How to Start a Very Small Drone Assembly Factory

Executive summary This guide covers the practical steps to set up a very small factory that assembles drones (not a full upstream aerospace manufacturer), under the constraints that target country/region, production volume, and product specifications are unspecified. The consequences of those unspecified items are central: regulatory requirements, certification pathways, required documentation, and even factory testflight permissions vary substantially by jurisdiction and by whether your product is a “toy,” a consumer drone, or a higher‑risk unmanned aircraft intended for specialized operations. 1 In most markets you will confront three compliance streams in parallel: 1) Aviation / UAS product and operational requirements (e.g., remote identification obligations in some jurisdictions, class labels in the EU for “open category” products, and—in higher-risk cases—airworthiness / type certification). 2 2) Radio, EMC, and (in some regions) cybersecurity requirements for anything with Wi‑Fi/Bluetooth/ telemetry/control links (e.g., FCC equipment authorization in the U.S.; the EU Radio Equipment Directive with additional cybersecurity essential requirements now applied to certain categories of radio equipment). 3) Lithium battery safety and shipping rules (workplace handling plus transport classification/testing and air-shipping constraints). 4 For a “very small” factory, the most robust approach is to constrain product scope: start with a single modular multirotor platform plus a small set of payload variants, and postpone fixed‑wing/hybrid aircraft until your production system, field testing capability, and compliance muscle are mature. This reduces engineering complexity, reduces SKU explosion, and makes quality control and traceability achievable with a small team. Operationally, a micro-factory is mainly an electronics + electromechanical assembly operation. Your core differentiators will be (a) repeatable build quality, (b) configuration management (firmware + parameters), (c) documentation/traceability, and (d) a test regime that catches defects before flight— because flight defects are expensive and can trigger safety events and regulatory scrutiny. Product strategy and recommended scope for a small assembly factory Core drone types and what they imply for a small factory Multirotor (quad/hex/octo) Multirotors dominate inspection, mapping, and close‑range work because they can hover and take off/land vertically. For a small factory, they are the most “assemblable” because they can be built from modular propulsion + avionics stacks and do not require precision wing aerodynamics. They also lend themselves to standardized test rigs (motor/ESC thrust testing, hover testing). Fixed‑wing Fixed‑wing drones are attractive for range/endurance and mapping large areas, but they impose different manufacturing burdens: wing alignment, control surface setup, airspeed sensor integration, and flight testing that often demands larger test areas and more stringent operational approvals depending on where you fly. In jurisdictions with risk‑based operational categories, fixed‑wing aircraft are also more likely to be used in beyond visual line of sight contexts (which often triggers higher oversight). 5 Hybrid VTOL (tilt‑rotor, quadplane, tailsitter) Hybrids combine the mechanical complexity of multirotor propulsion with fixed‑wing aerodynamics plus transition control logic. They are hardest to launch from a micro-factory unless you already have strong flight test engineering and configuration control. Recommended initial scope Because target market and specs are unspecified, the advice below is framed as scope principles rather than invented product requirements: • One “core airframe family” (one geometry and power class) with standardized interfaces for payload and radios. Engineer your harnessing and mounting so 70–80% of assembly steps are identical across variants. • Two payload SKUs max at launch: for example “visible camera mapping” and “inspection/utility” payload configurations. (The payload choices drive regulatory and testing burdens—e.g., radios, storage, cybersecurity exposure—so keep them tight.) • Avoid custom PCB design at the beginning unless your business model requires it. Buying known autopilot modules and propulsion components lets you focus on process capability and compliance documentation. Product architecture rule for a micro-factory Design your product as a replaceable module stack: - Propulsion module: motor + ESC + prop + arm harness - Avionics module: flight controller + GNSS/compass + power module + remote ID/radio module (where applicable) - Payload module: camera/sensor + mount/gimbal + data link integration This makes incoming QC and fault isolation much easier and supports repair workflows. Regulatory and certification landscape in unspecified target markets This section is organized by “what you must comply with,” then lists typical authorities and how requirements vary. Regulatory layers you must map Aviation/UAS product & operation rules (market access + test flights) Even if you only “manufacture,” your factory will almost certainly perform ground tests and flight tests, which are “operations” subject to local UAS rules. A useful global reference point is the risk-based regulatory structure promoted by International Civil Aviation Organization 6 , including “open” and “specific” (or equivalent) categories, and guidance that can include manufacturer-related requirements in some advisory material. 