WWW LLC was founded in 2010 to provide wind turbine products and services separate from its parent company. It currently supplies systems to a major wind turbine company, but seeks to expand into new markets. The document outlines WWW's plans to:
1) Improve processes like quality control and production to achieve higher scores from its client and retain business as the client considers dual sourcing.
2) Grow sales with its current client by over 23% in 2011 through additional system kits and parts. It will target gaining work on a new cooling platform and increasing customer engagement.
3) Expand into the wind turbine operations and maintenance market by providing innovative products and services addressing drive train issues.
7.pdf This presentation captures many uses and the significance of the number...
Business Plan Sample By Alan Ray
1. WWW Company
WWW: Improving the efficiency of wind turbines
111 Drive • ANYPLACE , USA
Phone 123-456-7890 • Fax 123-456-0987
www.www. com
WWW LLC- Business Plan
Alan Ray, March , 2011
1. Executive Summary
WWW LLC was founded in 2010 to provide a dedicated focus on growing wind OEM and aftermarket
products and services separated from the parent company.
In 2003 the parent company began designing OEM hydraulic, lubrication, cooling and ancillary systems
for a Wind Turbine Company. First prototypes were delivered in late 2004 and installed on the first
prototype turbine in Wyoming in early 2005.
The first production systems were delivered in early 2006 and full scale production commenced in late
2006. By fiscal year ending 2010, WWW had supplied over 650 systems.
Over the past 7 years, quality and component failures have affected several systems. These problems
forced WWW into making process changes to improve the quality management systems, engineering &
design, component selection, testing and the implementation of production and inspection process
improvements. It also opened up opportunities to service systems at turbine sites and gain valuable
experience in wind turbine field service and an understanding of the many issues wind farm owners and
O&M personnel experience.
With a growing knowledge base, the future WWW business will need to create growth opportunities in
new ventures outside of the current OEM business with a focus on turbine drive train product
enhancements, replacement parts, oil changes, up-tower inspections, training and maintenance.
The challenge is to create business opportunities unique to WWW that differentiate our services from
other providers.
Wind Industry in the United States
Over the past 5 years, there has been rapid growth in wind turbine installations in the U.S. that should
continue in the future as shown in the graph below.
2. WWW Company
With the growth in wind, there have been numerous challenges for wind farm owners to keep their assets
running in peak condition. Gear box problems have been prevalent with all manufacturers. Premature
gear damage, micro-pitting and bearing failures are common.
Improvements in gear oil and gear manufacturing have improved the operating performance of gear
boxes, but the 20-30 year predicted life manufacturers had initially forecast has not been achieved.
With literally thousands of wind turbines coming off of warranty, numerous wind specific service
companies have formed over the past several years. WWW is in a unique position to capitalize in this
newer market by providing services and products that other companies can’t that address and fix the root
cause of failures and maintenance issues. GE Wind, which has the largest installed base in the United
States, will be one of Winddrives main targets for business growth. The service side of WWW is
discussed later in this business proposal.
2. Wind Turbine Company- Business Retention and growth
The current business with the wind turbine company generated revenue of $XX million in 2010.
WWW supplies 129 unique system kits as generated through our engineering group and over 600 parts in
total including replacement parts. With numerous components, challenges to produce 100% accurate
and quality systems are very real.
In order to retain the current business and grow with new opportunities with this company, WWW must
first improve processes in quality control, production, purchasing, Inventory management, engineering
and on-time delivery.
The wind turbine company measures their vendor’s performance via a score card that is issued monthly.
The score card is viewed by all key management personnel within the company and top level managers
at their parent company.
Grading is based solely on the number of NCM, Non Conformance parts, Corrective Actions and
deviations. In mid 2011 on-time delivery will also be measured with a deviation of +-5 days. In 2010,
WWW ended the year with a score of 82 out of a possible 100. This score is the result of multiple NCM’s,
CAPA’s and several deviation requests. Furthermore, the on-time delivery measured was 88%, although
there were discrepancies based upon our promise dates.
As of February 17, 2011, the WWW score was 86. The goal is to reach a score of 92 by June 1, 2011
and a score of at least 96 by year end 2011.
