THG Quarterly Q3/Q4 2020

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90 Years Strong...

A N D J U S T G E T T I N G S TA R T E D MEET 2 WOMEN W H O K I C K A S P H A LT F I N D O U T W H AT I T TA K E S TO MAKE 400,000 GALLONS OF HAND SANITIZER

FIND CELEBRATORY STICKERS INSIDE

Hello to my Heritage family, I am honored to be writing this for the first time as CEO of THG – and as we observe a milestone anniversary.

We are 90 years strong and just getting started… Even during a pandemic, we are finding ways to celebrate!

90 Y EA RS

Be Part of the Celebration We are excited to celebrate 90 years of making an impact as The Heritage Group.

Watch our special video celebration hosted by CEO Amy Schumacher that honors our rich history and the accomplishments that have helped shape the business we are today. Then share your favorite THG memory on social media using #THGTURNS90.

As I reflect on our 90-year history, there are two recurring themes that have contributed to our success – a long-term mindset and a winning team. These elements will be critical as we look ahead to the next 90 years. My vision is that THG will always be known as a collection of world-class businesses where good, smart, hardworking people can make a real difference. We can accomplish this by building on our strong foundation and remaining committed to our culture and core values.

And none of this is possible without you – our winning team. I am currently visiting with employees across THG about our key growth and impact opportunities for both the short- and long-term. Your voice matters, and you all play an invaluable role in your company’s and THG’s future success.

While our daily work might be different, we have more in common across our companies than you may realize – like putting safety first in everything we do. When it comes to future growth, we share a focus on business improvement, innovation, sustainability, and strategic partnerships in our markets and industries. We also share a commitment to betting on our people by fostering a diverse and inclusive environment and emphasizing talent development. I am proud of the great work already underway in these key areas, and I hope you enjoy reading about it in this edition of the Quarterly.

There is still a lot of hard work ahead, and it will take all of us functioning at our best to accomplish our goals.

So, let me encourage you… take a moment to catch your breath from this crazy year and enjoy some time away with your families over the holiday season. Then let’s come back together refreshed and ready to tackle the new year.

Scan using your smartphone camera to watch the video!

Be well,

AMY SCHUMACHER

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CEO OF T HE HER I TAGE GROUP

Congratulations Linda Osborn

2 02 0 A M E RIC AN C H EMIC A L SO CI E T Y (AC S) F E L LOW

Talk to anyone on the team about Linda Osborn, and you’ll hear the same sentiment: “She is amazing.” From conducting industry-leading research to her dedicated community support, Linda’s recent recognition as an ACS Fellow is no surprise. We recently sat down with Linda to reflect on her impressive career.

You’ve been with the company for 36 years. Why do you love working at THG? Since I started in 1984, my position has progressed greatly, allowing me to participate in a variety of projects and teams. Every day I learn something new and this keeps things fresh and interesting.

THG team members have the passion and diverse expertise needed for us to collaborate and solve problems, and it’s exciting to see how this commitment and their many unique contributions are helping our company grow. All are very giving of their time and talents, and that’s part of the appeal of working here. When I think about all the ways the company has evolved over the years, it reflects the incredible family behind it and the familial atmosphere that abounds.

My new role has given me the rewarding ability to help develop careers and match people with different opportunities. It’s been especially fun for me because the focus is on all the things that truly excite people about working here, including our emphasis on career development.

Tell us about your ACS Fellow Honor.

This award recognizes members of ACS for outstanding achievements and contributions regarding science, the profession, and the ACS. It’s a fantastic bonus, but is certainly not related to my goals. Honestly, I’m most excited about the people from the Indiana section who believe in me so much that they took the time to nominate and support me for this award.

What are the accomplishments that earned you this prestigious recognition?

The career recognition was largely based on my research about the impact of asphalt fumes on worker safety, which started in 1989 and continues today. Five stages of research were initially envisioned by Tony Kreich, Fred Sr., and others, and I was lucky to be part of that journey. The results of this work are now featured in over 40 peer-reviewed publications. I was proud to be part of such important research for the industry, and to have the opportunity to work with various professionals within THG and all over the world.

Since I joined the ACS in 2012, I have been passionate about their outreach efforts with the Indiana section. As an example, we just completed a project where we created COVID-19 chemistry kits for underserved kids. With incredible community support, we were able to double our original goal and put together 200 bags and purchase additional warm weather items like hats and gloves. Our partner, the National Organization of Black Chemists & Chemical Engineers, has distributed them to local children in need.

