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PRODUCTION/OPERATIONS MANAGEMENT

REPORT

PRODUCTION PROCESS OF CADBURY CHOCOLATE

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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

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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.

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1. ACKNOWLEDGEMENT PAGE 3

2. ABOUT CADBURY PAGE 5

3. MARKET SEGMENTATION PAGE 6

4. PRODUCTION AT CADBURY PAGE 6 - 7

5. 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

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PAGE 8 - 10

PAGE 10

PAGE 11

PAGE 11 - 12

PAGE 12

PAGE 12 - 13

PAGE 13

PAGE 13

PAGE 13 - 14

PAGE 14 - 15

PAGE 15 - 16

PAGE 16 - 17

PAGE 18

PAGE 18 - 19

6. A GLIMPSE OF PRODUCTION PROCESS PAGE 19

7. OTHER PRODUCTS PAGE 20 - 22

8. PACKAGING PAGE 21 - 26

9. EMPLOYEES MOTIVATION PAGE 26 - 27

10. STOCK CONTROL PAGE 27- 28

11. QUALITY CONTROL PAGE 28 - 30

12. CAPACITY PLANNING PAGE 30

13. INVENTORY MANAGEMENT PAGE 31

14. SUPPLY CHAIN MANAGEMENT PAGE 32

15. LOCATION OF FACILITY PAGE 32 - 33

16. CONCLUSION PAGE 33

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ABOUT CADBURY:

Cadbury started in business in Bourneville, England. It is now a global organization which manufactures,

markets and distributes branded products in over 200 countries. It employs over 40,000 people worldwide

and is the fourth largest supplier of chocolate and sugar confectionery in the world.

Cadbury, officially Cadbury Enterprises pte Limited, is a British confectionery company owned by Mondelēz

International and is the industry's second-largest globally after Mars, Incorporated. Cadbury was established in

Birmingham by John Cadbury in 1824, who sold tea, coffee and drinking chocolate. Cadbury developed the

business with his brother Benjamin, followed by his sons Richard and George. George developed the

Bourneville estate, a model village designed to give the company's workers good living conditions.

The company is best known for its confectionery products including the Dairy Milk chocolate, the Crème Egg,

and the Roses selection box. Dairy Milk chocolate in particular, introduced in 1905, used a higher proportion

of milk within the recipe compared with rival products. By 1914, the chocolate was the company's bestselling

product. Crème Eggs are made available for sale in the United Kingdom from January of each year until Easter,

and are the bestselling confectionary product in the country during the period.

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. 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, when its global

confectionery business, was separated from its US beverage unit (now called "Dr. Pepper Snapple Group").

Cadbury is headquartered in Uxbridge, London, and operates in more than fifty countries worldwide.

In January 2010, Kraft Foods purchased Cadbury and pledged to honor Cadbury’s commitment. However in

August 2011, Kraft Foods announced they would be splitting into two companies beginning on 1 October

2012. The confectionery business of Kraft became Mondelēz International, of which Cadbury is a subsidiary.

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MARKET POSITION OF CADBURY:

Following the purchase of Cadbury, Kraft commanded 14.8% of the global candy and gum market. Kraft

argued that it could take advantage of the Cadbury distribution in developing markets of India, Brazil and

Mexico. As incomes rise in these developing nations, Kraft hopes that products such as Oreo will become

impulse buys for children. Mars, Inc. is second in the confectionery market with 14.6% share, followed

by Nestle with 7.8%.

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.

PRODUCTION AT CADBURY:

To achieve cost dimension, Cadbury chose an effective layout. Moreover, 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. The machinery used is simple mechanism that reduces investment. Above all, Cadbury at

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Bourneville has a visitor center called ‘Cadbury World' alongside the factory which allows visitors to see the manufacturing area. Cadbury world is a permanent exhibition entirely devoted for chocolates and history of Cadbury. 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. This design is another example of product layout with a single route for all customers. By introducing tickets for this exhibition, Cadbury was able to reduce the manufacturing cost for production of chocolates as they are covering up some of the investment in this manner.

