PRODUCTION/OPERATIONS MANAGEMENTREPORT PRODUCTION PROCESS OF CADBURY CHOCOLATE pg. 1 SUBMITTED BY: ASHNA FAUZAN (13) JAVERIA RAEES (22) HIRA ALIZAI (74) TAHA OWAIS KHANZADA (69) QURAT UL AIN RAZA (44) RAMSHA SHOAIB (50) SUBMITTED TO: SIR TEHSEEN CLASS: BS –VI (MORNING) DATE: 7TH NOVEMBER 2013 KARACHI UNIVERSITY BUSINESS SCHOOL pg. 2 ACKNOWLEDGMENTS _______________________________________________________________________________________________________ First praise is to Allah, the Almighty, on whom ultimately we depend for sustenance and guidance. All praises to Allah for endowing us the strength and ability to completing this report. We would like to express our deepest appreciation to all those who provided us the possibility to complete this report. We take this opportunity to express our profound gratitude and deep regards to our guide Sir Tehseen for his exemplary guidance, monitoring and constant encouragement throughout the course of Production/Operations Management. The blessing, help and guidance given by him time to time shall carry us a long way in the journey of life. A special thanks goes to all the team mates, Javeria Raees, Ashna Fauzan, Taha Owais Khanzada, Hira Alizai, Ramsha Shoaib & Qurat ul Ain Raza who helped to assemble the parts and gave suggestions about the Production Process. pg. 3 4.26 PAGE 26 .19 PAGE 19 PAGE 20 . 10.12 PAGE 12 PAGE 12 . 15. 11.7 PAGE 7 PAGE 8 . 9. 12. 2. 7. 16.28 PAGE 28 .16 PAGE 16 .27 PAGE 27.13 PAGE 13 PAGE 13 PAGE 13 . 6.30 PAGE 30 PAGE 31 PAGE 32 PAGE 32 . 5.14 PAGE 14 . ACKNOWLEDGEMENT ABOUT CADBURY MARKET SEGMENTATION PRODUCTION AT CADBURY HOW CHOCOLATE IS MADE? HARVESTING SPLITING FERMENTATION DRYING AND BAGGING CLEANING ROASTING BLENDING GRINDING PRESSING MIXING OF DARK AND LIGHT CHOCOLATE DRYING CONCHING TEMPERING MOULDING A GLIMPSE OF PRODUCTION PROCESS OTHER PRODUCTS PACKAGING EMPLOYEES MOTIVATION STOCK CONTROL QUALITY CONTROL CAPACITY PLANNING INVENTORY MANAGEMENT SUPPLY CHAIN MANAGEMENT LOCATION OF FACILITY CONCLUSION PAGE 3 PAGE 5 PAGE 6 PAGE 6 .10 PAGE 10 PAGE 11 PAGE 11 .17 PAGE 18 PAGE 18 .1.22 PAGE 21 . 14. 3. 4 .33 PAGE 33 pg. 8. 13.15 PAGE 15 . and the Roses selection box. was separated from its US beverage unit (now called "Dr. Kraft Foods announced they would be splitting into two companies beginning on 1 October 2012. In January 2010. The company is best known for its confectionery products including the Dairy Milk chocolate. Cadbury is headquartered in Uxbridge. is a British confectionery company owned by Mondelēz International and is the industry's second-largest globally after Mars. markets and distributes branded products in over 200 countries. used a higher proportion of milk within the recipe compared with rival products. Pepper Snapple Group"). a model village designed to give the company's workers good living conditions. Kraft Foods purchased Cadbury and pledged to honor Cadbury’s commitment. New processes and innovative products helped the business improve by the end of 1960's and were able to move from Bridge Street factory to what is now known as Bourneville in Bourn brook estate. George developed the Bourneville estate. followed by his sons Richard and George. New products and experimentation created innovative products ensured that Cadbury's could match the competition from Switzerland and France and products were continually perfected to claim superiority in taste and quality The company was known as Cadbury Schweppes plc from 1969 until its demerger in 2008. coffee and drinking chocolate. Cadbury was established in Birmingham by John Cadbury in 1824. England. of which Cadbury is a subsidiary. Dairy Milk chocolate in particular. The confectionery business of Kraft became Mondelēz International. and are the bestselling confectionary product in the country during the period. the chocolate was the company's bestselling product. pg. Cadbury. However in August 2011. London. It is now a global organization which manufactures. Incorporated. the Crème Egg. when its global confectionery business.000 people worldwide and is the fourth largest supplier of chocolate and sugar confectionery in the world. It employs over 40. By 1914. 5 . officially Cadbury Enterprises pte Limited. who sold tea.ABOUT CADBURY: Cadbury started in business in Bourneville. introduced in 1905. and operates in more than fifty countries worldwide. Crème Eggs are made available for sale in the United Kingdom from January of each year until Easter. Cadbury developed the business with his brother Benjamin. 8% of the global candy and gum market. 6 . The machinery used is simple mechanism that reduces investment. Cadbury chose an effective layout. PRODUCTION AT CADBURY: To achieve cost dimension. Kraft hopes that products such as Oreo will become impulse buys for children. Above all. Kraft argued that it could take advantage of the Cadbury distribution in developing markets of India. As incomes rise in these developing nations. Moreover. Brazil and Mexico.6% share. followed by Nestle with 7. Cadbury at pg. Mars. Food manufacturing giant Kraft confirmed in 2012 that UK chocolate firm Cadbury had generated sales of about £257M ($400) since its takeover by Kraft Foods the previous year.MARKET POSITION OF CADBURY: Following the purchase of Cadbury. Inc. continuous operation of the plant ensures that they produce large quantity of product that is sufficient enough to make profit and reduce cost of operation. Kraft commanded 14.8%. is second in the confectionery market with 14. variety and volume flexibility. plant is customized for certain product and is not flexible to incorporate other