pages 1-42 from mok report

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TABLE OF CONTENTS

Section Page

1 Executive Summary................................................................ 1-1

2 Project Goals and Scope of Work ........................................... 2-1

3 Product Description................................................................. 3-1

4 Assumptions and Design Considerations ................................ 4-1Capacity Requirements .................................................. 4-1Materials ......................................................................... 4-1Process Alternatives Considered.................................... 4-1Location of Manufacturing Facility............................... 4-2Potential Locations for Panel Arrays ............................. 4-2Cost Basis....................................................................... 4-2

5 Concept Design Review.......................................................... 5-1General........................................................................... 5-1Equipment Requirements ............................................... 5-1Typical Cell.................................................................... 5-2Area Requirements......................................................... 5-3Facility Block Layout ..................................................... 5-4Material Flow................................................................. 5-6Raw Materials Handling................................................. 5-6Finished Good Handling................................................. 5-6Receiving........................................................................ 5-7Shipping.......................................................................... 5-8Storage............................................................................ 5-8Utilities........................................................................... 5-9Building Shell................................................................ 5-17Office Area, Support Space, and Amenities ................. 5-17

6 Production Ramp Up, Organization, and Manpower.............. 6-1Proof of Concept ............................................................ 6-1Product Design............................................................... 6-1Process Design ............................................................... 6-1Production Rate.............................................................. 6-1Production Ramp Up...................................................... 6-2Organization Recommendations .................................... 6-3Staffing Ramp Up.......................................................... 6-11Training Recommendations .......................................... 6-13

7 Milestone Schedule ................................................................. 7-1

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8 ROM Cost Estimate ................................................................ 8-1Facility............................................................................ 8-1Process Equipment ......................................................... 8-1Operating Costs.............................................................. 8-1Summary........................................................................ 8-2

9 Analysis and Preliminary Recommendations ......................... 9-1General........................................................................... 9-1Areas/Issues of Concern................................................. 9-1

APPENDIX

Appendix 1.0PV Circuit/Assembly ConceptBus Bar Screen PrintingPV Application

Appendix 2.0Production CapacityEquipmentUtilitiesOpen IssuesPlastics CostLabor Cost Estimate-Manufacturing Operations“Simple” Cost Summary

Appendix 3.0“Sheet” ModuleTypical CellBlock Layout – BaselineBlock Layout – Option

Appendix 4.0Master Plan – Building

Appendix 5.0Estimating Accuracy Curve

Appendix 6.0Materials Comparison

Appendix 7.0Planning for Success in Transitioning New Technologies into Economical Full-ScaleProduction

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Section 1EXECUTIVE SUMMARY

Mök Industries, Inc. is proposing to construct solar power plants that produce cleanelectricity at a cost lower than any other power generation method, using a series ofproprietary technology and process innovations. The key element of Mök’s low energycosts is extreme concentration of sunlight onto photovoltaic generators designed to operateat extraordinary light intensities. The generator panel is comprised of an array ofconcentrating solar optics, each housing an advanced PV cell. To put its technology intolarge scale production, Mök desires to complete the design of the manufacturing process andestablish the production tool set needed to produce the generator panel.

Mök has commissioned IDC to assist in refining the conceptual product characteristics,determine manufacturing resources, and develop a facility concept to commercially producethe generator panels. To accomplish these objectives, IDC has teamed with its sistercompany, Lockwood Greene.

This report identifies preliminary conceptual designs for the following:

n Product and manufacturing process.

n Manufacturing facility.

n Site plan, based on the Millennium Technology Park in Lawrence County,Pennsylvania.

n Organizational and manpower requirements.

n Milestone project implementation schedule.

n Rough order of magnitude (ROM) opinion of probable construction andmanufacturing equipment costs.

The concept developed for the panel is a 4- by 8-foot module composed of three plasticsheets that when formed, are bonded together to form the optical concentrator containing thePV cell. The finished module will be self-supporting and stackable. Throughout thedevelopment of the module, multiple design considerations were evaluated and assumptionsmade. Decisions made are based on experience and engineering judgement with cost alwaysa primary influence.

In order to establish the manufacturability of the conceptual product design, a work cell wasdeveloped to meet the production output targets. The work cell, consisting of a typicalequipment set, can then be duplicated to achieve full-scale high volume production of97GW/year. The space and utility requirements for the manufacturing equipment were usedto determine the overall area and utilities required for the facility. The arrangement of thefacility accounts for support areas as typically necessary for general manufacturing. A site

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plan and architectural rendering is included, as well as preliminary facility support systemschematics.

The report addresses organizational staff, manpower, workforce training, transportation,permitting, and ramp-up issues. A conceptual schedule and rough order of magnitudeopinion of cost is also included for the purpose of establishing a realistic timeline and budgetfor the project. From an economic development viewpoint, in addition to the new jobscreated by Mök, this project will have a significant multiplier effect on job creation,including the possibility that the PV cell manufacturer would build a fab adjacent to the Mökplant.

Key findings are summarized as follows:

n Product and manufacturing process: The conceptual process described in thisreport is feasible, yet challenges remain to prove the manufacturing processand achieve the ramp-up to meet the large production volumes targeted.

n Manufacturing facility: The building is relatively simple in comparison to theprocess challenges. A crucial and somewhat ironic discovery is very highpower consumption resulting from the quantity and characteristics of themanufacturing equipment.

n Organizational and manpower requirements: Staffing levels at fullproductions are projected to be 659. This includes a corporate staff of 105and manufacturing staff of 555 spread over three shifts. While the staff rampshould be achievable, establishing an effectual organizational structure,attracting a competent management team, and developing effective trainingprograms for manufacturing staff are critical to the success of the enterprise.

n Milestone project implementation schedule: The conceptual schedule showsthe first work cell, as a pilot line, going into full scale productionapproximately 2 years after project initiation. This could be accelerated byphasing the building construction to allow an earlier start for installation ofthe pilot line.

n (ROM) opinion of probable construction and manufacturing equipment costs:Total project capital costs are projected at $1.24 billion. For construction of afacility capable of supporting the full-scale production volumes, cost isprojected at $416 million, with manufacturing equipment comprising thebalance of $830 million.

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Section 2PROJECT GOALS AND SCOPE OF WORK

Mök Industries LLC has developed solar energy conversion technology to cost effectivelyproduce electricity. Mök Industries has successfully tested this product concept and nowneeds to quickly refine product characteristics, determine manufacturing resources anddevelop a facility concept to commercially produce these products.

As a first step in this process, IDC has undertaken the effort of developing a preliminaryconcept design to refine the following issues:

n Product and Manufacturing Process

n Manufacturing Facility

n Site Plan

n Organizational and Manpower Requirements

n Milestone Project Implementation Schedule

n Rough-Order-of-Magnitude (ROM) Cost Estimate

In order to accomplish this, IDC has completed the following services:

n Analyzed product design for manufacturability.

n Developed a concept for the manufacturing process concept based onLockwood Greene’s recommended product concept and forecasted capacityrequirements.

n Determined site requirements – size, containment, road access, rail accessoptions, traffic management, and parking.

n Determined what support functions will be required, approximate laborrequirements, and developed a recommended organizational structure for thestartup operations.

n Developed a milestone implementation schedule, including production andmanpower ramp up.

n Developed a ROM cost estimate and capital spending schedule.

n Estimated up-front equipment costs, ongoing labor cost, and transportationcosts for manufacturing operations.

