owner
By end of week, build Pareto of wrapper downtime opportuntiy.
Rachel
By end of week, prioritize all team opportunities on the team radar
John
By end of week, understand top 3 constraints on Line 3 wrappers.
Steve
Action Lists
• Review twice per day
• Clear unambiguous actions
• All actions are owned and
have a date
• No assignments to the
absent
• Complete on time
• Help team members who
are late
Morning Meeting
Purpose:
•To launch the team for the day.
•Make sure everyone is clear about
what to work on.
• This meeting should not become
a long meeting for discussions.
Duration:
10-20 minutes
Agenda:
actions
Clarify the day’s
Evening Meeting
– Purpose:
The team will evaluate progress
against goals and generate
actions as required.
Avoid problem-solving new issues
in the meeting.
Schedule another appointment
with the required team-members
when problem solving is required.
– Duration:
30 minutes
– Agenda: Review performance
metrics
Review progress (on the action
list, and against weekly goals)
- Action done: check off
- Action not done: develop plan
to remove roadblock
Generate new actions
Weekly Review Meeting
– Purpose:
The team reviews its progress
against the overall goals outlined
in the project charter to ensure that
it is on-track to meet them.
Sponsor Alignment and
preparation of any updates to the
steering team.
– Duration:
1 hour, weekly
– Agenda: Review performance
metrics
Review progress (against weekly
goals)
- Goal achieved: check off
- Goal not achieved: develop
plan to remove roadblock
Discuss any other roadblocks
Generate goals for the following
week
Sponsor Stage Gate Review
Purpose: A Steering Team/Sponsor risk mitigation
tool to promote alignment and remove team
roadblocks.
1) Charter Stage Gate Review: to ensure that the
Sprint team’s chartered objectives align with the
organization’s strategic plan.
2) Opportunity Stage Gate Review: To ensure
that the Sprint team is focusing on the highest
value lowest complexity opportunities.
3) Implementation Plan Stage Gate Review:
•
To analyze the costs/benefits of the proposed
implementation plan
•
ensure that all operational factors/risks have
been taken into consideration.
•
Agreement reached on how the proposed
solution will be funded.
4) Process Control Plan Stage Gate Review: To
review the efficacy of the team’s control plan to
ensure future sustainment of improvements
Visual Record of Progress
• Keep metrics posted in room
– Annotate the graphs with explanations
• Use flip charts on wall to record
test plans and findings
– A visitor to the room (the sponsor)
should be able to understand what the
team is doing
Communicate outside of the team
• Post progress updates in area where work
is being completed
– Metrics, Progress, Plans
– New learning
• Update to process owners, peers
– emails
– Meetings
• Steering Team
– Metrics, progress, roadblocks, plans
Sprint Teams Vs Kaizen Blitz Teams
Sprint Teams Vs Kaizen Blitz Teams
• Generally speaking, Kaizen Blitz teams are shorter
duration (2-10 days) whereas our Sprint Teams are
longer duration (4-8 weeks)
• Scope:
– Kaizen Blitz…
• may focus on a very specific opportunity with a smaller scope due to
limited time
• More pre-work completed before the team kicks off
– With a Sprint Team…
• we are looking at attacking larger opportunities (reduce scrap at
Line X, Improve efficiency of Line Y).
• Pre-work is done only to understand which large opportunity should
be resourced with a Sprint Team
• the team itself collects data to prioritize multiple sub-opportunities
within the target opportunity
Reese’s Pieces Sprint Team
Background
• Reese’s Pieces were first produced
at Hershey’s Stuarts Draft, VA plant
in 1982
• Product sales have grown to $87 MM
as of 2009
• 24/7 operation
• Minimal advertising after the movie
E.T.
*ET ate Reese’s Pieces candy in the movie ET: The Extra-Terrestrial.
Sales went up 65% after the release of the movie. Source: Time
Magazine, July 26, 1982
1
Reese’s Pieces Production Process
• Moulding: Peanut Butter paste is molded into lentilshaped pieces at low temperatures
• Lentils are made smoother and rounded, and then
transported to Coating pans
• During the Coating process the lentils are coated with
ingredients that make up Pieces’ outer shell.
• Next in Polishing, glaze is applied and the candy gets
the shiny appearance
• The Candy is next packaged into bags of various sizes
Reese’s Pieces Sprint Team
Team’s Goals:
• Improve Production Capacity of the Reese’s Pieces Operation by 10%
Why?