As discussed above, Cadbury produces large quantity of few successful brands. This helps Cadbury ensure that high quality is maintained for every brand. To achieve this Cadbury products are continually perfected until they could claim superiority in both quality and taste.

Time dimension depends on rate of production, delivery speed and on-time delivery. The continuous automated production of all brands in the manufacturing unit ensures maximum rate of production. 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.

Flexibility dimension of competitive priority depends on customization, variety and volume flexibility. Cadbury manufacturing unit it Bourneville and its process layout are automated to manufacture set of brands on continuous basis without constant supervision or modification. Even though plant is flexible to alter the volume of production, plant is customized for certain product and is not flexible to incorporate other products. In short when the company introduces a new brand, the plant has to accommodate new process layout for that particular product.

The Cadbury production line runs 24 hours a day, 7 days a week, 364 days per year. It is only closed on

Christmas day!

Workers on the production line work a 12-hour shift. This may be 12-hour days or nights. They have

two 18 minute breaks during the shift and a meal break of 42 minutes after six hours. 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 , 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, hence this is also a quicker method to make large amounts of chocolate. Mainly Batch production is used because Cadbury produce a wide variety, including sizes and flavor. Although their main method of production is batch, Cadbury also offer job production as well. They use this method when producing handmade or personalized goods (e.g. writing using melted chocolate).

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Cadbury also uses flow production to make hundreds of thousands of the same product, 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. Machinery is often used on flow and batch production lines to make things quicker and reduce human error. This is called automation. Cadbury Crème Eggs are made using automated flow production:

Melted chocolate is poured into special half-egg moulds. The moulds move down the production line where they are filled with the fondant egg white. The half eggs move to another section where the fondant egg yolk is added. The tops of the eggs are put on each egg, 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. The process starts from the harvesting of Cocoa beans to moulding in the final shape.

THE SEED HARVEST:

The Cacao tree Grows to 15 meters, but cultivated ones are usually kept down to 6 meters to make it easier

for people to harvest the fruit. In addition, the lower branches are all removed to allow workers to move

through the grove easily.

Cacao Pod:

The large colorful fruits (Cacao Pods) grow close to the tree, different varieties vary significantly in shape,

texture and color. A ripe pod can be left on the tree for 2 or 3 weeks without spoiling, allowing plantations to

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harvest every couple of weeks instead of daily although it will not open and lose its seeds, when overripe. It is

important for the flavor that it is harvested only when ripe.

The tree flowers and fruits at the same time, there are always flowers and always ripe pods, so harvesting is

done almost year round, although there are generally two peak times in the year and the main harvest is near

end of wet season. The pods are harvested by hand using a machete. Great care must be taken since leaves

and stem sprouts grow where the fruits were, the continued growth of the tree depends on avoiding damage

to the chupon. It is not possible to harvest the pods by machine.

The harvested pods are taken to a processing location very close to the trees usually only a few meters away,

and each fruits is opened with a machete, a whack from a piece of wood or even by knocking two pods

together, so that the pulp and seeds can be removed. The seeds are surrounding by a sugary mucilaginous

substance that must be fermented off before they can be roasted and processed.

Cocoa Pods & Beans:

The cocoa tree bears two harvests of cocoa pods per year. Around 20cm in length and 500gms in weight,

the pods ripen to a rich, golden-orange color.

Within each pod there are 20-40 purple, 2cm long cocoa beans covered in a sweet white pulp

Cadbury buys quality cocoa beans from Indonesia, Malaysia and Ghana. The raw beans undergo a lengthy

process to prepare them for chocolate making.

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Types of Cocoa Pods:

There are three broad types of cocoa - Forastero and Criollo, as well as Trinitario, a hybrid of the two. Within

these types there are several varieties.

Forastero Producing the greater part of all cocoa grown, Forastero is hardy and vigorous, producing beans with

the strongest flavor. The Forastero variety most widely grown in West Africa and Brazil is Amelondaro.

It has a smooth yellow pod and pale purple beans.

Criollo

With its mild or weak chocolate flavor, Criollo is grown in Indonesia, Central and South America. Criollo

trees are not as hardy and produce softer red pods, containing 20-30 white, ivory or very pale purple

beans.

