Mathews Technical Services, Inc. www.mathewstechnical.com (636) 723-3000

1. On setting up for an order we determine if the order is going to be recurring, and if so, we build up a strategic parts kit dedicated to this assembly. The items that are common parts in our general inventory are not loaded in this kit, but only the long lead time, special order, and "gating" parts. We keep the materials on hand to respond, but we save the value added labor for just prior to test and delivery, and this is done to avoid rework and confusion.

2. Some of our automated competitors may run a batch of 100 or more for a client that uses 20 at a time. Then they hold this stock and deliver against releases. This is dangerous! Small batch products quite often require component changes, firmware (software) upgrades, and are often configured differently on each batch released. The units that are held in stock against future orders must be pulled out for rework, testing, and restocking each time the OEM puts in a change request. We have seen terrible arguments and trouble erupt over who pays for this rework and about exactly what revision the assemblies conform to at a given time. When an order does not really fit a company's production model, running a larger batch than required is a situation that ties up the operating capital of the assembler, muddies up the configuration and revision process, and puts the assembler and OEM into an eventual risk of disagreement and controversy.

We are not a desperate, smallish, automated plant that has found our equipment idled by fierce competition and is attempting to stay alive by booking some short runs, and prototype jobs to pay the bank until some larger orders can be found again!

Mathews Technical Services was created for the niche it services and has never lost its vision about what it is providing to our valued clients!