2.1 Achieving success and score card improvement.
2.1.1 Quality System Improvements
WWW will, in the short term, utilize our parent company’s Quality Value Improvement Manager to help
develop, assist and implement quality process improvements from the point of manufacturing to delivery.
A quality engineer will be hired within the next several months reporting to the Quality Director. The
addition of this person will facilitate better quality control on the plant floor and free up the Director’s time
to focus on management duties. The Director of WWW the Quality group in creating and validating
process improvements and in training of the new quality engineer in the quality program to see that it is
executed from the start of a job through to the point of QIL (Quality Inspection Lot) issuance to the wind
turbine company to shipment from WWW.
Confidential Page 2 of 17
3. WWW Company
A reduction in NCM”s is paramount to our success and so key metrics will be measured and shared with
the Quality and production teams. Personnel must be held accountable for multiple quality infractions.
Employees must be committed to continuous improvement via their skills, manufacturing techniques and
inspection of completed products. A reward structure will be created for assemblers that show
improvements and an ongoing effort in becoming high performers, suggesting process improvements that
are implemented, catching vendor and product mistakes prior to escapes to the customer and a
commitment to participate in training programs that benefit the success of our business.
The actual reward structure will be created by production, sales, engineering and the WWW Director.
This will be completed and implemented by 5/1/11.
2.1.1.1 Hose Kitting- Shadow Board System
We have evaluated this technique and have found that this process change is not the best solution.
Instead, a hybrid version of process changes on incoming and outgoing inventory and photos of the hose
kits, as built will help assemblers’ process kits accurately.
Confidential Page 3 of 17
Quality issues and how they’ve been addressed.
Defective parts. Some should have been caught up front, others would not have been as defects
were not visible. With the Hanel system, there should be better accuracy in parts inventory.
Un-crimped hoses- This is less likely now due to the layout and process flow in the hose
department having one individual perform a certain task.
Projectiles in hoses or tubes: This is a rare occurrence, but has been addressed via the puck
verification system and by having only authorized individuals performing the task on kits.
Parts counts off: Addressed through process flow in hose department. Less congestion and one
person responsible for assembly of kits. A weighing confirmation system may be implemented.
Incorrect part: Addressed through Hanel system and process flow through hose department.
2.1.2 Production Process Improvements
WWW supplies over 129 unique production jobs to the wind turbine company. Challenges of producing
products in a timely manner have been an issue for several years. There are steps that WWW will
implement to simplify and improve the production processes.
Kan Ban
1. Reduce the number of job entries per turbine purchase order. Currently, there are multiple
vendor releases and pick tickets for any given system we build. Reducing the number of vendor
releases for products into only several releases will reduce the burden on production and supply
chain coordinators. It will also replenish our inventory at higher levels in order to “build-to-inventory”.
Furthermore, releasing pick tickets in several build cycles for Kan Ban will allow our
assemblers to have access to as many parts as needed to build kits…not to the purchase order
release, but to our build to inventory program.
This process change will improve performance in several areas.
o Labor from assemblers: instead of searching for parts, waiting for parts and not
knowing until the last minute what job they may be working on, the assemblers will have,
to some degree, an open book to build as many “kits” as can be completed in a given
time frame. Overhead and the cost to build systems will be reduced, improving the
bottom line.
o Inventory pull: Less time pulling parts by the shipping team will reduce labor and time to
get parts.
4. WWW Company
o QIL Submittal: QIL’s will be submitted a minimum of one week in advance of the
shipment schedule. This will allow time for the WWW quality engineer to validate and
issue the QIL plus time for the Turbine Company QA engineer to acknowledge back the
QIL. This process change may also reduce or eliminate the weekly call schedule and
review of orders with the client can simply move up our out (within reason) the shipment
schedule. This process will save everyone time, improving efficiency and quality by
minimizing rush builds/QIL’s and increasing our value to the client.
o Truck shipments: by building to inventory, we may take advantage of shipping
production plus non-production (Fleet) parts to fill trucks, lowering the overall shipping
costs to the client.
o Emergency Shipments: With the ability to react quickly to customer release change
requirements and emergency needs, build to inventory will allow WWW and the client to
react quickly to delivery needs.
2. Supply Chain - Reduce the number of P.O releases from our vendors. Currently, there are
multiple releases for jobs. By reducing the release schedule, we may be able to take advantage
of lower costs from our vendors and a reduction in the overall shipping cost. The process change
is relevant to the improvements noted above. Our supply chain director is aware and making
process improvements.