• Additional capacity for future sales growth
• Reduce Weekend Prod Days/ Overtime reduction
• Reduce outsourcing of Reese’s Pieces from Hershey’s VA plant to Illinois
plant (VA plant has the cost advantage)
Team Members
• Sprint Team Leader (Reese’s Pieces Production Supervisor)
• 3 Production Operators (1 from each shift)
• 1 Maintenance Mechanic
• Sprint Team facilitator (part-time)
• Industrial Engineer (part-time)
• R&D Scientist (part-time, not part of the initial team)
7
Reese’s Pieces Sprint Team
When?
Sprint Team Kicked off in March 2008; improvements fully in place by July,
2008.
Sprint Team Kickoff
- Kick-off speech by Plant Manager (Sponsor), explaining the need for improvement
- Sprint Team leader explains high level process analysis and opportunities
- CI Facilitator trains the team members on the Sprint Team processes
- Introduction to SMED process, basic problem solving tools
- Message to the team: Challenge everything; no idea is a bad idea; use the Sprint
processes to focus on the most important opportunities first; get all the help from
Plant leadership to resolve issues unsolved before
7
Sprint Team Key Actions
Capacity Improvement Bottleneck
Analysis:
Bottleneck Step: Coating Operation
–Pre-work was done to understand Theoretical
Max output from each of the process steps
Finished Product - Lbs/Hour
8000
7000
Theoretical
Actual (finished lbs/hour)
Coating process
was the
Operation’s
bottleneck
6000
5000
4000
3000
2000
Team’s Largest Opportunity:
Coating Process
1000
0
Moulding
7
Polishing
Bagging
Bottleneck Analysis
• Multiple coatings of various
ingredients with ‘standard’ time for
each coating step
• Cleaning the Coating pans at a
specific frequency resulted in
Production Time losses
Coating
Reduction of Time
between Coating
Rounds
$Z
Cleaning
Time
$X
Coating Cycle
Optimization
X
X
Case
Packers
$Y
X
Prioritizing Opportunities within Coating on the
basis of Value/ Complexity
Sprint Team Key Actions
• Challenged the sequence and duration of each coating sub-step
• Requested a Food Scientist from R&D to help optimize coating cycle
• With a low investment made equipment changes to increase Coating Pan
speeds
–Increased speed allowed for faster turn around, spread, and dry times
–Modified the sequence/ frequency/ duration of syrup application steps
–Multiple tests were carried out by Plant QA and Corporate Product/Process Review Group and
Sensory to make sure Quality was not compromised
–Actually, the appearance was improved from before due to optimized syrup application steps
7
Sprint Team Key Actions
Next Opportunity in Coating: Time to Clean Coating Pans
• Cleaning time was in high single digit % of Line’s available time
• Cleaned every coating pan after 10 rounds due to product build-up in fins of the pan
• Team had operators from all 3 shifts who helped with this Cleaning process
• Observed all 3 shifts; did time studies; created Spaghetti charts to track movement
of operators during cleaning
• Used the SMED process to remove/shift unnecessary steps. Came up with the idea
to use hot water for cleaning to reduce cleaning time (capital investment)
• Developed and implemented the best Cleaning process for all shifts
• Achieved 40% reduction in Cleaning time Gained production capacity
7
Sprint Team Key Actions
Next Opportunity: Bottleneck now moved to Moulding
• Challenge: How to improve Moulding speed?
Team’s Key Actions
• Use of 5 Whys to understand constraints limiting Moulding Speed
• Team found the correlation of Moulding Speed with Peanut Butter paste temperature
• Tried various options; but came up with a temporary solution to reduce temperature by
reducing Pipe Jacket temperature
• Resulted in an increase in Moulding Speed by 14%
• A more permanent solution to control temperature was implemented later (capital project
implemented in Dec 2008)
• Using a structured Problem Solving Process, team members concluded increasing Puddle size
of Peanut Butter paste on the rollsets to reduce temperature while moulding faster
7
07
20 Avg
08
2 0 - Ja
08 n
20 Feb
08
20 Mar
08
20 -Ap
08 r
-M
20 ay
08
2 0 Ju n
08
2 0 - Ju
08 l
20 Au
08 g
-S
20 ep
08
20 - Oc
08 t
20 No
08 v
-D
20 ec
09
2 0 - Ja
09 n
20 Feb
09
20 Ma
09 r
20 -Ap
09 r
20 May
09
-J
20 u n
0
20 9 - J
09 ul
20 Au
09 g
20 Sep
09
20 - Oc
09 t
20 -No
09 v
-D
ec
20
Avg Lbs/Shift
Results
39000
37000
All Sprint Team
Improvements
Implemented
Sprint Team
Started
New Output Standard
Implemented
Most Sprint Team
Improvements
Implemented
35000
33000
31000
29000
27000
25000
Avg Monthly Output (Lbs/Shift)
Reese’s Pieces Business Unit Team (BUT)
Metrics Tracking
Coating Operations - Cleaning Time
Time to clean Coating Pans was reduced
by 40%. The BUT is tracking Cleaning
Times to make sure improvements are
sustained.