7 Remote identification / direct remote ID (where applicable) Remote ID is not universal worldwide, but it is pivotal in certain markets. In the United States 8 , the FAA’s remote identification rules include production requirements: after Sept 16, 2022, producing unmanned aircraft “for operation in U.S. airspace” is conditional on meeting the minimum performance requirements for standard remote ID using an FAA-accepted means of compliance (or using ADS‑B Out under specific conditions). 9 Producers must also support audits/inspection access and have product support/notification procedures (including notifying the public and FAA of a defect or condition that causes noncompliance within 15 calendar days of becoming aware). 10 Remote ID products are tied to a declaration of compliance submission, which must include information such as make/model, serial number ranges, means of compliance, and the FCC identifier of Part 15compliant RF equipment integrated into the unmanned aircraft. 11 Record retention obligations apply for the duration a model is produced plus 24 months, including documentation/substantiating data and test records used to show compliance. 12 In the EU, placing a drone on the market for use in the “open category” or a standard scenario with a class identification label requires the product to conform to Regulation (EU) 2019/945 in design and production phases (and EASA provides manufacturer-facing guidance on this “placing on the market” process). 13 Radio + EMC + cybersecurity product compliance Any drone with control links, telemetry, Wi‑Fi, Bluetooth, or other radios is a radio product. In the U.S., the radio compliance system is overseen by the Federal Communications Commission 14 ; the FCC describes equipment authorization procedures and distinguishes approval methods (e.g., certification and Supplier’s Declaration of Conformity depending on device type). 15 47 CFR Part 15 provides the regulatory frame for devices operating without individual licenses and includes conditions tied to marketing and technical requirements. 16 In the EU, the Radio Equipment Directive 2014/53/EU sets essential requirements for radio equipment: safety/health (via RED’s linkage to safety objectives), electromagnetic compatibility, and effective use of spectrum. 17 A major recent change is that additional cybersecurity-related essential requirements are applied to certain categories/classes of radio equipment under Delegated Regulation (EU) 2022/30; the regulation describes scope such as radio equipment that can communicate over the internet (directly or via other equipment). Environmental and hazardous-substance compliance (EU-heavy but not exclusive) If you sell into the EU/EEA, you should anticipate obligations connected to RoHS restricted substances (e.g., the addition of certain phthalates by Delegated Directive (EU) 2015/863) and potentially WEEE producer responsibility regimes. 19 “CE marking” obligations include technical documentation and an EU declaration of conformity, with guidance provided by EU institutions. 20 Battery transport and workplace safety Lithium battery transport relies on UN test and classification concepts (UN Manual of Tests and Criteria, subsection 38.3). For example, subsection 38.3 describes tests and when they apply to cell/battery types. Air transport rules evolve; the International Air Transport Association 22 publishes lithium battery guidance (2026 edition referenced here) including special provisions and state/operator approval concepts. 23 Workplace controls should align with safety guidance such as the OSHA lithium-ion battery safety fact sheet and national OSH guidance where relevant. 24 Typical authorities to consult (examples, since target markets are unspecified) Below are commonly relevant authorities in several major jurisdictions; your actual obligations depend on where you place products on the market and where you test-fly. • United States 8 : aviation regulator Federal Aviation Administration 25 (Remote ID, certification pathways), plus FCC (radio/equipment authorization). 26 • European Union 27 / EEA: aviation implementation guidance via European Union Aviation Safety Agency 28 ; product conformity overseen by national market surveillance authorities; radio via RED and CE marking system. 29 • United Kingdom 30 : aviation rules and guidance via UK Civil Aviation Authority 31 ; the UK has published an incorporated version of Regulation (EU) 2019/947 in its regulatory library, illustrating how requirements can diverge post‑Brexit. 32 • Canada 33 : aviation rules include Part IX—Remotely Piloted Aircraft Systems under Canadian Aviation Regulations, published by Transport Canada 34 . 35 • Australia 36 : drone rules are consolidated in CASR Part 101 under Civil Aviation Safety Authority 37 . • Japan 39 : type certification concepts for UAS exist, with guidance published by the Ministry of Land, Infrastructure, Transport and Tourism 40 (example guidance for UAS type certification procedures). • Singapore 42 : consult the national civil aviation authority (CAAS) for UAS rules; additional regulators may govern spectrum/telecom/import safety depending on design. Practical compliance deliverable: a “requirements matrix” Before you buy equipment or lock a product design, create a living document with: - Jurisdictions you intend to sell into (unspecified here; must be chosen) - UAV categories and intended use cases (consumer vs industrial vs high-risk operations) - Required markings, declarations, radio approvals, battery shipping requirements - Required retained records and audit readiness (e.g., Remote ID production audits and retention in the U.S.). 43 This matrix becomes the backbone for your test plan, traceability system, and certification budget.