3. Create Weekly Build Goal: Based upon the Production build plan, a chart will be available to
the WWW assemblers showing the production system build schedule for the week. The
assembler will have a voice with the ability to work on any particular job in order to meet the
schedule by the end of the week. With the Kan Ban -Build to Inventory Process, this process
change will improve productivity simply by giving the assembler access to multiple components
for systems at all times. There will be no need to request parts, emergency pulls, etc. The goal
is to keep our technicians working efficiently at all times.
Confidential Page 4 of 17
6. WWW Company
2.2.2 2011-2013 Client Growth Plan
As our client’s growth continues, the company’s supply chain has been tasked to reduce costs and target
dual sourcing for key components. We have seen evidence of dual sourcing on certain hose kits and
other systems, such as our HPU are being targeted.
Dual sourcing consists of a primary and secondary supplier. The primary supplier may get substantially
more business opportunities then the secondary. It is imperative that the WWW score card improves in
order to maintain primary status. It is also important that we continually investigate areas of improvement
in production, pricing and component design. The better we can differentiate our products and services
the more likely we will retain the current business and have opportunities for future growth.
In late 2011, our client will be implementing a new cooling platform for the their turbine. This new
platform will consist of a fan-less radiator and a combined water glycol/ gear oil plate type heat exchanger
for gear box and generator cooling. WWW was not awarded the design phase of this program in early
2011; however, we will have the opportunity to participate in the build proposal phase that should occur in
August of 2011.
Growth through key differentiators may achieve success in this program. Human Centered Design will be
incorporated to re-evaluate the client’s design prior to WWW’s proposal phase in manufacturing. No
other vendor is offering this type of service to my knowledge.
As the client’s turbine design is reaching maturity, WWW opportunities within the current lubrication and
hydraulics systems will be limited. Growth may continue as production increases, but there must be
additional areas that we target including electrical equipment such as the PDP panel and TCU.
2.2.3 Customer Engagement and Human Centered Design
In the coming months, WWW will evaluate the need for a dedicated sales engineer to call on the client on
a regular basis. With the director’s focus on the overall operations of the company, this addition will free
up his time to implement the growth strategies and build out the WWW business into different wind
segments while providing a dedicated focus on additional growth within our current client..
With our HCD knowledge asset, WWW can provide a unique tool to our client on an existing or future
project. The logical first choice will be the new nacelle cooling system, but other areas included in the
nacelle including the PDP and TCU will be investigated. Continued interaction with key decision makers
at the client is important to build upon our past successes.
Confidential Page 6 of 17
2.2.4 Kan-Ban at the client
As WWW institutes our internal Kan-Ban /Build to Inventory program, we will engage our client on
participating in an on-site Kan-Ban at their facility. The client can maintain additional inventory, owned by
WWW to supplement their changing build requirements. Through a pull system, they we will be able to
implement kits in our Kan Ban program on an as needed requirement.
A 7 day stock program at the client coupled with WWW stock will mitigate problematic inventory and
supply chain issues. Our plan will be to include key production systems as well as parts within bins
utilized by Fleet Services.
The Kan Ban system will be targeted for complete integration by 3rd quarter 2011. Possible on-site
maintenance will be investigated concurrently to determine if there is additional value to the customer and
financial growth for WWW.
7. WWW Company
Confidential Page 7 of 17
3. WWW Services
As we build out our OEM business with our current client, it will be important to expand WWW’s services
into the wind turbine O&M market. Innovative products and services that address key drive train issues
will be investigated and implemented when determined that there is an acceptable ROI.
In the near term, there are four areas that we will target:
1. Active Flow System and other turbine enhancing products.
2. Gear Lube Exchanges- Trailers
3. Repairs and parts replacements
4. Condition Monitoring
5. Up-tower nacelle services
3.1 DryAir Blanket
The Active Flow System is a unique product that addresses water and humidity issues associated with
wind turbine gear boxes. The initial steps of marketing and manufacturing this product have begun with
advertizing in the North American Windpower Magazine and the ordering of parts to build many systems.
