-Chocolate that loves you back

By-
Nithin Reddy
Soumen Kundu
Soumya Mohapatra
Suhail Afzal
Shashank Reddy
Mukesh Kumar
Soma Sandeep
Description of Chocolate
Chocolate is made from
cocoa beans found on the
cacao tree.
The cacao tree was first
discovered in the South
American rainforest.
The three main
ingredients in chocolate
are chocolate liquor, cocoa
powder, and cocoa butter.
Different kinds of
chocolate use varying
amounts of these 3
ingredients.


Picture of the Cacao Tree
Raw material suppliers
The main raw materials required for this industry is
Sugar
Cocoa Beans{butter}
Pea nuts
Rasins, Almonds
Vanilin
Honey
Beans
Raw materials are collected from the different whole sale
dealers, Cocoa growers, cooperatives etc
Cocoa is also imported mainly from West Africa.
How Chocolate is Made
Cocoa pods are
harvested
Pods are crushed and
fermented.
Cocoa beans are taken
out of the pods and then
dried.
Beans are roasted,
graded, and then ground.
Grinding the beans
creates a liquid called
chocolate liquor.
Chocolate liquor - made
mostly of fat called cocoa
butter.


Cocoa butter is extracted.
Cocoa powder is also
created when beans are
ground.
Process creates chocolate
liquor, cocoa powder,
and cocoa butter.
Ingredients are blended
back together to create
different kinds of
chocolates.

The Chocolate Making Process
Production starts at the cocoa factory where the top quality cocoa beans are
processed to produce the cocoa mass - which contains 53% cocoa and cocoa butter -
the basis for all chocolate products.
When chocolate is made, the 'mass' goes straight to our factories.
Fresh full cream milk is collected and condensed and transported to the factories.
Sugar is added to the cocoa mass, making a rich creamy chocolate liquid, which is
then evaporated to make chocolate crumb
As these ingredients are cooked together, the special rich creamy taste of Cadbury
chocolate is produced. Each year, 22,000 tonnes of crumb is produced at Claremont
to be made into chocolate.
On arrival at the chocolate factory, the crumb is passed through a pin mill and
mixed with cocoa liquor and cocoa butter, as well as special chocolate flavouring.
The amount of emulsifiers added depends on the consistency of the chocolate
required. Thick chocolate is needed for moulded blocks, while a thinner consistency
is used for assortments and covering bars.
Both milk and dark chocolate undergo the same final special production stages -
refining, conching and tempering - which produce the famous smoothness, gloss
and snap of chocolate.
Conching involves mixing and beating the semi-liquid mixture to develop the
flavour, removing unwanted volatile flavours and reducing the viscosity and
particle size.
Tempering is the final crucial and complex stage which involves mixing and
cooling the liquid chocolate under carefully controlled conditions to ensure that the
fat in the chocolate crystallises in its most stable form
Tempered chocolate is used in a number of ways to produce our famous brands.
Blocks of solid chocolate, including bars with added ingredients such as nuts and
raisins, are known in the industry as 'moulded' products. Tempered chocolate is
poured into bar-shaped moulds, shaken and cooled, then the moulded blocks
continue to high speed wrapping plants.

Our plants are potentially expected to produce 700 blocks per minute

Types of Chocolate

Sweet Chocolate
Contains no milk solids
Cannot contain less than
15% chocolate liquor
Dark Bittersweet Chocolate
Contains the most chocolate
liquor.
It is sweet chocolate that
cannot contain less than
35% chocolate liquor.
Semi Sweet Chocolate
Similar to dark bittersweet
chocolate.
Baking Chocolate
Contains no sweeteners and
no milk.
Types of Chocolate
Milk Chocolate
Contains milk and sugar,
which differs from
bittersweet and semisweet
chocolate.
Cannot contain less than 12%
milk and cannot contain less
than 10% chocolate liquor.
Can contain other ingredients
but must comply with
regulations.
White Chocolate
Technically not real chocolate
Contains no chocolate liquor,
which is one of the main
ingredients in chocolate.
Its made of cocoa butter,
milk, and sugar.