products. As discussed above. By introducing tickets for this exhibition. Cadbury world is a permanent exhibition entirely devoted for chocolates and history of Cadbury. The Cadbury production line runs 24 hours a day. 364 days per year. including sizes and flavor. This may be 12-hour days or nights. It is only closed on Christmas day! Workers on the production line work a 12-hour shift.g. They use this method when producing handmade or personalized goods (e. writing using melted chocolate). In short when the company introduces a new brand. This helps Cadbury ensure that high quality is maintained for every brand. this the most convenient way that Cadbury can manufacture its products due to there being a high demand of chocolate and the way that fixed amounts of chocolate is needed to make each individual chocolate bare.Bourneville has a visitor center called ‘Cadbury World' alongside the factory which allows visitors to see the manufacturing area. Cadbury produces large quantity of few successful brands. This design is another example of product layout with a single route for all customers. To achieve this Cadbury products are continually perfected until they could claim superiority in both quality and taste. They have two 18 minute breaks during the shift and a meal break of 42 minutes after six hours. pg. delivery speed and on-time delivery. Flexibility dimension of competitive priority depends on customization. 7 . the plant has to accommodate new process layout for that particular product. Although their main method of production is batch. hence this is also a quicker method to make large amounts of chocolate. Time dimension depends on rate of production. Cadbury manufacturing unit it Bourneville and its process layout are automated to manufacture set of brands on continuous basis without constant supervision or modification. Main exhibition and demonstration areas are designed in such a way that all the customers can have a smooth flow without any bottlenecks and delays. Cadbury was able to reduce the manufacturing cost for production of chocolates as they are covering up some of the investment in this manner. Mainly Batch production is used because Cadbury produce a wide variety. Cadbury has limited products and hence doesn't feature the development speed characteristic of competitive priority as they give minimum importance for introduction of new products on a regular basis. They will work for four days and then have four days of holiday. METHOD OF PRODUCTION: Cadbury world mainly produce chocolate bars in batch production . Cadbury also offer job production as well. 7 days a week. Even though plant is flexible to alter the volume of production. The continuous automated production of all brands in the manufacturing unit ensures maximum rate of production. 8 . and they are individually wrapped. HOW CADBURY CHOCOLATE IS MADE The following steps define a detailed process of how chocolate is made at various factories of Cadbury globally. In addition. different varieties vary significantly in shape. Cadbury Crème Eggs are made using automated flow production: Melted chocolate is poured into special half-egg moulds. THE SEED HARVEST: The Cacao tree Grows to 15 meters. texture and color. with machinery moving each one along a production line. As Cadbury also uses batch production – some machines are set to make different products during different shifts. The process starts from the harvesting of Cocoa beans to moulding in the final shape. The tops of the eggs are put on each egg. Machinery is often used on flow and batch production lines to make things quicker and reduce human error. but cultivated ones are usually kept down to 6 meters to make it easier for people to harvest the fruit.Cadbury also uses flow production to make hundreds of thousands of the same product. The half eggs move to another section where the fondant egg yolk is added. Cacao Pod: The large colorful fruits (Cacao Pods) grow close to the tree. This is called automation. the lower branches are all removed to allow workers to move through the grove easily. The moulds move down the production line where they are filled with the fondant egg white. allowing plantations to pg. A ripe pod can be left on the tree for 2 or 3 weeks without spoiling. The harvested pods are taken to a processing location very close to the trees usually only a few meters away. The raw beans undergo a lengthy process to prepare them for chocolate making. Malaysia and Ghana. so that the pulp and seeds can be removed. 2cm long cocoa beans covered in a sweet white pulp Cadbury buys quality cocoa beans from Indonesia. so harvesting is done almost year round. the continued growth of the tree depends on avoiding damage to the chupon. although there are generally two peak times in the year and the main harvest is near end of wet season. It is not possible to harvest the pods by machine. and each fruits is opened with a machete. Around 20cm in length and 500gms in weight. golden-orange color. there are always flowers and always ripe pods. Great care must be taken since leaves and stem sprouts grow where the fruits were. The pods are harvested by hand using a machete. year. 9 . pg. Within each pod there are 20-40 purple. Cocoa Pods & Beans: The cocoa tree bears two harvests of cocoa pods per the pods ripen to a rich. a whack from a piece of wood or even by knocking two pods together.harvest every couple of weeks instead of daily although it will not open and lose its seeds. It is important for the flavor that it is harvested only when ripe. The tree flowers and fruits at the same time. The seeds are surrounding by a sugary mucilaginous substance that must be fermented off before they can be roasted and processed. when overripe. ivory or very pale purple beans.Forastero and Criollo. Central and South America. Trinitario cocoa trees are grown mainly in the Caribbean. the seeds themselves are also split opened The pods are split open by hand and the seeds or beans. though white beans are rare. although that can vary considerably from 20 to 100. taking care not to damage nearby flowers or buds. Criollo trees are not as hardy and produce softer red pods. Criollo is grown in Indonesia. which workers carry on their heads.Types of Cocoa Pods: There are three broad types of cocoa . 