The market for this product will not be limited to wind turbines. In fact, a large segment of industry that we
will target is in-plant hydraulic systems. The AFS will function as a stand-alone permanently installed
system or utilized on problematic systems that contain high levels of water contamination from other
sources.
Customers
There are thousands of potential customers based upon the
number of operating wind turbines off warranty and in plant
industrial hydraulic systems that exhibit water contatmination.
Competition: HyPro Filtration, UlitDry- Porous Media, CC-Jensen, Donaldson
Currently, a small number of wind farm owners are buying Ultipur membrane systems in limited numbers.
A large number of OEM’s supply CC Jensen filtration and water removal systems on their wind turbines
used on the offline filtering line. These systems have proven ineffective over the long term.
HyPo: Unknown market. Do not seem to target water removal in turbines…only filtration.
Porous Media- Advertise on their website water removal for turbines. Very private company ..ie: do not
share much information on the system. Have not heard of their systems installed on many turbines.
CC-Jensen: Offline filtration and water removal used as OEM product by many wind turbine
manufacturers. Very low flow and filters store water in the element. CC has not been viewed favorably
by Clipper as they are only effective for the life of the filter element.
Price point and other economics Based upon other similar to vacuum dehydrators or the membrane
systems such as Ultipur, $4000- $4500 appears to be the price point. However, these prices are for base
systems that do not include sensors or PLC control. They are always on and there is a much higher cost
for installation.
Manufacturing: WWW has manufactured a total of 5 units to date and 15 more will be completed by late
April 2011. Manufacturing costs will be re-evaluated once we are satisfied that this product is actually
marketable and selling. There is no point investing further resources until that time.
Differentiators: AFS- Proven technology and performance based upon Donaldson test results. The
8. WWW Company
concept has been known for many years. Easy to install and does not disrupt hydraulic lines or current
filter systems on turbines. Can be installed permanently or used to “fix” problematic turbines when
required. Small size can be used on systems up to 1000 gallons.
Long life: 3-5 years run time or longer, based upon manufacturers’ data.
Marketing: Magazine advertizing: North American Windpower: Current 2 run add in Feb and March
Issues. Researching Renew Grid advertising. Wind Systems Magazine- on-line advertising completed in
late Feb 2011. Advertizing on the WWW website will be completed by May 2011 with interactive PDF.
WWW will advertize on the back cover of Hydraulics and Pneumatics magazine for the April issue
targeting industrial applications.
Additional marketing points will be evaluated through 2011. Mass mailing to wind farm owners in
Wisconsin, MN and Iowa will likely be conducted within the next several months. Since we already have
contact information from our travel reports from last year, this should be a cost effective method of getting
our name and product out into the field of O&M.
No Charge Trial Testing:
I believe that we can win business with some customers by offering a no charge trial run of the system for
1 week. If the system does not perform as intended, then they can return it, no questions asked. If they
are satisfied then they pay for the unit.
Sales Potential 2011: The sales potential for this product is being evaluated. At this time, a guess is all
that can be accomplished as there simply is not enough information from the wind industry field to
determine whether this product is wanted or needed by wind farm owners. In 2011 sales expectations
are 20 systems @ $ 4,700 net each = $94,000 in sales.
Confidential Page 8 of 17
3.2 Gear Lube Exchanges
The current gear lube trailer has performed well on over 50 turbines on the west coast of the U.S. We
have learned a great deal about the processes and functionality of the systems based upon input from the
wind farm maintenance team and the lead technician at WWW.
What works-what doesn’t?:
The basic concept of hydraulic energy used to drive the machine is great and works as originally
intended; however, there are too many components and fixtures on the trailer that have driven the cost to
a point where we won’t make money in leasing arrangements.
Changes required:
1. Drip pans- Way to complicated, big and expensive, A simple drip pan covering the main totes is
all that is required. Cost savings: $ 10,000
2. Diesel engine stand/ cabinet: Overbuilt with a lot of wasted space underneath that is not utilized.
Can be replaced with open stand and cover for ½ the price. Cost savings: $2000
3. Better planning on layout of components: The current arrangement has filters on either side of
the trailer. It would be practical to have these items side by side along with some of the other
hydraulic components to clean up space.
4. Storage locker on front of trailer. Not needed. A smaller version that can hold filters is all that is
needed.
