TPAC/BTL Relationship explained in this slide from
Post# of 22940
Posted On: 02/26/2016 7:50:53 PM
TPAC/BTL Relationship explained in this slide from the presentation (which by the way is no longer available on the TPAC website). Yeah, I was planning on not checking back in until Monday, but the tweets today were really awesome and I could not resist. 
1) When order is placed by customer (ie...Boeing) as a PO, TPAC-USA delivers raw material from USA to BTL in China.
2) BTL fabricates the components which are delivered to TPAC-CHINA
3) TPAC-CHINA installs liner and assembles bearings. Sends those back to BTL.
4) BTL rough machines bearings. Sends back to TPAC-CHINA.
5) TPAC-CHINA adjusts the torque tolerance of bearings. Sends back to BTL.
6) BTL does a quality finish on the bearings. Both they and TPAC perform a final inspection. Bearings get shipped to customer.
7) TPAC shareholders enjoy the revenue and increased value in the company....especially those shareholders that loaded up the past few weeks
Keep in mind, Boeing's process is to ship the larger components (fuselage,etc) to China for final assembly there. So, it makes business sense to have the parts THERE for final assembly which of course TPAC is setup nicely to do. I can see Boeing issuing a PO here in the US when they get ready to ship to China for final assembly. Bearings will be ready and available so that final assembly can begin immediately upon arrival.
It really is a brilliant business strategy on the part of TPAC.
I think I have that right. I am open to correction and added input on this. Here is the image from the slide presentation which I used for outlining the process as I stated above.
1) When order is placed by customer (ie...Boeing) as a PO, TPAC-USA delivers raw material from USA to BTL in China.
2) BTL fabricates the components which are delivered to TPAC-CHINA
3) TPAC-CHINA installs liner and assembles bearings. Sends those back to BTL.
4) BTL rough machines bearings. Sends back to TPAC-CHINA.
5) TPAC-CHINA adjusts the torque tolerance of bearings. Sends back to BTL.
6) BTL does a quality finish on the bearings. Both they and TPAC perform a final inspection. Bearings get shipped to customer.
7) TPAC shareholders enjoy the revenue and increased value in the company....especially those shareholders that loaded up the past few weeks
Keep in mind, Boeing's process is to ship the larger components (fuselage,etc) to China for final assembly there. So, it makes business sense to have the parts THERE for final assembly which of course TPAC is setup nicely to do. I can see Boeing issuing a PO here in the US when they get ready to ship to China for final assembly. Bearings will be ready and available so that final assembly can begin immediately upon arrival.
It really is a brilliant business strategy on the part of TPAC.
I think I have that right. I am open to correction and added input on this. Here is the image from the slide presentation which I used for outlining the process as I stated above.
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Risk comes from not knowing what you're doing.
The investor of today does not profit from yesterday's growth.
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
If a business does well, the stock eventually follows.
- Warren Buffett
Risk comes from not knowing what you're doing.
The investor of today does not profit from yesterday's growth.
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
If a business does well, the stock eventually follows.
- Warren Buffett