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Section 3PRODUCT DESCRIPTION

Mök Industries LLC has developed an environmentally friendly product that will providelow cost electricity through the conversion of solar energy. This process is achieved byfocusing sunlight through an optical concentrator using a water-filled vessel and a clear lensarrangement that provides optimum internal reflection. This Compound ParabolicConcentrator (CPC) configuration captures incident solar radiation over a wide angle andconcentrates the light onto a photovoltaic cell (PV). The PV cells, designed to absorbvirtually the entire spectral distribution of solar energy, converts the solar energy intoelectrical energy. The water-filled vessels will be incorporated into a series of panels thatare arrayed over a tract of land and wired to strategically placed batteries that will store theelectrical energy. This innovative approach for the conversion of solar energy will enablethe Mök product to produce electricity with significantly higher efficiency than haspreviously been made commercially available.

The basic product concept is reflected in the following schematic (a larger illustration isincluded in Appendix):

“Sheet” Module Concept3 Piece Approach

TOP BOTTOMPVWiring

Sealer/weld

Anchor Tab

Legend

General Process Steps (1) Hot Press Mold the top (better precision for lenses).(2) Hot Press Mold middle (punch hole) and bottom (add dimple).(3) PV install/wiring on bottom (screen print, filament wiring).(4) Ultrasonic weld top to middle.(5) Fill CPC assembly (upside-down, submersion).(6) Insert and chemically seal CPC assembly to bottom.(7) Flash test.(8) Stack to bundles and load to trailer.

submersion fillGeneral Equipment Set(1) Hot Press Molders(2) Stringers (screen print? wiring?) (3) Ultrasonic Welders(4) Fillers (5) Chemcial Sealers(6) Flash Testers(7) Stackers(8) Conveyor and buffers(9) Fork Lifts (loading)

MIDDLE

COMPLETE

Each solar module assembly is 4 feet wide by 8 feet long by approximately 2 inches thickand is comprised of 4,697 water vessels that are 1 inch in diameter and 1.5 inches tall. Eachwater vessel contains a lens that is able to capture sunlight from angles exceeding 60 degreesfrom the vertical. This design eliminates the need to incorporate a mechanical tracking

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device to follow the path of the sun for maximum energy production. The remainingcontour of the vessel is designed to direct and concentrate the light that enters the lens to thephotovoltaic cell positioned at the bottom of the vessel. The resulting concentration of solarradiation substantially reduces the required area of each PV cell. In this case, a PV cell of0.014-inch diameter produces 0.2 Wp. A typical terrestrial solar panel requires an area of 3to 4 in2 to provide this level of power. Each module assembly will hold a total of 3.99gallons or 33.3 pounds of water.

The module will be assembled from three plastic panels that are first produced in sheet formand then contoured through a thermal forming process to form the vessels and supportsystem. The top and middle panels will be produced from clear PET (PolyethyleneTerephthalate) and, when thermally bonded together, will form the lenses and water vessels.This assembly will then be passed through a submersion tank where the vessels will be filledwith water.

The bottom panel will be produced from an opaque plastic such as ABS or PVC. The wirecircuitry and photovoltaic cells will be applied to the bottom panel through a printingprocess. Once assembled, the bottom panel will be chemically bonded to the top/middlepanel assembly and provide the watertight seal for the vessels.

The contour of the finished assembly will enable each module to be self-supporting and willallow the modules to be stacked for shipping. The module will also incorporate lugs forsecuring the assembly to the ground. These lugs will double as shipping aids to facilitatepanel nesting.

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Section 4ASSUMPTIONS AND DESIGN CONSIDERATIONS

CAPACITY REQUIREMENTS

A planning model was developed to capture product assumptions, including expected outputper module and production requirements to meet specific production targets. The appendixcontains the planning model in its entirety.

To minimize the amount of water needed for each module assembly, a concentrator size of1-inch diameter and 1.5-inches tall was selected. This results in a water volume for eachmodule of 3.99 gallons or 33.3 pounds. With the photovoltaic cell area per concentratorfixed at 0.00016 inch2 and 4,697 concentrators per module, this results in a power output of952 watts per module peak. Obtaining the target production of 97 GW per year requires aproduction rate of 11,893 modules per hour as shown below.

The following recaps the production rates required to meet the 3 output targets:

Output Target >>> 5 GW/yr 30 GW/yr 97 GW/yr

Production Rate (modules per hour)

613 3,678 11,893

MATERIALS

Clear, UV stabilized, PET (Polyethylene Terephthalate) was chosen for the top and middlepanel due to its clarity, formability, availability and relative low cost. The bottom panel willbe produced from PVC or ABS to add rigidity to the final module to support the weight ofthe water and enable stacking of the modules for shipping. Boeing will supply thephotovoltaic cells that are installed onto the lower panel of the module. At the final solarcollection site, the array of modules will be wired to batteries that will collect and store theelectrical energy. It is anticipated that these batteries will be shipped from the batterysupplier directly to the solar collection site.

PROCESS ALTERNATIVES CONSIDERED

Initial geometries for the light concentrator were in a range of 4 inches to 8 inches in height,resulting in a water weight of 70 pounds to 140 pounds per 4-foot by 8-foot module. Thisweight was deemed too great to allow economical shipment. The geometry of theconcentrator was reduced to a 1.5-inch height (and corresponding 1-inch diameter lens) toprovide a more reasonable water weight of 33 pounds per 4-foot by 8-foot module. Basedon the revised geometries, the following processes were considered:

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Blow Molding:

The original product concept was based on blow molding PET bottles, utilizing a cap for thePV attachment and wiring, and another structure to support and contain the bottles. Bottleblow molding rates were calculated to meet the production target of 400,000 acres ofcoverage in 5 years. To meet this production rate, approximately 1.2 billion bottles(1.5-inch height, 1-inch diameter) are required per day. Based on initial feedback frompeople knowledgeable in mass production blow molding, this quantity of bottles is notrealistically achievable.

Sheet Concept:

Several sheet concepts were developed to meet the geometric requirements of the productand achieve a high throughput. The 3-piece approach outlined previously was selected asthe baseline approach for this study based on its adaptability to molding, ease of filling, andsurface on which to mount and wire the PV cells. Initially "traditional wiring" of the PVswas considered (such as used in the microelectronics industry for wire bonding die prior topackaging). An assessment of the sheer number of cells to be wired deemed this approachunpractical (4700 PV cells per module, or 56 million PV cells per hour to meet the 97GW/yr target output). A screen-printing and poly-soldering approach was assumed for thebaseline concept based on its potential to meet the required throughput. It is acknowledgedthat many technological hurdles need to be addressed in order to make the screen-printingapproach viable.

LOCATION OF MANUFACTURING FACILITY

The proposed location for the Mök Industries solar panel fabrication plant is on a site inNeshannock Township, Lawrence County, Pennsylvania. The site is called MillenniumTechnology Park and consists of about 530 acres that lies between US Route 60 and theShenango River. The development of this site is currently in the site design and permittingprocess. The Master Plan for this site showing the Mök Industries facility is included in theAppendix.