Trinitario Plants are not found in the wild as they are cultivated hybrids of the other two types. Trinitario cocoa

trees are grown mainly in the Caribbean, but also in Cameroon and Papua New Guinea. The mostly

hard pods contain 30 or more beans of variable color, though white beans are rare.

HARVESTING AND SPLITTING COCOA PODS

The harvesting of cocoa pods is very labor-intensive. On West African small-holdings the whole family,

together with friends and neighbors help out.

Ripe pods are gathered every few weeks during the peak season. The high pods are cut with large knives

attached to poles, taking care not to damage nearby flowers or buds. The pods are collected in large baskets,

which workers carry on their heads, and piled up ready for splitting.

There are generally 50 to 60 small (3 cm x 1.5 cm) purple seeds in each Pod, although that can vary

considerably from 20 to 100. The crillo variety has the few seeds. The seeds can be kept for up to 24 hours

after removal from the pod. The raw seeds are tough and bitter – fermenting brings the aroma and taste as

well as cleaning off the residue of the pulp. Before fermenting, the seeds themselves are also split opened

The pods are split open by hand and the seeds or beans, which are covered with a sweet white pulp or

mucilage. The opened seeds are spread in large heaps, often right next to the grove of trees they came from.

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PROCESSING

Processing cocoa beans ready for chocolate making involves six main steps:

FERMENTATION

The beans are then fermented. There are two main methods of cocoa bean fermentation: Heap and Sweating.

In West Africa, the Heap method is used. The cocoa beans are piled up on a layer of banana leaves, with more

leaves placed on top to cover them. 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, which drain away and the true chocolate flavor starts to develop.

“Sweating” boxes method is followed in large plantations in the West Indies, Latin America and Malaysia,

strong wooden boxes with drainage holes or gaps in the slats in the base are used, allowing air and liquid to

pass through. This process takes 6-8 days during which time the beans are mixed twice.

In Nigeria, cocoa is fermented in baskets lined and covered with leaves. The fermenting seeds need air and

create heat, so the batch must be turned several times during this process. The purple seeds turn brown

during the fermentation period. Fermentation takes about a week – although depending on climate and

variety it can be as little as 2 days or as much as 10; the Crillo variety ferments for a very short time, forester

for the longest.

DRYING AND BAGGING

When fermentation is complete, the wet mass of beans is dried, either traditionally by being spread in the sun

on mats or using special drying equipment. The cured beans are packed into sacks for transportation to

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Singapore, where Cadbury process the beans. After quality inspection they are shipped to our processing

factory in Singapore, which produces the basic ingredients from which Cadbury chocolate products are made.

On arrival at the factory, the cocoa beans are sorted and cleaned.

CLEANING PROCESS

The dried beans are cracked and a stream of air separates the shell from the nib, the small pieces used to

make chocolate. This process is called winnowing. The beans are then dried to six to eight percent moisture

level in sun or artificial dryers. The dried beans are cleaned sorted roasted. Before the real processing begins,

the raw cocoa is thoroughly cleaned by passing through sieves, and by brushing. Finally, the last vestiges of

wood, jute fibers, sand and even the finest dust are extracted by powerful vacuum equipment.

ROASTING:

The photo show one of the types of roasting machines used at Bourneville. It resembles an ordinary coffee

roaster, the beans being fed in through a hopper and heated by gas in the slowly revolving cylinder. The beans

can be heard lightly tumbling one over the other, and the aroma round the roaster increases in fullness as

they get hotter and hotter. The temperature which the beans reach in ordinary roasting is not very high,

varying round 135° C. (275° F), and the average period of roasting is about one hour. The amount of loss of

weight on roasting is considerable (some seven or eight per cent.), and varies with the amount of moisture

present in the raw beans. The actual roasting time depends on whether the end use is for cocoa or chocolate.

