Cordless Drill Productivity Goals
An individual should be set up for on-demand production of 36 drills per month as the OSE requirement to meet stocking requirements while remaining efficient.
The proposed format is using 3 dedicated production days - the rest being 3D printing in the background, and possibly other automated jobs that run without attendance once set up.
Each production day should yield 12 drills assembled in a period of 8 hours - assuming all parts are printed and avialable for assembly. The 8 hours does not consider printing and part manufacturing, outside of potential minor fabrication tasks. Ie - all materials must be on hand.
Set up time for engaging a production run should be 1 hour. That means a dedicated space is available, without requiring setup time.
Part ordering and supply chain management for a production run should take 1 hour for 12 drills.
Marketing must be guaranteed based on contacts with local stores, or an online store can be set up.
Ideally, we do a pilot with 100 producers getting engaged the first time around. OSE gets paid to maintain the marketing and R&D infrastructure. This means once the model is operational - the project must have a full time staff managing the production of cordless drills and the education infrastructure around that. Clarity of operations prevents a bureaucracy from starting. Once a process is defined, franchises are set up in all countries, where each franchise runs independent operations, and everyone collaborates on development by contributing the required time to make improvements based on OSE development goals. These goals focus primarily around Technological Recursion, standards, and education.
In order for an 8 hour production run to yield 12 drills, the process must be optimized for a seamless build.
If 12 drills are made per day at $75 profit each - that is $900 per day. That is fair, considering time spent in printing parts. Overall revenue should be $50/hour ($100k/year equivalent) when all required duties are considered. For example, Black and Decker has $13B revenue, 57k employees - $228k revenue share per employee. Since our operation will be more lean - this is comparable. OSE profit per drill is expected to be higher (75% gross, not including labor(Black and Decker is 16% net profit margin. 36 gross profit margin ), a $100k revenue to business owner should be 'equivalent' to $200k given the double gross profit margin of OSE operations. Heuristically, this meets or exceeds industry standards for efficiency - compared to the most successful corporations (evidenced by the fact that they are in business).
To succeed for low startup - a 2' bed printer may be necessary to print the organizing infrastructure - cabinets, etc - for the production run.
Supply chain must be simple, robust, redundant, COTS. Rare parts must be stocked or at best substituted. The cordless drill lends itself particularly well to this.
- What is the number of drills that a person must build?
All in all, this is a perfect case of a distributive business model - with a technology that is just the right complexity -not too hard, not too easy - to make a value proposition based on knowledge capital translated to production.