POTENTIAL LOCATIONS FOR PANEL ARRAYS

The product from this facility, solar panels, will be shipped initially to a few select locations.The first being some testing sites in Pennsylvania, and possible nearby areas. The purposeof this is to take advantage of the available water and coal to demonstrate the process ofusing solar power to fractionalize water to obtain hydrogen. The hydrogen would then becombined with coke (coal product) to produce synthetic oil. The other site these panels willbe shipped to is in northern Nevada and this will be the initial main site at which manysquare miles will be covered with these panels.

COST BASIS

The estimated costs presented in Section 8 have been broken down into two areas. The first,called “Facility”, is the building and site amenities (parking areas, etc.). The building

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estimate includes the steel framed, high bay building as well as the associated mechanical,electrical, etc. equipment for the building. The second, called “Process”, is themanufacturing and material handling equipment associated with producing the solar panels.

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Section 5CONCEPT DESIGN REVIEW

GENERAL

The concept design for the manufacturing facility is presented in the order in which it wasdeveloped, and is summarized as follows:

n Equipment set developed to support the product/process concept andproduction rates.

n Work cell developed based on equipment and flows.

n Facility block layout developed based on work cell arrangement and flows.

n Organizational structure, support functions, and site considerations to supportthe overall operation.

The following sections summarize the concepts developed regarding each of the areas ofconsideration.

EQUIPMENT REQUIREMENTS

The planning model in the Appendix contains the calculations used to determine thequantities of equipment required to meet the output targets. A summary of the equipmentrequired for 1 work cell (roughly 10GW output) is as follows:

Equipment Name Quantity/Work Cell

Extrusion, Calendar and Cutter 3

Hot Press Molder - TOP & MIDDLE 1

Hot Press Molder - BOTTOM 1

Screen Print, PV Application, and Curing 30

Thermal Welder - TOP/MIDDLE 1

Chemical Sealer - BOTTOM 1

Flash Tester (sample only) 1

Material Handling- Water Fill- Vertical Buffer- Stacker- Stretch Wrap- Conveyor

1611

1 lot

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TYPICAL CELL

Below is a typical Panel Fabrication & Test Cell (a larger illustration is included in theAppendix).

Flash Test

Test

Shipping

Submerged Water FillStation

Chemical Weld Bottom Panel

Feeders &Extruder

Feeders &Extruder

Die, GearPump,

ScreenChanger

Die, GearPump,Screen

Changer

Roll Form, 3-Roll Stand

withindividual

drives

Roll Form, 3-Roll Stand

withindividual

drives

Accumulator,Preheat, Hot

Press Mold, Cut,Discharge,

Thermal BondTop & Middle

Sheet

Vertical Buffer

215 Feet

220 F

eet

Feeder & ExtruderDie, Gear Pump,Screen Changer

Roll Form, 3-Roll Stand withindividual drives

Accumulator, Preheat,Hot Press Mold, Cut,

Discharge

Vertical Buffer

Screen Print, PV Assembly, Cure

Vertical Buffer

Top Panel Middle Panel

Bottom Panel










Screen Print, PV Assembly, Cure Screen Print, PV Assembly, Cure














RawMaterial

Input

Vertical Buffer

Vertical Buffer

Vertical Buffer

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Raw plastic material enters the fabrication & test cell in bulk pellet form and is loaded intothe feeders for each sheet line. The bottom panel sheet enters an accumulator where it isheated, press formed, cut and discharged into a vertical buffer. The panels are then screenprinted with a wiring matrix, oven cured and the photovoltaic cells applied.

The top and middle panel sheet lines are located side by side. The formed sheets enter anaccumulator where they are then preheated, press formed, cut and thermal bonded to formthe concentrator vessels. The top and middle panel assembly is then submerged in a watertank to fill the vessels and the bottom panel assembly is then chemically bonded to theassembly to complete the module. The module is then flash tested and moved to shipping.

The size of each cell is 220 feet by 215 feet and is equipped to produce approximately 1200modules per hour.

AREA REQUIREMENTS

Area requirements are detailed in the planning model contained in the Appendix. A recap ofthe summary requirements is as follows:

000 SF # of Work Cells >> 1 4 10

Production Space 51.6 206.4 516

Receiving, Shipping 5.2 20.6 51.6

Stretch Wrap, Staging 5.2 20.6 51.6

Support (prep, labs, R&D) 15 30 60

Canteen/Break 2.3 4.5 10

Office 6 6 12

Central Utilities 17 57.6 140

SUBTOTAL 102 346 841

Contingency (15%) 15 52 126

TOTAL 117 398 967

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FACILITY BLOCK LAYOUT

Site Specific - A block layout was developed for the current building outline programmedon the Lawrence County site. The building outline was developed for the northern portionof the Millennium Technology Park site, allowing the center portion of the site to remainavailable for a semiconductor manufacturing facility – or wafer fab. The shape of thebuilding is based on physical restriction of this part of the site such as wetlands, topography,and site vehicular circulation requirements.

Block Layout - Baseline

This layout arrangement provides for receiving at one end of the building and shipping at theother. Based on the output target, work cells would be installed starting at one end of thebuilding (say the northeast corner) and built-out away from the first work cell (a largerillustration is included in Appendix).

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Optimized Block Layout - An alternative layout arrangement was develop to show a moreoptimum process centric arrangement, without regard to permissible building footprintconstraints dictated by the present site considerations.

Block Layout - Option

This arrangement allows the receiving functions to be located closer to the work cells. Italso allows the output from each work cell to be directed down a central aisle and routed tothe stacking/stretch wrap area (a larger illustration is included in Appendix). Consequently,if there is an opportunity to utilize an alternate site, there are several points to consider forthe Optional layout:

n Improved site and facility logistics by placement of receiving locations closerto process lines.

- Pneumatic conveying systems are shorter allowing more economicfirst cost and reduced operating cost due to smaller motor/blowersrequirements.

- Reduced truck traffic density for receiving once abandoning a centralreceiving operation.

n Reduced internal material handling distances minimize material handlingequipment and reduces non-value added material handling.

- Fewer lift trucks.

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- Shorter lengths of pallet conveyor.

n Increased utility runs will require more expensive first cost for distribution.

MATERIAL FLOW

Due to the extremely high production rate requirement of this project, the facility concepthas been designed with a high degree of priority placed on the flow of material. Each PanelFabrication & Test Cell is designed for the entry of bulk plastic pellets at a single point andindividual sheets and panel assemblies moving in simple, continuous flow paths through thecell with no cross-over or switch-back paths. Final product exits the cell at the opposite endfrom the raw material entry point.

The cells are arranged in the facility so that raw material entry points are easily accessedalong the exterior walls and final product can flow out of the cells, down central aisles toshipping.

RAW MATERIALS HANDLING

Other than PET and PVC pellets, lift trucks are planned for the delivery of most materialfrom Receiving to the work cells. Five lift trucks, separate from those dedicated to Shippingand Receiving, will be needed once full production is achieved. They will deliver the itemslisted in the palletized materials paragraph of the Storage section. These materials includerolls of stretch wrap. A lift truck roll handling attachment is provided for in the costestimate.

FINISHED GOODS HANDLING

A conveyor system was selected for finished panel transport from the individual work cellsto Shipping. Three modes of transport were considered: conveyors, transfer cars, andautomatic guided vehicles (AGV). Two of these, conveyors and AGV Systems, canachieve the needed throughput. The conveyor needed to transport these unit loads with a 4-by 8-foot footprint is not particularly economical; however, the conveyor system will still bemore economical than an AGV System to accomplish the same transport volume. Transportcars were initially considered because of their relatively low cost; however, for thisapplication they are too slow to achieve the needed throughput.