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During roasting, the cocoa nibs darken to a rich, brown color and acquire their characteristic chocolate flavor

and aroma. This flavor however, actually starts to develop during fermentation. Roasting develops the

characteristic flavor, after roasting the beans are passed through corrugated rollers to break their shells and

removed by winnowing. The cotyledons are known as ‘nibs’. These nibs are used for the manufacturing of

cocoa and chocolate.

BLENDING

Before grinding, the crushed beans are weighed and blended according to special recipes. The secret of every chocolate factory lies in the special mixing ratios which it has developed for different types of cocoa.

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, known as 'mass’, chocolate liquor’ or bitter chocolate’

It contains 53-58% cocoa butter and solidifies on cooling. This is the basis of all chocolate and cocoa products.

PRESSING

The cocoa mass is pressed in powerful machines to extract the cocoa butter, vital to making chocolate.

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.

The cocoa mass, cocoa butter and cocoa powder are then quality inspected and shipped to our factories in

Australia and New Zealand, ready to be made into chocolate.

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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. The dark chocolate is mixed with sugar and extra cocoa

butter while milk chocolate is mixed with full cream milk and sugar.

MIXING OF DARK CHOCOLATE To make dark chocolate, cocoa mass is sent from Chirk (Ghana) to Cadbury’s chocolate making factories. It’s mixed with extra cocoa butter and sugar. The famous brand of Cadbury Bourneville Fine Dark Chocolate is made with 44% cocoa mass obtained from finest Ghanaians cocoa beans.

Composition of Dark Chocolate: Plain Dark Chocolate - Cocoa Powder, Cocoa Liquor, Cocoa Butter, Sugar, Lethicin and Vanilla.

MIXING OF MILK CHOCOLATE:

Composition of Milk Chocolate:

Milk Chocolate - Sugar, Milk Or Milk Powder, Cocoa Powder, Cocoa Liquor, Cocoa Butter, Lethicin And Vanilla.

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The cocoa mass is sent to the Cadbury milk factory in Marlbrook near Hereford. Here it is mixed with sugar

and fresh full cream milk, which has already been condensed into a thick liquid to form chocolate liquor.

The amount of cocoa butter added depends on what the chocolate is for – bar chocolate needs to be thick,

but if it’s to cover assortments and bars with different centers, thinner chocolate is used. 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.

DRIED IN VACCUM:

The special flavors are produced when fresh milk, cocoa mass and sugar are cooked together in the first stages

of the chocolate crumb making process giving Cadbury Dairy Milk its unique taste.

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The mixture is dried in vacuum ovens to become milk chocolate ‘crumb’. Chocolate crumb is a vacuum-dried

mixture of cocoa solids, milk, and sugar; at most chocolate factories in the world, it is the base product for

making various chocolate products. The crumb is taken to Cadbury’s manufacturing factories and milled

between enormous rollers before extra cocoa butter and special flavorings are added. Cadbury manufactures

huge amounts of chocolate crumb and ship it to different location overseas, which is then used in the

chocolate manufacturing process in other Cadbury factories.

A fleet of tankers deliver over 250 tonnes of chocolate crumb from Marlbrook and 50 tonnes of cocoa butter

from Chirk, to Cadbury’s Bourneville chocolate factory every day.

CONCHING:

Next, the milk chocolate needs to be ‘conched’. The process of conching involves rolling and kneading so that

the chocolate becomes silky smooth. The conching machine, so-called because the original designs resembled

seashells, kneads and massages the chocolate mixture for 24-60 hours at 110 degrees. The speed,

temperature, and length of the conching process determines the final texture and flavor of the chocolate, as

conching smooths the chocolate and mellows any remaining acidic tones.

The conching process redistributes into the fat phase the substances from the dry cocoa that create flavor. Air

flowing through the conche removes some unwanted acetic, propionic, and butyric acids from the chocolate

and reduces moisture. A small amount of moisture greatly increases viscosity of the finished chocolate, so

machinery is cleaned with cocoa butter instead of water. Some of the substances produced in roasting of

cocoa beans are oxidized in the conche, mellowing the flavor of the chocolate.

