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Scharffen Berger Chocolate Maker Solution
Scharffen Berger Chocolate Maker Solution
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
• 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
• Monthly production capacity of 40,000 kgs i.e. around 29 chonc of chocolate (each approximately worth $ 30,000 in sales)
– 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.
Input: batch size (Kgs) 100 250 250 115 1400 140 140
Quantity of Machine 1 1 1 1 2 1 1
8 hour Shifts 1 1 1 2 3 2 2
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 1472.00 1120.00 2240.00 6720.00
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
Cleaner Roaster Winnower Mixer & Ball Mill Temper Mold
Input: batch size (Kgs) 100 250 250 115 1400 140 140
Quantity of Machine 1 1 1 1 2 1 1
8 hour Shifts 1 1 1 2 3 2 2
Output in Kgs Per Minute 6.40 3.33 12.33 1.53 3.11 2.33 7.00
Output in Kgs Per hour 384.00 200.00 740.00 92.00 186.67 140.00 420.00
Output in Kgs Per Day 3072.00 1600.00 5920.00 1472.00 4480.00 2240.00 6720.00
Addition of ball mill when also supported by increasing shifts achieves an increase in capacity by almost 66%.
Conches
Cleaner Roaster Winnower Mixer & Ball Mill Temper Mold
Input: batch size (Kgs) 100 250 250 115 1400 140 140
Quantity of Machine 1 1 1 1 2 1 1
8 hour Shifts 1 2 1 3 3 2 2
Output in Kgs Per Minute 6.40 3.33 12.33 1.53 3.11 2.33 7.00
Output in Kgs Per hour 384.00 200.00 740.00 92.00 186.67 140.00 420.00
Output in Kgs Per Day 3072.00 3200.00 5920.00 2208.00 4480.00 2240.00 6720.00
Further capacity can only be increased by adding additional mixer, and lets operate that also at 3 shifts. Now, Temperer will be next bottleneck.
Conches
Cleaner Roaster Winnower Mixer & Ball Mill Temper Mold
Input: batch size (Kgs) 100 250 250 115 1400 140 140
Quantity of Machine 1 1 1 2 2 1 1
8 hour Shifts 1 2 1 3 3 2 2
Output in Kgs Per Minute 6.40 3.33 12.33 3.07 3.11 2.33 7.00
Output in Kgs Per hour 384.00 200.00 740.00 184.00 186.67 140.00 420.00
Output in Kgs Per Day 3072.00 3200.00 5920.00 4416.00 4480.00 2240.00 6720.00
Further capacity can be increased by increasing shifts of Temperer, then increasing shift of cleaner and then increasing shift of Roaster
Conches
Cleaner Roaster Winnower Mixer & Ball Mill Temper Mold
Input: batch size (Kgs) 100 250 250 115 1400 140 140
Quantity of Machine 1 1 1 2 2 1 1
8 hour Shifts 2 3 1 3 3 3 2
Output in Kgs Per Minute 6.40 3.33 12.33 3.07 3.11 2.33 7.00
Output in Kgs Per hour 384.00 200.00 740.00 184.00 186.67 140.00 420.00
Output in Kgs Per Day 6144.00 4800.00 5920.00 4416.00 4480.00 3360.00 6720.00
• 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.