What are your goals for the future?

Right now, my primary goal is to help employees develop and grow their careers within the company, while encouraging innovation to add value. I am also focusing on a couple important projects for the asphalt industry. The increased collaboration among many talented people across our businesses is giving THG a unique edge that is exciting to watch unfold.

And of course, I will continue to fulfill my passion for community outreach programs, especially those related to STEM. The 2023 ACS national meeting is in Indianapolis, so I’m looking forward to helping plan this big event.

As for down the road on the personal front, my family has and will always be my priority — and I look forward to spending more time with them when I retire!

“The Heritage Group has never been in a better position than it is today.

Let's go for another 90 years.”

– Fred Fehsenfeld Jr.

2nd Gen 1st Gen

1930s – One Man, One Truck John Fehsenfeld starts Crystal Flash, delivering home heating oil during the Great Depression.

1950s – Paving the Way The vision of a family-owned business becomes reality as John sells majority stock in the company to his three sons: Frank, Fred Sr., and Mac.

Mid 1950s Fred Sr. builds an asphalt plant on 86th St. in Indianapolis, Indiana.

1960s – Rocks Build America The aggregates business began with a quarry in Columbus, Indiana, as a natural extension of the asphalt business, which also led to the development of our construction business. # T H G T U RN S9 0

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1970s Going Green We enter the environmental services business and open a liquid waste and disposal plant on the west side of Indianapolis, and a hazardous waste landfill in Putnam County, Indiana.

A look back at the history of The Heritage Group

Paving the Indianapolis Motor Speedway.

4th Gen

2000s – Building for the Future Amy Schumacher and the Grube family found Monument Chemical, and expand our operations globally in Kallo, Belgium.

3rd Gen

Late 1970s – Fred Jr. takes over as CEO at 29 years old Being a young leader himself has inspired this THG core value – “Bet on young people.

They will surprise themselves!”

1980s – GameChanging Research The Heritage Research Group is founded to provide innovative problem-solving to our companies and customers.

2017 - The Center opens in Indianapolis as a physical representation of the collaborative and innovative nature of THG.

2018 – The New Ventures group was created to support innovation and growth across THG by investing and partnering with private companies developing new technologies and approaches in our core and adjacent markets.

2020 – Amy Schumacher becomes CEO and marks the fourth generation of family leadership.

Happy Anniversary – 90 years strong … and just getting started.

H E RITAG E IN NOVATION T E A M

Innovation is a Hit for Heritage Environmental Services HIT BY THE NUMBERS 2,200

suggestions from nearly 600 different employees

800

suggestions have advanced to first level

200

suggestions have moved on to second level

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suggestions have moved to third level and on to implementation

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T H E H E R I TAG E I N N OVAT I O N T E A M GIVE S EMPLOYEE S A FORUM T O S P E A K U P W I T H I N N OVAT I V E I D E A S TO IMPROVE THEIR BUSINESS

We all want to be part of a successful team, and success is so much sweeter when you are part of the action. The Heritage Innovation Team (HIT) gives employees a chance to positively impact the business by helping find solutions to big problems — and earning rewards for their great ideas.

When people from diverse experiences and backgrounds come together, we increase the potential of finding those big ideas.”

Amy Conley

V I C E P R E SI D EN T, G ROW T H A N D N E W V EN T U R E S AT H E R I TAG E EN V I RON M EN TA L S E RV I C E S

Getting Started

The HIT team includes employees from different levels throughout the company, from entry-level members to managers and senior leaders — from all locations.

“Our goal has always been to engage and inspire employees to participate and be creative,” said Amy Conley, Vice President, Growth and New Ventures at Heritage Environmental Services (HES), who has been part of the HIT program since it launched almost 20 years ago. “When people from diverse experiences and backgrounds come together, we increase the potential of finding those big ideas.”

When an idea is submitted, a committee of 10-15 employees evaluate feasibility and determine if it should move to the next level. Ideas progress through a series of stages: Discover, define, develop, and deploy – and submitters are partnered with a subject matter expert to help push their ideas through.

The HIT rewards every idea submitted.

The more an idea advances, the more awards the submitter can earn. If an idea is implemented, an employee can earn a share in the first-year savings or profit generated.