10 . The pods are collected in large baskets. The crillo variety has the few seeds. often right next to the grove of trees they came from. Ripe pods are gathered every few weeks during the peak season. The raw seeds are tough and bitter – fermenting brings the aroma and taste as well as cleaning off the residue of the pulp. as well as Trinitario.5 cm) purple seeds in each Pod. The high pods are cut with large knives attached to poles. The Forastero variety most widely grown in West Africa and Brazil is Amelondaro. Forastero Producing the greater part of all cocoa grown. There are generally 50 to 60 small (3 cm x 1. a hybrid of the two. pg. The mostly hard pods contain 30 or more beans of variable color. HARVESTING AND SPLITTING COCOA PODS The harvesting of cocoa pods is very labor-intensive. Criollo With its mild or weak chocolate flavor. but also in Cameroon and Papua New Guinea. On West African small-holdings the whole family. The seeds can be kept for up to 24 hours after removal from the pod. producing beans with the strongest flavor. which are covered with a sweet white pulp or mucilage. and piled up ready for splitting. containing 20-30 white. Forastero is hardy and vigorous. together with friends and neighbors help out. Before fermenting. Trinitario Plants are not found in the wild as they are cultivated hybrids of the other two types. Within these types there are several varieties. It has a smooth yellow pod and pale purple beans. The opened seeds are spread in large heaps. There are two main methods of cocoa bean fermentation: Heap and Sweating. which drain away and the true chocolate flavor starts to develop. cocoa is fermented in baskets lined and covered with leaves. allowing air and liquid to pass through. They are then left for five or six days to ferment – During fermentation the pulp and astringency of the beans are removed as the sugar in the pulp turns to alcohol and vinegar-like liquids. forester for the longest. This process takes 6-8 days during which time the beans are mixed twice. with more leaves placed on top to cover them. The purple seeds turn brown during the fermentation period. DRYING AND BAGGING When fermentation is complete. Latin America and Malaysia. The fermenting seeds need air and create heat. so the batch must be turned several times during this process.PROCESSING Processing cocoa beans ready for chocolate making involves six main steps: FERMENTATION The beans are then fermented. In Nigeria. In West Africa. strong wooden boxes with drainage holes or gaps in the slats in the base are used. either traditionally by being spread in the sun on mats or using special drying equipment. the Crillo variety ferments for a very short time. The cocoa beans are piled up on a layer of banana leaves. 11 . the Heap method is used. “Sweating” boxes method is followed in large plantations in the West Indies. The cured beans are packed into sacks for transportation to pg. the wet mass of beans is dried. Fermentation takes about a week – although depending on climate and variety it can be as little as 2 days or as much as 10. ). and by brushing. the last vestiges of wood. where Cadbury process the beans. the beans being fed in through a hopper and heated by gas in the slowly revolving cylinder. Finally. (275° F). 12 . The actual roasting time depends on whether the end use is for cocoa or chocolate. and the aroma round the roaster increases in fullness as they get hotter and hotter. It resembles an ordinary coffee roaster. sand and even the finest dust are extracted by powerful vacuum equipment. and the average period of roasting is about one hour. which produces the basic ingredients from which Cadbury chocolate products are made. varying round 135° C. Before the real processing begins. The amount of loss of weight on roasting is considerable (some seven or eight per cent. The beans can be heard lightly tumbling one over the other. After quality inspection they are shipped to our processing factory in Singapore. The beans are then dried to six to eight percent moisture level in sun or artificial dryers. jute fibers. CLEANING PROCESS The dried beans are cracked and a stream of air separates the shell from the nib. the raw cocoa is thoroughly cleaned by passing through sieves. the small pieces used to make chocolate. The dried beans are cleaned sorted roasted. ROASTING: The photo show one of the types of roasting machines used at Bourneville. the cocoa beans are sorted and cleaned. and varies with the amount of moisture present in the raw beans. pg. This process is called winnowing.Singapore. On arrival at the factory. The temperature which the beans reach in ordinary roasting is not very high. This is the basis of all chocolate and cocoa products. chocolate liquor’ or bitter chocolate’ It contains 53-58% cocoa butter and solidifies on cooling. The cotyledons are known as ‘nibs’. known as 'mass’. The cocoa mass. The secret of every