Post on 14-Apr-2017
Contacts:Leonard Chapman chapmanl1@yahoo.com 561-350-5906Samuel Havelock Jr. samhavelock@yahoo.com 703-254-7791Noel Gonzalez noelgnuke@yahoo.com 561-202-5239
2/9/2010Franklin's Kite Proprietary
Franklin’s Kite LLC.
Problem
2/9/2010 Franklin's Kite Proprietary 2
Precision Part Manufacturing Space –
• Fractured & Sub-optimized:
Requires Major OEMs to tender relationships with dozens of
small “mom and pop” part shop manufacturers for volume,
redundancy, and depth.
• Each relationship costs time and $:
Audits, Quality Assurance, Coordination
OEMs spend about $45K-$100K annually per vendor on
relationship costs before parts are ordered
• Small shops can’t scale up and cant afford to use the latest
robotic and automated machining technology
= Higher part costs for OEMs
Lower Total Factor Productivity
Customer Needs
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• Core:
Faster order fulfillment
• Problems with Boeing’s 787 LRU subassemblies are a
prime example
Consistent Production Experience
Proximity (to all Major LRU Sub Assembly Areas)
Distributed Redundancy of the manufacturing base
Assured Highest Quality + Reasonable Cost across both
small & large volume orders
Solution
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Federated Precision …a precision parts maker
operating as a distributed network of identical
local production facilities… local to major OEMs
…on the backbone of centrally managed & state-
of-the-art automated machine technology
…while leveraging best practices of military
Command & Control, Training, and Intelligence
Dissemination from our Naval, NASA, and
Manufacturing experience
Federated Precision Manufacturing Facility Locations
Solution Graphic
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• Cloud Manufacturing• Measured Expansion• 15,000SF Co-located Facilities (Identical)• Low Overhead/High Technology
• 12-15 persons per site• Centrally Managed & Trained• No Fail Model / Simulation based• Economies of Scale: Bid + Commodities
• Flexible capacity drives optimal pricing approach• Economies of scale - Distribution of G&A across large
sales base improves bidding position• Consolidate vendor base with FP to eliminate $800K
year cost with cut of 20 vendors.• Local proximity of shop improves communication
with customer• Redundancy by design ensures robust supply chain
solution
Benefits to Customer
Magic Sauce Cloud Manufacturing
• Capability and Cost Structure to bid both large and small contracts
• Economies of scale in every volume range & commodity pricing
• Redundant/Flex capacity
Small Automated Production Facilities • Automation at low volume through custom solutions
• Pre-configured manufacturing plants rapidly deployable
• Best machine per application regardless of brand
• Low OSHA and EPA regulatory hurdles
Tactical Operations Center • 24/7 remote command and control, monitoring, and support systems
• Lean, Learning and Adaptive Machining principles : LSS Core Process Improvement
• Manufacturing Knowledge & Best Practices propagate across enterprise in near real time
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Business Model
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• We make profit on sales by manufacturing Precision Parts Cheaper, Faster, Better than all others operating in the space
– First in United States & then Internationally• All shops trained to same SOPs & Quality Control
– Lower burden rate
– Pre-certified to ISO 9001
– Better business practice
– Simulation/CAM
Competition
• No Competitor is operating in this Model
• Barriers to Entry:
– Small Scale Shops:• Lack capacity for single source consideration
• Limited technology…they were built 1 machine at a time
– Medium Scale Shops: • Lack entry into capacity, redundancy, automation, or scalability
• Invested all in one Manufacturing form
– Large Scale Shops:• All single location focused
• Group think, heavy influence from insulated/entrenched mgmt, prohibitive overhead costs
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“Globally, airlines will need 29,000 new airplanes through
2028, valued at US $3.2 trillion.” Boeing,10/09
“Airbus is projecting the market for commercial aircraft
above 100 seats over the coming two decades to be valued
at $3.1 trillion, with 24,951 passenger and freighter aircraft
to be bought by the world’s airlines.” Robert Wall, Aviation Week, 9/18/2009
“… as of the third quarter of 2009, Boeing had a backlog of
3,400 airplanes, valued at US $254 billion.” Boeing ,10/09
Opportunity
Financial Projection & Key Metrics
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Assumptions:
• 50% utilization of total machine hours per month
• $80/hr machine charge out rate
• Staffing at double of plan goal• 1 man per 3 machines goal, using 1 man per 1.5 machines at start
• Revenue Projections do not include:• Contract Assembly Services & Testing - badly needed in the industry
• Medical parts space not modeled - medical sector machine rates range
$150-$300/hr vs. $80/hr
Projected Revenue
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FY1
FY2
FY3
FY4
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
Q1 Q2
Q3 Q4
Annual Sales
FY1
FY2
FY3
FY4
The Need • $12.8m for Start up
– $5.2m Cash for operations months 1-24
– $7.6m bonded/secured deposit as machine tool collateral for first 24 months.
• This gets returned once cash flow from operations ensues
– Shops 3 and higher are funded organically from cash flow
– CapEx/OpEx of 30%/30% of sales
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Closing• Investment in a solid business with proven model & growing
market– Lower Risk Investment
• Vast Majority of Funding is collateralized with Property, Plant, and Equipment
• We don’t need to “find” key expertise or a network to sell into– We possess the expertise and a ready network
– Mr. Chapman has 10 years experience running a manufacturing plant in Aerospace with a proven history of leadership, execution, and growing sales (by 300%) in the precision parts manufacturing space
– Nobody can provide the combination of leadership we do
All we need is Investment & Trust
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