These grassroots efforts can lead to solutions that promote revenue generation, cost savings, improved safety and environmental compliance, and improvements in productivity and efficiency.

And ideas can come from anywhere.

“Maybe an idea sparks while an employee is walking the floor at one of our plants or at a customer site, or perhaps an employee sees a cool program in their community with strengths that could be replicated at HES,” Amy said.

Understanding the Process

Celebrating the Big Wins

To start the process, employeesubmitted problems are posted to the HIT intranet page. They fall in specific areas, including: •

Improvement to an existing product or service

•

Innovative new product idea

•

Enhancement to current or new service, safety, or sustainability effort

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More than 2,000 ideas have been shared over the years. And some employees’ suggestions have made a huge impact on the business.

An administrator from THG’s transport operations team attended a trucking industry conference where she learned about a cost-saving opportunity by consolidating where the company purchases fuel. By choosing a primary provider with truck stops across the country, the supplier offered discounts to HES, as well as additional perks for drivers.

“Her job had nothing to do with purchasing, but she did the research, put together a comprehensive booklet with maps for our truck drivers, and attended quarterly safety meetings to explain the benefits to them if they selected defined truck stops,” said Joanne Jones, Sustainability Leader at HES. “Changing employee behavior in a large group is a big deal, and she helped with every step of the process.”

The result? Over $200,000 in cost savings in the first 12 months for the company, as well as a $15,000 bonus for the employee.

Another great example started with a customer service employee who helped improve sustainability by asking, “Why don’t we have skirts at the bottom of our trailers?” The question led to a meeting with the president of the transport company, where they were able to not only move forward with outfitting the new trucks, but also retrofit old trucks.

This effort lowered THG’s carbon footprint, as well as rewarded the employee with a $6,000 check.

“The best ideas we receive are usually those around waste management,” Joanne shared. “Finding new solutions for these issues can not only improve our carbon footprint, but also turn into new business opportunities.”

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suggestions have moved to third level and on to implementation!

Growing the Team

Building for the Future

The HIT team is using its innovative approach to help attract new members.

Previously, leadership identified individuals with different experiences the team needed, or people would simply ask to join. Now, the team is working to make the recruitment and participation of new members a tangible process, so it can be more strategic and sustainable.

And while the HIT program has always sparked success, it is now undergoing a full revitalization — spearheaded by its new leader, Linda Osborn, Director of Analytical Research with the Heritage Research Group (HRG). Linda was selected to take over leadership of the program following the retirement of Tony Kriech, a co-founder and champion of the program.

As an example, HIT is trying to connect with new employees at our incinerators and service centers.

The rewards program has also been modernized to add even more incentive for all team members — with higher payouts than ever.

Those who demonstrate creativity by continually submitting high quality ideas are considered for membership on the HIT committee, where they can be recognized at the highest level of the company.

“We want to ensure HIT is viewed as a prestigious place to be,” Amy explained. The team aims to encourage high performers and future leaders, and then create opportunities for them to work across multiple business segments. “We see this as a leadership development opportunity for all participants. We want to celebrate and acknowledge everyone involved and show our employees they are truly valued. This will ensure that we’re all growing through innovation.”

Thanks to Linda’s history with THG, she’s able to think about different things happening at the group level and connect the dots to things we’re working on in the HRG that are outside of HES,” said Amy. “We have a great foundation to build on, and the direction and focus she’s put on the evolution of the team has been fantastic, while also ensuring it has legs across the whole company for years to come.”

Automation is key to the revitalization efforts. To identify new software that would streamline connectivity between employees and managers, the team relied heavily on innovation and entrepreneurship expert Ginger Rothrock, Senior Director with HG Ventures.

In the new cloud-based online system, employees will have access to not only submit their own ideas, but also comment on the ideas of others, allowing concepts to move forward based on shared knowledge.

This approach also keeps subject matter experts involved throughout the whole process.

“By using an automated system, we’re decreasing human error, saving time and resources, and preventing ideas from getting lost in the shuffle over time,” said Heather Willits, HRG’s Executive Assistant and HIT program administrator for the last two years.

“But most importantly, our new platform will provide employees with a great opportunity to share their voice in our innovation process — and to impact how we grow into the future.”

