Scharffen Berger Chocolate Maker CASE D
Scharffen Berger Chocolate Maker CASE:
Discussion Questions
OMG 402
1. Describe the brand position of Scharffen Berger. How does the current production process contribute to that brand?
a. Scharffen Berger Chocolate’s value position is “producing chocolate of the highest quality possible with the finest cacao possible.” It is a premium priced product with strong brand recognition.
b. The company’s use traditional artisan production method allows it to differentiate itself from competitors by being one of only a few brands that produces chocolates “from beans to bars.” It has strict regulations on quality control of products produced both in-house and via 3rd partners. Using human tasters, such as controllers and a blind taste testing at the end of the process, removes a certain percentage of errors that may be made via a machine-only testing process. Scharffen Berger also strives to minimize machine errors via a twice/month calibration procedure protocol. This close regulation of quality allows the company to ensure a high percent of high quality only products are shelved.
2. What is the current capacity of the process? What is the current bottleneck?
a. Current Capacity of the Process is 40,600 kg/month
b. The current bottleneck resource is the conche, which limit the production quantity since each has the lowest resource capacity (1353 kg/day) within the process.
3. What are your conclusions regarding the proposed ball mill? What are the benefits? What are the risks? As Jim Harris, would you proceed with the implementation of that change? How would you do so?
a. While the Ball Mill has the potential to increase capacity production by 10.4%, the Mixer resource will become the new bottleneck in the process.
b. Benefits:
i. Reduce Conching flow time (60hrs to 15hrs) ii. Increased Revenue
c. Risks:
i. Risk not being able to have a high return on capital investment (Cost of Purchase - $300,000) ii. Training employees/3rd party partners on new
Discussion Questions
OMG 402
1. Describe the brand position of Scharffen Berger. How does the current production process contribute to that brand?
a. Scharffen Berger Chocolate’s value position is “producing chocolate of the highest quality possible with the finest cacao possible.” It is a premium priced product with strong brand recognition.
b. The company’s use traditional artisan production method allows it to differentiate itself from competitors by being one of only a few brands that produces chocolates “from beans to bars.” It has strict regulations on quality control of products produced both in-house and via 3rd partners. Using human tasters, such as controllers and a blind taste testing at the end of the process, removes a certain percentage of errors that may be made via a machine-only testing process. Scharffen Berger also strives to minimize machine errors via a twice/month calibration procedure protocol. This close regulation of quality allows the company to ensure a high percent of high quality only products are shelved.
2. What is the current capacity of the process? What is the current bottleneck?
a. Current Capacity of the Process is 40,600 kg/month
b. The current bottleneck resource is the conche, which limit the production quantity since each has the lowest resource capacity (1353 kg/day) within the process.
3. What are your conclusions regarding the proposed ball mill? What are the benefits? What are the risks? As Jim Harris, would you proceed with the implementation of that change? How would you do so?
a. While the Ball Mill has the potential to increase capacity production by 10.4%, the Mixer resource will become the new bottleneck in the process.
b. Benefits:
i. Reduce Conching flow time (60hrs to 15hrs) ii. Increased Revenue
c. Risks:
i. Risk not being able to have a high return on capital investment (Cost of Purchase - $300,000) ii. Training employees/3rd party partners on new