AAssignmentOnProduction and Opration ManagenentofChocolate ProductSubmitted to-

Miss Zarna PatelAssistance ProfessorAnand Institute of Management

Submitted by-Group 3Mr. Ronak Patel (MBA I, Sem 2; Enrollment No. - 137020592034)Miss. Arti Sharma (MBA I, Sem 2; Enrollment No. - 137020592050)Miss. Vihangi Shah (MBA I, Sem 2; Enrollment No. - 137020592054)Mr. Yogesh Beldar (MBA I, Sem 2; Enrollment No. - 137020592057)Gujarat Technological UniversityBatch 2013-2015Production process

Harvesting Cocoa & Cocoa processingChocolate production starts with harvesting coca in a forest. Cocoa comes from tropical evergreen Cocoa trees, such as Theobroma Cocoa, which grow in the wet lowland tropics of Central and South America, West Africa and Southeast Asia (within 20 C of the equator) (Walter,1981) . Cocoa needs to be harvested manually in the forest. The seed pods of coca will first be collected; the beans will be selected and placed in piles. These cocoa beans will then be ready to be shipped to the manufacturer for mass production.Step 1: Plucking and opening the PodsCocoa beans grow in pods that sprout off of the trunk and branches of cocoa trees. The pods are about the size of a football. The pods start out green and turn orange when they're ripe. When the pods are ripe, harvesters travel through the cocoa orchards with machetes and hack the pods gently off of the trees.

Cocoa Pods and harvestingMachines could damage the tree or the clusters of flowers and pods that grow from the trunk, so workers must be harvest the pods by hand, using short, hooked blades mounted on long poles to reach the highest fruit.

After the cocoa pods are collected into baskets ,the pods are taken to a processing house. Here they are split open and the cocoa beans are removed. Pods can contain upwards of 50 cocoa beans each. Fresh cocoa beans are not brown at all, they do not taste at all like the sweet chocolate they will eventually produce.Step 2: Fermenting the cocoa seedsNow the beans undergo the fermentation processing. They are either placed in large, shallow, heated trays or covered with large banana leaves. If the climate is right, they may be simply heated by the sun. Workers come along periodically and stir them up so that all of the beans come out equally fermented. During fermentation is when the beans turn brown. This process may take five or eight days.

The fermentation of Cocoa beansStep 3: Drying the cocoa seedsAfter fermentation, the cocoa seeds must be dried before they can be scooped into sacks and shipped to chocolate manufacturers. Farmers simply spread the fermented seeds on trays and leave them in the sun to dry. The drying process usually takes about a week and results in seeds that are about half of their original weight.

The dried and roasted Cocoa beans

Manufacturing ChocolateOnce the cocoa beans have reached the machinery of chocolate factories, they are ready to be refined into chocolate. Generally, manufacturing processes differ slightly due to the different species of cocoa trees, but most factories use similar machines to break down the cocoa beans into cocoa butter and chocolate (International Cocoa Organization, 1998). Firstly, fermented and dried cocoa beans will be refined to a roasted nib by winnowing and roasting. Then, they will be heated and will melt into chocolate liquor. Lastly, manufacturers blend chocolate liquor with sugar and milk to add flavour. After the blending process, the liquid chocolate will be stored or delivered to the molding factory in tanks and will be poured into moulds for sale. Finally, wrapping and packaging machines will pack the chocolates and then they will be ready to transport.A diagram showing the manufacturing process:

Step 1: Roasting and Winnowing the CocoaThe first thing that chocolate manufacturers do with cocoa beans is roast them. This develops the colour and flavour of the beans into what our modern palates expect from fine chocolate. The outer shell of the beans is removed, and the inner cocoa bean meat is broken into small pieces called "cocoa nibs."

The roasting process makes the shells of the cocoa brittle, and cocoa nibs pass through a series of sieves, which strain and sort the nibs according to size in a process called "winnowing".Step 2: Grinding the Cocoa NibsGrinding is the process by which cocoa nibs are ground into " cocoa liquor", which is also known as unsweetened chocolate or cocoa mass. The grinding process generates heat and the dry granular consistency of the cocoa nib is then turned into a liquid as the high amount of fat contained in the nib melts. The cocoa liquor is mixed with cocoa butter and sugar. In the case of milk chocolate, fresh, sweetened condensed or roller-dry low-heat powdered whole milk is added, depending on the individual manufacturer's formula and manufacturing methods.