Want to Get Involved? If you’ve been inspired by the HIT program, contact Linda Osborn at losborn@thgrp.com to start a conversation about fostering a culture of innovation in your business.

Paving theWay for Women in Asphalt Meet two employees from our Heritage Construction + Materials group who are receiving well-earned recognition for their career development in the asphalt industry.

What is Women of Asphalt?

Founded in 2017, Women of Asphalt (WofA) is a national coalition that supports women in the asphalt industry by providing mentoring, networking, and development opportunities.

It also encourages other women to join the historically maledominated asphalt industry.

MARQUISHA WILLIAMS > Safety Representative | Milestone Contractors

Marquisha, a 17-year industry veteran and 7-year Heritage employee, was invited by the Asphalt Pavement Association of Indiana (APAI) to attend the first inaugural Indiana WofA event in the spring of 2018. Since then, she has enjoyed participating in the group and had the opportunity to join THG CEO, Amy Schumacher on the WofA panel at the 2019 World of Asphalt Conference. This year, Marquisha was featured as One of the 100 Women Within the Asphalt Industry, one of the group’s top honors.

WofA has given her an amazing network of women she can reach out to – beyond THG’s operating companies. And now she is humbled and excited to share her story to help other women in the industry develop their career as a mentor in WofA’s mentorship program.

“Never take no for an answer. While everyone else is making the sky the limit, reach for the moon. And be your authentic self, because at the end of the day, staying true to who you are is what sets you apart from everyone else.”

THG is an avid supporter and partners with WofA to develop and support our women, seven of whom have registered to participate in WofA’s 2021 Mentorship Program.

To learn more, please visit womenofasphalt.org. To get involved with THG, please contact Patti Gault, Strategic Communications Director, at plg@thgrp.com.

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MEREDITH MILLS > VP of Business Development | Champaign Asphalt Company

Meredith was listed as one of the “20 Women to Watch in 2020”by WofA this year. When she started her career in the accounting and finance field, she never envisioned a future in the construction industry – 9 years after she started with us, she can’t think of any place she’d rather be.

She was introduced to WofA just before the 2019 World of Asphalt convention. While there, she participated in their happy hour and break out sessions. Meredith remembers how neat it was to be involved with something just getting off the ground – and much needed in this male-dominated industry. Since then, she’s watched WofA grow with incredible leadership, and she’s excited for the road ahead with the mentorship program.

“Once men hear your perspective; I think they really appreciate it and seek it out later. As long as you have the confidence to give your opinion, the oyster is yours.” >

H E RITAG E CONS T RUC TION + M AT E RI A L S

Meet the New Look This modern, clean, and timeless mark was built on the theme of three, which represents the distinct but interdependent industries within Heritage Construction + Materials (HC+M): asphalt, aggregates, and construction.

Here’s a breakdown of how the logo was created.

W H AT ’ S I N A L O G O ?

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The sturdy geometric shapes are representative of strength, stability, and dependability – what we demonstrate to our customers and in the physical structures we build.

2

The two yellow pillars are a roadway, and are reminiscent of the THG pillars, providing an essential link in an ever-expanding family of brands.

3

Together, the shapes create a bridge – an emblem of connection, which represents our focus on leveraging expertise across our businesses to build a path to future success.

4

Yellow is the color of optimism, creativity, and spring – symbolizing our busy season and the innovation we employ in our processes and products.

5

The bridge forms an “H,” a nod to our name and rich heritage.

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2

3

4 1

David and Samantha Nobbe

2

Dora Cervantes and Rebeckah Valdez

3

Erika Cruz

4

Ken & Christine Price, daughter Angela Baker, and granddaughter Jordan Baker

The Future is Bright for Brothers Scholarship Recipients Like many dedicated students, this year’s recipients worked hard to boost their GPA, spent hours participating in sports, clubs, and other activities, and wrote remarkable essays, all with the hope of being accepted to their firstchoice school. But receiving the acceptance letter is only half the battle – determining how to pay for college presents its own set of challenges. With the rising costs of tuition, many students are left with limited options.

