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<div class=Section1>

<p class=MsoNormal><span class=EmailStyle28><font size=2 color="#993366"
face=Arial><span style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:
Arial'>Mark this is the best description of cost resulting from change I've
seen. During my years in engineering management I found about 90% of the
department activity / cost was not design related but documentation, planning
and implementation of changes. Inventory match-up and run-out was always
expensive for both our distributors and vendors. Millions wasted on continual
and questionable changes.<o:p></o:p></span></font></span></p>

<p class=MsoNormal><span class=EmailStyle28><font size=2 color="#993366"
face=Arial><span style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:
Arial'>&nbsp;<o:p></o:p></span></font></span></p>

<p class=MsoNormal><span class=EmailStyle28><font size=2 color="#993366"
face=Arial><span style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:
Arial'>Jim<o:p></o:p></span></font></span></p>

<p class=MsoNormal><span class=EmailStyle26><font size=2 color="#993366"
face=Arial><span style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:
Arial'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></font></span></p>

<p class=MsoNormal><span class=EmailStyle26><font size=2 color="#993366"
face=Arial><span style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:
Arial'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></font></span></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color=black
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma;color:black'>-----Original
Message-----<br>
<b><span style='font-weight:bold'>From:</span></b>
nsrca-discussion-bounces@lists.nsrca.org
[mailto:nsrca-discussion-bounces@lists.nsrca.org]<b><span style='font-weight:
bold'>On Behalf Of </span></b>Atwood, Mark<br>
<b><span style='font-weight:bold'>Sent:</span></b> Tuesday, August 24, 2010
6:33 AM<br>
<b><span style='font-weight:bold'>To:</span></b> General pattern discussion<br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [NSRCA-discussion]
FW: weight difference</span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Lol&#8230;just
your pride.<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>I
think what&#8217;s missing from this discussion is the simple truth that &#8220;Change&#8221;
costs money in a sport where stable rules allow us to standardize around them.&nbsp;&nbsp;
Occasionally, a new technology inserts &#8220;change&#8221; without any rule change.&nbsp;&nbsp;
4-Strokes did that a while back (although that was really the result of a rule
change too to allow double displacement to &#8220;even up&#8221; the gap between 4-strokes
and 2-strokes) and we had a few years of turmoil and cost escalation as
everyone slowly abandoned their .61 long strokes and moved to 4 strokes.&nbsp;
But the &#8220;Cost&#8221; wasn&#8217;t just a new motor.&nbsp; <o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>It
was all the costs involved with LEARNING how to successfully run and outfit the
new motor.&nbsp; New pipe designs. A myriad of header designs and header
braces, new fuels (more expensive 30%), Soft mounts, and several years of RAPID
airplane evolution as we learned just how much a 4-stroke can pull.&nbsp; Also
the motors evolved rapidly at first until everything started to stabilize
again.&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>We
had a brief period there where there was some stability, and some cost
stability as well.&nbsp; Stores like Central had confidence to stock Hatori
Headers and pipes, 17x12 props, and a truckload of YS parts.&nbsp; You didn&#8217;t
need to own quite as much back up equipment because it was likely that you
could borrow a spare header/plug/o-ring/whatever as most people were running
the same or similar setups. <o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Change
not only directly affects the consumer, but indirectly affects them as well,
when the supply chain takes a beating on unsold inventory, they have to make up
for that with the new inventory that is selling.&nbsp; Not to mention they don&#8217;t
HAVE inventory because they can&#8217;t risk overstocking a fad. <o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>The
cost of change is massive.&nbsp;&nbsp; R&amp;D up and down the entire product
line.&nbsp; Everything from new artwork for ads to training on how to repair
stuff.<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Bottom
line, Change can be good&#8230;&nbsp;&nbsp; But unnecessary change is just expensive.&nbsp;
<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Currently
we&#8217;re going through another technology change cycle with electric.&nbsp; We&#8217;re
probably about 2/3rds of the way through it, to where we&#8217;re starting to see
that stability return.&nbsp; Motors aren&#8217;t evolving quite as quickly, most have
settled on 5s 5000 20C+ batteries in some form, low cost options for parts have
started to come into the mix, and aircraft designs and SIZE (Volume, not length
and width which has been stable at the limits for 15 years) is also
stabilizing.&nbsp; The Bipes were tried and mostly failed, etc.&nbsp;&nbsp;&nbsp;&nbsp;
ESC&#8217;s are well &#8220;baked&#8221; and coming down in weight. Stable rules have brought in
competition for most parts which has brought the prices down on almost
everything especially &nbsp;motors and batteries (notice Hacker and TP no
longer have a lock on the market and as such can&#8217;t begin to command the prices
they once did &#8211; also, they no longer NEED the prices they once did as much of
their R&amp;D costs have been recovered).&nbsp; &nbsp;&nbsp;On and on.<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>A
major rule change (weighing without batteries, increasing the weight to 12lbs,
etc) will start a lot of that process over again.&nbsp;&nbsp; I know, I know&#8230;it&#8217;s
an AMA rule not an FAI rule.&nbsp; But SOME of the same will occur, and there
are downsides to not being aligned with FAI.<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>The
current rule on the table allows for a variance without changing the goal.&nbsp;
The goal is a 5Kg airplane.&nbsp; If you&#8217;re a beginner, you get some slack&#8230; but
you still know your goal.&nbsp;&nbsp; If the goal is the same, the idea is we&#8217;ll
avoid that evolution and just provide some leeway for those that need it for
whatever reason.&nbsp; Costs, used equipment, beginner building skills,
whatever.&nbsp;&nbsp; <o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>I
COULD see an argument for a larger variance.&nbsp;&nbsp; I originally proposed
a full lb for Sportsman, 8oz for Intermediate and 4oz for Andvanced&#8230;&nbsp; idea
being that you would slowly have to work into compliance.&nbsp;&nbsp; But I
think the thought there was that too many would have to change planes to change
classes.&nbsp;&nbsp; So the current proposal has approx a 4oz variance for the
bottom 3 classes.<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>&nbsp;<o:p></o:p></span></font></p>

