Internal Memo

The following is an internal memo, written by Hearthside Chairman & CEO, Rich Scalise
to all employees on the topic of “What Goes Into World Class Manufacturing”.
It is reproduced here with permission. Originally published October 12, 2016.

What Goes into World Class Contract Manufacturing?
A Closer Look

A letter from Rich Scalise, Hearthside Chairman, to our employees regarding what goes into World Class Contract Manufacturing.

Last month we talked about the value and importance of World Class Manufacturing for Hearthside and our customers. This month we will look at what goes into achieving and maintaining that World-Class status for each of us in our respective roles and manufacturing facilities and with each of our customers. Regardless of your role, you play an important part in a World Class manufacturing environment.

World-Class is not a Trophy

World-Class is not a prize to be won or a trophy at the end of a race. It is an ongoing pursuit. First achieved through great effort, it takes equally great effort to maintain. If a manufacturer is less-than-world-class in even one area, they risk losing World Class status with customers. It’s why we must continue to improve every day in every area of our business.

The Customer’s View

Certifications such as SQF are determined by objective industry standards. Not so with World Class Contract Manufacturing status; it is something customers grant or withholds based on their perceptions. What is World-Class Contract Manufacturing to one customer may not be World-Class to another. If a customer considers a partner to be a World Class Contract Manufacturer, they will trust them more, but also demand more from them. Our customers continue to demand more and more from Hearthside. When we meet or exceed their ever-escalating expectations, we create new value for our cstomers.

 The Path to World Class is HPS

World-Class status is about much more than speed. If a poorly run plant runs faster, all you get is a faster mess.

If a poorly run plant runs faster, all you get is a faster mess.

It’s not just about quality or safety or practices. World-Class is about adhering to a set of standards that maximize our ability to safely and efficiently produce great products that meet or exceed our customers’ expectations. This includes safety, quality, innovation, efficiency and much more. This is the role of HPS, our Continuous Improvement system. It directs our actions, measures our success, and tells us where to improve. HPS is the path to achieving and maintaining World-Class Manufacturing status.

Tying it all Together: KPI’s in World Class Contract Manufacturing

You cannot improve what you do not measure. This is why HPS measures everything. Processes can’t be improved nor best practices perfected without clear measurements and constant feedback. By measuring Key Performance Indicators, we can see, every day, every shift, and every hour, how well are doing compared to the standards we set.

Your Role in World Class Contract Manufacturing

Each of us has KPIs we are responsible for or that we contribute to. They measure how well we are performing our work, and the value of our work in the overall mission. Without everyone’s continued efforts, we put not just a few KPIs or a department at risk, but our entire World-Class status.

Do you know and understand the KPIs you influence or are responsible for? If not, ask your supervisor. If he or she does not know, keep asking until you get answer you understand. The best teams in Hearthside discuss their KPIs with one another. How can they be improved or exceeded?  How can the work we do as a team and as individuals improve our World-Class status? The answers from these questions keep us on a path our continuous improvement path.

Remember that “Everyone / Every Day” is not a slogan. It’s critical to achieving and maintaining World-Class Contract Manufacturing status. Thank you to everyone for the work you to for achieving and maintaining World-Class.