5. Trailer size: Too big…can be replaced with 18 foot unit with changes outlined above.
6. Operation of exchange processes: The processes need to be changed to a push-button control
or touch screen operation. The ball valve set up is too complicated and mistakes will happen.
7. Telemetric system: Need to install system along with automatic operation to simplify system.
Estimated total cost for changes: $6,000.00
8. Review trailer mounted system or dedicated, used truck with PT to drive system. Both have
advantages/disadvantages.
9. WWW Company
Confidential Page 9 of 17
3.2.1 Customers
There are hundreds of customers and thousands of wind turbines coming off of warranty in the Midwest,
with the largest turbine segment located in western Iowa. Illinois and southern Minnesota also have
many turbines just coming off of warranty. There are approximately 200 Client turbines that are coming
off of warranty in western Iowa and southern MN that will be targeted for 2011.
3.2.2 Marketing of new trailers
Marketing will begin by listing WWW on major wind energy sites through services available such as Wind
Systems, which was completed in late Feb 2011. A mailing to wind farm owners will begin in April 2011.
We need to have a brochure available at that time as early summer will be the beginning of the year for
fluid changes in the Midwest.
We will target the local wind farms in several counties as well as northern Illinois and Iowa. A visit to
several Wisconsin farms in that area needs to be completed by late March 2011 to evaluate opportunities.
3.2.3 Manufacturing
A decision will be made on building a trailer or truck mounted exchange trailer in March 2011. There are
benefits to both. A used truck mounted system will only be slightly more expensive than a trailer, but has
the benefit of having less parts on the bed due to the diesel engine of the truck being used to drive the
systems. Additionally, a larger rotary compressor can be utilized so that a pneumatic driven pump can be
used up tower during cold weather applications.
A trailer mounted system will be more mobile than a truck and easier to store. Our current system is
overbuilt as described in the “changes required” noted above.
Telemetrics will need to be investigated and a plan to implement by late 2011. WWW will open an R&D
folder in the S: drive to begin the process. Ideally, we would like to have the current trailer fully
automated and with telemetrics available by June 2011. This is a very short time and may not be
possible if the trailer is leased by then.
3.2.4 Sales 2011
Unknown? Aggressive sales marketing will be needed. If we can lock up at least one large wind farm, at
least one trailer could be utilized for several months.
At $340.00 per turbine + $50.00 telemetric data, I would estimate $40,000-$60,000 in lease fees.
Lease pricing will need to be evaluated.
3.3 Repairs & Turbine Replacement Parts
There is a large market for replacement and repairs of components on wind turbines. Determining all of
these parts and where wind farm owners are buying them is the challenge. We know that competitors
have visibility on some parts and we know of key replacement components such as filters but we don’t
know other components that are routinely replaced and this is an area that we need to explore very soon.
Within the next 2 months WWW will be contacting the following companies in reference to Rebuilds,
assembly drawings purchasing repair parts and the potential of becoming authorized repair centers
10. WWW Company
through POS. Yaw and rotor brake systems are similar to hydraulic cylinders and utilize the same types
of seals. Pad replacement is available from all of the manufacturers.
Yaw drive rebuilds would fit well within current POS services as there is already experience in rebuilding
Lantec Gear boxes. Yaw drives are smaller, but have greater gear reductions. Fluid and breather
upgrades could be incorporated.
3.3.1 Supply Agreements with Wind farms
WWW will engage windfarm owners and secure supply agreements for repairs, upgrades and new
components. Some of the components we will target are listed below.
Confidential Page 10 of 17
3.3.2 Brake Manufacturers:
SIME- Unknown market share
Carlisle- Clipper supplier
Svendborg- Clipper supplier, Vestas and others.
3.3.3 Yaw Drive Manufacturers – In order of market share.
Bonfiglioli
Comer
NGC (Chinese) Supplying to GE
Brevini- WWW has repaired several.
Riduttari
Sipco
Until evaluations can be completed on ROI of rebuilding these components no sales figures will be
available for 2011.
11. WWW Company
3.3.4 OtherTurbine Products
Enerpac, , SPC, Powerteam, Acrotech Tools and Tensioning. Possible rental?
Filter Carts..ie: portable hydraulic cart currently mfg and used by our client. Can be used
Confidential Page 11 of 17
on hydraulic and gear oil.