To share their passion for education and commitment to their extended family of Heritage employees, the Fehsenfeld family created the Brothers Scholarship Program to honor the legacy of THG founder John Fehsenfeld’s three sons – Frank, Fred, and Mac. Scholarships are available to children of eligible employees who are pursuing a two- or four-year degree at an accredited college or university, and is awarded based on:

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•

Financial need

•

Academic record, including honors

•

Demonstrated leadership and participation in school and community activities

•

Work experience

•

Statement of goals and aspirations

•

Unusual personal or family circumstances

H E R E ’ S A N I N S I D E LO O K AT S O M E O F T H I S Y E A R ’ S R E C I PI E N T S A N D T H E I R U N I QU E PAT H S T O PU R S U E H I G H E R E D U C AT I O N .

Angela Baker, Senior Manager of Growth & Innovation for Heritage Interactive Services (HIS), considers the Brothers Scholarship an incredible perk of working for THG.

She first learned about the program years ago from her father, Ken Price, the former Chairman and CEO of HES, and encouraged her daughter Jordan Baker to apply for the scholarship after receiving a pamphlet at work. Jordan is now carrying on the family tradition of attending Purdue University in West Lafayette, Indiana, where she is a senior Marketing major with an emphasis in Entrepreneurship.

Having previously completed summer internships with THG and HG Ventures, Jordan is the third generation in her family to work for a Heritage company.

“The Brothers Scholarship is an amazing opportunity that showcases how much THG cares for its employees,” Angela said. “I’m proud to know the scholarship comes from the company I work for, and it makes Jordan feel good knowing that the company her grandfather worked for – and that her mom now works for – is investing in her future.”

----Encouraging a love of education throughout generations – particularly in our core industries – was what initially inspired the creation of scholarship.

And Samantha Nobbe, a Purdue student and secondgeneration Heritage employee, is a Materials Engineering major doing exactly that.

After completing three

summer internships with the Heritage Research Group and receiving a four-year scholarship, she is hopeful to pursue a THG-industry career.

is a remarkable program that helps put our kids one step closer to a unique, bright future.”

“I loved my internships,” Samantha said. “Each one was different and allowed me to gain experience in multiple industries, which is extremely helpful as I explore different career paths.”

And the future is also looking bright for Rebeckah Valdez, who will graduate nearly debtfree from New Mexico State University next year thanks to the Brothers Scholarship and other financial aid.

About an hour and a half north of West Lafayette, Erika Cruz is a junior Biology major at Purdue Northwest University. Knowing that a scholarship provided by her dad’s company is helping her afford college has motivated her to make the most of the experience.

“So many kids aren’t able to go to school due to finances,” Erika said.

“I know how fortunate I am to have this opportunity and I don’t take any of it for granted.” After graduation, Erika plans to pursue a master’s degree and ultimately earn a doctorate to become a physician’s assistant.

Erika’s father, Jose Cruz, and Samantha’s father, David Nobbe, both feel the scholarship is a tremendous benefit and encourage employees with high school and college students to have their children apply. “Whether it’s a hundred or a thousand, every dollar helps make college more affordable,” said Jose, an Account Representative at HES. David, a General Superintendent with Milestone Contractors agreed.

“Every student’s journey to build on their education looks a little different, whether they want to pursue a trade program, a four-year degree, or something different,” he said. “The Brothers Scholarship

-----

Rebeckah’s mother, Dora Cervantes, an Operations Manager for Heritage Interactive Services, learned about the Brothers Scholarship from a company email.

“Academic awards and financial aid don’t always cover everything, so we were fortunate that Rebeckah was able to get this scholarship to help pay for other essentials, like books and living expenses,” she said.

A Business Administration major with a minor in Marketing and Management, Rebeckah is extremely grateful to be a Brothers Scholar. “Some of the scholarships I received were only for my freshman year. Having this scholarship all four years is allowing me to graduate without the burden of debt so I can focus on starting my career,” she said. “I wouldn’t be here without this program.”

----Visit the MYPERKS section on myheritagegroup.com to learn more about the Brothers Scholarship.

The application period typically begins in February, and more info on how to apply can be found at scholarsapply.org/brothers.

BROT H E RS S C HOL A RSHIP

BROTHERS SCHOLARSHIP

BY THE NUMBERS 2006

Year the program was founded

$3.3 Million

Awarded to almost 700 students

$1,000

Each scholarship is a minimum award of $1,000, renewable for up to 3 years

The Rising Cost of College Tuition The National Center for Education Statistics reported that 86 percent of students relied on some form of financial aid to help pay for college during the 2017-18 school year.

Annual tuition rates range from $9,000 to more than $32,000, according to the College Board.

