Quality Management Hershey’s Mint Kisses Marc Cangemi Regan Greco Jaclyn Johns Michael Williams DIT 1141 TR 11:30 April 30, 2004 What Quality Control Processes are in Place? Here at Hershey’s we use a quality control process that we like to call QTE or Quality Through Excellence. QTE has been in place at Hershey since 1987 and is based on the concept of Total Quality Management. A network of coordinators throughout the corporation spearhead QTE efforts by encouraging employees to "think outside the box" as they explore new methods to increase productivity and decrease costs. The QTE Executive Award of Excellence, a company-wide Senior Management award, was unveiled in March 1997 as a way to recognize outstanding QTE accomplishments. Entries from around the corporation are judged on the TIP Behaviors (Teamwork, Integrity and Personal Leadership) and the Wow Factor ... that something extra that sets the nomination apart. Gold, silver and bronze medals are awarded in four categories – Innovation and Creativity, Application of Technology, Communications/Best Demonstrated Practices and Continuous Improvement. Each medal recipient group also receives a check to donate to charity.1 The QTE approach to quality control for chocolate is great and has already saved the company millions of dollars, but we at Hershey’s are also looking into cutting edge technologies for chocolate quality assurance as well. Many of us are familiar with ultrasound scans as a harmless way of monitoring unborn babies. But scientists at the Institute of Food Research (IFR) on the Norwich Research Park are taking this technology in a new direction, and are using ultrasound to help improve quality control during chocolate manufacture. Ultrasound scanning involves bombarding a material with sound waves, and measuring the pitch, loudness and speed of waves that pass through, or are bounced back. 1 http://www.hersheys.com/hipp/index.shtml 2 It very useful for measuring or monitoring things that you can't see through, or that are inside something else. It has the added advantage that it's safe, quick to use and cheap. The chocolate industry is one area where ultrasound scans can potentially help improve product quality and reduce waste. This is because chocolate is much more complicated than we might initially imagine. Chocolate contains sugar, cocoa powder and fat. The fat molecules can arrange themselves in 6 different forms, but only one of these has the properties we like. So chocolate manufacturers need a way of persuading the chocolate to solidify in the form they want. This process of persuasion is called "tempering." Tempering involves mixing all the ingredients together and heating them up. The mixture is then rapidly cooled, then gently warmed up again. Each of the 6 different forms of chocolate melts at a slightly different temperature, so the mix is rewarmed to just below the melting point of the preferred form. At this stage, tiny crystals start to develop in the mix; these are the starting point of the right form of chocolate. But knowing exactly when this process has started is very difficult - the manufacturer has to analyze a sample and see whether the crystals have started to form.2 This is where the IFR researchers think they can help. By building an ultrasound scanner into the system, the process of melting and crystal formation could be constantly monitored. As soon as the chocolate reaches the right stage, it can be passed onto the next step. The system should also be able to regulate itself to ensure that the conditions are kept just right for the tempering process to be right first time. Right now this method is being tested in chocolate plants all over the UK, and if it is successful it will definitely be a welcome addition to our quality control process. 2 http://www.ifr.bbsrc.ac.uk/public/FoodInfoSheets/EDPChoc.html 3 Aspects that Affect Quality Here at Hershey, we have many advantages and disadvantages in regards to the path we have chose to take our products. On advantage is our age demographic. Everyone loves Hershey from age 3 to 93, so in essence we have no age demographic. In a volatile time in business where markets are shrinking day by day we can be confident that we will continue to make a product for the entire household. If we were in the apparel business for example, this would be nearly impossible. Look at Abercrombie and Fitch and Saks for example. Both sell clothing, but to two completely different markets. Abercrombie gears its advertising to predominantly teenagers and young adults between the ages of 14 and 28. Saks on the other hand must advertise in a completely different way to catch the attention of mid to upper class women ages 20 and above. As a leader in the food products industry, we are constantly at under the watchful eye of the FDA. In all honesty, we are under the watchful eye of everyone who opens a Hershey’s product. Health and safety are top priorities in every decision we make. Just like we have an advantage of other industries in regards to having no demographic, other industries certainly have the edge over us in this aspect. Let us go back to Abercrombie and Fitch and Saks. Both may have niche markets but when deciding on the design of a new pair of pants do they really have to think about the effects they will have on a person’s health? Or how often do you read that thousands of people stopped buying an $80 pants because it was unsafe (anyone who buys $80 pants on a regular basis should be considered unsafe by whomever pays their credit card bill by the way). This may sound a little ridiculous, but think about how much health and safety impact us at Hershey. The 4 Mad Cow Disease caused people to stop eating meat for months. Businesses suffered horribly, and fortunately for us this was not a catastrophe that hindered our product lines. Any business, big or small, has advantages and disadvantages that