Scharffen Berger Chocolate maker (A)

Group A3

Anjali ChandruAnuradha Dhote

Oshin VijaykumarPankaj 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(8hrsX7day

s)

Roaster and Racks

(8hrsX7days)

Winnower(8hrsX7days)

PackingSelf=35%,

Other=65%

Molder(2X8hrsX7da

ys)

Temper(2X8hrsX7da

ys)

Mixer(2X8hrsX7da

ys)Conche

(3X8hrsX7days)

Conche(3X8hrsX7da

ys)

Bags

Tank

Bins

Bins

Tank

PROCESS FLOW

START

100 Kg

96 Kg

Waste Wast

e

4 Kg

250 Kg

185 Kg

250 Kg

65 Kg

115 Kg115

Kg

1400 Kg

1400 Kg

1400 Kg

1400 Kg

140 Kg

140 Kg

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