chocolate factory lies in the special mixing ratios which it has developed for different types of cocoa. The solid blocks of compressed cocoa remaining after extraction (press cake) are pulverized into a fine powder to produce a high-grade cocoa powder for use as a beverage or in cooking.During roasting. pg. BLENDING Before grinding. vital to making chocolate. the cocoa nibs darken to a rich. after roasting the beans are passed through corrugated rollers to break their shells and removed by winnowing. brown color and acquire their characteristic chocolate flavor and aroma. PRESSING The cocoa mass is pressed in powerful machines to extract the cocoa butter. GRINDING The roasted nibs are ground in stone mills until the friction and heat of the milling reduces them to a thick chocolate-colored liquid. ready to be made into chocolate. actually starts to develop during fermentation. the crushed beans are weighed and blended according to special recipes. This flavor however. These nibs are used for the manufacturing of cocoa and chocolate. 13 . cocoa butter and cocoa powder are then quality inspected and shipped to our factories in Australia and New Zealand. Roasting develops the characteristic flavor. pg. Milk Or Milk Powder.Cocoa Powder. Cocoa Liquor. MIXING OF DARK CHOCOLATE To make dark chocolate. Cocoa Powder.o The rest of the production process is same for both the dark chocolate and milk chocolate however difference lies in the mixing of both of them. Lethicin and Vanilla. The famous brand of Cadbury Bourneville Fine Dark Chocolate is made with 44% cocoa mass obtained from finest Ghanaians cocoa beans. Sugar. Cocoa Butter. MIXING OF MILK CHOCOLATE: Composition of Milk Chocolate: Milk Chocolate . 14 . The dark chocolate is mixed with sugar and extra cocoa butter while milk chocolate is mixed with full cream milk and sugar. cocoa mass is sent from Chirk (Ghana) to Cadbury’s chocolate making factories. Cocoa Liquor. Composition of Dark Chocolate: Plain Dark Chocolate . It’s mixed with extra cocoa butter and sugar. Lethicin And Vanilla.Sugar. Cocoa Butter. cocoa mass and sugar are cooked together in the first stages of the chocolate crumb making process giving Cadbury Dairy Milk its unique taste. 15 . pg. which has already been condensed into a thick liquid to form chocolate liquor. DRIED IN VACCUM: The special flavors are produced when fresh milk. thinner chocolate is used.The cocoa mass is sent to the Cadbury milk factory in Marlbrook near Hereford. In the UK up to 5% vegetable fat is added too – this stabilizes the chocolate and gives the ideal texture to ensure that the melting properties of the chocolate are precise and preserve the taste and ideal texture of the chocolate. but if it’s to cover assortments and bars with different centers. The amount of cocoa butter added depends on what the chocolate is for – bar chocolate needs to be thick. Here it is mixed with sugar and fresh full cream milk. The speed. milk. The conching process redistributes into the fat phase the substances from the dry cocoa that create flavor. and length of the conching process determines the final texture and flavor of the chocolate. so-called because the original designs resembled seashells. to Cadbury’s Bourneville chocolate factory every day. Air flowing through the conche removes some unwanted acetic.The mixture is dried in vacuum ovens to become milk chocolate ‘crumb’. Some of the substances produced in roasting of cocoa beans are oxidized in the conche. at most chocolate factories in the world. which is then used in the chocolate manufacturing process in other Cadbury factories. it is the base product for making various chocolate products. Chocolate crumb is a vacuum-dried mixture of cocoa solids. A fleet of tankers deliver over 250 tonnes of chocolate crumb from Marlbrook and 50 tonnes of cocoa butter from Chirk. 16 . propionic. A small amount of moisture greatly increases viscosity of the finished chocolate. CONCHING: Next. pg. and butyric acids from the chocolate and reduces moisture. mellowing the flavor of the chocolate. as conching smooths the chocolate and mellows any remaining acidic tones. kneads and massages the chocolate mixture for 24-60 hours at 110 degrees. temperature. so machinery is cleaned with cocoa butter instead of water. the milk chocolate needs to be ‘conched’. Cadbury manufactures huge amounts of chocolate crumb and ship it to different location overseas. The process of conching involves rolling and kneading so that the chocolate becomes silky smooth. The conching machine. The crumb is taken to Cadbury’s manufacturing factories and milled between enormous rollers before extra cocoa butter and special flavorings are added. and sugar. and in milk chocolate promotes the Maillard reaction. In the pasty phase. Air movement through the conche removes some moisture and volatile substances. pg. The power required to turn the conche shafts increases at this step. after the particles are coated with fat. In the dry phase. Temperature varies from around 49 °C for milk chocolate to up to 82 °C for dark chocolate. the material is in powdery form.The temperature of the conche is controlled and varies for different types of chocolate. more of the particles are coated with the fats from the cocoa. Generally higher temperature leads to a shorter required processing time. 17 . Fats and emulsifiers are added to adjust the viscosity. and the mixing coats the particles with fat. The chocolate passes through three phases during conching. Moisture balance affects the flavor and texture of the finished product because. which may give an acidic