(That’s before you include the average annual cost of $10,000 for room and board, plus books and living expenses!)

According to U.S. News & World Report, the average amount of debt for recent college graduates currently stands at more than $30,000.

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Q&A

What brought you to THG? I am a CPA and started my career in public accounting. THG was a large client of mine, and in 1986 I joined the company as the controller. The CFO at that time was responsible for improving accounting, but he wasn’t as strong in financial analysis.

When Fred Jr. took over as CEO, he was interested in analyzing the numbers and how we could make the business stronger, so he transitioned me to a one-man financial planning & analysis team.

with John Vercruysse For the past 34 years, John Vercruysse has been a trusted advisor to the Fehsenfeld family and a financial leader for THG. After being witness to decades of growth and advising three generations of family leadership, John is transitioning from his day-to-day responsibilities in the finance and accounting group to a full-time advisory role to Amy and the Board of Trustees. We took this opportunity to sit down with John to hear about his experience and his outlook on THG’s bright future.

After I had been with the company for about five years, Fred asked me if I would be interested in taking the role of CFO. I was 34 years old.

My response was, “Fred, I’m not sure I’m ready. It’s a big job and a big responsibility.” And without hesitation he looked right back at me and said, “I think you’re ready.”

And at that point I said, “If you have that much confidence in me, I want to give it a try.” And thankfully he did because it was the best career move I ever made.

What excites you most about THG’s future?

The fourth generation of the family are now in leadership roles at the businesses, and they all share the same entrepreneurial spirit and core values that have made the company so successful over the last 90 years.

The future of THG is bright.

What have you loved most about working at THG? It has been a fantastic ride and a lot of fun. I’m proud of all the things we’ve accomplished and how much the organization has grown and all the great people I’ve had the chance to work with. What I love most is the pace of action. There is always something new and exciting happening, and it keeps you intellectually challenged. And the autonomy. I was entrusted with a great deal of responsibility to make decisions and it was satisfying to be part of a team that accomplished so much while allowing me the flexibility to also spend time with my family.

What’s the biggest life lesson you’ve learned in your career here?

If you treat people with respect, they’re going to be loyal and work hard, and as a team you can accomplish amazing things. We all need each other to be successful.

When it comes down to it, business success is about people. Every company says it’s all about the people – the difference is, we live it.

What advice would you give to someone just starting their career at THG? In a growing organization, there will always be opportunities for highly motivated, effective people.

If you work hard and do your best, someone will notice and give you a great opportunity. We are not afraid to give someone responsibilities they’ve never had in the past, because we believe they can succeed. In fact, we’re not only not afraid to give it to them, we cherish the opportunity to bet on people. This is the perfect environment for someone who wants to grow and develop their career.

What’s next for you?

What are you most looking forward to?

I look forward to working fulltime as an advisor to Amy and the Board of Trustees and continuing to support the leadership transition from the third generation (Fred) to the fourth generation (Amy). But hopefully, I can find a little more time to work remotely from my family’s lake house in Michigan, spend time with my family – my wife, Sheila, my two kids, and my three grandchildren – and enjoy watching sports (Go Irish!).

SE CON D G R E EN BE LT COHORT

A Roadmap to Excellence How THG’s adoption of Lean Six Sigma improves the way we work together — and solves complex customer problems Have you heard of Lean Six Sigma? Put simply, it’s a team-focused approach that leads to more efficient ways of working. By eliminating waste — including wasted materials, time, talent, or effort — people, teams, and organizations can solve problems, improve the quality of their products, and better meet customer needs.

A bonus? The process helps develop leaders and high-performance teams, which in turn makes people feel more engaged at work.

The concepts behind Lean Six Sigma originated in Japan, and the methodology is used by companies like RollsRoyce, Toyota, Cummins, GE, and many others.

In a nutshell companies take Lean Six Sigma tools and techniques, apply them to their processes, and develop a mindset around continuous improvement and business excellence. At THG, our “movement” is focused on identifying, prioritizing, and solving business and customer problems, and it starts by asking: How can we do better?

WANT TO LEARN MORE? Reach out to the “Movement Maker” in your business.

