Exhibit 3 Netbook Assembly Line

Station Operation #

1
2
1
3
4
5
2 6
7
8
3 9
10
11
4 12
13
14
15
5
16
17
18
19
6
20
21
22
23
7
24
25
26
27
8
28
29
30
31
9 32
33
34
35
36
10 37
38
39

COGs 218.8
 Total Assembly Line Workers per Line
Material Handlers per Line
Supervisors per Line
Labour Cost per worker per month
Total Estimated Production of Plant per Month
Total Estimated Revenu to the Firm per Month (Assuming 100% sales)
Total Estimated Cost to the Firm per Month
Profit
Margine of Profit Lost due to Inefficiency in the System/per month
 Description of Operation Planned Time (in seconds)

Lay out principal components on conveyor 10

Examine parts for visible defects (scratches, dents) 12
Scan serial number barcodes 12
Peel adhesive backing from cover assembly 6
Attach webcam cable and secure to frame of cover assembly 15
Insert webcam into cover assembly 20
Put screws for station 3 in tray on conveyor 5
Connect LCD cable to display 12
Install LCD display panel in cover assembly and secure with screws 22
Put screws for station 4 in tray on conveyor 5
Install Kota motherboard onto base assembly 17
Secure Kota motherboard with 6 screws 18
Put screws for station 5 in tray on conveyor 5
Install and screw in solid-state hard disk drive 19
Connect hard drive cable to motherboard 11
Place insulator sheet on hard drive 4
Put screws for station 6 in tray on conveyor 5
Screw in microphone to base assembly 16
Connect microphone to motherboard 11
Install support frame on base assembly 8
Put screws for station 7 in tray on conveyor 5
Install speaker holders and speakers 16
Secure speaker assembly with screws 10
Connect speaker cables to sound card 9
Put screws for station 8 in tray on conveyor 5
Connect backup battery and clock battery 9
Check voltage of clock battery and backup battery 13
Install wireless card to motherboard 10
Put screws for station 9 in tray on conveyor 5
Install touchpad and screw onto base assembly 5
Install keyboard support plate on base assembly 8
Screw in support plate 13
Install keyboard onto base assembly 10
Put screws for station 10 in tray on conveyor 5
Turn machine over and put screws into base assembly 8
Tighten screws to secure base assembly 12
Install connector protective flap to base assembly and cover assembly 8
Install battery pack and cover 8
Place assembled laptop on rack for transport to QA 4
Total Number of stations
Required Number of
/Unit Product
Shift Duration
 Estimated Cycle Time/Shift
Work days
Shifts
Sales Price

Total Assembly Line Workers per Line

Material Handlers per Line
Supervisors per Line
Labour Cost per worker per month
Total Estimated Production of Plant per Month
Total Estimated Revenu to the Firm per Month (Assuming 100% sales)
Total Estimated Cost to the Firm per Month
Profit
Margine of Profit Lost due to Inefficiency in the System/per month

Difference in Production (planned - achieved) 6593

Question 2.b
Expected Demand Rise 130000
% of demand surge as to planned capacity 255%
 Station Time

Actual Time Actual

Planned Workers per
(measured Workers per Factor Planned
Station
October 15) Station

10 0
12 0
1 1 40
12 0
6 0
23 1
1 21 1.2 1 40
6 1
12 0
1 22 1.2 0 39
5 0
20 1
1 19 1.2 1 40
6 1
19 0
11 0
1 1.2 39
4 0
5 0
21 1
14 1
1 1.2 40
9 1
6 1
22 1
11 1
1 1.25 40
10 1
6 1
9 0
13 0
1 1.25 37
10 0
5 0
6 1
9 1
1 15 1.25 1 41
12 1
6 1
9 1
13 1
1 10 1.25 1 40
9 1
5 1
Limiting time of
10 41
Cycle
700 /Shift Total Time 396
Total Production
28800 Sec 702
per Shift
 41.1 Efficiency 97%
6 /week
2 /day
240 /Unit
Planned Measured
10 12
0.5 0.5
1 1
$ 5,750.00 6750 Planned
36500 Units 36627
$ 8,760,003.84 $ 8,790,526.50
$ 7,986,203.50 $ 8,014,029.99
$ 773,800.34 *Required $ 776,496.51
$ 139,769.37

/month
Station Time

Measured

40

50

39

45

39

50

49

37

48

46

50

443

576
 89%

Achived
30034 Units
$ 7,208,231.73
$ 6,571,504.59
$ 636,727.14
Exhibit 4 AIC Systems QuiN 816 cost breakdown

Selling Price (FOB Yantian) $ 240.00

Manufacturer GM 8% $ 19.20

Processor and other integrated circuit boards 21% $ 50.40

RAM 4% $ 9.60
Solid-State Hard Drive 24% $ 57.60
LCD 13% $ 31.20
Battery 3% $ 7.20
Software 5% $ 12.00
Other Components 11% $ 26.40
Labor (Assembly, Packing, Loading, Delivery) 2% $ 2.80
Manufacturing Overhead 9% $ 21.60
Manufacturer COGS 92% $ 218.80

$ 4.80

$ 139,769.37
 Profit vs La
$160,000

$140,000
f(x) = − 6592.89487609751 x + 158
$120,000

$100,000

$80,000

$60,000

$40,000
Price Profit
$ 2.80 $ 139,769 $20,000
$ 3.80 $ 133,176 $-
$ 4.80 $ 126,584 $2.50 $3.00 $3.50 $4.00 $4.50 $5.0
$ 5.80 $ 119,991
$ 6.80 $ 113,398

Slope -6592.9
 Profit vs Labour

f(x) = − 6592.89487609751 x + 158229.477026341

3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50