Scharffen Berger Chocolate Maker Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Scharffen Berger Chocolate Maker Case Solution

Alternatives to Increase Capacity without Affecting Product Quality

Alternative # 1

To increase the capacity without compromising on the quality of the product; the company has to choose alternatives. Without purchasing new equipment it would be challenging for the company to expand its production capacity. Therefore, the company is now considering to buy a customized ball mill. The ball mill can grind $1400 kilogram in 3 hours, whereas the same job was done by conche in 40 to 60 hours. The drawback of the ball mill is that it could only do grinding & the aeration would be done in conche. The process of aeration would be completed in 13 to 15 hours instead of 40 to 60 hours. The company's primary concern is the product quality, which is unaffected by the alternative solution, because the company has conducted numerous tests to ensure product quality. Because of the ball mill; the manufacturing capacity would be enhanced by at least 75%.

Alternative # 2

It would be expensive to buy a purchase molding process, there fore one could opt to outsource its molding process but it would reduce the product’s quality.

Hence, both options would increase the company’s production cost but a one-time investment would be a better option for the company as outsourcing can reduce the product quality. The melange and Ball mill would result in a lack of integration during the process of production.

The bean cleaner is essential for smooth flow of the process because it is precursor to each activity, i.e. no part of the production process could be accomplished without it. As a result, the corporation stores a supply of beans for 14 days, which is accounted for as a safety stock. As a result, the organization must maintain hygiene to ensure proper operation.

Recommendation

First of all,the company is highly recommended to opt for a ball mill, because it would increase the capacity of production by 75 percent and tends to reduce the process of grinding from 60 hours to 15 hours.

The company might face some problems related to melange after the installation of ball mill, because the old melange process is not aligned with the new configuration of the ball mill, and therefore both the processes would face a lack of integration. To cope with this problem, the company is suggested to purchase the melange machine as well. This would help the company in meeting the increasing demand by up to 100 percent.

The company is also suggested to use a reactive or proactive approach to achieve the increasing demand and to match the production capacity with it. It is necessary to review the manufacturing process as a whole and upgrade the process to remain competitive in the market. Selling excessive processes or assets would help the company in relaxing its cost structure.

Conclusion

Scharffen Berger is involved in the production of high-quality chocolates made from up to nine different types of cocoa beans that are usually obtained from all over the world. The current process of production is incapable to meet the excessive production capacity and it is estimated that chocolate’s demand would increase by 50 percent, which later on can expand to 150 percent in 2015.

The company is recommended to opt for a ball mill because it would increase the capacity of production by 75 percent and would reduce the process of grinding from 60 hours to 15 hours. The company is also suggested to use a reactive or proactive approach to achieve the increasing demand and to match the production capacity with it. It is necessary to review the manufacturing process as a whole and upgrade the process to remain competitive in the market.........................

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Scharffen Berger Chocolate Maker Harvard Case Solution & Analysis