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THG CORPORATE:

Jeannie Phillips

HERITAGE ENVIRONMENTAL:

Ernie Walker

Thinking Outside the Box Lean Six Sigma arrived at THG a year and a half ago to help further clarify our business processes. “Lean Six Sigma aligns with THG values and our ONE Heritage mindset,” said Sheila Morris, Vice President of Customer Experience at HES. “It gives us a common language and toolkit that we can use among all of our businesses.”

Chris received his Green Belt for helping to understand the impact an equipment constraint had on production capacity and developing production schedules to deal with peak product demand. He’s also championed two additional Green Belts who challenged the team’s traditional understanding of polymer chemistry and opened the possibility of optimizing the process in new ways.

Our movement began with a core group of leaders, known as “Movement Makers,” who were challenged to drive creativity, innovation, and new ideas as they solved important business and customer problems.

Jeff Gould, FP&A Analyst at Monument

“The shift to Lean Six Sigma is challenging everyone to think outside the box,” said Nickole Finch, an early adopter of Lean Six Sigma from the Asphalt Materials Laboratory. “It provides an unbiased space for discussion, which allows all ideas to be heard for the current project, as well as ideas that could be considered out of scope but still need to be pursued in the future.” This creativity and employee input drives fresh perspectives that improve the business.

“Lean Six Sigma empowers employees to turn challenges into opportunities by improving family, customer, and community relationships from the inside out,” said Sheila, a champion of THG’s transformation to this new way of working.

“It helps to be surrounded by good people with the same objectives. I feel strongly about this movement because it provides a roadmap to guide us to excellence.”

Earning our Belts Lean Six Sigma is a team sport and functions by guiding leaders and team members through levels of process improvement training. For example, a Green Belt will receive 80+ hours of classroom training and is then paired with a Master Black Belt to serve as a mentor, since we learn by doing.

“When the discussion turned to doing Lean Six Sigma internally, I wanted to go all in and try to make it successful — and doing the Green Belt project myself seemed like the best way to do that,” said Chris McGee, Vice President of Operations at Asphalt Materials.

HERITAGE CONSTRUCTION + MATERIALS:

Chemical and team set out on a journey to grow their business by increasing the quantity and quality of sales leads through their website. The results speak for themselves—previous web sales leads averaged three per month, and now the website has averaged 21 sales leads per month over a six-month period – a 700% increase!

Efficiency in Action Teams at THG have already started to see the positive results of their innovation and process improvement.

“We were able to start questioning a process that hasn’t changed in many years,” Nickole said. “The original thought was: ‘Why change what isn’t broken?’ By working through the Lean Six Sigma steps and thinking of the possibilities, we’ve found a new way to troubleshoot.”

Implementing these new methodologies is also promoting cross-company collaboration and communication. “The best part is how everyone begins to learn more about other parts of the company, even if they’re new to the Lean Six Sigma process,” Nickole said.

Not only does Lean Six Sigma improve processes at the operating level, it also provides a great opportunity for professional development and team building.

“It taught me about things I needed to address personally to be a better communicator, and how to drive a team to have a successful collaborative story,” Ben Hardy, Sales Representative at Asphalt Materials, explained. “It’s brought us all closer. The knowledge of the different tools available to me and how to use them will benefit me forever.”

Al VanDenBergh

MONUMENT CHEMICAL:

Sarves Peri

Path to Mastery THG Movement Makers go through various trainings to learn the system — Define, Measure, Analyze, Improve, Control, or DMAIC — and apply it to important customer problems. Lean Six Sigma training uses "Belt" levels to denote expertise:

Yellow Belts

Analyze one process step and daily challenges within their direct sphere of influence (waste and simple error elimination)

Green Belts

Analyze key steps or a sub-process within a single process that produces an output they are familiar with (waste, simple error elimination, critical factor control)

Black Belts

Analyze the systems we use to produce multiple products at one location that they may or may not be familiar with (systemic waste, compounding errors, critical factor synergies)

Master Black Belts

Analyze the systems used across multiple locations and drive cultural development (systemic performance improvement and culture advancement)

MON UM EN T C H EMIC A L

Values in Action OFFERING CRITICAL SUPPORT DUR ING THE COV ID -19 PA NDE MIC

Even before the pandemic, Monument Chemical was already a well-known supplier of isopropyl alcohol (IPA), a key ingredient in several cleaning products and pharmaceutical applications. As demand for these products – particularly hand sanitizer – began to spike significantly last spring, the team immediately increased capacity at Monument’s Houston site.