The Conveyor system for the Baseline Layout is expected to have approximately 2,575 feetof conveyor. At an estimated $400 per foot installed, including all diverts, merges, and thecontrol system; the conveyor system will require a $1 million investment. In contrast, anAGV system will require approximately 24 single deck or 14 double deck vehicles toachieve the needed throughput. Based upon budgetary information obtained from Jervis B.Webb, an AGV System would require approximately a $1.8 million investment.

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RECEIVING

Receiving will be required primarily for PET pellets; however, a comparatively smallamount of discrete raw materials will be received in palletized form. The receiving area willbe composed of docks, unloading stations for trucks of PET and PVC pellets, silos forbackup PET pellet storage, and a small amount of rack storage.

PET Pellets The large quantity of PET and PVC consumed dictates bulk quantity delivery.Bulk delivery will be via truck. There is no rail service available on the preferred site.However, if an alternate site were considered in the future, rail service would be provide formore economical PET delivery and should be considered.

Truck delivery for PET and PVC pellets will require unloading stations. A pneumaticsystem will be utilized to directly feed each extruder from the bulk truck. These stations arebest located as close to the extruder serviced as practical to minimize blower sizes andsystem expense. Motors and blowers for the PET pellet pneumatic delivery system will belocated adjacent to the unloading stations. A 6- by 6-foot pad should be adequate for ablower and motor; there will be three motor/ blowers per work cell. Motors and blowers forthe pellet pneumatic delivery systems will be located adjacent to the unloading stations. Anexternally located 6- by 6-foot pad, located adjacent to the unloading station, should beadequate for a blower and motor; there will be three motor/ blowers per work cell.

At peak production the weight of PET and PVC consumption will be somewhat in excess offour truckloads in an hour. However, since two types of resins (clear PET for the top twolayers and an opaque PVC resin for the base layer) additional unloading stations are needed.For planning purposes, two stations are priced for clear PET and four stations for the opaquematerial. This will allow one truck to be staging for both clear PET and the opaque resinwhile the other stations are in operation. Two suppliers, Eastman Chemical and M&Gindicated that the unloading stations would probably be provided without cost due to thehigh projected consumption rate of PET and PVC.

Palletized Materials Lift trucks will be used to unload palletized loads from trailers. Forthe most part, these materials will be delivered directly to the work cells. However, thesematerials will be stored as necessary to maintain a small safety stock. Storage will be inracks located adjacent to Receiving and is more thoroughly discussed in the Storage section.For the Baseline Layout it is felt that approximately 20 docks in a centralized Receiving willbe adequate for palletized materials.

The large number of docks is required to assure the smooth operation of a JIT deliveryphilosophy. This will allow for a trailer of each high volume raw material to remain parkedat the dock for the lift trucks to work out of, while simultaneously providing docks for theyard tractor to stage the next trailer of materials and to have the needed buffer to allow anempty trailer to sit at the docks for some time.

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SHIPPING

Finished goods will be palletized in the work cells and subsequently stretch wrapped tofacilitate handling and security. Palletized panels will be delivered to Shipping where theywill be stretch wrapped. These unit loads will be automatically delivered to the stretchwrappers. Unit loads will be fed into the stretch wrapper on an automatic conveyor. Nocorner posts are required; the panel design will have strengthened corners that nest so as toprovide a robust package once stretch wrapped. The wrapped load will be discharged onto aconveyor to await pickup by a lift truck. Lift trucks will load trailers at the docks.Approximately 30 docks are provided.

STORAGE

As with the dock areas, a “just-in-time” philosophy affects the storage area design. Storagequantities are based upon JIT deliveries. As such, only the smallest of safety stock isconsidered.

Raw Materials The primary raw material will be PET and PVC pellets. While delivery isstraight from the trucks to the extruders, with the trucks parked in the unloading station forthe duration, silo storage is also recommended by resin suppliers as a backup to guardagainst delivery disruptions. The suppliers interviewed indicate that the cost of the silos willbe borne by them as a service due to the anticipated large volume of PET and PVCconsumption. To preclude mixing PET types, separate silos will be maintained for clearPET and opaque PVC. A 2-hour backup supply of PET and PVC is recommended. Atpeak production, this will be approximately 104,000 pounds of clear PET pellets and312,000 pounds of opaque resin. This can be accomplished with a relatively small silolocated adjacent to each of the bulk unloading stations. For the clear PET, 2 silos ofapproximately 8-foot diameter and for the opaque resin four silos of 10-foot diameter shouldbe adequate.

Palletized Materials As with PET and PVC pellet storage, the philosophy of design is thatJIT deliveries will keep stored palletized materials at a minimum. For the most part, storageis a 2-hour buffer. It has been calculated that 62 pallet rack positions and 12 drive-in rackpositions will hold the necessary materials. This amount of rack is small and will beinstalled adjacent to Receiving. The rack will provide three high pallet storage and willhave a footprint of 915 square feet (425 square feet for pallet rack and 490 square feet fordrive-in rack). The materials to be stored are:

n PVs – photovoltaic cells will be received in tubes for insertion, these will bein cartons and on pallets. Due to the extremely small size of the PVs, a lot ofstorage space will not be required. With just in time delivery, material flowwill be primarily from the dock to the production floor. Storage space for 12pallet loads of photovoltaic cells will be provided.

n Empty pallets – the finished panels will be placed on pallets for securehandling; therefore, an ample supply of pallets will be required. Emptypallets will require more storage space than any other material placed in

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racks. These pallets will be a specialized 4- by 8-foot size. Where storage isnecessary pallets will be stored in drive-in racks. The equivalent of twohours of pallets will be stored; otherwise, pallets will go directly from trailersat Receiving to the work cell stackers where pallet loads are formed. Spacefor storing 400 empty pallets will be provided; this will requireapproximately 12 drive-in storage slots.

n Stretch wrap – a considerable quantity of stretch wrap will be used topackage the completed panels for shipping. The wrap will be received inrolls, the rolls are palletized, and the rolls weight no more than 1000 pounds.A roll handling attachment will be provided on one of the lift trucks thatoperate in Receiving. Twenty pallet loads of stretch wrap will be stored forbackup.

n Cement – the final assembly operation for the panels requires chemicalbonding of layers. The glue utilized will be in liquid form, received in 55gallon barrels, filled barrels will weigh approximately 450 pounds, the barrelswill be palletized, and potentially with have hazardous storage requirements.Space for the storage of 10 barrels of cement will be provided.

n Miscellaneous – numerous other unidentified materials in small quantitieswill be received that require storage. Twenty storage positions will beprovided for miscellaneous items.

WIP The only work-in-process envisioned at this time will be due to exception conditions.Primarily this is thought to be units that need repair. Otherwise, there is no intermediatehandling or accumulation planned for panels or panel components beyond that suppliedinternally by the process equipment and its interconnection conveyor system.

Finished Goods (surge only) Completed product is shipped as soon as possible.Therefore, Shipping will only have a staging area for product. This will primarily be in theform of a conveyor queue of several unit loads at the output of each stretch wrapper.