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The temperature of the conche is controlled and varies for different types of chocolate. Generally higher

temperature leads to a shorter required processing time. Temperature varies from around 49 °C for milk

chocolate to up to 82 °C for dark chocolate. The elevated temperature leads to a partially caramelized flavor,

and in milk chocolate promotes the Maillard reaction.

The chocolate passes through three phases during conching. In the dry phase, the material is in powdery form,

and the mixing coats the particles with fat. Air movement through the conche removes some moisture and

volatile substances, which may give an acidic note to the flavor. Moisture balance affects the flavor and

texture of the finished product because, after the particles are coated with fat, moisture and volatile

chemicals are less likely to escape.

In the pasty phase, more of the particles are coated with the fats from the cocoa. The power required to turn

the conche shafts increases at this step.

The final liquid phase allows minor adjustment to the viscosity of the finished product. Fats and emulsifiers are

added to adjust the viscosity, and thoroughly mixed.

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TEMPERING:

Tempering means improving the consistency, durability or hardness of a substance by heating and cooling it.

Tempered chocolate is very glossy, has a firm finish and melts smoothly at around body temperature.

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.

Highly sophisticated machinery has been developed for this process.

Tempering of chocolate is done by melting solid chocolate to a temperature high enough that the crystals in

the cocoa butter break down. This temperature is between 110-120F. Once the chocolate is fully melted, it

must be cooled to about 82F, a temperature at which crystals will start to form again so that the chocolate can

eventually re-solidify. The chocolate’s temperature is then raised back to about 90F, where it is very fluid and

can be poured into chocolate molds and used for other applications. Tempering provide the necessary

structure for the chocolate to become shiny, smooth and have a good “snap” when it is set.

MOULDING:

Bars of chocolate like Cadbury Dairy Milk, are called ‘moulded’ products because chocolate is poured into a

mould to make them. Liquid chocolate is poured in, shaken (to make sure it fits the mould perfectly and to

remove any air bubbles).

In the factory the method used is to place the moulds on rocking tables which rise gradually and fall with a

bump. These vibrating tables are worked by means of ratchet wheels. Rocking tables are made which are

silent in action, but the moulds jerkily dancing about on the table make a very lively clatter. During the

shaking-up the chocolate fills every crevice of the mould, and any bubbles, which if left in would spoil the

appearance of the chocolate, rise to the top. The chocolate then passes on to an endless band which conducts

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the mould through a chamber in which cold air is moving. As the chocolate cools, it solidifies and contracts so

that it comes out of the mould clean and bright.

64,800 bars can be wrapped in 1 hour. Quality checks are built in at the end of the production process before

packing. Cadbury’s clever machinery is able to automatically check unmoulded chocolate bars for appearance,

shape and weight.

PRODUCTION PROCESS OF CADBURY – A GLIMPSE

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OTHER PRODUCTS:

COUNTLINE PRODUCTS:

At Cadbury, ‘Countline’ products are brands such as Crunchie, Time Out and Double Decker, often with a

chocolate covering around a different center. They are called countlines because they are sold by numbers

rather than by weight. Countlines tend to be eaten as a treat. These products are made by

the enrobing method, where the centers pass on a continuous belt beneath a curtain of liquid chocolate.

ASSORTMENTS

Assortments are boxes of chocolates with a variety of different centers, such as Cadbury Milk Tray or Roses,

which are bought as gifts or for sharing. These are either made by enrobing or shelling. During shelling, liquid

chocolate is deposited into a mould to form a shell. The center is then put inside the shell, which is sealed.

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Cream-centered bars are made by the same process, as are the seasonal novelties such as Easter Eggs and

Crème Eggs.

PANNING

Panning is another process used to coat centers. Items, such as a nuts, become uniformly coated if tumbled in

a pan while liquid is drizzled onto them. The technique became known as ‘panning’ and modern methods

involve a rotating bowl that looks similar to a small cement mixer. Warm white, dark, or milk chocolate is

sprayed or poured on the centers (the nut or fruit piece) as they rotate in revolving pans, then cold air is

blown into the pan to harden the chocolate. It is used in making sugar-coated Cadbury Mini Eggs.

