1. Herr's Pretzels Team 3 Kaizhong Duan, Olaf Schwinsberg Ji Woo Heu, Myung-eui Hong Win Naing Soe

2. Contents 1. Introduction 2. Problems definition 3. Solutions 4. Additional Research & Suggestion

3. Introduction

4. 1. Introduction—Herr’s History Now, Herr Foods is a leader in the snack food industry To keep in step with consumer demand, Herr's® began producing a number of new products in 1976 Herr's ® embarked on a packaging venture that helped revolutionize the company's sales in 1964 The Herr Foods story began in 1946, founded by James Stauffer Herr

5. Problems & Challenges definition

6. Ingredients are measured and poured by hand. A operational challenge could be caused by the technical issue of not having automated equipment for this procedure. Not only does this waste time and increase unneeded labor costs, but it decreases the ability to control sanitation and accuracy. 2. Problem/Challenge #1

7. 2. Problem/Challenge #2 Herr’s offers an array of pretzel types, all made in the same factory. The machinery required to make different pretzels varies from type to type, creating a technical problem of switching production equipment based on the need for each pretzel variation.

8. 2. Problem/Challenge #3 The pretzels remain on a leavening conveyor for “20 – 25 minutes” which allows the doe to rise. This seems like a too long of a time and can be shortened to reduce production time through use of a more effective leavening agent which would also reduce the size of the conveyor, creating more space and saving energy.

9. 2. Problem/Challenge #4 The video states that only about 50% of the salt applied to the pretzels adheres the first time. Though remaining salt is recycled into the process, this is very inefficient technical problem that wastes time and capital.

10. 2. Problem/Challenge #5 The baking chamber is anywhere between 72 and 100 feet long and uses 17-20 depending on the product. An enormous oven like this takes up space and is very expensive to cook with

11. Solution

12. 3. Solution: Problem #1  Automated mixer with hoses on the top that automatically pours required ingredients into the mixer. Allows for more accurate measurements More sanitary Saves time and decreases manual labor

13. 3. Solution: Problem #2  Five Separate Compartments with their own separate augment system that pushes the dough into separate die plates.  This solution is effective because it removes the need to switch production equipment.  Simple and stable way that fits their need to make their different types of pretzels.

14. 3. Solution: Problem #3  A faster and more efficiently moving conveyor belt.  Can make it so that the Pretzels can move on to the next process as soon as the doe has risen (Can take less than 15mins). Compared to the 20~25min it took before.  Drastically reduces production time.

15. 3. Solution: Problem #4  A machine that applies salt more efficiently by detecting the space and gaps between the pretzels. Reduces the amount of salt that falls through the empty space between the pretzels. More salt will be applied onto the pretzels.  Reduces the total amount of salt that is being poured, and in turn, reduces the amount of salt that needs to be recycled.  Saves time, saves salt, and may even be able to remove the “recycling salt” process entirely.

16. 3. Solution: Problem #5  Use a shorter oven that’s around 40-50ft long.  Instead of using 17~20 burners, use a few burners that are a lot more efficient and powerful.  Reduces the time of the pretzel that are spent inside the oven.  Saves costs in terms of equipment.

17. Additional Research

18. 4. Additional Research  For operational challenges and solutions:  Adjusting HACCP(Hazard analysis and critical control points ) to Herr’s pretzels’ process

19. 4. Additional Research  For operational challenges and solutions:  Adjusting ISO 22000 to Herr’s pretzels’ process (ISO 22000 is a standard developed by the International Organization for Standardization dealing with food safety. )

20. 4. Additional Research  For operational challenges and solutions:  Referring to SPC Group’s quality management system 1. Auto Body Clean system 2. Double refinement system 3. X-ray inspector 4. Integrated Quality Management

21. Additional Suggestion

22. 5. Additional Suggestion  Since the whole process of production is high standardized  Six Sigma –Driven by understanding customer needs & use of facts, data and statistical methods  Benefits: minimizing defects and variability in the process

23. 5. Additional Suggestion  Since the whole process of production is high standardized  Control chart  Benefit: monitoring errors occurs in process and control process performance

24. 5. Additional Suggestion  Forecasts are critical inputs to business plans, Specifically for food mamufactor  Demand managing & Forecasting  By using CPFR (Collaborative Planning, Forecasting, and Replenishment) system  Benefit: reduceing manufactory and inventory cost

25. 5. Additional Suggestion  Inventory managing  By using ABC Analysis and RFID technology  Benefits:increasing suctomer satisfaction and profitability