Research and Development The facility will have a Research and Design Laboratoryequipped with essential prototyping equipment such as a drill press, mill, lathe, hydraulicand electrical test benches, microscopes and various hand tools. Basic shop lighting andutilities will be provided to this area.

UTILITIES

The following paragraphs describe the key utilities that will be required for themanufacturing facility and describe projected facilities equipment requirements.

Electrical Each 51,000 square-foot manufacturing cell is projected to have an electricaldemand of 13.4 MVA, which includes manufacturing equipment and associated facilitiessupport equipment. See the attached Tool Utility Matrix – Estimates for Typical Work Cellfor demand and connected load numbers. This demand load represents a high density

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electrical load of 260 watts per square foot of manufacturing space. At ten manufacturingcells, the corresponding projected electrical load is 134 MVA, a significant number whichrequires multiple dedicated high voltage substations and transmission planning at theelectrical utility level.

A large portion of the electrical load is made up of electrical furnaces and heating equipmentwhich are part of the manufacturing process. IDC has contacted equipment manufacturersto discuss the possibility of changing these furnaces to natural gas. The manufacturersresponded indicating that some of the equipment components are not available in natural gasat this time and that some processes are better served with electrical heating components.

First Energy has received connected and demand load forecasts along with a projected loadtimeline. First Energy’s previous study an alternate use for this site, which wascommissioned in 2003, indicated that the 138 kV line can support 80 MW of additional load.60 MW of this capacity was to be allocated for the Millennium Park industrial site and 20MW was to be allocated to supporting regional businesses and residential uses. Becausedemand figures for a ten module factory presently indicate a demand of 130 MVA, FirstEnergy has indicated that utilizing the existing 345 kV transmission line, located four milesfrom the proposed site, may be preferable. First Energy has an existing easement for the138 kV line extension to Millennium Park, but does not have a similar easement for the 345kV line. Utilizing the 345 kV transmission would require land to be purchased – verypreliminary estimates indicate purchasing the land and constructing the four-mile 345 kVextension would cost $3-$5 million. First Energy has indicated that it would need to becommissioned to execute a three to four month duration electrical study to confirm the useof the 345 kV transmission line. One possible solution is to utilize the 138 kV transmissionto provide power for the first five modules of the factory and, if necessary, utilize the 345kV transmission line for the remaining five factory modules.

Load projections are based upon demand figures gathered by IDC and Lockwood Greeneacross several different industrial plant types. Demand factors for industrial facilities ofdifferent types vary widely. As this facility is the first of kind, the actual loads seen after thefirst module is operational will be valuable in assessing the actual demand for the followingmodules. The actual demand factor for the first production module will be criticaldetermining the size and cost of electrical substations and distribution equipment necessaryfor the following nine modules.

See the Electrical Concept Drawing included in this report for a single line diagramindicating possible utility substation quantity/configuration and plant 15kV, 5kV, and 480Vdistribution. Electrical system design and cost is based upon N+1 redundancy.

40111 5 - 11 July 2, 2004

DI Water IDC believes that DI water would be required for filling the PV lenses. Thisrequirement is based upon no bacteria or algae growth within the lenses for a period ofseven years where the lenses are installed in an outside ambient condition. Calculationsindicate that the flow for one production module is 95 gpm, with a corresponding flow ratefor the ten module factory at 950 gpm.

This flow would require a DI water production facility within the manufacturing facilitywith prefiltration, RO, continuous DI (CDI), filtration, UV sterilization, and degas. Watersource will be municipal potable water - assume groundwater at 10 grams of hardness,100 ppm calcium. Water quality will be low TOC (>50 ppb), 17 Megohm resistivity, gascontent (all N2 and o2) less than 50 ppb. Membrane degas preferred in pilot system.Production level could use vacuum tower degas. Both w/o N2 purge.

HVAC, Mechanical, & Exhaust HVAC, mechanical, and exhaust systems are required forremoval of heat from production cells and space conditioning for operator comfort. Each51,000 square foot cell has a heat load of 4,198 kW. That is a demand load of 80 watts persquare foot of manufacturing space. The mechanical systems are designed to keeptemperature at the plant floor between 75 and 80 degrees Fahrenheit. This requires a greatamount of airflow to be induced and removed from the space. Mechanical system designand cost is based upon N+1 redundancy. See attached “Mechanical Equipment Summary”document for a list of projected mechanical components and their corresponding ratings.See attached “Mechanical Equipment Sizing” document for calculations performed todetermine equipment quantities and ratings.

Mechanical Equipment Summary

FOR 1 CELL ONLY

# of Units Capacity HP- kW / each

AHU 14 50000 cfm 60 hp

Chillers 3 1280 tons 535.4 kW

Boilers 2 15876 MBTU 500 hp

Cooling Tower 2 143500 cfm 40 hp

CHW Pumps 2 1590 gpm 60 hp

HW Pumps 2 815 gpm 30 hp

CW Pumps 2 1990 gpm 40 hp

Solvent EF 3 36000 cfm 40 hp

40111 5 - 12 July 2, 2004

# of Units Capacity HP- kW / each

General EF 3 72000 cfm 50 hp

Assumptions

n AHUs

- AHUs will maintain the work space between 75 F and 80 F.

- Sensible cooling only at the cooling coils.

- AHUs configured to operate in full economizer.

- 13 units are required, one extra for shutdown purposes.

n Chillers

- There is 1300 tons of cooling for each cell. One chiller will operate.

- One redundant chiller for shutdown purposes.

- The chillers will operate at 55 F leaving water temperature.

n Boilers

- During the winter months the space will go to minimum OSA and recirculateairflow back through the unit.

- The boilers will only operate during the winter months.

- One redundant boiler for shutdown purposes.

n Solvent Exhaust

- Two Exhaust fans will operate at 18,000 cfm.

- One redundant fan for shutdown purpose.

- Assume high static for VOC abatement.

n General Exhaust

- The two fans are operating at 36,000 cfm.

- One redundant fan for shutdown purposes.

- Assuming the general exhaust is not connected to any tools or static removal

40111 5 - 13 July 2, 2004

MECHANICAL EQUIPMENT SIZING

Cooling Load calculations for Airflow & Chillers

Givens:

Room Temperature 75 F - 80 F

OSA Summer Temp 85 F DB / 70 F WB

OSA Winter Temp 11 DB

1 Cell Heat Load 14,336, 170 BTU

Air Handler Calculations

CFM = 14,336,170 / 4.5 (34-29) = 637,163 CFM

Q = 50,000 * 1.08 (85 - 64) =1,134,000 BTU/H

GPM = 1,134,000 / 500 (75-55) = 114 GPM

14 Air Handling Unit @ 50,000 CFM

Total GPM = 1590 GPM

Chiller Calculations

1 Cell Requires 1304 Tons ( cell calculations attached)

For Sensible cooling the operating Temperatures:

Entering Water Temp 75F

Leaving Water Temp 55 F

1 - 1280 Tons Chiller @ 535.4 kW / 1 Chiller for redundant

2 - Primary Pumps 1590 gpm @ 110 ft w/ 60 HP

2 - Condensing Pumps 1990 gpm @ 60 ft w/ 40 HP

2 - Cooling Towers

Heating load calculations for Airflow & Boilers

OSA = 20% @ 11 F

40111 5 - 14 July 2, 2004

RA = 80% @ 75 F

MA = 100% @ 62 F

Q = 1.08*50,000 ( 83 - 62) = 1,134,000 BTU

GPM = 1,134,000 / 500 (160-120) = 57 GPM

Total GPM = 800 GPM

Total BTU/hr = 15,876,000 BTU

Operating Temperatures:

Entreating Water Temp = 120 F

Leaving Water Temp = 160 F

1- 500 HP Boilers Required Plus One redundant Boiler

2 Primary Pumps 800 gpm @ 80 ft w/ 25 HP

Solvent Exhaust Fan Sizing

4.5 inches of static consider for scrubber

2.5 inches of static consider for operation

2 fans operate at 18,000 cfm @ 7 inches of static plus 1 for redundancy

General Exhaust Fan Sizing

Assuming no tool connection.