note to the flavor. The elevated temperature leads to a partially caramelized flavor. and thoroughly mixed. The final liquid phase allows minor adjustment to the viscosity of the finished product. moisture and volatile chemicals are less likely to escape. TEMPERING: Tempering means improving the consistency. but the moulds jerkily dancing about on the table make a very lively clatter. it must be cooled to about 82F. shaken (to make sure it fits the mould perfectly and to remove any air bubbles). These vibrating tables are worked by means of ratchet wheels. a temperature at which crystals will start to form again so that the chocolate can eventually re-solidify. where it is very fluid and can be poured into chocolate molds and used for other applications. which if left in would spoil the appearance of the chocolate. durability or hardness of a substance by heating and cooling it. are called ‘moulded’ products because chocolate is poured into a mould to make them. The chocolate then passes on to an endless band which conducts pg. The chocolate’s temperature is then raised back to about 90F. Highly sophisticated machinery has been developed for this process. 18 . rise to the top. Tempering provide the necessary structure for the chocolate to become shiny. has a firm finish and melts smoothly at around body temperature. This temperature is between 110-120F. Liquid chocolate is poured in. MOULDING: Bars of chocolate like Cadbury Dairy Milk. 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 crystallizes in its most stable form. Once the chocolate is fully melted. smooth and have a good “snap” when it is set. and any bubbles. During the shaking-up the chocolate fills every crevice of the mould. Tempering of chocolate is done by melting solid chocolate to a temperature high enough that the crystals in the cocoa butter break down. Tempered chocolate is very glossy. Rocking tables are made which are silent in action. In the factory the method used is to place the moulds on rocking tables which rise gradually and fall with a bump. the mould through a chamber in which cold air is moving. Quality checks are built in at the end of the production process before packing. 19 . As the chocolate cools. 64. it solidifies and contracts so that it comes out of the mould clean and bright. PRODUCTION PROCESS OF CADBURY – A GLIMPSE pg.800 bars can be wrapped in 1 hour. Cadbury’s clever machinery is able to automatically check unmoulded chocolate bars for appearance. shape and weight. These products are made by the enrobing method. During shelling. Countlines tend to be eaten as a treat.OTHER PRODUCTS: COUNTLINE PRODUCTS: At Cadbury. such as Cadbury Milk Tray or Roses. 20 . which is sealed. These are either made by enrobing or shelling. They are called countlines because they are sold by numbers rather than by weight. pg. Time Out and Double Decker. ‘Countline’ products are brands such as Crunchie. which are bought as gifts or for sharing. ASSORTMENTS Assortments are boxes of chocolates with a variety of different centers. liquid chocolate is deposited into a mould to form a shell. where the centers pass on a continuous belt beneath a curtain of liquid chocolate. often with a chocolate covering around a different center. The center is then put inside the shell. SEASONAL RANGES Seasonal ranges include Christmas and Easter selection packs.Cream-centered bars are made by the same process. The packaging upgrade was for the large pieces line. PACKAGING: Cadbury Schweppes has been upgrading its manufacturing facility since 2001. at the rate of 70. At that time. novelties and Easter Eggs. SELFLINES Selflines are identical chocolate sweets. packed in boxes or bags and include Cadbury Buttons and Mini Eggs. a significant portion of which was earmarked for upgrading packaging lines. become uniformly coated if tumbled in a pan while liquid is drizzled onto them. The Crème Egg plant produces more than 400 million eggs a year. as are the seasonal novelties such as Easter Eggs and Crème Eggs. Warm white. pg. The facility upgrade was completed in 2003. such as a nuts. PANNING Panning is another process used to coat centers. then cold air is blown into the pan to harden the chocolate. It is used in making sugar-coated Cadbury Mini Eggs. dark.000 per hour. Items. or milk chocolate is sprayed or poured on the centers (the nut or fruit piece) as they rotate in revolving pans. 21 . The technique became known as ‘panning’ and modern methods involve a rotating bowl that looks similar to a small cement mixer. large pieces are the company's range of 19 different chocolate bars varying in weight from 100g up to 500g. the company announced an investment of $25 million. Victoria. The two companies. EQUIPMENT SUPPLIERS CHH Packaging Systems chose two suppliers for equipment that fitted into its design. were both from the same region in Italy. CHH Packaging Systems offered the company a flexible. The company also supplied two engineers to integrate the equipment into the line and to assist in the commissioning process.There was a need for a completely new inner carton packaging line. It also supplied engineers to oversee the installation and integration of the equipment and provide Cadbury Schweppes operating staff with a maintenance training course. The company contracted Carter Holt Harvey (CHH) Packaging Systems to design. Vortex supplied wrapped product boxing equipment for the packaging line. install and maintain a packaging line that suited Cadbury Schweppes' needs. upgradeable solution for the packaging of all of the 19 different formats. pg. which made project management and procurement a little easier for CHH Packaging Systems. Australia in 2001. with the line finally in full production in March 2003. Vortex and Imball. Imball supplied an Imball EFFE 16 forming machine and a Combi closer. CHH Packaging had already completed an inner carton packaging line for Cadbury at its plant in Ringwood. 