SELFLINES

Selflines are identical chocolate sweets, packed in boxes or bags and include Cadbury Buttons and Mini Eggs.

SEASONAL RANGES

Seasonal ranges include Christmas and Easter selection packs, novelties and Easter Eggs. The Crème Egg plant

produces more than 400 million eggs a year, at the rate of 70,000 per hour.

PACKAGING:

Cadbury Schweppes has been upgrading its manufacturing facility since 2001. At that time, the company

announced an investment of $25 million, a significant portion of which was earmarked for upgrading

packaging lines. The facility upgrade was completed in 2003. The packaging upgrade was for the large pieces

line; large pieces are the company's range of 19 different chocolate bars varying in weight from 100g up to

500g.

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There was a need for a completely new inner carton packaging line. The company contracted Carter Holt

Harvey (CHH) Packaging Systems to design, install and maintain a packaging line that suited Cadbury

Schweppes' needs. CHH Packaging Systems offered the company a flexible, upgradeable solution for the

packaging of all of the 19 different formats. CHH Packaging had already completed an inner carton packaging

line for Cadbury at its plant in Ringwood, Victoria, Australia in 2001.

EQUIPMENT SUPPLIERS

CHH Packaging Systems chose two suppliers for equipment that fitted into its design. The two companies,

Vortex and Imball, were both from the same region in Italy, which made project management and

procurement a little easier for CHH Packaging Systems. All the equipment for the packaging line was installed

in late 2002 and early 2003, with the line finally in full production in March 2003.

Vortex supplied wrapped product boxing equipment for the packaging line. The company also supplied two

engineers to integrate the equipment into the line and to assist in the commissioning process. Imball supplied

an Imball EFFE 16 forming machine and a Combi closer. It also supplied engineers to oversee the installation

and integration of the equipment and provide Cadbury Schweppes operating staff with a maintenance training

course.

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VORTEX WRAPPED PRODUCT BOXING UNIT

The Vortex wrapped product boxing unit is able to exceed a capacity of 800 pieces per minute. The unit can

receive products from multiple flow wrapping lines and has the ability to cope with rows having missing

products, empty wrappers, damaged products and wrappings, and double wrappings. In addition, 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.

The box loader can handle different products on the same unit, vary the number of products per layer, load

boxes with variable numbers of layers and box products flat, on edge or in one or more rows. 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. The machine uses a cold glue process and is

able to exceed a production rate of 80 cartons per minute. 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 cartons are formed from pasteboard blanks preprinted and formed by another

contractor.

The Combi carton closer is also very flexible in allowing different sizes and formats. It is able to deal with all

the accepted carton formats and shapes and sizes. The Combi closer integrates well with the Vortex box

loading equipment.

Technology has also made wrapping and packaging more efficient.

• Over three hundred 49g bars can be wrapped every minute. • ¾ million per day.

PACKAGE DESIGN:

When consumers think of the Cadbury Company and its many brands of chocolate, certain images are

conjured up in their minds. The color purple, the glass and a half symbol, the Cadbury script and the packaging

of the brands are usually what consumers remember most after, of course, the unique chocolate taste of the

products themselves!

This is not something that has happened by chance. The Cadbury organization invests millions of pounds every

year on product packaging. 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.

Product packaging plays a critical role in communicating the brand identity of the Cadbury products.

pg. 24

Design of packaging can be divided into two levels which, for Cadbury, go together - corporate design and

brand promotion. Every brand has its individual design style and colour that depends on the market position

and consumer perception. However, 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.

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.

These elements are designed to convey to consumers the memorability, distinctiveness and high quality of

Cadbury products. They are communicated on the product itself, and on its promotional campaigns and at the

product’s point of sale. As such they represent an integral part of the Cadbury brand identity. The style in

which these elements are presented has evolved over the years in line with market tastes and requirements.

HISTORY OF PACKAGING AT CADBURY:

By the1860s Richard Cadbury was designing decorative chocolate boxes illustrated with flowers, landscapes

and his children. Colorfully packaged Cadbury Easter eggs were first sold in 1875.