2 fans operate at 36,000 cfm @ 3.5 inches of static plus 1 for redundancy

Cooling Load Calcs for 1- Cell

1 - Cell kW BTU Tons

Load 4193 14306516 1192

Support Bldg

Area People BTU Assumption

People 15000 20 5000 250 Btu / Person

Space 15000 20 450000 30 Btu / Sq Ft

40111 5 - 15 July 2, 2004

Lighting 15000 20 4396.248535 1 Watt / Sq Ft

Office Bldg


Office Space 6000 40 10000 250 Btu / Person

Break Rm 2250 25 6250 250 Btu / Person

Office Bldg 8250 65 247500 30 Btu / Sq Ft


CUB


Space 20440 2 613200 30 Btu / Sq Ft


Total Tons 1304

Cooling Load Calcs for 4- Cells

4 - Cells kW BTU Tons

Load 16793 57297716 4775

Support Bldg



Space 30000 40 900000 30 Btu / Sq Ft


Office Bldg






40111 5 - 16 July 2, 2004

CUB


Space 69165 2 2074950 30 Btu / Sq Ft


Total Tons 5055

Cooling Load Calcs for 10- Cells

10 - Cells kW BTU Tons

Load 41984 143249408 11937

Support Bldg



Space 60000 60 1800000 30 Btu / Sq Ft


Office Bldg






CUB


Space 168295 2 5048850 30 Btu / Sq Ft


Site Specific -Total Tons

12576

40111 5 - 17 July 2, 2004

Clean Dry Air (CDA) CDA, sometimes referred to as “oil-free air”, is required bymanufacturing equipment. Each cell has a significant usage of 3505 scfm at 60 psig.Corresponding air flow requirements for the ten cell facility is 35,052 scfm. The flow forone cell will be provided by three centrifugal air compressors and associated air dryers percell. A fourth, redundant air compressor will be provided for N+1 redundancy.

Natural Gas Natural gas is required to service the furnaces associated with theExtrusion/Calendar/Cutter manufacturing equipment. Natural gas is utilized for thesefurnaces for several reasons: gas furnaces are suitable for the process requirement, gasfurnaces are commercially available, and electrical requirements are reduced.

It is estimated that each production cell will require 10,000 cubic feet per hour (CFH) ofnatural gas. At full production, this equates to 100,000 CFH plus an additional 5,000 CFHfor other building uses. Dominion/People’s Gas has been contacted and this information hasbeen passed on to them. Dominion/People’s Gas was aware of a 105,000 CFH demand forone semiconductor facility and other smaller site buildings (office and flex space), and madea commitment to supply these needs. Dominion/People’s Gas has verbally stated they couldmeet the required additional 100,000 CFH.

BUILDING SHELL

The facility is planned to maximize the efficiency of the fabrication and assembly process,which results in a large (800- by 1000-foot) footprint. The large roof takes a saw toothconfiguration which allows solar panels to be arrayed facing south at the optimum angle tomaximize solar exposure. The north face of each saw tooth is used for air intake to theelevated air handlers and to bring high quality daylight onto the floor of the plant, improvingenergy efficiency and work place quality.

OFFICE AREA, SUPPORT SPACE, AND AMENITIES

The proposed facility has 80,000 square feet of area dedicated for office space, conferencerooms, research and development, training areas, a lunchroom/cafeteria, locker rooms,restrooms, and areas for support activities such as security, building maintenance, andsafety. The breakdown is as follows:

Office 19,300 sq. ft.

Conference Rooms 7,200 sq. ft.

Research & Development 7,500 sq. ft.

Training Space 2,000 sq. ft.

Cafeteria/Lunchroom 8,000 sq. ft.

Locker Rooms 5,300 sq. ft.

Restrooms 5,000 sq. ft.

Security 1,500 sq. ft.

40111 5 - 18 July 2, 2004

Maintenance 2,200 sq. ft.

Safety/Medical Supplies 1,300 sq. ft.

Office Mechanical 3,200 sq. ft.

Circulation/Egress 17,500 sq. ft.

TOTAL 80,000 sq. ft.

40111 6 - 1 July 2, 2004

Section 6PRODUCTION RAMP UP, ORGANIZATION AND MANPOWER

PROOF OF CONCEPT

Proving that the design of the product and the manufacturing process used to produce thepanel is the first critical step to gain confidence that the panel functions as desired and canbe manufactured as designed. This is the time to tweak design elements and manufacturingsteps so that pilot production can be focused on fine tuning the units of operation inpreparation of full scale production ramp-up. Appendix 7.0 contains a technical paper, co-authored by David Causey, who participated in the production of this report. This paperoutlines the challenges in transitioning from R&D (Proof of Concept) to pilot production,then to full-scale production.

PRODUCT DESIGN

To prove the design concept, it is recommended to complete detail design drawings of theCPC module components and assemblies and to produce prototypes on temporary tooling.All three panels of the module assembly could be produced on vacuum-forming equipment.This will enable the resolution of design issues such as the interface of the bottom panelwith the top/middle panel assembly to completing the vessel seal without incurring the costof hot press forming equipment and dies. Screen-printing and PV placement sensitivityshould also be verified.

PROCESS DESIGN

Once the product design concept has been tested and proven, the processing equipment andtooling can be designed and the first prototype cell installed. It is recommended that thisfirst cell contain the minimum equipment necessary to prove the manufacturing process.The prototype cell should contain one line of sheet forming equipment and the necessarydies to produce all three panels of the completed module. Again, vacuum-formingequipment would be suitable and, in fact, could be outsourced to save the cost of theequipment at this stage in product development. The screen print, PV, and cure processequipment should also be limited to one line in the prototype cell. The prototype cell willalso need to include all equipment necessary for water submersion, thermal, and chemicalbonding, as well as material handling of the panels and finished modules. The estimatedprice of this prototype cell could be up to $15,000,000 if all the process equipment ispurchased. This value includes approximately $10,400,000 for “one of” each primary unitprocess equipment, plus an allowance for material handling equipment, storage racks, leasedspace, and other miscellaneous costs. For prototyping, a leased space of 10,000 to 15,000square feet should be adequate.

PRODUCTION RATE

Once the process design has been verified, it is recommended to install one completemanufacturing cell to verify the production rate of the facility.

