Scharffen Berger Chocolate Maker

Scharffen Berger Chocolate Maker
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), Semisweet , 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
Production Process At Scharffen Berger
Current Capacity and expansion

Monthly production capacity of 40,000 kgs i.e. around 29 chonc of chocolate (each
approximately worth $ 30,000 in sales)
Expansion options being considered
Purchasing more of same machines already being used
Adding a new ball mill at $ 300,000 (assuming quality remains same). Expected time
reduction to 15 hrs from avg. 60 hrs of choncing.
When ball mill is installed, Mixer will be next bottleneck. Additional mixer could be
purchased & refurbished at $ 50,000.
Outsourcing the tempering and molding process to co-packers and remove duplication.
However, transporting liquid chocolate was risky and expensive proposition.
Analysis: Current Situation

Current analysis of the plant shows production capacity of 40000 Kgs
Cleaner Roaster Winnower Mixer
Available Capacity
Input: batch size (Kgs)
Conches
(2)
Temper
450
100
250
250
Mold
200
115
1400
140
140
Output
96
250
185
115
1400
140
140
Quantity of Machine
8 hour Shifts
Cycle Time (mins)
15
75
15
75
1800
60
20
Output in Kgs Per Minute
6.40
3.33
12.33
1.53
0.78
2.33
7.00
Output in Kgs Per hour
384.00
200.00
740.00
92.00
46.67
140.00
420.00
Output in Kgs Per Day
3072.00 1600.00 5920.00
2240.00
6720.00
1472.00 1120.00
Current Capacity Per Month

(Kgs)
40000
Analysis: Adding Ball Mill

Adding ball mill will reduce the average conch time from 60 hrs to 15 hours and hence
increase capacity by around 10%. Mixer will be next bottleneck.
Conches
& Ball Mill Temper
450
Available Capacity
Mold
200
100
250
250
115
1400
140
140
Output
96
250
185
115
1400
140
140
Quantity of Machine
8 hour Shifts
Cycle Time (mins)
15
75
15
75
450
60
20
Output in Kgs Per Minute 6.40
3.33
12.33
1.53
3.11
2.33
7.00
384.00
200.00
740.00
92.00
186.67
140.00
420.00
3072.00 1600.00 5920.00
1472.00 4480.00
2240.00 6720.00
Capacity Per Month with

Ball Mill (Kgs)
44160
Increase in production
from As Is (%)
10
Analysis: Ball Mill and Shift Adjustments

Addition of ball mill when also supported by increasing shifts achieves an increase in
capacity by almost 66%.
Available Capacity
Conches
& Ball Mill Temper
450
Mold
200
100
250
250
115
1400
140
140
Output
96
250
185
115
1400
140
140
Quantity of Machine
8 hour Shifts
Cycle Time (mins)
15
75
15
75
450
60
20
6.40
3.33
12.33
1.53
3.11
2.33
7.00
384.00
3072.00 3200.00
200.00
740.00
92.00
186.67
5920.00
2208.00 4480.00
140.00
420.00
2240.00
6720.00
Capacity Per Month with Ball Mill

(Kgs)
66240
Increase in production from As Is
(%)
66
Analysis: With Ball Mill & 2 Mixers (2 Shifts)

Further capacity can only be increased by adding additional mixer, and lets operate that
also at 3 shifts. Now, Temperer will be next bottleneck.
Cleaner
Roaster Winnower Mixer
Available Capacity
Conches
& Ball Mill
450
Temper
Mold
200
100
250
250
115
1400
140
140
Output
96
250
185
115
1400
140
140
Quantity of Machine
8 hour Shifts
Cycle Time (mins)
15
75
15
37.5
450
60
20
6.40
3.33
12.33
3.07
3.11
2.33
7.00
384.00
200.00
740.00
184.00
186.67
140.00
420.00
3072.00
3200.00
5920.00
4416.00
4480.00
2240.00
6720.00
Capcacity Per Month with

Ball Mill (Kgs)
67200
Increase in production from

As Is (%)
68
Analysis: Ball Mill, 2 Mixers & Shift Adjustments

Further capacity can be increased by increasing shifts of Temperer, then increasing shift
of cleaner and then increasing shift of Roaster
Cleaner
Roaster
Available Capacity
Winnower Mixer
Conches
& Ball Mill
450
Temper
Mold
200
100
250
250
115
1400
140
140
Output
96
250
185
115
1400
140
140
Quantity of Machine
8 hour Shifts
Cycle Time (mins)
15
75
15
37.5
450
60
20
6.40
3.33
12.33
3.07
3.11
2.33
7.00
384.00
200.00
740.00
184.00
186.67
140.00
420.00
6144.00
4800.00
5920.00
4416.00
4480.00
3360.00
6720.00
Capcacity Per Month with

Ball Mill (Kgs)
100800
Increase in production from

As Is (%)
152
Conclusion
In the current situation conchs are the clear bottleneck.
After addition of ball mill the production capacity will increase by around 10%, however
further capacity can be increased by increasing shifts of mixer up to almost 66%
increase in capacity until mixer becomes bottleneck
Then adding a mixer will increase the production capacity to 68%, which can further be
increased up to almost 150% by increasing shifts of Temperer, cleaner and roaster.
Since the expected increase in demand is around 30% by end of the year. Adding ball
mill and adjusting shifts would be sufficient for now.

Scharffen Berger Chocolate Maker

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Scharffen Berger Chocolate Maker

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Scharffen Berger Chocolate Maker

Primary products at Scharffen Berger were

Production Process At Scharffen Berger

Current Capacity and expansion

Analysis: Current Situation

Cycle Time (mins)

Output in Kgs Per Minute

Output in Kgs Per hour

Output in Kgs Per Day

3072.00 1600.00 5920.00

Current Capacity Per Month

Analysis: Adding Ball Mill

Input: batch size (Kgs)

Cycle Time (mins)

Output in Kgs Per Minute 6.40

Output in Kgs Per hour

Output in Kgs Per Day

3072.00 1600.00 5920.00

Capacity Per Month with

Analysis: Ball Mill and Shift Adjustments

Input: batch size (Kgs)

Cycle Time (mins)

Output in Kgs Per Minute

Output in Kgs Per hour

Output in Kgs Per Day

Capacity Per Month with Ball Mill

Analysis: With Ball Mill & 2 Mixers (2 Shifts)

Roaster Winnower Mixer

Input: batch size (Kgs)

Cycle Time (mins)

Output in Kgs Per Minute

Output in Kgs Per hour

Output in Kgs Per Day

Capcacity Per Month with

Increase in production from

Analysis: Ball Mill, 2 Mixers & Shift Adjustments

Input: batch size (Kgs)

Cycle Time (mins)

Output in Kgs Per Minute

Output in Kgs Per hour

Output in Kgs Per Day

Capcacity Per Month with

Increase in production from

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