FCS3

Section 2 Methodology

1. Identifying the critical product characteristics and attributes that are essential to the manufacturer’s customer. 2. Developing an initial product formulation, manufacturing process and crumb rubber/compound specification for use in developing prototypes, and securing a source of the crumb rubber; 3. Developing a prototype suitable for testing (this may be a suitable hard deadline); 4. Conducting critical tests identified and approved for funding; 5. Refining the product formulation, manufacturing process and crumb rubber specifications, and/or revisiting earlier steps as needed. 6. Fully launching the product commercially. (Note – while included as a manufacturer milestone, FCS does not cover marketing and sales support, and budget is not available to support the launch phase.) The Project Team will strive to develop reasonable and attainable estimates of crumb rubber use in the Activity Plans, and to ensure a reasonable relationship between expected outcomes and proposed assistance budgets. We will work in close consultation with both the manufacturers and CalRecycle to develop common expectations prior to submitting the summary report under Task 2D below. We propose that Activity Plan budgets are not shared initially with participating manufacturers to maximize CalRecycle’s flexibility to adjust in Activity Plans based on company progress during the project. Task budgets will be shared with CalRecycle in a separate master table as part of the summary report to be submitted under Task 2D.

Figure 1 – Proposed Activity Plan Outline XYZ Company

Company Information

Primary Contact (email, phone, fax) Manufacturer Facility Information Tire-Derived Material Supplier (if known) Feedstock Conversion Services Team Information FCS Project Manager (name, email and phone FCS Service Provider Assigned Lead (name, email, phone) Table 1: Product Information Product Name and Short Description and SKU Projected Sales and Rationale Product Weight, Crumb Rubber per Product and Mesh Size Projected Sales and Table 2: Product Strategy For each product, list expected challenges and strategy for timely commercial launch Table 3: Schedule of Milestones and Assistance Services For each product, list Milestones; Target Date; Manufacturer Responsibilities; FCS Team Activities; and Consequences if Milestone not Met Minimum Reporting Requirements Monthly Progress Updates Notice of Crumb Rubber Purchases (for Quality Check Purposes) Documentation of Quantities Delivered Documented Quarterly Sales Totals for Covered TDPs Signed Approvals and Commitments

To ensure that work proceeds in a timely manner, we propose that Activity Plans include one or two hard deadlines for critical manufacturer activities. If the hard deadlines are not met by the firm, CalRecycle would have the right to cancel the Activity Plan or reduce the level of services being provided. We would like to avoid situations where CalRecycle budget is committed to a firm that is not moving forward and making progress towards its goals, while conversely rewarding firms that do make progress and have the highest potential for success and high-volume crumb rubber use. Another concept for discussion would be to allocate only a portion of available budgets initially, and then allocating remaining budget at a certain point in time to those firms making the most progress and

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