40111 6 - 2 July 2, 2004

PRODUCTION RAMP UP

Building ready will be achieved in Project Month 21. Equipment procurement, productionstart up. Ramp up to Production Capacity Target #1 (5 GW per year) will takeapproximately six months from the start of pilot line installation and will be achieved inProject Month Number 27, and will proceed in the following Phases:

n Product Line Install

n Pilot Line Startup & Test

n Manpower Training & Ramp Up

n Production Ramp to Target #1 – 5 GW per year rate (5,252,649, 4- by 8-footpanels per year)

After successful Pilot Line testing and commissioning, it is feasible to install approximately1 additional cell per month. This will allow capacity increases to meet Target #2 and Target#3, as follows:

n Production Ramp to Target # 2 – 30 GW per year rate (31,515,892, 4- by8-foot panels per year) – projected to be achieved Month 31.

n Production Ramp to Target #3 – 97 GW per year rate (101,901,384, 4- by8-foot panels per year) – projected to be achieved Month 47.

Ramp up from Production Capacity Target #1 to Production Capacity Target #2 will take anadditional four months and will be achieved in project week number 31. Interim ProductionTarget #2 will be achieved in approximately 22 months. This is the optimal ramp up periodthat can be reasonably anticipated due to equipment procurement lead times, installation andtesting, manpower hiring, and training requirements.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Units per Year

(Millions)

25 26 27 28 29 30 31 32 33 34 35 36

Product Life Cycle Month

Production Ramp Up

40111 6 - 3 July 2, 2004

These production capacity projections assume the following:

n 3 shift per day operations, 52 week per year.

n Installation of 1 cell per month.

n Availability of trained labor.

n Availability of production equipment.

ORGANIZATION RECOMMENDATIONS

The challenge for the Mök organization will be to meet changing needs as the businessrapidly evolves from the present stage of the business, the Initiation Stage, through theDevelopmental, Organizational and Expansion stages of the business. This will create a needfor an organization that can quickly make decisions in response to a changing companyenvironment as illustrated in the chart below.

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Panels per

Year (Millions)

37 38 39 40 41 42 43 44 45 46 47

Project Life Cycle Month

Production Ramp Up

40111 6 - 4 July 2, 2004

Early Stages of a Business

Stage Activity Characteristics Culture

Initiation

Great ideas

Selling it

Gaining commitment

Hands on leadership

Forming

Dependent

Gathering

New Venture

Entrepreneur (visionary)

Performer (task oriented)

Administrator (TOS, OAS)

Person-to-person contact

Product development &market development

Developmental Making it work

Testing it

Pressure to produce results

Moving from task to task

Produce & distribute

Short term orientation

Every opportunity a priority

Highly centralized

Informal

Leadership involved ineverything

Storming

Counter-dependent

Repeating

Expansion

Growing pains

Must develop infrastructure

Turmoil creates counter-dependence among withinthe organization

Start & stop of objectives

Operational systems

40111 6 - 5 July 2, 2004

Early Stages of a Business

Stage Activity Characteristics Culture

Organizational Organization takes onidentity

Time previously spentdoing & selling now spentplanning & coordinating

Administration rises inimportance

Functional structuredevelops

Policies and procedures areestablished

Salary systems

Accounting systems

Tension betweenentrepreneurs andadministrators

Management essential

Norming

Independence

Sharing

Professionalization

More formal planning

Develop a strategicplanning & managementsystem

Defined roles &responsibilities

Sensitivity and orientationto people

Management systems

Expansion Moving into prime

More focus on “out there”

Growing reputation

Need to determine level ofaspiration

Restructuring(decentralizing)

Mgt. Information Systemsfor expanded &decentralized structure

Manager/strategist(innovator)

Performing

Interdependent

Transforming

Consolidation

Maintain growth &development

Organizational culture

Acknowledgeorganization’s Missionimplementation strategies

Culture system

40111 6 - 6 July 2, 2004

Our proposed organization creates an important group of Corporate level managers withinoperations, consisting of a Corporate Supply Chain Manager, Corporate ManufacturingManager and Corporate Engineering Manager to assist the Director of Operations in thedevelopment and implementation of an integrated Strategic Plan and make timely decisionsto support the growth of the business.

Major functions in the recommended organization are as follows:

n Operations

n Administration and Finance

n Sales

n Marketing

n Human Resources

n Information Systems

Overall, the purpose of IDC’s recommendations is to help Mök Industries to initiate a lean,simple, efficient organization in alignment with the Lean Enterprise philosophy. Mostcompanies tend to concentrate their efforts to become lean on the process at the plant floorlevel. Lean is a human system driven by and focused on the customer. Therefore, theorganization and the culture must focus upon serving internal and external customers with aminimum of waste. When this is done successfully, it creates a pull system throughout theorganization. For these reasons, implementing as flat an organization as possible with theminimum number of sub-layers is recommended.

We also recommend organizing along functional lines. Combined with standardizedprocesses and organizations, a functionally aligned organization also promotes theconcentration of appropriate resources on the execution of strategic and tactical initiatives.The Mök organization should have the following general responsibilities at the Corporateand Plant levels:

40111 6 - 7 July 2, 2004

Corporate PlantManufacturing Strategy RegulationAsset Utilization Production EngineeringSupply Management 1st Line MaintenancePlanning/Estimating Liaison & Quality AssuranceManagement Accounts Cell SchedulingFleet Management WarehousingScheduling Reconciliation DistributionCapacity Planning/Forward PlanningFacilities & Specialized MaintenanceQuality AssuranceInventory ControlCost Control

In order to cope with the complexities of establishing and rapidly growing the business, thecorporate organization plan proposed is based on the following five specific objectives:

n Focus the entire organization towards an internal and external client serviceapproach.

n Clearly define the roles and interaction procedures between corporatemanagement and operations.

n Standardize systems, methods, procedures, objectives, and strategies for thewhole group.

n Minimize the levels of hierarchy within the organization.

n Minimize the number of personnel.

IDC’s recommendations are intended to divide responsibilities among managementfunctions to maximize coordination and control of the operational network, humanresources, and capital assets as described below:

n Corporate Administration and Finance Director

n Corporate Marketing Director

n Corporate Sales

n Corporate Human Resource Director

n Corporate Systems Management Director

n Corporate Operations Director

The resources required to undertake a supply chain optimization for Mök Industries includestrategic planning analysis, engineering analysis, material flow analysis, cost justification,

40111 6 - 8 July 2, 2004

project management, and system implementation. In the recommended organization, theseresources are controlled by Operations. Further, day-to-day operations of a distributioncenter are also the responsibility of operations. The Operations Director assumes direct lineresponsibility for Operations and the largest portion of the supply chain. Specifically, thisapplies to the entire supply chain, except the portion of the supply chain from the plant anddistribution center (DC) out to the panel array site(s). The purpose for centralizing allactivities related to Operations is to standardize systems and procedures across theorganization and optimize the entire supply chain network.