Eaton-Cutler Hammer
Hawe Hydraulic valves
Hose Assemblies, adapters, fittings, manifolds
Level, temp, heaters,
Engineering and design
12. WWW Company
3.3.5 Replacement and upgrade Parts-2011
At this time we have the following components available that Winddrives will market. This list will grow
throughout 2011 as more products are added.
2011 Sales
Confidential Page 12 of 17
Item
#
2011
Sales
GE `1.5MW Extended Life Filters Unit price Total Sales Total Profit
1 5 $500.00 $2,500.00 500.00
2 50 $500.00 $20,000.00 $5,000.00
3 10 $300.00 $3,000.00 $750.00
4 100 $300.00 $30,000.00 $7,500.00
5 10 $23.10 $231.00 $57.00
6 25 $155 $3,875.00 $977.00
7 25 $220.00 $4,840.00 $1,375.00
Item
#
Quantity Vestas V82 Parts
1 5 $46.60 $233.00 $46.95
2 5 $106.00 $530.00 $132.50
Totals $65,209.00 16,388.45
Item
#
Quantity Other Products
20 $500 $10,000.00 $3,500.00
5 $1,000.00 $5,000 $1250.00
3.4 Condition Monitoring R&D
There are several key condition monitoring companies with a solid base in the wind industry. There are
also new companies beginning to enter the market including turbine manufacturers like GE and
Moventus.
Monitoring key areas on a gear box including main shaft bearings and vibration analysis of the generator
system are important in determining the health of the turbine. How can WWW build out a system that
provides information that the wind farm owners want?
Do they want columns of data with charts and frequency ratings or do they want a simple graph that
clearly shows the health of the turbine?
13. WWW Company
WWW will begin research and development into a condition monitoring platform that addresses the needs
of windfarm owners and the information they are most interested in. A job is opened in the WWW
Engineering Folder in the “S:” drive to capture all engineering costs and data.
WWW will be using XX components for vibration along with Filter particle counters. The biggest hurdle in
development of the complete package is vibration data from existing, new gear boxes and bearings and
what it means. We believe we need to find access to this information in order to build a data base and
software program that interprets the data and produces usable, meaningful information to the clients.
Key drivers- Data Gathering:
XX gear Boxes- get vibration data > Bruce
Bearings- Brian … where is this information is available from Timken?
Cost: What is the price point? How can we achieve it?
MFG: Custom PLC board with M12 connectors? Look at Moventas package…very clean. Contact Tom
at XX for information on custom board, software, engineering, packaging, etc.
Development & Software: custom or standard PLC.
Contact Wind farm owners currently using X X or others for feedback.
Price Engineering Data Acquisition System: Potential for leasing or sales?
Confidential Page 13 of 17
3.5 Up-tower Services
3.5.1 Competitors:
Upwind.
Rev1Wind
Second Wind
Bilfinger, Belger
Many others…
Performance of clean fluid on Bearing Life
14. WWW Company
3.5.1.1 What will set WWW apart from current businesses in
the service industry?
o Hydraulic experts
o Lubrication experts? Not yet, but could be through tribology courses.
o Filtration experts
o IN-house Mechanical design and 3D modeling
o Prototyping…i.e.: manifolds, HPU’s, proportional and servo systems.
o Upgrades to filtration and hydraulics
o Authorized repair of certain manufacturers.
o Wide resources for parts at lower cost due to affiliation with parent
o Testing capabilities
o Electrical Upgrades and assessments.
o Condition Monitoring Package: No one else is offering this.
o GB rebuilds and installations---in the future.
o Ability to address failure causes and provide solutions instead of just fixing the failure.
3.5.2 Wind Turbine Inspections
Inspections should be done periodically but it is more important to get them done at the beginning and
end of the manufacture warranty. WWW’s experienced personnel are trained to perform inspections on a
variety of wind turbine components.
Bore scope inspections of bearings and gears
Brake pad checks
Crack inspections of coupler and blades ?
