1. What is CAP's Management style? o CAP has 3 primary management groups that report to the General Manager. 1. The Sales and Marketing group makes promises to our clients. 2. The Client Fulfillment group is mandated to keep those promises. 3. The Finance group pays for keeping the promises to our clients, employees, bankers and suppliers. 2. Why is CAP described as a "Service Company"? o The CEO directed the General Manager to make sure the promises made to our clients are fulfilled as a matter of corporate integrity. The Client Fulfillment group is one of the primary management groups, and is charged with keeping the promises. On a 15 year average, 65% of all CAP employees make a living being employed in that group. Fulfilling the promises is how we serve our clients, one at a time. 3. Why does CAP still use an old fashioned handshake for a service agreement? o A handshake gives you the freedom to end our service agreement without a lawyer if you decide that we are not bringing enough value to our relationship. A handshake is how we have done business in AZ since 1984. To keep our jobs, we are committed to serve you better than anyone else is willing to. We do not hide behind a wordy document crafted by some clever lawyer. 4. What is an opportunity expense? o An opportunity expense refers to money already being spent in your facility that could be saved by implementing innovative ideas in your plant. 5. How could an opportunity expense affect my Company's bottom line? o In January of 2008, one of our customers informed us that so far, he has documented saving more than $1,000 per month ($12,000 per year) in electrical costs since we reconfigured his air system in 2007. If his company makes 5% of sales as profit (most companies do not), it would take 20,000 in sales per month to produce the same amount of "profit", or 240,000 in sales per year. 6. Is compressed air expensive? o Compressed Air is typically the only self generated utility at a manufacturing plant. As a result, the costs for compressed air are not common knowledge. They are typically spread over several different budget items and rarely looked at or understood. o Many studies have been done on this matter. One popular way to quantify the cost is the $/100cf/hr method. The range is $1.50 to $3.00 per 100 cubic feet per hour of use. At $2/100cf/hour, using 500 CFM (a 100 H.P. compressor) would cost $10 per hour. Operating 24 hours per day x 365 days = 8,760 hours x $10 = $87,600. Using the higher rate of $3/100cf/hour, the same system would cost $131,400 annually. 7. Is it cost effective to have CAP perform the PM work on my compressor system? o The answer is yes. For example; if you could find and hire a well trained, air compressor service technician for $25 per hour, he would cost you well over $60,000 per year when you include the cost of benefits. In reality, you can "hire" CAP to do your compressor PM work for a fraction of the cost of adding an employee. Give us a call for an estimate. o Another benefit is the fact that our motivated technicians do this specific type of work every day. They know what to look for the moment they arrive on site, and how to do the work. They have access to our other technicians via radios for immediate assistance if they find something unusual. This eliminates guess work and helps them do it right the 1st time. 8. Doesn't it cost more to perform Preventive Maintenance on my equipment? o Cost more than what? Pushing your maintenance windows to the maximum intervals recommended by manufacturers can be an expensive gamble, especially here in the hot desert. We have over 100 years of combined Arizona service experience to help you establish a PM schedule that is based on "Best Practices" for our conditions. You can use that to quantify the projected annual costs for a proven PM program. Budgeting for a PM program is less difficult than finding emergency funds for unscheduled downtime, stress and emergency repairs. 9. Is it a good idea to have a back up compressor? o To start with, do you know what it costs you per hour or per day for downtime? You have many factors to consider, such as; actual production losses, basic facility overhead and not being able to meet a sometimes very demanding JIT deadline for your customers. o Hidden costs such as having to pay overtime to do basic PM's or the potential costs of machines failing because they have not been maintained also have to be considered. o When you get a good handle on those costs, you can then decide if a backup makes $ense. 10. Will CAP help us even if we have not yet purchased from you? o Yes, absolutely! If we have not yet partnered with you, consider putting CAP in your "On Deck" circle. We will answer your questions and stand ready to become your service company when the time is right. We have been earning the trust of Arizona companies since we started in 1984. We earn that trust one client at a time. We can wait until you are ready. In the meantime, give us a call with your questions. We will always tell you the truth. Can you say that about your current supplier? 11. Is CAP a good place to work? o Asking our employees when you meet them is the best way to answer that. Our Strategic Objective states that "all employees, whether they are here for 30 days or 30 years, will leave the experience as a more complete human being". The average tenure of our current employees is more than 9 years. Most plan to work here and ultimately retire from CAP. As a matter of fact, Jerry just retired from our Tucson branch, effective January 2008. We wish him well on the Golf Course. 12. I have already installed an air dryer. Why am I still getting water in my plant air system? o Quite often, the air dryer is improperly sized for the site conditions. The hot temperatures we experience in Arizona are uncommon to the rest of America. Give us a call and tell us about your situation. CAP has been successfully designing air drying systems since 1984. o Other commonly overlooked culprits are your filtration system element maintenance and condensate drain failures. Modern condensate drains are available that can warn you when they malfunction. Are you sure that yours are working properly? Perhaps it is time for a walk through with one of our technicians. Give us a call. 13. Is it cost effective to fix my air leaks? o The short, easy answer is yes. However, before you start there are several things to remember. It will be helpful to accurately estimate the quantity of air leaks as well as your costs for air. Only then can you estimate a return on investment potential. Keep in mind that most leaks cannot be heard by the human ear. o Fixing leaks can be frustrating. Most people start fixing them and it seems like an endless project. The more you fix, the more leaks become obvious. We can offer well thought out solutions about the "Best Practices" approach for managing your plant air. Please contact us to receive proven ideas that will help you get control of your leaks, once and for all. 14. Are all air compressor sales people trained the same? o Most sales people are trained to sell the particular "features and benefits" of the equipment they are representing. Many of these salesmen have no practical knowledge on how to keep your plant operating. Cowboy logic states: "Just because you are following a well worn path does NOT mean that whoever made it knew where they were going". o CAP has chosen a different methodology to approach the Arizona market. By design, all CAP salespeople, as well as our management team, have many years of practical experience as service technicians before moving into the CAP sales and management departments. These experienced veterans are then given the freedom to recommend well thought out, practical and serviceable solutions to your needs. Give us a call!