The Corporations Production Target - Assignment Example

MEMORANDUM Introduction Saccharine Beers Corporation’s attention is drawn regarding dwindled production results way below the Corporation’s production target in the past two weeks, as the Brewery Department weekly reports indicated. In the regular departmental process review recommendations anticipated in the few coming weeks, the Brewery Department has found out that an urgent capacity outstretch management is needed. Process modification, which forms a big chunk of the recommendations in the expected review report, is hereby clarified in advance for possible financial losses mitigation purposes. In line with the purpose of this memo, the beer making process in application is attached as well as the modified process recommended thereon. Before the main issue is handled, an introduction is done regarding the cause of the problem and then the explanation follows in inclusion of the recommendations. Background Information Saccharine Beers Corporation deals in the production and marketing of malted beers. Currently the plant supplies the beer market with six million bottles of malted beer on a daily basis, which translates to half a million bottles of beer every hour. The capacity of the plant can slightly be increased to about three hundred bottles of beer every hour in a high season. On a low season, the Corporation reduces production up to a hundred thousand bottles ever hour. The low season’s production is set so low, to ensure that production caters for just plant costs than to produce without market sensitivity. During the current high season, the plant expanded its production capacity to hit half a million bottles of beer. Production increments were in line with the increased market coverage and promotional strategies embarked in the recent past. Positive results have been confirmed from the Sales Department, with an all time high sales record being posted. Enthusiasm within the Corporation’s operations has prompted future projections currently made to illustrate a capacity outstretch, both by demand and production. Production Process Outline At Saccharine Beers, the production of malted beers is simplified to enable a process that is as close to the natural brewing process as possible. As illustrated in the flow chart, five main production stages are involved in the entire beer making process. For hygiene regulations compliance, the corporation simplifies the process as much as possible for quality assurance (Cobbett, 22). The main processes are briefly discussed, stating the problem involved and strengths: i) Grain Preparation: grain is procured and its quality tested, sorted, washed and passed on to the malting stage. This stage is one of the efficient with accurate acquisition and reserve maintenance (Palmer, 18). ii) Malting: receives prepared grain and produces malt through steeping, germination, kilning. Batch process approach ensures complete utilization of the malt solution by the brewing stage. An overstretched capacity exists since the brewing capacity and preparation are considerably higher than the stage can support. iii) Brewing: prepares sweet wort used in fermentation through; milling, mashing, lautering, boiling and hopping (Hibma, 1). A shortage of production input is experienced since malting stage is inadequate. iv) Fermentation: produces alcohol from wort by biological reaction of yeast. Ideally, there are two levels of fermentation involved in this stage, namely primary and secondary fermentation and maturing the alcohol and filtration (Bamforth and Lewis, 58). v) Packaging: the beer is received for packaging, storage and delivery into the market. The Problem(s) During the past two weeks earlier mentioned, our capacity was not able to adequately serve the market demand which currently surpasses our expanded capacity. Weekly reviews indicated that on one hand, our malting processing stage is not able to handle the brewing capacity. On the other hand, our grain preparation stages are experiencing a backlog of grain supply occasioned by the feed-forward incapacity into the malting stage. Our batch processing system means that all our malting equipment handles the same-level malting grain; no malting dispatch is at an advanced stage than another. Brewing equipment which feeds the fermentation equipment is under-worked due to the backlog occasioned by the malting stage. Market demand has edged a niche higher following aggressive promotion and market expansion and the Corporation risks losing an almost won market (Banforth and Lewis, 23). The corporation’s malted beer product at the current capacity appears to be compromised at the malting stage which poses a retreating threat at our efficient grain preparation stage. Eventually, reducing the capacity of one stage could adversely affect the ambitious market expansion dream held at the current production. Solution The Department provides three possible alternatives for the teething problem experienced in the production process. These alternatives can also be applied concurrently altogether. On one hand, the batch processing is targeted for the introduction of changes. On the other hand, separate products are proposed for introduction into the main process. Introduction of several malting batches introduced at different occasions, opening malt free beer production, as well as producing non alcoholic beverages will reduce these problems. Creation of extra batches for the freshly prepared raw grain will be entering the process. This will considerably reduce the backlog. Capacity will be increased down the production process. Creation of another production line dealing in malt free beers will also assist the Corporation in dealing with the apparent idle fermentation capacity, which will increase production costs. For non alcoholic beers, this is an entirely new product targeted at a new market. Non alcoholic beers can use either malted or non-malted raw solution, which considerably reduces the shortage when the plant is in need of more malt. In cases of excess malt, both malted and non-malt products of this nature can be produced. In essence, the Corporation will take care of any excess production through channeling in an appropriate manner. Alternatively, this process step will assist in reducing the backlog experienced after the preparation stage. This will considerably reduce the pressure on the malting stage. The flow charts below illustrate the current and proposed processes as cited in (Lewis and Young, 5). A. Current Production Process B. Proposed Modified Production Process Works Cited “Beer Making Process.” ehow.com. Hibma, Taylor., 2011. Web. 29 Jan. 2011. Banforth, Charles, W. & Lewis Michael, J. Essays in brewing science. New York, NY: Springer Science + Business Media, LLC., 2006. Print Cobbet, William., Cottage economy: containing information relative to the brewing of beer. Caldwell, NJ: Coke Law Press, 1824. Print. Lewis, Michael, & Young, Tom W. Brewing. New York, UK: Aspen Publisher Ltd., 2002. Print. Palmer, John J., How to brew: ingredients, methods, recipes and equipment for brewing beer. Monrovia, CA: Defenestrative Publishing Co., 2001. Print. Read More