Appendix B | BUSINESS PLAN FOR A MANUFACTURING BUSINESS | 241The Kinet-O-Scroll must, of course, be designed to meet far more stringent requirements.
We aim to market a product that will last at least four years, even if used 24 hours a day.
Tests based on time simulations indicate that we have achieved this goal.^2
The Kinet-O-Scroll is already in production (units are available for testing), as described
in Section I of this proposal, just below. The Kinet-O-Scope can be in production within 120
days after additional financing is obtained.
I. Production Status
The Kinet-O-Scroll is the first and only DAY product currently in production. Here is a
summary of both how things are going on the shop floor and how our marketing efforts
are developing, as of April 16, 2010.
Material: There is no difficulty obtaining parts for the Kinet-O-Scroll. The two parts
with the longest order lead time are the motor and keyboard, which at present take about
eight weeks to get. There has been some recent indication of possible stretch-outs on
certain semiconductor products we have been getting on a next-day basis, but this is not
expected to be a significant problem. Just in case, however, we have identified several
alternative suppliers.
inventories: The first 100 Kinet-O-Scroll units have been committed to production. At
the time of this writing, 35 are complete and the remainder are 90% finished, requiring
only cabinets and final assembly. All materials, with the exception of the cabinets, which
should arrive in ten days, are in stock to complete these units, as well as an additional 100
units. The first 100 units are primarily for demonstration purposes. We will use several
at trade shows, give others to the electronics press for evaluation, and use still others as
samples for our sales reps and wholesalers.
Credit Terms: Although DAY has established 30-day terms with over half of its
suppliers, we are presently on cash terms with the rest, due to our low cash position and
because we are a new corporation with no proven credit history. We expect to arrange
30- to 60-day terms with all our suppliers within six months. New financing will help us
accomplish this.
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