THE HEYDAY OF CADBURY PACKAGING:

Milk tray boxes were introduced in 1915. Chocolates were shipped to stores, unpacked and placed in eye-

appealing display cases. Cadbury eventually packaged tray boxes for retail sales, introducing the color purple,

eventually and a Cadbury identifying characteristic. The company commissioned famous artists to design

chocolate boxes during the 1930s. The variety of decorative boxes produced lasted until austerity measures

required cutbacks during World War II. The era of expensive packaging and extensive package offerings ended.

pg. 25

THE POSTWAR YEARS:

Specially designed Easter egg cartons consumers recognize today were introduced in 1950. Increased

competition and cost considerations minimized innovative packaging during the postwar years. Popular

designs and packages consumers easily identified as Cadbury products guided production strategy. The

company's next major packaging initiative occurred in the 21st century.

PURPLE GOES GREEN:

Cadbury announced their Purple Goes Green environmental initiative in 2007. One objective of the program

involves reducing packaging costs. Kraft, along with a couple of other companies, pursued Cadbury as an

acquisition candidate. It was important for the company to cut costs and increase manufacturing efficiencies if

they were to remain competitive and independent. Cadbury lost their independence when Kraft bought the

company in 2010, but packaging initiatives continue. The company touted the fact that the new packaging

uses 75 percent less plastic, 65 percent less cardboard and saves 2,000 trees. New packaging was tested for

the Roses and Heroes Christmas product in 2009, replacing tins with cardboard boxes. The new package saves

tons of steel, weighs less and saves on shipping costs. Environmental concerns, manufacturing constraints and

attractive package designs are the cornerstones of Cadbury packaging as Purple Goes Green.

EVOLUTION OF PACKAGE DESIGN

pg. 26

2013

EMPLOYEE’S MOTIVATION: According to Cadbury’s statement in 2010; “People stay at Cadbury because they feel they can grow personally and professionally – being stretched, offered new challenges and finding the scope to make a difference to the business. Both our culture and our business energize people – just as expressed in our company purpose: “working together to create brands people love”. 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, Such as promotions into management and higher. 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.

At Cadbury the following steps are taken in order to keep the employees and labor motivated towards the joint effort.

pg. 27

Core labor rights and dignity at work: Cadbury respects the rights of employees to join legally recognized labor unions.

It does not tolerate any form of harassment in the workplace.

Health and safety in the Workplace: Cadbury ensures healthy and safe work environment for each employee.

Fair remuneration: Working hours and remuneration are reasonable and comparable to those offered by similar

companies

Chemistry, Science, Food/nutrition, or Chemical Engineering Degree holders are regular coached by managers.

Managing an annual sensory screening program to develop product knowledge and understanding of the Confectionery Categories.

Analytical Laboratories (Microscopy, DNA and Protein and Investigative Analysis) provide training the Employees

Also,

Newsletters, the Group website and about 250 local websites also help employees to know what is going on within the business at local, regional and Group levels

Cadbury improves the quality of new hire training by delivering a clear, consistent message.

It provides employee the link to other resources such as the intranet for more information on

policies and processes.

Introduce all new hires to the performance management process (part of People Processes).

Introduce newly hired and newly promoted managers to their role in people processes such as

performance management and development planning at Cadbury.

STOCK CONTROL Cadbury, use “just in time” as their method of stock control. 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.

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They have large amounts of crumbs delivered each day and fresh milk and eggs. They use this method as with chocolate and food products they have a sell-by date, therefore they cannot afford to keep large amounts of food products, as they will go off. Also Cadbury regularly change their packaging, For example they change their packaging for Easter or Christmas.

Gains of Just in Time:

Reduce costs

By using JIT product line, the inventory cost of Cadbury reduced from $670,000 to $200,000

Improve the productivity

Because of reducing stock holding, 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, and can react more quickly to market demands, which bring more competitive advantages for Cadbury

Improve job satisfaction

JIT demands active participation in the production process from employees. It increases their skills, gives them greater responsibility and fosters an interest in the performance of the whole company.

