Scharffen Berger Chocolate

956 Words4 Pages
Scharffen Berger Chocolate Maker After analyzing the details presented in the case, it is recommended that Scharffen Berger (S&B) install the ball mill machine. This piece of equipment will be vital in relieving pressure off of the main bottleneck in the current manufacturing process. With the addition of the ball mill equipment, S&B will be able to bring the conche processing time in-line with the other processes (as evidenced by exhibit A & B) and will give the company more manufacturing control. Currently, the conche process is limited by machine capacity versus the other processes which can be increased through additional shifts. This added flexibility will give the firm more control over its ability to meet demand. From a financial standpoint, the ball mill also makes sense. The payback period for the machine should be less than a year if demand is strong enough to support the increase in production. The company has already completed the appropriate due diligence and established that the quality of the chocolate would not be jeopardized by shaving a significant amount of time off the production process with the more efficient ball mill. The only concern with this decision is if the new equipment will be enough to meet the potential three-fold increase in long-term demand that the marketing manager is forecasting. The ball mill will give the firm the ability to boost production significantly (assuming labor is increased in other areas), however it does not address shortfall in the other production stages. If further enhancements are needed, it may render the ball mill purchase a waste, as the firm may need to consider a total overhaul of equipment if demand continues to grow exponentially. However, these concerns are alleviated by the reasonable cost and timing in which the ball mill can be implemented. One additional consideration S&B should
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