Doughnut production at Krispy Kreme (DNUT) is an exact process based upon measurement and testing. The standardized process provides the exact time necessary, no more, no less, for doughnuts to rise, cook, and cool. Mixing, shaping, and cooking is done by machines that have been optimized to maximize quality and minimize waste (time and materials). Thus, lead times are minimized by ensuring that no time is wasted in the production process; every second is accounted for. Material usage is also optimized in the production process, limiting the waste of cooking oil by reusing unabsorbed oil, and minimizing dough waste by using machines to ensure exact ingredient measurement.
Move time is typically non-value-added. This is because the customer typically doesn’t value the fact that, during production, the product was moved from one department to another. However, at Krispy Kreme, move time is part of the cooking process, and is thus a value-added activity. For example, as a doughnut is moved along a conveyor belt from the oil it was cooked in to the glazing process, it cools just enough for the glaze to be applied appropriately. After the doughnut has been glazed, it is still too hot to eat. The final move of the doughnut along a conveyor belt from the glazing process to the customer provides the necessary time for the doughnut to cool sufficiently for safe consumption, while still living up to the promise of “Hot Doughnuts Now.”