MSIN0145: SCHARFFEN
BERGER CASE REPORT
Group: CR1-team 28
Student Name: KEKE SHANGGUAN (17137182)
Student Name: Jinwei Shi (16055829)
1. What are the most important competitive operational priorities for Scharffen Berger?
(Figure 1: Operational Priorities for Scharffen Berger)
With respect to current demand rise and new production options, Scharffen Berger’s
operational priorities should ensure the company to meet the demand as much as possible
without damaging its current quality.
Unlike mass market competitors, Scharffen Berger should place its top operational priority
on maintaining the current product quality with new equipment rather than meeting the
demand. As a company with a history of producing high quality premium chocolate, any
quality issue would result in a significant havoc on brand image.
The second operational priority is to efficiently implement ball-mill and new melangeur in its
production line, including staff training for operating the new machine.
Another priority for Scharffen Berger is to enhance current process and production flow.
With the new equipment in use, dramatic reduction in time spend for refining would also
impact the existing flow of production. The current conches, which now can specialize for
aeration and mixing, should be placed in a suitable location in production flow to ensure
maximum efficiency. In addition, since some products will require different premium
ingredients such as whole vanilla beans, Scharffen Berger will need to determine the
optimal switch for different products in current conches in terms of current demand.
Outsource tempering and molding process will also become an operational priority as the
time spend in those processes can be the next bottleneck and it’s very expensive to improve
this in-house. However, Scharffen Berger should select reputational partner and closely
monitor the quality produced while maintaining high quality control during the
transportation processes.
(Word count Q1: 252)
2. How could Scharffen Berger significantly increase capacity without affecting product
quality?
The appendix 1 shows the monthly output of Scharffen Berger products in each process after
implementing a ball mill. The appendix 1 was basing on an assumption that Scharffen Berger
was producing 99% Dark chocolate without adding the ingredients. It was calculated by using
the working hours and shifts in each process, and giving the approximately figures of the
maximum production. According to the observations, the roaster process was the primary
bottleneck which would limit Scharffen Berger output. Therefore, an additional high-quality
machine will improve the performance of roaster process.
As Scharffen Berger had acquired a second hand mmelangeur, the monthly output would be
larger than 41,216 kg. Under the above conditions, the molding would become a crucial
bottleneck as the demands increased. The products would be limited within 62,720 kg. This
would be even worse if Scharffen Berger adds the ingredients into the conche process. The
quantity of products after adding ingredient in conche process would exceed the maximum
capacity of the molding process. In addition, as the demand was increasing in each year, the
current capacity of the molding process is insufficient. One of the possible recommendations
was that outsourcing the exceed number of products in the molding process if the demand
increased, to increase the total output. However, the quality of products would be the
problem. Or, having a leasing contract of the molding machines with a third party, to increase
the capacity of the molding process which would maintain the quality of products.
(Word count Q2: 247)
(Figure 2)
(Figure 3)