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VALUE ADDED SERVICES <br /> <br /> Currently, the VAS department is <br />operating at 80% efficiency, up from 50% <br />in 1995. Additional improvements are <br />expected to be made in 1997, with a <br />reengineering of the product line, which will <br />expedite process flows. <br /> <br /> Remarkably, the departments <br />highest costs are not labor related, rather <br />packaging lists as the highest cost. <br />Significant improvements have been made <br />to reduce costs by increased recycling <br />efforts and lower packaging prices due to <br />higher volume purchases. <br /> <br />The department produces an average of 40 orders per day, equaling roughly 12,000 per year. <br />Capaci¢' has not been met with the department currently running on only one shift, there are <br />plans in the future for a two shift operation. Anticipated growth rate's range between 20-30% and <br />additional floor space was set aside for new assembly lines in the future. The current site, will <br />enable Stanley great flexibility, to meet increases in demand for a wider variety of customers <br />without dramatically increasing costs. <br /> <br /> <br />