QUALITY CONTROL In 1924 Edward Cadbury outlined his first rule of success, "the best quality -nothing is too good for the public". He had a philosophy of maintaining a right at first time culture that consistently embraces quality and food safety. In the older days of chocolate production the only way that the standard of the chocolate would be measured is by taste testing it, this is known as the traditional method. Even today the traditional method is still being followed, although there are often meetings of workers to discuss the quality of the chocolate, and what they can do to improve and raise their standards. The every 20 minutes a chocolate bar is taken from each batch that is being produced and will be checked for their, appearance and taste.

pg. 29

Hazard Analysis Critical Control Points (HACCP)

Cadbury uses a system called Hazard Analysis Critical Control Points (HACCP). This helps to identify what could go wrong in the production process (e.g. biological, physical and chemical hazards), 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.

Other checks might not be to do with safety, but are put in place to make sure that the product always has exactly the same appearance, taste, aroma and texture. Quality control checks might include visual, weight, temperature, microbiological, pH, chemical and metal checks, as well as organoleptic checks (sampling the final product to check its flavor, aroma and texture).

Cadbury’s plants operate 24 hours a day, producing products to the highest standards of quality control.

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, this is vital for Cadbury because they produce chocolate products mainly which has a lot of substitutes, this means that customers could lose interest in Cadbury products if their demands are not met or thought about. To enforce total quality management Cadburys has supervisors that monitor the machines, the other workers and the products that are made.

pg. 30

TQM ensures that the products that Cadbury produces tastes good to the customers, is appealing to the customers, customer complaints are solved, listening to customers and Cadbury make continuous improvements to their products. Those are all the benefits for Cadbury monitoring the quality of their products and using a quality assurance method.

The Cadbury Dairy Milk Bubbly plant, for example, produced bars with such precision that the tiny air bubbles in the chocolate were within 0.2–0.3 mm of each other.

Factors such as temperature are monitored at about 1,000 points in the plant, feeding information to central computers, which can deal with 360,000 instructions a minute.

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 capacity planning is mix of lead and match strategy.

Lead strategy: It is adding capacity in anticipation of an increase in demand. It is an aggressive

strategy with the goal of luring customers away from the company's competitors. It often results in

excess inventory, which is costly and often wasteful.

Match strategy: It is adding capacity in small amounts in response to changing demand in the

market. This is a more moderate strategy.

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. But the

capacity planning of Cadbury is in such a manner that it increases the capacity only by a small amount at a

time. Hence, Cadbury makes use of two of the three major categories, Lead and Match Strategy, of capacity

planning.

INVENTORY MANAGEMENT:

In order to control inventory in an efficient and effective manner, Cadbury introduced Service Level Optimizer

99+ that easily integrated into the SAP APO system that Cadbury was already using. After implementing this

inventory buffer variability and demand control had less human intervention, safety stocks determination was

highly automated and the inventory management of Cadbury was stable. This step towards an effective

inventory management helped them satisfy the customer needs at reduced costs. The implementation of

pg. 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. Raw materials are then transformed to Cadbury products from the Bourneville. Once

the product is ready, is stored in warehouse and from there it is supplied to wholesale dealers and other suppliers and in

turn to the customers. Some portion of the product is supplied to the customers via Cadbury self-owned shops.

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LOCATION OF FACILITY

By re-locating to Bourneville, Cadbury were able to reinvent the Cadbury chocolate image – They gave it a

fresher image. Also by moving to Bourneville, they also had easy accessed communication networks, including

a canal and railway that both ran alongside Bourneville. This provided easy transportation for both raw

materials to the factory and finished goods to be transported from the factory. Bourneville was a large area

which provided more than enough land for the factory and other land to build houses, schools and hospitals to

attract employees.

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CONCLUSION

To achieve cost dimension, Cadbury chose an effective layout. Moreover, 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. The machinery used is simple mechanism that reduces investment.

Cadbury produces large quantity of few successful brands. This helps Cadbury ensure that high quality is maintained for every brand. 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. Cadbury concentrates more on main

Brand name rather than product brand name. 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. On the contrary, the capacity

planning strategy and inventory management ensures that demand for existing products are achieved every

single time.

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