Kurt Kamholz, President, and Co-Owner Jeff Thornburgh, announced recently that the decision has been made to separate the Instrument and Implant manufacturing into two separate divisions within Precision Medical Technologies, Inc. Kamholz explained that there are significant differences between the two business and separate objectives that we wish to accomplish. On the Implant side we want to focus attention on minimizing variation in our manufacturing processes. We want to be dropping the piece off the machine complete in one operation with no further processing. The objective will be to reduce the number of job changes and have more continuous running dedicated equipment. We want our engineers and machinist focused on controlling the process, rather then setting up equipment multiple times. This is essential to drive continuous improvement in the area of quality. The Instrument business is different in that it is truly a job by job machining business. The normal instrument order quantities of 10, 20, 50, etc. coupled with the fact that the majority of these items have multiple components, requires constant changes or set-ups on the CNC equipment. That is not to say that process control is not a concern, but the length of run is so short, that critical dimensions are usually checked 100% at the machine, rather then being statistically monitored. Our concentration in the instrument manufacturing area needs to be on consistent set-ups and efficient quality production on the back shifts. We expect this strategy to provide an opportunity to continuously improve quality and thereby reduce costs. The business divisions are initially being staffed separately with an operations manager, a staff of 3-4 manufacturing engineers, and a quality engineer. The operations managers will report directly to the Kamholz, President, and the quality engineers will be reporting to Vickie Adkins, Quality Manager, who will continue to report to the president.