TARGET MARKET

Particulars Cost Per Unit Total Cost
Raw Material
Sugar = 30,000
Cocoa Butter = 30,000
Peanuts = 32,000
Peanuts = 20,000
Chocolate Coated Rasins = 40,000
Vanilin = 10,000
Almonds = 30,000
Honey = 5,000
Boston Baked Bean = 15,000
Direct Labour = 70,000 1.56 70,000
Carriage on Material = 24,250 0.53 24,250
Prime Cost 7.25 3,26,250
Cost Sheet
For one month
5.16 2,32,000
Total Output = 45,000 units
Factory expenses
Fixed
Depreciation on Plant and M/c = 25,750
Rent = 15,000
Power and Consumable Store = 15,000
Factory Insurance = 15,000
Supervisors Salary = 5,000
Variable
Electricity Charges = 5,000
Power and Consumable Store = 10,000
Running Expenses of Machine = 15,000
Factory Cost 9.60 4,32,000
Office and Administration Expenses 4.40 630,000
Selling & Distribution Expenses 2.00 90,000
Total Cost 16.00 7,20,000
Net Profit (20% on selling price) 4.00 1,80,000
Sales 20.00 9,00,000
2.35 1,05,750
Forward Logistics
The finished chocolates from manufacturing is stored in
the ware houses
Then comes the logistics and distribution where the goods
are packed and moved to various regional distribution
centers.
From RDCs the chocolates are distributed to different
outlets or Retailers
INNOVATIVE PACKAGING
(REVERSE LOGISTICS)
The innovation marks a potentially significant breakthrough for the food
and packaging industries, as it could pave the way for large numbers of
chocolate bars to be wrapped and sold in the stuff of their creation.

Approximately 10 tonnes of cocoa husk waste accounts for every single
tonne of dry cocoa bean produced, or 76% of the fruit itself. The company
says that, unlike other cocoa recycling processes, the paper is made without
burning or gradual degrading of the fibres of the cocoa husk, the finished
light brown paper utilises the cocoa as a natural colourant, avoiding the
need for artificial dyes
Modes of transportation
Transportation is necessary to Move purchased goods from
suppliers to buyers and move finished goods to the customer.

Modes of transport used by supplier
Road transport : It is flexible in nature and can be reached to
any parts of the country and it cost less as compare to other
modes of transport.

Rail carriers : compete most favorably when the distance is long
& the shipments are heavy or bulky.





Air carrier : Very expensive relative to other modes but
also very fast

Water carrier : In flexible and in expensive as compare to
others mode of transport
Demand requirements to design a
warehouse
Is demand high or low?
The new calorie free chocolate analysis shows that the change in calorie free
chocolate consumption occurred for both women (up from 18% in 2000 to
21% in 2010) and men (up from 14% to 19% in the same period).
Still, only about 20% of people are concerned of diet on any given day with
the majority (80%) not maintaining it , the report finds. It included calorie-
free and low-calorie versions
Overall, about half of the population, ages 2 and older, consume fatty things
on any given day. Among boys 2 to 19, 70% consume them while 40% of adult
women consume them.
Hence we can say that the demand for our product is high.

Warehouse design
As our product is not seasonal we have to have a strong warehouse design to
support our production and match our demand in the market. Which can
happen through maintaining proper consolidation and break-bulk, (2) sorting,
and (3) reverse logistics.
Our consolidation is very effective it goes in the following way
The warehouse receives materials, from a number of sources, that are
combined in exact quantities into a large single shipment to a specific
destination.
The benefits of our consolidations are
i. realization of the lowest possible freight rate,
ii. timely and controlled delivery, and
iii. reduced congestion at a customers receiving dock.
The warehouse enables both the inbound movement from origin and the
outbound movement to destination to be consolidated into a larger size
shipment, which generally results in lower transportation charges per unit
and most often quicker delivery

