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True Dimensions – Technology & Operations
4.1 FlogistonTM Technology
The core of FlogistonTM technology is the patented modified neutral body posture which allows the body to relax in its natural position. This posture minimizes internal and external physical stress so that all muscular forces are in balance and the body is in bio-mechanical equilibrium. The FlogistonTM Chair’s high-tensile strength aircraft aluminum hull flexes in response to the body’s movements. The chair’s inherent responsiveness provides the occupant with a floating sensation, much like the feeling experienced in zero gravity. Ergonomically designed, the frame also provides correct lumbar support.
The FlogistonTM Chair’s features break traditional industry paradigms. For example, a common myth is “more cushion means more comfort.” By incorporating high density, temperature-sensitive softening memory foam, the FlogistonTM Chair conforms to each person’s body for a customized fit. Also, it is common for most furniture to have a narrow footspace, even though the body relaxes best with the feet placed in a wider stance. The chair features a wider footspace to satisfy this natural drive. These unique features combine to provide a minimal stress environment, allowing the FlogistonTM Chair’s occupant to escape and experience the most natural flow of peace and deep relaxation.
4.2 Manufacturing Operations
True Dimensions is currently outsourcing all phases of production. This strategy has eliminated the need for extensive fixed assets while maintaining flexibility in design and production. It allows the company to focus attention on sales, marketing, and product development to establish initial market acceptance. True Dimensions has streamlined the production in two primary phases:
- Hull construction — Sheet aluminum is laser cut, formed, and a black epoxy finish is applied to create the chair frame. Initial hull production orders will be in quantities of 20 to 50. O’Neal Steel in Houston, Texas, is the current aluminum hull supplier.
- Upholstery construction — Dense, high memory polypropylene foam is cut and trimmed. Fabric or leather is cut and stitched. The chair is completely assembled, packaged, and side-marked according to the customer’s shipping instructions. Mirland Custom Design of Dallas, Texas, currently handles upholstery and final assembly.
Production scheduling, order entry, shipping releases, and invoicing will all be handled by True Dimensions. Current product cost breakdown is as follows:
|Task||Current Vendor||Cost||Lead Time|
|Aluminum fabrication||O’Neal Steel||$220||2-3 weeks|
|Upholstery & assembly||Mirland Custom Design||$370||1-4 weeks|
|Hardware & packaging||Miscellaneous||$ 57||2 weeks|
|Total||$647||4 – 6 weeks|
Production Insourcing Transition:
When sales reach approximately $60,000 a month, it becomes economically viable to manufacture the products in-house. We will realize several advantages:
- Increased operating leverage and reduced variable costs
- Greater control and flexibility in manufacturing
- Quality inspections will be easier.
The initial production facility will be approximately 5,000 square feet and will focus primarily on upholstery and final assembly. Initial fixed machinery costs will be approximately $20,000.
|True Dimensions, Inc.|
|Table of Contents||Appendices|
|0. Executive Summary
1. The Company
3. Market Analysis
4. Technology & Operations
5. Customer Interviews
6. Marketing Strategy
8. Risk Analysis
|All information herein is confidential and belongs to True Dimensions, Inc.|