Introduction Anheuser Busch (AB) started in 1879 by Eberhard Anheuser and son-in-law Adolphus Busch (Anheuser-Busch Companies, LLC 2016). Today, AB has 12 breweries across the country that produce their signature Budweiser beer. Focusing on their Merrimack New Hampshire facility, they produce over 3 million bottles of beer each day. Approximately half of the beers produced through the Merrimack facility come in their standard glass bottles. This paper will discuss the implementation plan for an alternative bottle for beer storage that is able to frozen without any adverse effects to the beer or bottle. Discussion To ensure the new product supports current customer demand, the takt time needs to be maintained. Takt time is the demand of the …show more content…
The current price of glass per pound is $0.005 (Larimer County 2017). With each bottle using ~0.37lbs per bottle, the rough cost of glass is ~$0.002 per bottle. Whatever the increase of the raw material cost ends up being, needs to be taken into consideration for the end price. Since pricing of beer is extremely competitive, the best suggestion to account for the increase in material cost would be to implement LEAN concepts and tools to decrease the cost of production, and not increase the final product price. Even a small increase in glass cost (<$0.01/lb) could be substantial with respect to the percentage increase in raw material cost, and must be considered during the product development …show more content…
Identification of those risks early in the development process is key in mitigating the risks long-term. With the implementation of the proposed plan above, LEAN concepts can be used to ensure risks regarding customer delivery times are accounted for, while the labor, material, and equipment plan will identify the costing and logistical requirements to ensure customer pricing requirements are maintained. With a successful implementation plan, Anheuser Busch has a higher chance of maintaining customer satisfaction, therefore continuing their history of