22 . All the equipment for the packaging line was installed in late 2002 and early 2003. pg. The Combi carton closer is also very flexible in allowing different sizes and formats. PACKAGE DESIGN: When consumers think of the Cadbury Company and its many brands of chocolate. This investment ensures that when consumers see the packaging of a Cadbury product they will instantly associate it with one of the world’s favorite brands of chocolate. damaged products and wrappings. load boxes with variable numbers of layers and box products flat. The Cadbury organization invests millions of pounds every year on product packaging. The carton former can produce cartons over a wide range of sizes to suit different products and is also able to produce three-flap boxes and presentation marketing boxes. The unit can receive products from multiple flow wrapping lines and has the ability to cope with rows having missing products. The Combi closer integrates well with the Vortex box loading equipment. the glass and a half symbol. The color purple. Product packaging plays a critical role in communicating the brand identity of the Cadbury products. It is able to deal with all the accepted carton formats and shapes and sizes. 23 . vary the number of products per layer. In addition. The cartons are formed from pasteboard blanks preprinted and formed by another contractor. certain images are conjured up in their minds.VORTEX WRAPPED PRODUCT BOXING UNIT The Vortex wrapped product boxing unit is able to exceed a capacity of 800 pieces per minute. the equipment is able to turn the products in the same direction for more efficient packing into the inner cartons and for better presentation to the customer. • Over three hundred 49g bars can be wrapped every minute. • ¾ million per day. the unique chocolate taste of the products themselves! This is not something that has happened by chance. on edge or in one or more rows. and double wrappings. The box loader can handle different products on the same unit. The equipment can also handle US-style cases or three-flap boxes and pack multi-pack boxes at up to 180 units per minute. IMBALL CARTON FORMING EQUIPMENT AND COMBI CARTON CLOSER The Imball carton forming equipment is flexible and easy to use. of course. Technology has also made wrapping and packaging more efficient. The machine uses a cold glue process and is able to exceed a production rate of 80 cartons per minute. empty wrappers. the Cadbury script and the packaging of the brands are usually what consumers remember most after. pg. go together . HISTORY OF PACKAGING AT CADBURY: By the1860s Richard Cadbury was designing decorative chocolate boxes illustrated with flowers. 24 . However. and on its promotional campaigns and at the product’s point of sale. The era of expensive packaging and extensive package offerings ended. These elements are designed to convey to consumers the memorability. eventually and a Cadbury identifying characteristic. The company commissioned famous artists to design chocolate boxes during the 1930s. Every brand has its individual design style and colour that depends on the market position and consumer perception. for Cadbury. Chocolates were shipped to stores. introducing the color purple. They are communicated on the product itself. Cadbury’s world famous packaging is comprised of four key elements: Distinctive packaging design The Cadbury corporate purple color The glass and a half of full cream milk The logo The Cadbury script logo. unpacked and placed in eyeappealing display cases. The variety of decorative boxes produced lasted until austerity measures required cutbacks during World War II. The style in which these elements are presented has evolved over the years in line with market tastes and requirements. without exception the Cadbury house name in its familiar and unique script is always included so that the individual product gains from the overall company reputation. distinctiveness and high quality of Cadbury products.Design of packaging can be divided into two levels which. landscapes and his children.corporate design and brand promotion. THE HEYDAY OF CADBURY PACKAGING: Milk tray boxes were introduced in 1915. As such they represent an integral part of the Cadbury brand identity. Colorfully packaged Cadbury Easter eggs were first sold in 1875. Cadbury eventually packaged tray boxes for retail sales. Popular designs and packages consumers easily identified as Cadbury products guided production strategy. The new package saves tons of steel. 65 percent less cardboard and saves 2. pursued Cadbury as an acquisition candidate. Environmental concerns. 25 .THE POSTWAR YEARS: Specially designed Easter egg cartons consumers recognize today were introduced in 1950. New packaging was tested for the Roses and Heroes Christmas product in 2009. but packaging initiatives continue. weighs less and saves on shipping costs. Cadbury lost their independence when Kraft bought the company in 2010. One objective of the program involves reducing packaging costs.000 trees. The company touted the fact that the new packaging uses 75 percent less plastic. replacing tins with cardboard boxes. Increased competition and cost considerations minimized innovative packaging during the postwar years. EVOLUTION OF PACKAGE DESIGN pg. manufacturing constraints and attractive package designs are the cornerstones of Cadbury packaging as Purple Goes Green. It was important for the company to cut costs and increase manufacturing efficiencies if they were to remain competitive and independent. PURPLE GOES GREEN: Cadbury announced their Purple Goes Green environmental initiative in 2007. along with a couple of other companies. The company's next major packaging initiative occurred in the 21st century. Kraft. 