Scharffen Berger Chocolate Maker (A) Case Study Solution
Additionally, the company could opt for outsourcing or purchasing molding process. It would be expensive for the company to buy modeling machine and outsourcing would reduce the product’s quality. Hence, both options would increase the production cost of the company but one time investment would be a better option for the company as outsourcing could reduce the product quality. The melanguer and Ball mill would result in lack of integration during the process of production.
The bean cleaner is fundamental for the process’s smooth transition as it is the predecessor of each and every activity i.e. none of the production process could be completed without bean cleaning process. Therefore, the company keeps a stock for 14 days for beans, this would be accounted for the safety stock. So, it is significantly important for the company to maintain hygiene to ensure proper production and kept e process on track.
Recommendation
In 2015, the chocolate demand is estimated to increase by 50 percent and later on by 150 percent. The current process of production is incapable to meet the excessive production capacity in accordance with demand. The company is recommended to opt for ball mill because it would reduce the process of grinding from 60 hours to 15 hours, and increases the capacity of production by 75 percent.
The company might confronted with some problems related to melanguer after installation of ball mill. The old melanguer process would not align with the new capacity of ball mill, therefore both process would face lack of integration. To cope with this dilemma, the company is suggested to upgrade or purchase the melanguer machine as well. Such expansion would allow the company to meet the increasing demand by up to 100 percent. The company is also suggested to use reactive or proactive approach to achieve the increasing demand and to match the production capacity with it. It is fundamental to revise the manufacturing process as a whole and upgrade the process to remain competitive in the market and to avoid the strategic threats. Selling additional process or assets would help the company in relaxing its cost structure through replacing them with the suitable solution to minimize cost and maximize revenue.
Conclusion
A premium brand chocolate – Scharffen Berger is engaged in production of high-quality chocolates which made from up to nine different forms of cocoa beans that are usually procured from all around the world.In 2015, the chocolate demand is estimated to increase by 50 percent and later on by 150 percent. The current process of production is incapable to meet the excessive production capacity in accordance with demand. The company is recommended to opt for ball mill because it would reduce the process of grinding from 60 hours to 15 hours and increases the capacity of production by 75 percent. The company is also suggested to use reactive or proactive approach to achieve the increasing demand and to match the production capacity with it. It is fundamental to revise the manufacturing process as a whole, and upgrade the process to remain competitive in the market and to avoid the strategic threats…………..
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