Analysis of oils, hydraulic fluid and grease
Slip rings & brushes, cables & cable connections, fuses, voltage levels and batteries
Service lift, climb assist, ladder and fall arrest cable, hoist or crane
Confidential Page 14 of 17
o Hydraulic Blade Pitch Control
Wind turbine rotor blades need to be able to turn smoothly in response to varying wind speeds. Our
technicians can troubleshoot the electronic controllers that check the power output. We also inspect and
repair the blade pitch mechanisms that turn the rotor blades out of excessive wind to insure safety and
extend the life of the turbine. Proportional Valves and Bonfiglioli, Brevini pitch Drive systems and
encoders can be repaired and /or replaced on-site.
3.5.3 Retrofitting & Upgrading Turbines
Our professional technicians can restore and enhance performance with retrofits and upgrades.
Gearboxes SOON!
Yaw Drives
Generators
Gears- SOON!
Hydraulic Systems
Lubrication Systems
Electrical Components
15. WWW Company
o Bolt Tensioning & Torque Checks
Using advanced tools and equipment, WWW technicians perform routine torque and tension checks of all
interior and exterior bolts. Every application should be evaluated on its own to determine the optimum
torque value for each application.
Major bolt suppliers should have tension indicating equipment necessary to determine the appropriate
tightening values for their specific applications. A properly tightened bolt is one that is stretched such that
it acts like a very ridged spring pulling mating surfaces together. Periodically checking the torque is
necessary to ensure that stretching does not occur.
Confidential Page 15 of 17
3.6 Achieving Success
Study other Service providers. What are they doing right, wrong?
Define areas of expertise:
1. Hydraulics inspection and repair
2. Lubrication inspection, repair, replacement, upgrades, particle counts
3. Design engineering- certain areas.
4. Gear inspection-after training
5. Bearing inspection – after training
6. Gear replacement.
7. Generator inspection and repair. Local companies- WWW with qualified repair guy
8. O&M- Only after hiring the right person who can lead this effort and help to hire qualified
personnel to run an O&M site. (This appears to be a difficult task…Upwind currently has
3 sites in the U.S….However, WWW has an advantage with buying power and
distribution of some key components.
9. Turbine commissioning?
10. Lube services- upgrades
16. WWW Company
3.6.1 Staffing to Launch Service Business
o Based upon the suggested service employee requirements below, A minimum of 4-5 personnel
are required. This is in addition to the current employees we have.
o Utilization of parent services to minimize service tech requirements until such time as
demand can justify additional hiring and a return on investment can be realized.
o Do we know how other businesses such as Upwind and others have performed
Confidential Page 16 of 17
financially?
3.6.1.1 Target Business
This will be a challenge as the company currently has few assets in equipment and personnel.
o Techs only trained on Clipper units with minimal interaction with GE on lube exchanges
o No techs trained on bearing, generator, brushes, etc. (how do we get this completed?) Local
companies like XYZ?
o Gear inspection: Hire Ed to conduct training to prospective techs.
o TCU and electrical inspections: Kyle is the only tech currently capable…would need training on
GE and others.
Estimates of employee resources needed: Potential to hire some of our client’s personnel.
o $100k(1) O&M person with minimum of 3 years…GE turbines preferred.
o $240K(3) (80K each)Tech’s with 3 years experience…preferably steal from Upwind or GE-wind.
o $90K(1) Lead Electrical tech or engineer experienced with GE and other turbines- ie brushes,
generators, etc.
o $80K(1) Lead Mechanical tech or engineer.
o $100K(1) Construction manager who is familiar with all aspects from start to finish in turbine
installation.
o Blade Tech ? Would then require group expert in fiberglass lamination….otherwise form
agreement with BS Rotor Technic –Germany.
3.6.2 Define Channel Partners: How do we use XYZ or ABC under
the WWW Blanket?
Capital and personnel investment Field-UpTower Services:
ITEM Capital and personnel and Other Quantity Cost Cost
A Personnel: Techs, specialists, O&M 4 77,000 $310,000
B Service trucks 3 $30,000 $90,000
C Maint and inspection equipment 1 15000 15000
D Lap tops and other computer related equip 4 5000 5000
E Truck based lube exchange system with PTO 1 80000 80000
F Marketing: advertise nationally, agressively 4 $3200 12,800
Total Investment $512,800
3.7 ROI
The costs above assume employee’s 100% dedicated to WWW. A more realistic cost analysis would
utilize our parent company’s technicians until an established work schedule has been achieved with
various wind farms. It would be at this point that additional WWW specific technicians would be hired.