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The main appeal of the Kroozers is the careful attention KBI pays to all details of production. It is Cam's policy to inspect and sign
The main appeal of the Kroozers is the careful attention KBI pays to all details of production. It is Cam's policy to inspect and sign each frame personally to denote its authenticity. Cam and Bill are currently working full-time with no additional capacity. Cam and Bill's working hours are the bottleneck in production and are the main constraint. Cam believes that the production hours required per bike could be reduced by 40% if KBI created a more efficient workspace and segregated tasks that are not directly related to manufacturing. KBI would need to double the shop space as well as hire a third employee for tasks such as unpacking inventory and cleaning up the shop. Early indications are that Cam could lease a building with double the space for an additional $1,000 per month. The cost of a third employee is estimated to be $2,000 per month. Moving to a new location and expanding production would require a significant cash infusion. Although KBI has only used a website and word of mouth as marketing tools, Cam and Bill have been overwhelmed by the number of orders KBI receives. Given the built-up demand for Kroozers, Cam feels that it's time to
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