Summary Page of Proposal to Automate Carlson Cameras prepared by Michael Rosen, Starville Robotics

1.In the enclosed proposal, I will describe how Starville Robotics can provide a robot-only assembly line
for Carlson Cameras. This technology will reduce costs, increase productivity, and improve quality. With
these benefits, Carlson Cameras will gain the competitive edge it needs to increase its share of the digital
camera market.

2. Carlson Cameras faces several challenges with its current, nonautomated assembly line. The cost of
labor is rising, and productivity levels have not increased despite attempts to improve. Without the aid
of technology, human operators cannot achieve the precision required to make Carlson Cameras
products the highest possible quality.

3. By implementing a fully automated assembly line, Carlson Cameras can reduce the number of
necessary employees. These reductions will significantly lower its cost of labor. Although same
investment will be required to retrain employees, the savings in labor costs will outweigh this one-time
expense.

4. Starville's technology will increase both productivity and quality by reducing human error and
improving consistency in assembly. By controlling the precision and speed of the robots doing the
assembly, Carlson Cameras will build products exactly to specifications at a rate that meets the needs of
its market.

5. We estimate that productivity at the Carlson facility will increase by 30% within one year of
implementing our technology.

6. Our projections indicate that after seven years the increase in Carlson Cameras profitability will have
paid for the investment in Starville technology.

7. With more than 20 years of experience, Starville Robotics has enabled numerous companies improve
productivity. We look forward to helping Carlson Cameras succeed in an increasingly competitive market.

Email Regarding Starville Robotics Proposal

From: Amy Chandler, Manager, Carlson Cameras

To: Marcia Anderson, President, Carlson Cameras

Subject: Starville Proposal

Marcia,

8 After reviewing the Starville Robotics proposal, I would caution you against adopting a robot-only
assembly line. I have serious doubts that this technology would improve our productivity.

9 Although labor costs are high at Carison Cameras, our employees are highly skilled and have years of
experience assembling our products. We continuously encourage our staff to improve their skills through
workplace education programs.
10 Statistics from our Quality Assurance (QA) department show improvements in our products. The
investment we have made in our employees is paying off, and the statistics from QA and recent sales
numbers prove that.

11 I understand Starville's point about precision and speed. Our assembly line will never be as precise as
Starville's automated version would be. However, the more precise the machines are, the more precise
the materials and parts the machines are working with need to be. Our employees have no difficulty
with the parts we receive from our current suppliers. The suppliers' parts vary slightly in specification,
but our employees use their expertise and judgment to make these parts work. Would this precision
assembly line be able to do this?

12 With Starville, we would have a large initial investment, which the robotics company says we
would earn back after seven years. However, we would also need to invest in maintenance and
replacement parts as the machines age. Another issue Starville does not mention is the speed at
which the robotic industry is changing. Starville's assembly line might be state of the art now,
but for how long? We should not make such a substantial investment in something that might be
obsolete in a few years. I have also looked into the potential impact on employment. While the
proposal suggests that automation would reduce labor costs, it fails to consider the potential backlash
from our employees and the community. A sudden shift to a robot-only assembly line could lead to job
losses, damaging our company's reputation and employee morale.

14 Furthermore, the human touch in our assembly process is something that sets Carlson Cameras apart
in the market. Our customers appreciate the craftsmanship and attention to detail that our skilled
employees bring to the manufacturing process. Moving to a fully automated system could compromise
the quality and uniqueness of our products.

15 I propose that we explore alternative solutions that leverage both technology and human expertise.
We could consider implementing some automation for repetitive and time-consuming tasks while
retaining skilled workers for more intricate processes. This hybrid approach could strike a balance
between efficiency and maintaining the high standards our customers expect.

16 I am open to discussing this further and would be happy to collaborate on researching and evaluating
other options that align with our company's values and long-term goals. Let me know when you're
available to meet and discuss this in detail.

Best regards, Amy Chandler Manager, Carlson Cameras [Contact Information]