2MBA Production Plan The initial assembly plants for the MVU and La Barista will be located at the Arsenal Business Center in Philadelphia. 7.1 Production Policy 2MBA, Inc. will outsource production aspects where possible. Components are delivered on a "just-in-time" basis. Quality checks are in place throughout the assembly process (Appendix E). 7.2 Plant Location and Layout Based on the Australian production experience, the five divisions (MVU assembly, La Barista assembly, Administration, R & D, and Warehousing) will be housed together. A total floor plan of 2,400 square feet will be sufficient to house these functional areas (see Appendix E). Systems approach to assembly Scaleable factory design

7.3 Production Capacity (units)

7.4 Production Scheduling

The manufacturing process is supported by sophisticated production management software. It consists of a fully relational database which keeps track of inventory and invoicing and it produces detailed job cards for each day's operations.

7.5 Supplies and Inventory

To ensure a consistently high quality product in both the MVU and La Barista, "hospital grade" stainless steel and other quality components are used. Efficient and accurate stock control is vital for the manufacturing of the MVU (which comprises over 270 parts) and the La Barista. Stock is managed through in-house software, specifically designed for the 2MBA, Inc.'s manufacturing process. The system enables management to instantly access:

• All parts and materials on hand
• Raw materials required to meet orders placed
• Suppliers database with lead times, credit terms, price and contact details
• Under and over stock warnings
• Payment due date and credit position
• Quality control is a standard procedure at the completion of every task.