Step 3: Blending Cocoa liquor and molding ChocolateAfter the mixing process, the blend is further refined to bring the particle size of the added milk and sugar down to the desired fineness. The Cocoa powder or 'mass' is blended back with the butter and liquor in varying quantities to make different types of chocolate or couverture. The basic blends with ingredients roughly in order of highest quantity first are as follows:

Milk Chocolate- sugar, milk or milk powder, cocoa powder, cocoa liquor, cocoa butter, Lethicin and Vanilla.White Chocolate- sugar, milk or milk powder, cocoa liquor, cocoa butter, Lethicin and Vanilla.Plain Dark Chocolate- cocoa powder, cocoa liquor, cocoa butter, sugar, Lethicin and Vanilla.

After blending is complete, molding is the final procedure for chocolate processing. This step allows cocoa liquor to cool and harden into different shapes depending on the mold. Finally the chocolate is packaged and distributed around the world.

Transformation process

Step 1. The cocoa beans are cleaned to remove all extraneous material.Step 2. To bring out the chocolate flavour and colour, the beans are roasted. The temperature, time and degree of moisture involved in roasting depend on the type of beans used and the sort of chocolate or product required from the process.Step 3. A winnowing machine is used to remove the shells from the beans to leave just the cocoa nibs.Step 4. The cocoa nibs undergo alkalisation, usually with potassium carbonate, to develop the flavour and colour.Step 5. The nibs are then milled to create cocoa liquor (cocoa particles suspended in cocoa butter). The temperature and degree of milling varies according to the type of nib used and the product required.Step 6. Manufacturers generally use more than one type of bean in their products and therefore the different beans have to be blended together to the required formula.Step 7. The cocoa liquor is pressed to extract the cocoa butter, leaving a solid mass called cocoa presscake. The amount of butter extracted from the liquor is controlled by the manufacturer to produce presscake with different proportions of fat.Step 8. The processing now takes two different directions. The cocoa butter is used in the manufacture of chocolate. The cocoa presscake is broken into small pieces to form kibbled presscake, which is then pulverised to form cocoa powder.Step 9. Cocoa liquor is used to produce chocolate through the addition of cocoa butter. Other ingredients such as sugar, milk, emulsifying agents and cocoa butter equivalents are also added and mixed. The proportions of the different ingredients depend on the type of chocolate being made.Step 10. The mixture then undergoes a refining process by travelling through a series of rollers until a smooth paste is formed. Refining improves the texture of the chocolate.Step 11. The next process, conching, further develops flavour and texture. Conching is a kneading or smoothing process. The speed, duration and temperature of the kneading affect the flavour. An alternative to conching is an emulsifying process using a machine that works like an egg beater.Step 12. The mixture is then tempered or passed through a heating, cooling and reheating process. This prevents discolouration and fat bloom in the product by preventing certain crystalline formations of cocoa butter developing.Step 13. The mixture is then put into moulds or used for enrobing fillings and cooled in a cooling chamber.Step 14. The chocolate is then packaged for distribution to retail outlets

QUALTY MANAGEMENT SYSTEM The QMS will support food safety programs Management commitment Documentation control Internal and external auditing Corrective and preventative actions Management Review process Continuous improvement

FACTORS AFFECTING LOCATION

Before an industry is located at any place, certain basic requirements have to be considered. Not all of them are required all the time for each and every industry; however, nor can the location of an industry be guided by a single factor. All these factors must be researched and analysed before an industry is established if the expectations of economic production are to be met.Raw materialsare basic requirements for manufacturing industries. Weight-losing industries e.g., cement, sugar (to quintals of sugarcane is needed to produce 1 quintal of sugar) are located near the source of raw material. On the other hand, foot-loose industries are independent of raw material sources, e.g., garment and electronics industries, and can be established practically anywhere.

Power resourcesare important for energy-intensive industries such as aluminium and polythene bags industries which are located near the energy sources.

Labour supplyis another important factor particularly for the labour-intensive industry, e.g., construction industry. To an extent, labour can be brought. to a site from other regions.Means of transportation and communicationplaya special role in bringing raw material to the factory and finished products to the market, e.g., cheap water transport has facilitated the development and concentration of jute mills in the Hooghly region.Market facilityalso influences industries, many of which are located near large urban centres because the potential buyers are easy available.

