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Scharffen Berger Chocolate Maker (A)

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Group A3

Anjali Chandru Anuradha Dhote Oshin Vijaykumar Pankaj Bhati Sarika Chauhan Subharti

Company overview
Scharffen Berger was founded in 1996 by Robert

Steinberg and John Scharffenberger. The chocolate maker in US market competing for $1.2 billion premium quality chocolate segment. Company had 60 employees and operated from a 27,000 sqft facility with 20,000 sqft production area, office space of 5,000 sqft and retail space of 2,000 sqft Facing high market demand which is outstripping production. High growth in demand is expected for its premium chocolate products and hence planning capacity expansion

Business Overview
Primary products at Scharffen Berger were
Unsweetened (99% cacao) , Extra Dark (82% cacao) , Bitter sweet

(70% cacao), Semi-sweet , Mocha, Mint (all have 62% cacao), Milk Chocolate (41% cacao)
Others: chocolate sauce, drinking chocolate, cocoa powder and

chocolate covered figs Pricing


Retail: $0.50 for 5 gm., $2.00 for 1 ounce, $4.00 for 3 ounce, $10.00

for 10 ounce. Wholesale: approximately $0.35 per ounce

Sales
$0.6 million in 1998, $10 million in 2004, Over $15 million estimated revenues for 2005

Cleaner (8hrsX7days)
100 Kg

96 Kg

250 Kg

Bags
4 Kg Waste

Roaster and Racks (8hrsX7days)

250 Kg

Bins Winnower (8hrsX7days)


65 Kg Waste 185 Kg

START

Bins
1400 Kg 140 Kg 140 Kg

Conche (3X8hrsX7days)

1400 Kg 115 Kg

115 Kg

Molder (2X8hrsX7days)

Temper (2X8hrsX7days)

Tank Conche (3X8hrsX7days)


1400 Kg

Tank

Mixer (2X8hrsX7days)

1400 Kg

Packing Self=35%, Other=65%

Processes involved:
Bean Cleaner:
Cleaning the cacao beans

Capacity: 200 Kg
Operated at: 100 kg in 15 min

Roaster:
To roast the cacao beans in order to enhance their flavor

Operation capacity: 250 Kg for 75 min and 15 min to cool off

Winnower:
To crack the cacao bean and separate the nib from the shell Capacity: 450 kg Operated for 250 kg of which 185 kg nib recovered

Processes involved:
Melangeur:
Used to ground the nibs; this released the cacao butter and turned

the dry nibs to chocolate paste


Batch size: 115 kg Time needed: 75 mins

Conche:
For aerating and grinding the cacao granules Batch size: 1400 Kg Average time requirement: 48-72 hours

For unsweetened chocolate: 40 hours


For sweetened chocolate: 50 hours

Processes involved:
Tempering
Liquid chocolate is turned to solid state with the desired level of

stability, smooth feel in the mouth and snap


Batch: 140 kg per hour

Molding
Molding: Solidifying a chocolate Batch size: 140 kg per hours, 20 min to solidify

Packaging:
35% of the chocolate was packaged in the factory itself

65% of produce was sent to third party co-packers

Increasing capacity
Capacity of the process is dependent on the bottleneck within

process flow
Initial capacity at 40000 Kg/per month, restricted by 48-72

processing hours taken up by conches


Introduction of Ball-mill
Increases capacity by 10%
Leads to a new bottleneck in the system Melangeur

Further additions to capacity done by increasing number of shifts

of different machines and identifying new bottlenecks and adding further shifts or machines accordingly
Refer Excel sheet

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