are directly related to the product they make and nothing else. Now while every business is unique in this manner, all have at least one item they all must weigh heavily into their product, because without it no business can succeed. Quality is an item that any business, from shoes to salads to space stations, has to consider. Here at Hershey quality means a wide array of things. We all know how a Hershey product is supposed to taste, feel, look, and even smell. I would wager that I could go to an elementary school and have an eight year old successfully identify a Hershey product. Hershey has succeeded because it is a consistent brand. One can open a Hershey bar in Edison, New Jersey or Sydney, Australia and it would taste exactly the same, look exactly the same, feel exactly the same, and smell exactly the same. New Measures of Quality We are not content with our current quality requirements. A Hershey product already has to pass strict requirements in order to enter the market, but today we have decided to add two brand new quality criteria. Our first new criteria is the weight of our Hershey Kiss products. In order to successfully produce a quality Hershey Kiss they must all not only look the same, but also weight the same in a person’s hand. The last thing we want to do is undercut our chocolate lovers, the second to last thing we want to do is undercut our business. If a Kiss is too small, we will not be giving the customers as satisfying an experience as we could be giving them. If the Kiss is too large, we will be 5 spending more per Kiss than necessary. To put this into perspective, look at this example of a hypothetical situation involving kisses that weigh more than they are supposed to. Mitch, a Hershey chocolate mixing manager, did not get enough sleep last night. When he was pouring the ingredients into the large mixing vat, he unintentionally poured cocoa than milk, causing the mixture to be somewhat thicker(and heavier) than normal. As the chocolate liquid went through the machine and became Hershey’s Kisses, each kiss weighed more than normal, costing Hershey’s $.0003 more per Kiss. Now this may seem like a very nominal amount but consider the amount of Kisses we make each day; 33,000,000. That is not a hypothetical number that is proudly posted on our website as our daily output capabilities. The calculation is simple, but horrifying; 33,000,000 x .0003 = $9,900 That would be $9900 per day. Hershey’s produces 12,000,000,000 Kisses a year. If this error in the weight of the Kiss was not fixed that would cost Hershey’s about $3,600,000 for the entire year. Our desired weight for every Hershey’s Kiss is .16 ounces (unwrapped), with an acceptable range between .13000 and .19000. We will test for this weight requirement at our Quality Control Lab located directly inside the factory. This will allow us to get the most exact measurements. If the lab were on the other side of our facilities the weight of the kiss may be affected by outside forces such as temperature. Samples of five Kisses will be every half hour the first five days. The sample frequency will then decrease by every hour and then to every other hour each day. These samples will be taken to the Quality Control Lab where we will use a highly sensitive scale (accurate to .000002 ounces) to measure the weight of each kiss individually. In total, 125 Kisses will be examined. Second Measure of Quality The second new quality measure that we will implement is the length of the plume extending out from the Kisses top. I believe that our Kisses are one of the most 6 unique candy items on the market today. The reason for this is the signature design that Milton S. Hershey created back in 1924. Part of Hershey’s design was the “plume” extending out of the top of the Kiss. We at Hershey believe that the plume is as important today as it was when originally designed in 1924. Some may think this is just nitpicking too much, or that the plume is a minor attribute to the Kiss, but let’s consider the plume and why it is so important to the Hershey Kiss. It’s another great Halloween. The October air is warm, the sun is just creeping away to let the night in, and little Johnny is coming home from four hours of nonstop Trick or Treating. As he leaves his friends, his mother greets him at the base of their driveway. “Did you get lots of candy Johnny?”, she asks. “I am not Johnny, I am Mortimus the Terrible Werewolf grrrrrrr” he replies. His mother laughs and takes him inside. Once they are inside his mother begins to sort through his candy. Suddenly Johnny’s mom comes across a Hershey’s Kiss “Oh looks like this one has to go, look at the plume, there is only a small piece sticking out of the wrapping, it looks like it has been pushed in, I don’t trust this” she says as she throws the Kiss in the garbage. After a while she comes across another Kiss “Look at this one, the plume almost entirely out of the wrapping. Someone may have opened this up and tampered with this Kiss and then tried to put it back together.” Johnny’s mom then threw the second Kiss away. What Johnny’s mom doesn’t know is that both of those Kisses were 100% normal in every way except for their plumes. This is why the plume is so important on a Hershey Kiss. The plume is a very visible signal for a quality Hershey Kiss. A good plume signifies that the Kiss is well made and reassures a chocolate lover that they are eating a fresh, delicious Hershey Kiss. A bad plume on the other hand signifies tampering, old candy, candy that was handled a lot, or poorly made product. It is because of this that we have decided to implement a required length of plume for Hershey Kisses. Our goal is that every plume measure 4.1cm with an acceptable range between 3.22cm and 5.28cm. We will measure the plumes in our Quality Control Lab (the same lab we will be measuring the weight of the Kisses in). The Kisses used for