The design






Bulk breaking
A break-bulk operation receives a single large shipment and arranges for
delivery to multiple destinations. Economy of scale is achieved by transporting
the larger consolidated shipment. The break-bulk warehouse or terminal sorts
or splits out individual orders and arranges local delivery.
Sorting
The basic benefit of sorting is to reconfigure freight as it flows from origin to
destination. Three types of assortmentcross-docking, mixing.
a) cross-docking:
Our objective is to combine inventory from multiple origins into a pre specified
assortment for a specific customer. the jest of cross-docking is on-time delivery
from each manufacturer. The manufacturers, in turn, may have sorted, loaded,
and labeled the appropriate quantity by destination. Product is then literally
moved across the dock from receiving into a truck dedicated to the delivery
destination

Mixing :
mixing is usually performed at an intermediate location between shipment
origin and destination. carloads or truckloads of products are shipped from
origin to mixing warehouses. Upon arrival at the mixing warehouse, shipments
are unloaded and sorted into the combination desired by each customer.
These inbound shipments are planned to minimize inbound transportation
cost.
Reverse Logistics Processing

A great deal of the physical work related to reverse
logistics is performed at warehouses. Reverse logistics
includes the activities to support:
(1) returns management,
(2) remanufacturing and repair,
(3) remarketing,
(4) recycling, and
(5) disposal
LOCATION
The locations probably we select are going to cover would be mostly
the metro politan cities and regions where the IT sector is growing fast

REASONS
a) Less concern on health i.e the diet they take have more fat in it, as our
product is of low calories we may taste success in matching our
demand which is mentioned in the earlier slides
b) They have less time to concentrate on health and
c) Every person now and then picks up a chocolate now and then why
cant it be a lower calorie chocolate.
WAREHOUSE LOCATION
In planning warehouse layout, The most important product variables we
considered in a slotting plan are product velocity, weight, and special storage
requirements.
Product velocity is the major factor for driving our warehouse layout. High-
volume product should be positioned in the warehouse to minimize movement
distance.
As our product is high-velocity products it is positioned near doors, primary
aisles, and at lower levels in storage racks. Our positioning minimizes warehouse
handling and reduces the need for frequent lifting.Our Warehouse will be located
on outskirts of the city area like nearby to our customers i.e outer ring road
HI-TECH city.
PRIVATE WAREHOUSING
we also go with private warehousing the benefits we get
through this type of lay out are
a) control,
b) flexibility,
c) Cost reduction, and
d) a range of intangibles
flexibility provided by this type of warehousing are operating
policies, hours, and procedures can be adjusted to meet specific customer
and product requirements.
WAREHOUSE DESIGN
Warehouse design must consider product movement characteristics. Three
factors to be determined during the design process are the number of floors to
include in the facility, a cube utilization plan, and product flow.
The ideal warehouse design for us is one-floor building that eliminates the need
to move product vertically (reduces the time).
Our warehouses are designed with 25- to 30-foot clear ceilings, although
selected automated and high-rise handling equipment can effectively use
heights over 100 feet.
It supports straight product flow through the building.
Bill Of Material
Bill of Materials
Team: AMIGOS Date:
for how
many
months: 1 month
Description Qty
Unit of
Meas Unit Price ($) Total Price

Describe the Part

How
Many
Piece,
Inch, Etc. Cost Per Unit
coco beans 1000 kg $500.00 $500,000.00
milk 1000 liters $36.00 $36,000.00
sugar 1000 kg $70.00 $70,000.00
labour 25 humans $15,000.00 $375,000.00
eggs 1000 dozzen $36.00 $36,000.00
coco butter 1000 kg $800.00 $800,000.00
lactose 100
lit
er $200.00 $20,000.00
$0.00
Subtotals: $1,837,000.00

For calculating BOM we considered the materials required
to manufacture our product(for 1 month) and then
estimated the cost for each unit and finally to produce the
products for 1 month we incurred a cost of $1,837,000.00
For each year we have the capacity of producing 22,000
tones
The labors working hours will be 8 to 12 hrs a day.

