Progress Report

Duff Cider : A New Seasonal Product Line

August 21, 2017-April 4, 2018
Report Number NUREG/CB-16
New Product Research Programs
P.N. Laboratory,
Richland, WA 99352
Contract Number B83234-6
Division of New Product Implementation
Office of the Alcoholic Beverage Control
Commision
U.S.D.R.N.K.
Washington, D.C. 20555

(Maxwell Mohr)

Team members
Maxwell Mohr - Resident Craft Brewery Espionage Advisor
Tyler Dowling - Senior Financial Planning & Analysis Manager
Rockford Stoller - Senior Marketing Manager
Nathan Holzworth - DuffMan Pit Crew Chief
Deepak Mirchandani - Chief Unicorn-Grooming Officer (CUGO)
 Duff Beer LLC.

Project Description

(Rockford Stoller)

Seasonal products are a popular method staying relevant throughout the year

while also increasing revenue. Through research and surveys, we have

determined that it is very likely that Duff Beer can benefit from a seasonal

product. Duff Beer has had a very limited product selection since our founding

by Howard K. Duff VIII over 30 years ago. Our goal with this project is to get a

research and development department as well as the new product line, Duff

Cider, up and running with limited trouble. We expected the entire process of

planning, constructing, and implementing this new department and product

line to take 7 months to complete.

Summary of Work Progress

(Rockford Stoller)

Today marks the beginning of week 16 of our project. We are officially entering

the second half of this endeavor. We are pleased with the progress of the

project at this point. The construction part of the project is running several

weeks ahead of schedule and significantly under the estimated budget at this

mark in the process. We are projected to finish the construction portion of the

project much earlier than originally anticipated and to save even more on costs

due to the acceleration in production. The hiring process for the project is

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 Duff Beer LLC.

unfortunately running significantly behind. The number of applicants is not

the problem, the number of qualified applicants is. We plan to increase our

recruitment budget with some of the savings from the construction budget,

bringing in more qualified applicants allowing us to get back on track with the

hiring schedule.

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 Duff Beer LLC.

Our Progress

(Tyler Dowling) & (Deepak Mirchandani)

Work

Completed

Building Construction - The new facility is several weeks ahead

of plan. The structure is completely built which, was not

planned on being completed until the end of the 18th week. We


were able to go ahead and bring in several contractors who have


started on their tasks. We are currently running under our

planned building budget. At the halfway point of the project we

planned on spending $400,000, we are sitting at $350,000.

R & D Hiring - The hiring staff is being very particular and

careful with the new hirees. That we are running behind on this

phase of the project. Over the past three weeks we have


interviewed 76 people, however we have not been able to hire


any of them because they lacked significant qualifications. We

had several alcoholics attempting to get a job with us thinking

that they would be getting free beer. At the end of the day,

Duff Cider represents the entire Duff brand and we need to

ensure that we have the highest quality of employees possible.

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 Duff Beer LLC.

This is to certify that our beverages are consistent in all markets

and made the most effective way possible.

Work

Remaining

Building Construction - The building construction process will

be completed by the end of week 22 instead of the 26th week as

planned. The remaining work is mostly electric, plumbing,


painting, and interior design. The estimated total cost of this


structure will be just above $650,000. We were able to save

nearly $100,000 by getting ahead.


R & D Hiring - Duff Cider is in progress of hiring and training the

most skilled team of beverage makers in the industry. Over the

recent months we have had a few setbacks in the hiring process.


However, going forward, we will be investing more money to


expedite this process. The company is able to provide funds

because of the significant amount of capital saved during the

construction period.

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 Duff Beer LLC.

Evaluation of Progress in this Period

(Nathan Holzworth)

The physical construction of the new facility is proceeding ahead of schedule

and under budget. This would allow the new facility to open earlier than

expected, if not for ongoing delays in the hiring of research staff. Leadership

should consider reworking the R&D hiring process as it has been completely

ineffective so far. Given that the new facilities will be completed earlier our best

path of action is to have whatever skeleton crew is assembled by the time of

completion start familiarizing themselves with the facility so they can better

train new arrivals as the hiring process continues.

Conclusion

(Nathan Holzworth)

In conclusion the more time restrictive parts of the project are moving along

better than expected, however progress overall is lagging behind because of the

hiring delay. With improvements to the hiring process the project should be

completed by or shortly after the original deadline.

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