the plume tests will be taken from the finished goods of the product line. We must use great caution when handling the 7 Kisses since any time we pick one up from the plume we might extend the plume or tear it off. We will use pointed tongs to grab Kisses off of the conveyor belt grabbing each individual Kiss by the body. For our testing we will use the sample size of 5 Kisses per sample, 2 samples per hour, 16 samples per day, and 80 samples per week. In our Quality Control Lab we will measure the length of the plumes by cutting them off at the tip of the Kisses. This will give us the exact length of the plume outside of the Kisses’ wrapping. By cutting it off we no longer have to worry about handling the plume gently for fear of extending it out of the wrapping any more than it was when we first removed it from the conveyor belt. Plumes (Please see Exhibits 1, 2, and 3 for details) With the plumes of Hershey being such a signature trade mark of the Kiss, we want the mint Kisses to reflect the same high quality that Hershey products do. In order to determine the quality of the plumes, tolerances are expected to be a length out of the top of the kiss at +/- 1.5 cm. Our goal length to have is 4.1 cm. The tolerances that are set for the product fit reasonably well within the controls. The control limits are 5.28 and 3.22. This is a variation of 2.06. This is a slightly larger variation than we would prefer to have but it is not as drastic that it is something that cannot be changed by a slight alteration to our process. For our testing we will use the sample size of 5 Kisses per sample, 2 samples per hour, 16 samples per day, and 80 samples per week. New Quality Initiatives Due to the fact that there are seven consecutive points below the average range, there is a problem in our plume process. We should change our quality process in order to fit within these quality tolerances that we would like to achieve. Hershey could make 8 sure that the paper is all pre-cut. A quality inspector could be used to inspect the process to make sure that pieces that exceed the tolerance level would not make it to the next level of production. This extra level of quality management would help to keep the lengths within the control limits. Reducing the amount of papers that are too short would help to reduce the amount of defective Hershey Kisses that make it into packages bought by consumers. The Weight of a Kiss (Please see Exhibits 4, 5, and 6 for details) The process average of a Hershey’s Kiss is 0.16 ounces. Tolerances for the weight of Hershey’s Kisses are +/- .03 ounces. This was determined based on the fact that with a fluctuation of +/- 0.03 in weight, the Hershey’s Kiss does not cause a noticeable difference in weight or appearance of shape. With 25 samples of five kisses each, a total of 125 kisses were actually taken off the conveyer belt. Samples were taken every half hour the first five days during an eight hour work day. The sample frequency was then decreased by just every hour and then every other hour each day. Control limits were set three standard deviations above and below the mean of 0.16. Based on the current system, we should guess that the average weight of Hershey’s Kisses is between 0.20 and 0.12 ounces and a range between 0.14 and 0. These are the control limits. In comparison, the tolerances are in a smaller range than the control limits for the process average. The tolerances are also in a smaller range for the range than the control limits. The UCL for the range is 0.14 while the tolerance is only 0.10. Having tolerances that are +/- 0.03 means that weight is an issue that is very detrimental to Hershey’s Kisses total quality. A Kiss that is too big could mean that there is possibly not enough foil to cover the entire Kiss. A Kiss that is too small could mean that there is possibly too much 9 foil covering the Kiss. The size of the Kiss then affects the placement of the wrapper which then affects the length of the paper coming out of the Kiss. A Kiss being too big or too small does not due harm to anyone and might not even be noticed. The size will affect the packaging which the consumer will notice. Hershey’s wants to produce a uniform product. A paper that is too long or has too little foil shows that Hershey does not take pride in its work and presents a bad representation of the company. By looking at the x-bar chart, there is no one point that is above the UCL or below the LCL. There are also no consecutive points near the UCL or LCL. There are also no five consecutive points increasing or decreasing. There are also no seven consecutive points on one side of the process average. No abnormalities have been noticed in this chart. By looking at the R-chart, there is no one point that is above the UCL or below the LCL. There are also no consecutive points near the UCL or LCL. There is a problem when it is noticed that there are five consecutive points increasing. This means that there is some form of abnormal behavior and the system needs to be investigated. New Quality Initiatives The machine could possibly need to be replaced or there could be a part loose which is preventing the incorrect amount of chocolate to dispense from the machine. There could be a clog forming and the machine just needs to be cleaned. Maybe a new machine needs to be purchased all together. These are all possibilities that could be looked into once this problem has been discovered. Another option is also the materials. If the ingredients were changed during this time of the process, that could explain the inconsistency of the weight. We understand that Hershey produces a wide variety of 10 candies, but the Hershey Kiss is the trademark that many people use to associate with Hershey. We find it imperative that Hershey take all aspects of quality of the Kisses into consideration when making the product that makes millions smile each day. 11