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<p class=MsoNormal style='margin-left:.5in'><b><font size=2 color=black
face=Verdana><span style='font-size:10.0pt;font-family:Verdana;color:black;
font-weight:bold'>Mark Atwood</span></font></b><font size=2 color="#1f497d"
face=Calibri><span style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><b><font size=1 color=black
face=Verdana><span style='font-size:9.0pt;font-family:Verdana;color:black;
font-weight:bold'>Paragon Consulting, Inc.</span></font></b><font size=1
color=black face=Verdana><span style='font-size:9.0pt;font-family:Verdana;
color:black'>&nbsp;&nbsp;</span></font><b><font size=2 color=black
face=Verdana><span style='font-size:10.0pt;font-family:Verdana;color:black;
font-weight:bold'>|</span></font></b><font size=1 color=black face=Verdana><span
style='font-size:9.0pt;font-family:Verdana;color:black'>&nbsp;&nbsp;President</span></font><font
size=2 color="#1f497d" face=Calibri><span style='font-size:11.0pt;font-family:
Calibri;color:#1F497D'><o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=1 color=black
face=Verdana><span style='font-size:8.5pt;font-family:Verdana;color:black'>5885&nbsp;Landerbrook&nbsp;Drive
Suite 130,&nbsp;Cleveland&nbsp;Ohio,&nbsp;44124</span></font><font size=2
color=black face=Verdana><span style='font-size:10.5pt;font-family:Verdana;
color:black'>&nbsp;</span></font><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p></o:p></span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=1 color=black
face=Verdana><span style='font-size:8.5pt;font-family:Verdana;color:black'>Phone:
440.684.3101 x102&nbsp;&nbsp;</span></font><b><font size=1 color=black
face=Verdana><span style='font-size:9.0pt;font-family:Verdana;color:black;
font-weight:bold'>|</span></font></b><font size=1 color=black face=Verdana><span
style='font-size:8.5pt;font-family:Verdana;color:black'>&nbsp;&nbsp;Fax:
440.684.3102</span></font><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p></o:p></span></font></p>

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face=Verdana><span style='font-size:8.5pt;font-family:Verdana;color:#1351F3'><a
href="mailto:mark.atwood@paragon-inc.com">mark.atwood@paragon-inc.com</a>
&nbsp;</span></font><b><font size=1 color=black face=Verdana><span
style='font-size:9.0pt;font-family:Verdana;color:black;font-weight:bold'>|</span></font></b><font
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color:black'>&nbsp;&nbsp;</span></font><font size=1 color="#1351f3"
face=Verdana><span style='font-size:8.5pt;font-family:Verdana;color:#1351F3'><a
href="http://www.paragon-inc.com/">www.paragon-inc.com</a></span></font><font
size=2 color="#1f497d" face=Calibri><span style='font-size:11.0pt;font-family:
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