The team then took things a step further to support its customers by investing in the equipment, processes, and procedures needed to produce a fully formulated, ethanol-based hand sanitizer.

Beyond hand sanitizer, IPA is widely used across a variety of industries – so the decision to pursue ethanol refinement and production not only provided critical support during the pandemic, it ensured the team has enough critical volume available to continue making other highlyregulated products like diabetes medications and vaccines. This effort will also allow Monument to expand their product portfolio and meet growing market demand for cleaning and disinfecting supplies.

Here’s an inside look at how the Monument team delivered on safety, quality, and market demand during a pandemic – showcasing the strength of our values-based culture.

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----To ensure that ethanol could be refined safely on-site while also increasing IPA production, Monument was cautious in determining who could be in the plant to support manufacturing.

“Being in the chemical industry, we already had several safety protocols in place. But given the challenges of COVID-19, we’ve added to and enhanced these measures,” said Adam Pingel, Vice President of Manufacturing. “Equipment and high-traffic areas are cleaned frequently, and masks are now mandatory in addition to required Personal Protective Equipment (PPE), such as safety glasses, steel-toed boots, and gloves. We also staggered shifts to reduce the number of employees on site, which made it easier to meet physical distancing guidelines.”

Despite the constant uncertainty, distractions, and anxiety associated with the pandemic, there have been no injuries associated with Monument’s production of hand sanitizer.

“Even through these challenges, our employees continue to do an excellent job of watching out for each other,” said Adam.

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As a lean, flexible company, Monument prides itself on its agility in response to changing market trends and evolving customer needs.

When demand for products sold into the coatings industry began to decline, the team took this opportunity to free up volume for cleaning and medical applications.

“With the precautionary measures put in place during COVID, we’ve remained safely open for business as a reliable supplier. We’re always learning, but our ‘can-do’ attitude and ability to adjust to changing demands by quickly making ingredient and process adjustments sets us apart,” said Amanda Muilenburg, Commercial Development Manager.

----“The COVID-19 environment has definitely changed the way we do business, but we had already been shifting our approach to engage with customers in new ways – with more of an emphasis on virtual options.

A commitment to having the right tools in place meant we didn’t lose any momentum,” said Andy Allen, Senior Account Manager.

And the use of new collaboration tools isn’t limited to just interacting with customers. “Regular team check-in calls with the entire manufacturing organization and the willingness

Monument has produced more than 3MM gallons of IPA hand sanitizer so far this year!

of our employees to work together in different ways has enabled us to get to know each other on a more personal level,” said Sibel Selcuk, Vice President of Global Research & Development.

“This has led to a deeper sense of teamwork and a shared commitment to maintaining the agility customers have come to associate with Monument.”

----Once Monument decided to refine ethanol, things moved quickly. With just less than six weeks between the placement of the first order for hand sanitizer to the first batch produced, responsiveness was essential.

“We had a customer meeting on Friday, met with our leadership team over the weekend, and by Monday, we had a list of potential ethanol suppliers ready to contact,” said Sarves Peri, Vice President of Global Supply Chain.

“The R&D team acted swiftly to analyze several dozen alcohol streams to identify the best one to meet the needs for use in a regulated product.”

----In discussing the sourcing of ethanol, Sarves was quick to recognize the R&D organization’s depth and reach in industry networks. “Our people are well known in the industry, and their expertise provided a great deal of credibility as we worked to source raw materials,” he said.

And those relationships showed as demand for the new product grew.

The first production run of more than 400,000 gallons of hand sanitizer was completed ahead of schedule in early June.

----While safety is Monument’s top priority, integrity is the cornerstone.

“From manufacturing and R&D to supply chain and commercial, every function has contributed to our agility and success. When there’s a need, our people start delivering, but they don’t just do it for the sake of doing things quickly. Our commitment is to do the right thing, the right way, every time,” Sibel said.

The stakes in doing what’s right have never been higher, especially considering that hand sanitizer is a product people buy with the expectation that it will help protect them from COVID-19. Umair Virani, who spent several years in Quality Control before moving into his current Account Manager role said, “Hand sanitizer is regulated by the FDA, but we refined ethanol beyond what other suppliers would have done because we know that it will help protect the hands and health of consumers around the world.

To put it simply: We want it to be as safe and effective as possible for generations to come.”

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