Beans and coca
is mixed in the
factory
Milk+sugar to coca
mass=chocolate
liquid
chocolate liquid
evoprated=chocolat
e crumb

chocolate crumb
cooked to get
cadbury
Crumb to pin
mill mixed with
coco liquor &
butter
Assortments in to
bars
refining,
conching and
tempering
Smoothing of chocolet
wraping Product is ready
Process diagram

PRODUCTION LAYOUT
The layout we use is product layout.
Layout is in following way
PRODUCTION AREA

BEANS STORE AND COLD
ROOM SPRINKLER SYSTEMS
Warehouse sprinkler system
Central Stores Sprinkler System

Overall sprinkler system
Chocolate Craving Theories
Chocolate cravings are a result of the chemical ingredients
found in chocolate.
Chocolate cravings come from the sensory properties of
chocolate = texture, taste, smell, and color.
Chocolate cravings are influenced by culture.
Many theories exist, but there is no conclusive scientific
evidence on what causes people to crave chocolate.

Potential Health Benefits
Chocolate may be good for the heart.
Chocolate contains chemicals like those found in red
wine and green tea.
Helps improve circulation
Helps cut down blood pressure
Chocolate contains flavanols.
Helps in preventing the oxidations of bad cholesterol, which
reduces the stickiness of blood platelets and improve blood
vessel elasticity.
Theobromine, found in chocolate, was found to
treat coughs better than codeine.
AAA into supply chain
Agilitythe ability to respond quickly and cost-effectively to unexpected changeis
critical because in most industries, both demand and supply fluctuate more rapidly
and widely than they used to. In fact, the best companies use agile supply chains to
differentiate themselves from rivals.
Supply-chain agility and resilience no longer imply merely the ability to manage risk.
It now assumes that the ability to manage risk means being better positioned than
competitors to deal withand even gain advantage fromdisruptions. Key to
increasing agility and resilience is building flexibility into the supply-chain structure,
processes, and management.
Adaptability - The best companies tailor their supply chains to the nature of the
markets they serve. They often end up with more than one supply chain, which can be
expensive, but, in return, they secure the best manufacturing and distribution
capabilities for each offering.
All companies must align their supply-chain infrastructure and management with
their underlying value proposition to achieve a sustainable competitive advantage.
That is, they must align the interests of all the firms in the supply network so that
companies optimize the chains performance when they maximize their interests.
Alignment - One way companies align their partners interests with their own is by
redefining the terms of their relationships so that firms share risks, costs, and rewards
equitably. A prerequisite to creating alignment is the availability of information so that
all the companies in a supply chain have equal access to forecasts, sales data, and
plans. Next, partner roles and responsibilities must be carefully defined so that there is
no scope for conflict. Finally, companies must align incentives so that when companies
try to maximize returns, they also maximize the supply chains performance.


FUTURE OF THE PRODUCT
According to KPMG, there are almost two track market, the developed
and the developing. In the developed market a lot more innovation is
needed to grow or maintain the market share. In the developing
market like BRIC countries, manufacturers need to cater to the
specific consumer taste for growth. It also says industries response to
upcoming health regulation could mold the future.
Sustainable sourcing, packaging, and consolidation and outsourcing
chocolate manufacturing will be of growing importance. To grow in
emerging market a global set of local operations is needed. India is
anticipated to grow faster than all emerging markets according to
KPMG. There is an opportunity in new developing markets in eventing
and gifting chocolates, introduction of spices into chocolates can also
gain momentum.
The emergence of health legislation from national government could be
a threat to the industry. The industrys marketing capacity for
communicating the health benefits are yet to be realized by other
chocolatiers but regulation need not become burdensome for us
because we are bringing nutritional benefits in our chocolate.
There is a threat of decrease in supply of cocoa, which is the main
ingredient of our chocolate, in future.