Other factorslike financial facilities, climate, industrialincentives and government facilities also matter. In India one could get more subsidised raw material, very low rate of interest on capital and 9!her incentives for establishing an industry in the 'Backward Regions' or in 'No Industry District' .

Plant Layout

Over the years, chocolate has become a general commodity both its consumption and its production are more affordable, faster and more global than ever before. And the competition for new flavor nuances in the wide world of chocolate has become much tougher. Today manufacturers can rapidly respond to the specific desires of the customers with the help of flexible production and adequate machine capacities.NETZSCH-Feinmahltechnik GmbH has developed a plant design firmly based on the pillars of flexibility and quality. The goal was to design a chocolate machine that is fast, user friendly, compact, energy efficient and capable of producing all kinds of sweet treats, even in small quantities.Engineers started with the contemporary redesign of the classic production processes -- mixing, roughing, refining, and dry and wet conching. The result is that agitator bead mills are employed for the fine grinding of the chocolate, with the crushing process and wet conching occurring in parallel, and with no compromise to quality.This method significantly reduces the production time, while also saving energy and cooling water. The process, which is slightly modified in comparison to the traditional manufacturing process, also facilitates easy and accurate adjustment of fineness and quality. This saves up to 5 percent of cocoa butter.The machines were primarily developed for specialized niche suppliers, so NETZSCH offers the modular plant in six different sizes. Requirements from 25 kg all the way up to 6,000 kg per batch can be met precisely. TheChocoEasy machine series can be scaled up. Each model can produce white, milk and dark chocolate, and even allows the production of lecithin-free chocolate. In addition, flavorings and additives can be mixed into the recipe in order to reach new target groups or to surprise existing ones.

Production Planning & ControlA production (or manufacturing) planning and control (MPC) system is concerned with planning and controlling all aspects of manufacturing, including materials, scheduling machines and people, and coordinating suppliers and customers. An effective MPC system is critical to the success of any company. An MPC system's design is not a one-off undertaking; it should be adaptive to respond to changes in the competitive arena, customer requirements, strategy, supply chain and other possible problems Scope There are two interpretations regarding the scope of production planning and control 1. According to the first approach, the planning of all materials, processes and operations ending with the finished product fall under the purview of production planning and control. Inventory control, scheduling of operations and the planning of required equipment are also included.2. The second approach views planning as an aggregate overall concept. The starting point is the sales forecast or sales orders, then production capacity assessment is done and scheduling of operations is completed.Characteristics A production planning and control system should match the needs of the firm. In designing the MPC system, the nature of the production process, the degree of supply chain integration, customer expectations and needs of the management should be taken into account. The MPC system should smoothly integrate with other company functions as well as the operations of other companies in the supply chain planning looks at the operation as a whole.

Inventory Control Inventory control, while a large part of production planning, is frequently looked at as a minor subset of supply chain management; however, inventory control is a crucial part of the production system. Aside from the determination of the minimum level of stock a company can maintain as safety against a balloon in customer demand, inventory control looks at the costs associated with maintaining inventory. Inventory control can comprise inventory of a finished product or inventory of materials used in making such products. Inventory control is affected by changes in customer demand, holding costs, ordering costs and back order costs. Raw Materials Keeping an optimal amount of raw materials in stock is a crucial component of any production-oriented business. Before a product can be manufactured, the raw materials must be in stock and in good quality. The optimal level of raw materials is commonly determined by the Economic Order Quantity (EOQ). The EOQ is calculated by taking the square root of the quantity of two times the order cost multiplied by the demand divided by the holding cost.EOQ = square root ((2 x order cost x demand)/holding cost)ABC Analysis Another useful tool for determining an optimal level of raw materials is ABC analysis, also called a Pareto analysis or the 80-20 concept. This concept divides the products being manufactured into three categories: A is the high-value category and includes those products that require the most materials; B is a medium-value category and comprises products that have an average cost to produce and an average demand; and C is a category that is made up of those products requiring the least amount of resources.The 80-20 concept is derived from the fact that typically 20 percent of the products manufactured account for 80 percent of the resources consumed. It is referred to as Pareto analysis in honor of Vilfredo Pareto, an Italian economist who found that 80 percent of the income earned in most countries belongs to 20 percent of the population. Joseph M. Juran suggested and applied the principle to change management, attributing the concept to Pareto.