IT 285 Assignment Four: Canandaigua Winery Field Trip Report
by
Mario A. Rosso
Prepared for the course:
IT 285 Advanced Manufacturing Systems
Spring 2001
Dr. Matthew Yen
Background
Founded 1896 as the Mission Bell Winery, Canandaigua is the second largest producer of wine in the world next to Gallo, Inc. Employing more than 450 workers at its 90-acre facility in Madera, California, the winery processes nearly 5,500 tons of grapes per day during peak seasons. The winery’s maximum capacity is 300,000 tons of grapes per year with an average of 270,000 tons. Approximately 16 million cases of wine are produced at Canandaigua per year and over 18 million cases are distributed from the facility. In addition to wine, Canandaigua produces 12.5 million gallons of juice concentrate as well as highly profitable food coloring products and grape seed extracts for anti-oxidants.
Canandaigua is the largest integrated winery in the U.S. It is a public, subsidiary corporation of Constellation Brands, Inc. The winery produces major brand name wines such as Almaden, Inglenook, Paul Mason, and Cook’s Sparkling Wine. The plant site is divided into two main parts: production and bottling. While the Madera site is the largest, Canandaigua has approximately 20 separate facilities including wineries in Washing and New York states. Wines produced by Canandaigua range in volume from “airline bottles” to 571 Liter kegs.
How is automation technology applied in the production of wine?
While Canandaigua does incorporate a degree of automation in at its Madera facility, the plant does not take full advantage of technological innovation and advances in production automation. With the exception of a computer controlled alcohol still, automated processes were limited almost exclusively to the bottling section of the plant. Programmable Logic Controllers (PLCs) were abundant in the bottling and filling centers and were used to control the pneumatic bottling equipment. Touch-screen operator panels controlled the PLC’s and most were linked via optical fiber to a central control and monitoring shack within the bottling facility. Allen Bradley PLC’s, controlled by LCD color screens, were utilized on “wine bag” filling centers. The winery current does not use any PC computers as operator interfaces.
Arguably the most noteworthy example of automation at Canandaigua was the computer-controlled boiler and still farm near the 100-year-old original winery building. Approximately 50 foot tall, the still produces alcohol to about 198 proof for later processing into Brandy. Temperature monitoring and process control is provided by the Emerson DeltaV process control system along with Foundation Field Buss instrumentation. DeltaV provides state of the art pneumatic control of the still and receives input and feedback through 50 independent data acquisition points on the apparatus. Temperatures and processes are monitored graphically on a PC control station located in a shack adjacent to the still.
What are the critical issues in production lines?
The winery currently supports 15 production lines, all of which appear to have common concerns and problems. Among the most pressing issues are energy and maintenance. Canandaigua has missed the brunt of the California energy crisis, primarily due to a wise 10-year agreement with PG&E guaranteeing a price of 8 cents per kilowatt-hour for electricity. However, natural gas continues to be a serious concern. The plant alternates between propane and natural gas on a day-by-day basis depending on the price. Maintenance of production and bottling machinery can seriously upset the process flow. Pneumatic system failures are of concern as well.
Other issues of note include poor to medium levels of sanitation and housekeeping. Wet, soapy floors pose a threat to safety as well. In the production yard, where grapes are first processed, foreign objects such as bolts, farm implements, and even mattresses can find their way into the augers and conveyor systems destroying key equipment.
Canandaigua does have a number of novel solutions to many of its problems. These range from an efficient Just-In-Time style bottle delivery system to the use of “glue stick” to repair labels which adhere poorly to bottles.
What would be management challenges in such an operation?
Canandaigua is a unionized, flow production operation and is thus limited by collective bargaining agreements and regulations; however, the largest management concerns at the winery are environmental and not based on labor issues. Canandaigua discharges over 450,000 gallons of wastewater per day and recycles an additional 150,000 gallons. The company grows wheat to extract nitrates from its waste fields. The EPA permit for the winery’s massive water conservation program is over 40 pages long.
The Securities and Exchange Commission ( list a number of risk factors that may affect present and future operations at the company. Among these are a projected decline in consumption of alcohol, various excise taxes and government regulations, dependence on raw materials, debt, dependence on distribution channels, and a disproportionate control over the voting shares of the organization by the Marvin Sands family (approximately 62% of the votes).
Suggestions and recommendations to resolve important issues for Canandaigua.
Canandaigua is a very successful company with strong leadership and superior brand name recognition. Even such a strong organization can benefit from small improvements. Resolution of issues involving energy consumption and generation are among the many improvements that could fortify Canandaigua’s position in the volatile beverage alcohol industry. Returning to its position as a co-generation facility could help the winery better weather the current energy crisis and provide insurance against future uncertainties.
The reduction of wastewater and eliminating the process of soaping the conveyor systems could go a long way in improving the plant’s environmental impact as well as reducing safety hazards. One might suggest coating conveyor and machine surfaces with Teflon or facilitating improved soap collection and recycling systems. Better prescreening of incoming grapes could reduce the downtime associated with equipment breakdowns and maintenance. In regards to management, reducing current debt levels and the overwhelming influence of the late Marvin Sands family might bolster corporate stability.
Continuing improvements in information technology such as single-mode fiber optic connections to each work cell; implementation of off-site, Remote-Access (RAS) control and monitoring of production automation; and increased computer control of production and bottling processes will be necessary in order to maintain the company’s competitive stature in the industry. Long-term technology projects should center on the centralized management of integrated flow production and inventory systems similar to those found in Enterprise Resource Planning (ERP) systems.
Bibliography
Canandaigua Website, April 22, 2001 [On-line]. Available:
“Constellation Brands Inc, et al - S-3/A - On 12/18/97”, SEC Info. April 22, 2001 [On-line]. Available: .
Constellation Brands Website. “Investor Relations”, April 22, 2001 [On-line]. Available:
Emerson DeltaV Website. “Food & Beverage Success Stories”, April 22, 2001 [On-line]. Available:
Environmental Protection Agency Website, “Executive Summary, Canandaigua Wine Company…”, April 22, 2001 [On-line]. Available:
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Piez, Roger. Field Trip: Canandaigua Winery, Inc. Madera, California. April 17, 2001.
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