For the Director of Operations to assume the added responsibilities described above,resources with specialized skill sets will have to be included in the corporate organization.Care has been taken in development of the proposed Operations organization to assure thatthe number of direct reports to any individual is in line with responsibilities and the verticalfunctionality required of the new organization. Direct reports to the Director of Operationsin the proposed organization include:

n Corporate Supply Chain Manager

n Plant Manager

n Corporate Engineering Manager

A brief description of the responsibilities each of the corporate operations managers follows.Each of these managers will have a vertical functional responsibility down through the plant.

n Corporate Supply Chain Manager will be responsible for fleet management andcorporate purchasing support functions. At the corporate level, the Corporate SupplyChain Manager will have under him, a Corporate Purchasing Manager and aCorporate Fleet Manager. Fleet Management (transportation management) will beespecially important given the projected number of truck shipments.

n Plant Manager will be responsible for day-to-day manufacturing and distributioncenter operations. System standardization, utilization of assets, and meetingproduction requirements will be the critical drivers for this manager. Theseresponsibilities will be overseen through a functional vertical organization. Thisincludes day-to-day panel manufacturing operations.

n Corporate Engineering Manager. We recommended that a corporate sheet formingtechnical services group be reorganized under the Corporate Engineering Manager.This group will still be responsible for technical services support plant. TheCorporate Engineering Manager will have two ways of supplying technical servicessupport to the plant. First is a corporate engineering bench comprised of engineerswith specialized skill sets. The second method is through outsource engineeringresources brought in on an as-needed basis.

40111 6 - 9 July 2, 2004

To support the Director of Operations in both annual operations plans and strategic plans,IDC recommends that a strategic planning team will be formed at the corporate level. Fromthe operations side, the team will be comprised of Corporate Supply Chain Manager,Corporate Manufacturing and DC Manager, and Corporate Engineering Manager. Thiswould be a most effective group for planning purposes since from an operational perspectivethey are the ones ultimately responsible for system wide operations.

The organization at the plant level must be aligned to properly execute its tactical functionsand take advantage of the corporate and regional support structures. This alignment requiresa degree of standardization throughout the Mök manufacturing plant(s).

The IDC team has developed a “4-Dimensional” approach to cellular manufacturing thataddresses the integration of four major elements:

n Logistics & Control

n Organization & People

n Production Flow

n Performance Metrics

IDC’s recommended Plant Level organization is aligned to take advantage of the matrix ofsupport to value-adding operations.

The Manufacturing Support Manager will be responsible for making sure processes are setup to enable workers within the plant to do their jobs, motivating plant personnel,coordinating production support, and coaching.

ChairmanWilliam Mook

Vice Chairman

Sales DirectorMarketingDirector

Operations DirectorHuman

ResourcesDirector

Info. SystemsManagement

Director

Corp. SupplyChain Mgr.

Corp. Engr.Manager

Corp.TrainingManager

Admin & FinanceDirector

Corp. FleetManager

Corp. PurchasingManager

Engineering BenchOutsource

Engineering

Plant Level

40111 6 - 10 July 2, 2004

The organizational practices of lean operations, which include the transition to cellularteams at the plant level, are an essential element of IDC’s recommendations. To besuccessful, however, team-based processing will also need to include all four dimensions ofcellular processing.

IDC’s proposed organizations for cells are based on start-up requirements. Theserequirements will be reduced as improvements are made to the cell. For example, the CellLeader is a temporary position and will be phased out as the cell teams gain experience.

The use of cell teams for demand-pull processing will have a substantial effect upon theworking culture and the management organization. Traditional hierarchical chains ofcommand are replaced by task oriented teams working in a matrix style organization.Leadership within each cell must replace the current emphasis placed on extra-cell control.Tasks and skills including such functions as production engineering, production control andmanagement services will, be the responsibility of cell team members.

Cell support personnel will consist of a Process Engineer, Scheduler, Logistics Planner,Quality Engineer, and Maintenance Technician. Representatives from each of these will be

Shift Leader

Facilitator

Operators

Cell LeaderFab & Test Cell

HumanResourcesManager

AdministrationManager

ManufacturingSupportManager

Logistics/WarehouseFleet Supervisor

ProcurementSupervisor

Quality Control

Plant Manager

ProcessEngineering

Manager

Maintenance

Scheduler

Cell Support Team

Director ofOperations

Typical Cell(10 required)

Shift Leader

Facilitator

Operators

Cell Leader Fab & Test Cell

PLANT LEVELORGANIZATION CHART

40111 6 - 11 July 2, 2004

allocated responsibility for specific cells and individual resources will be shared amongmultiple cells. These functions will play a more consultative or advisory role in the futurethan at startup, eventually becoming “centers of excellence” where cell teams can go toobtain skills and information that they will apply on their own initiative.

STAFFING RAMP UP

Corporate Staffing at full production, 3-shift operations will equal approximately 104people. It is advisable to begin assembling the corporate staff as soon as possible afterinitiation of facility design in order to ensure the ability to acquire manufacturingequipment, hire personnel, develop and administer training programs, handle financialmatters, install and test equipment, and complete other key activities required formanufacturing startup as soon as the facility is ready.

THE CELL CONCEPTSpecialist Support People

Centers ofExcellence

• Prod. Engineering• Quality• Maintenance• Information Services

The Cell Leader• Trained as a

leader• Has most skills• Understands

cell logistics

Multi - SkilledProduction Team

• Cell containedwithin well definedboundary

• All processesowned by the cell

• Cell teamaccountable for itsown performance

inputs :

Fit for purpose• materials• tools• information

Outputs:• products on time• rapid response• performance

data

40111 6 - 12 July 2, 2004

The hiring and training of manufacturing personnel should begin approximately 3 monthsprior to initial pilot production and equipment commissioning. The followingmanufacturing manpower ramp up chart assumes that corporate staff is already on board.

Manufacturing staffing at full production, 3-shift operations will equal approximately 555people.

Recommended Corporate Staffing

Headcount 3-Shift OperationPre-Start Start Full Prod

Chairman 1 1 1Vice-Chairman 1 1 1Administration & Finance Director 1 1 1

Accounting Department Staff 3 5 10Administration Staff 16 18 20

Sales Director 1 1 1Staff 1 1 1

Marketing Director 1 1 1Staff 1 2 2

Operations Director 3 3 3Information Systems Director 1 1 1

Staff 2 5 8Human Resources Director 1 1 1

HR Asst. 2 3 5R&D Director 1 1 1

R&D Staff 3 3 3Corporate Supply Chain Manager 1 1 1

Purchasing Manager 1 1 1Staff 2 2 4

Fleet Manager 1 1 1Staff 2 3 6

Corporate Engineering Manager 1 1 1Outsource Engineering Manager 1 2 2Engineering Bench Staff 7 14 21

Corporate Training Manager 1 1 1Staff 2 3 6

Total Corporate Staff 58 77 104

40111 6 - 13 July 2, 2004

TRAINING RECOMMENDATIONS

At a minimum, training programs must be established for start up operations as follows:

n Indoctrination, company policy – internal training

n Safety Training – internal training

n Machine operator training for cell team members – vendor supplied

n Lean Manufacturing training for all employees – outside supplier short term,internal training long term

n Work team dynamics training for all cell team and cell support teampersonnel - internal

n Routine maintenance training for cell team members – vendor supplied shortterm, internal long term

n Equipment Maintenance training for maintenance personnel – vendorsupplied

n Information systems training for administrative and support personnel –systems supplier short term, internal long term

These training programs must be developed prior to the hiring of plant staff andimplemented/expanded in alignment with manpower and operations ramp up. Werecommend that the development and implementation of internal training programs shouldbe the responsibility of the Human Resources manager and developed with the assistance ofoutside resources as needed.

Manufacturing Manpower Ramp Up

0

100

200

300

400

500

600

21 23 25 27 29 31 33 35 37 39 41 43 45

Project Life Cycle Month

Hea

dcou

nt

pages 1-42 from mok report

Documents