26 . Our fast-moving and demanding competitive environment as well as our much-loved brands provides plenty of opportunities for people to grow and learn – applying their passions and contributing their original ideas” Cadburys motivate their staff by opportunities’ for employees to grow within the business. pg. They also like to make their employees feel involved in the running of the business by allowing them contribute their ideas in how they think the business and achieve more. Both our culture and our business energize people – just as expressed in our company purpose: “working together to create brands people love”. “People stay at Cadbury because they feel they can grow personally and professionally – being stretched. At Cadbury the following steps are taken in order to keep the employees and labor motivated towards the joint effort.2013 EMPLOYEE’S MOTIVATION: According to Cadbury’s statement in 2010. Such as promotions into management and higher. offered new challenges and finding the scope to make a difference to the business. Managing an annual sensory screening program to develop product knowledge and understanding of the Confectionery Categories. DNA and Protein and Investigative Analysis) provide training the Employees Also. Introduce all new hires to the performance management process (part of People Processes). Cadbury carry stock of packaging materials for the next two to three days. JIT systems keep the stock levels to a minimum and rely on the delivery of materials just when they are needed. Introduce newly hired and newly promoted managers to their role in people processes such as performance management and development planning at Cadbury. Newsletters. or Chemical Engineering Degree holders are regular coached by managers. Health and safety in the Workplace: Cadbury ensures healthy and safe work environment for each employee. regional and Group levels Cadbury improves the quality of new hire training by delivering a clear. Analytical Laboratories (Microscopy. STOCK CONTROL Cadbury. the Group website and about 250 local websites also help employees to know what is going on within the business at local. pg. Food/nutrition. Science. It does not tolerate any form of harassment in the workplace.Core labor rights and dignity at work: Cadbury respects the rights of employees to join legally recognized labor unions. use “just in time” as their method of stock control. consistent message. It provides employee the link to other resources such as the intranet for more information on policies and processes. 27 . Fair remuneration: Working hours and remuneration are reasonable and comparable to those offered by similar companies Chemistry. Cadbury was able to cut the assembly time by over 95% Improve the competitive advantage JIT creates a more flexible business that has better communication with customers and suppliers. Also Cadbury regularly change their packaging. 28 .They have large amounts of crumbs delivered each day and fresh milk and eggs. therefore they cannot afford to keep large amounts of food products. In the older days of chocolate production the only way that the standard of the chocolate would be measured is by taste testing it. QUALITY CONTROL In 1924 Edward Cadbury outlined his first rule of success.000 to $200. and what they can do to improve and raise their standards. the inventory cost of Cadbury reduced from $670. It increases their skills. pg.000 Improve the productivity Because of reducing stock holding. They use this method as with chocolate and food products they have a sell-by date. this is known as the traditional method. which bring more competitive advantages for Cadbury Improve job satisfaction JIT demands active participation in the production process from employees. He had a philosophy of maintaining a right at first time culture that consistently embraces quality and food safety. For example they change their packaging for Easter or Christmas. Even today the traditional method is still being followed. as they will go off. although there are often meetings of workers to discuss the quality of the chocolate. appearance and taste. "the best quality -nothing is too good for the public". The every 20 minutes a chocolate bar is taken from each batch that is being produced and will be checked for their. gives them greater responsibility and fosters an interest in the performance of the whole company. Gains of Just in Time: Reduce costs By using JIT product line. and can react more quickly to market demands. Total Quality Management (TQM) Cadbury also monitors the production process by using total quality management to ensure that the chocolate/products that are produced are of a high quality and meet the needs of the customers. aroma and texture. and to put in place strict quality control checks called critical control points (CCPs) at key production stages that make sure that the product is safe. To enforce total quality management Cadburys has supervisors that monitor the machines. this means that customers could lose interest in Cadbury products if their demands are not met or thought about. but are put in place to make sure that the product always has exactly the same appearance. the other workers and the products that are made. chemical and metal checks. microbiological. physical and chemical hazards). aroma and texture). producing products to the highest standards of quality control. biological. This helps to identify what could go wrong in the production process (e. Quality control checks might include visual. pH. Other checks might not be to do with safety. temperature. Cadbury’s plants operate 24 hours a day. weight. 