1.8
1.6
TARGET TIME
1.4
This was ID’d as a complex opportunity
needing capital investment that could not
be justified. Sprint Team recommended
tracking this metric to ensure variation was
under control, and to increase awareness
about this metric
Hours
1.2
1
0.8
0.6
0.4
0.2
Time between Coating Rounds
0
Date-1
Date-2
Date-3
Date-4
Date-5
Date-6
Date-7
Date-8
Date-9
Date-10
Date-11
30
Time between Rounds
25
Target Time
20
15
10
5
D
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D
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D 2
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D 2
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D 3
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D 3
at
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D 3
at
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D 4
at
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D 4
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D 7
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D 7
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D 7
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8
0
What is a Business Unit Team?
At Hershey’s, for a Manufacturing operation, a Business Unit Team is a
team of Production, Maint, Quality and Engg resources that meets every 2
weeks to focus on long-term improvements for the Business Unit. A
Business Unit could be one line or a group of similar lines/operations.
BUTs also exist for Maintenance, Warehousing, Administration depts
Sprint Team Benefits
2009…
• Mindset shift that improvement is possible
• Weekends off; more time for preventive maintenance
• Significant Dollar Savings due to reduced
outsourcing to IL plant (reduced by 50% in 2009), and
reduced Overtime at VA plant
• Increased theoretical capacity by 15%; committed to
output increase of 10% in the financial output
standards; delivered this goal throughout 2009.
2010…
• Re-introducing Reese’s Pieces along with Hershey’s
new product line-up Pieces (); result is increased
sales. Running again 7-day; and supporting increased
sales.
7
A very important goal of our Sprint Team
efforts is to instill CI mindset in our
teammates and to encourage them to use
it on a daily basis.
Why the Reese’s Pieces Sprint Team was Successful?
• Experience of Team Members with the Reese’s Pieces operation
• The team members had a very positive mindset and challenged the status quo.
• Acted on Team Members suggestions early on to bolster team’s confidence
• Requested a R&D Scientist who specializes in Panning; learning experience for
team and the scientist
• There are only 5 operators in the moulding side of operation in each shift; easy to
communicate changes, get buy-in, track performance
• Control plan for sustainment: On an ongoing basis, the operators are tracking:
cleaning time, turn-around time – manually. The Reese’s Pieces Business Unit Team
(BUT) looks at these metrics every 2 weeks during the BUT meeting.
7
Closing Remarks
•
An important goal of running Sprint Teams is training and introducing more Hershey’s teammates to the
Mindset for Continuous Improvement, and influencing them to use CI principles/ tools on a daily basis
•
Many Sprint Team leaders have become more successful in their roles as Production Supervisors and
are constantly applying the Sprint mindset in daily process improvements; conversely successful
Production Supervisors are effective Sprint Team leaders
•
Sprint Team hourly members have got jobs with higher responsibilities or become part of multiple Sprint
Teams (even in areas outside their own)
•
Sprint Teams have challenged conventional wisdom on multiple opportunities throughout Hershey’s
plants in North America
•
Some Sprint Teams are more successful than others; but over time plants are learning how to make
Sprint Teams more and more successful
•
When Cross-functional resources come together remarkable results can be obtained
–
–
–
–
–
Success of Sprint Team concept has led to creation of more teams to drive process improvements
Sprint Teams are increasingly resourced to improve Safety and Quality, and not just waste/ efficiency opportunities
Recently, Sprint Teams have been implemented across multiple plants to improve OEE of Key Operations; a
Steering Committee at the Operations level oversees all these teams
Sprint Team concept (with members only working part-time for the team) is being applied to improve Inventory turns
in a separate initiative
Sprint Team concept is making Company Leaders confident that improvements can be achieved if a CFT is given an
opportunity to dedicate their time and energy on a specific goal