29 .g. as well as organoleptic checks (sampling the final product to check its flavor. this is vital for Cadbury because they produce chocolate products mainly which has a lot of substitutes. pg. taste.Hazard Analysis Critical Control Points (HACCP) Cadbury uses a system called Hazard Analysis Critical Control Points (HACCP). which is costly and often wasteful. 30 . Hence. INVENTORY MANAGEMENT: In order to control inventory in an efficient and effective manner. Lead strategy: It is adding capacity in anticipation of an increase in demand. which can deal with 360. Cadbury introduced Service Level Optimizer 99+ that easily integrated into the SAP APO system that Cadbury was already using. It often results in excess inventory. This step towards an effective inventory management helped them satisfy the customer needs at reduced costs. for example. The implementation of pg.3 mm of each other. The operations of Cadbury anticipating increase in demand at any point of time and is ready to add more capacity to increase the production to meet constantly increasing demand for Cadbury products. Lead and Match Strategy. Match strategy: It is adding capacity in small amounts in response to changing demand in the market. CAPACITY PLANNING The capacity planning strategy adopted by Cadbury makes sure that the organization has enough capacity to exceed the current demand and mean while it also uses match strategy to slowly increase the capacity in order to meet the ever increasing Cadbury demand. Cadbury makes use of two of the three major categories. listening to customers and Cadbury make continuous improvements to their products. This is a more moderate strategy.000 instructions a minute.2–0. of capacity planning.TQM ensures that the products that Cadbury produces tastes good to the customers. safety stocks determination was highly automated and the inventory management of Cadbury was stable.000 points in the plant. is appealing to the customers. Cadbury capacity planning is mix of lead and match strategy. produced bars with such precision that the tiny air bubbles in the chocolate were within 0. After implementing this inventory buffer variability and demand control had less human intervention. It is an aggressive strategy with the goal of luring customers away from the company's competitors. feeding information to central computers. Factors such as temperature are monitored at about 1. But the capacity planning of Cadbury is in such a manner that it increases the capacity only by a small amount at a time. Those are all the benefits for Cadbury monitoring the quality of their products and using a quality assurance method. customer complaints are solved. The Cadbury Dairy Milk Bubbly plant. Some portion of the product is supplied to the customers via Cadbury self-owned shops. is stored in warehouse and from there it is supplied to wholesale dealers and other suppliers and in turn to the customers. 31 .Service Level Optimizer 99+ ensures the plant produces manages inventory effectively there by reducing the cost and meet customer demand. Gains of Service Level Optimizer 99+ SUPPLY CHAIN: The main raw material for producing Cadbury products is Cocoa and 70% of it is imported from Ghana and 30% from other part which also include UK. Once the product is ready. Raw materials are then transformed to Cadbury products from the Bourneville. pg. Also by moving to Bourneville.LOCATION OF FACILITY By re-locating to Bourneville. Cadbury were able to reinvent the Cadbury chocolate image – They gave it a fresher image. including a canal and railway that both ran alongside Bourneville. they also had easy accessed communication networks. 32 . schools and hospitals to attract employees. Bourneville was a large area which provided more than enough land for the factory and other land to build houses. This provided easy transportation for both raw materials to the factory and finished goods to be transported from the factory. pg. CONCLUSION To achieve cost dimension. the capacity planning strategy and inventory management ensures that demand for existing products are achieved every single time. This helps Cadbury ensure that high quality is maintained for every brand. On the contrary. Moreover. Cadbury concentrates more on main Brand name rather than product brand name. The machinery used is simple mechanism that reduces investment. Cadbury produces large quantity of few successful brands. The process layout is such that it is difficult and expensive to add a new product to their kit as it requires additional plant layout and design. To achieve this Cadbury products are continually perfected until they could claim superiority in both quality and taste Cadbury products are manufactured at high volume with limited variety. 33 . -------------------------------------------------------------------------------------------------------------------------------------------------- pg. continuous operation of the plant ensures that they produce large quantity of product that is sufficient enough to make profit and reduce cost of operation. Cadbury chose an effective layout.