Bill of materials and supplier sourcing Bill of materials structure A practical micro-factory BOM is split into three control tiers: Tier A (flight critical): frame/arms, motors, ESCs, propellers, flight controller, power distribution/power module, battery, GNSS/compass, primary datalink/control radio. These must have strong traceability and incoming inspection. Tier B (mission capability): cameras, gimbal, payload sensors, companion computer, higher bandwidth radios, storage. Tier C (supporting): wiring harnesses, connectors, fasteners, adhesives, packaging, documentation, chargers. Detailed component guidance with typical specs and supplier examples Because product specs are unspecified, “typical specs” below are ranges and selection criteria. They should be mapped to payload mass, thrust targets, and regulatory category once defined. Example suppliers (official/primary Component What to specify (typical) Key QC checks Frame / airframe Material (carbon fiber, aluminum), wheelbase, arm replaceability, payload mounting interface Dimensional fit, delamination/ cracks, thread integrity Holybro (for kits/dev frames) other frame vendors vary by market Motors Brushless motor class (multirotor outrunner typical), max continuous power, KV matched to voltage & prop Shaft runout, bearing noise, winding damage T‑Motor Current rating margin, Firmware version, supported cell count/ voltage, PWM protocols, thermal design solder joints, thermal pad placement Interface standardization, redundant IMU options, connector ecosystem Visual PCB inspection, connector retention, boot & sensor health ESCs Flight controller sites) 44 ; T‑Motor ESC ranges (e.g., 40A– 200A classes for industrial UAV ESC lines) 46 Holybro Pixhawk line 47 ; CubePilot ecosystem 48 ; Pixhawk ecosystem overview 49 Key QC checks Example suppliers (official/primary sites) Autopilot firmware PX4/ArduPilot compatibility, parameter set control, Remote ID integration plan Signed firmware policy (if needed), version capture PX4 hardware notes emphasize manufacturer responsibility for compliance/support 50 ; ArduPilot Remote ID integration notes (OpenDroneID support, tamper protection considerations) 51 Battery (LiPo/Li‑ion pack) Cell chemistry, capacity, discharge rate, connector standard, BMS (if used) Cell balance, swelling, IR screening Tattu battery platform (and capacity range examples) 52 Propellers Diameter/pitch matched to motor KV & voltage; material; balance Balance, hub fit, crack inspection APC Propellers 53 ; T‑Motor props are also commonly paired with their systems 54 Control/ telemetry radios Frequency band legality by market, encryption needs, integration interface Range check, antenna VSWR sanity checks (basic) Doodle Labs (high‑bandwidth “smart radio” routers) 55 ; Microhard data links 56 ; Silvus (higher end MANET) 57 GNSS / navigation Standard vs RTK; convergence behavior; anti‑jamming/spoofing needs Antenna placement, GNSS lock behavior, RTK baseline tests u‑blox drone navigation modules (RTK and standard precision) 58 Cameras / sensors Visible, thermal, multispectral; interface (USB/MIPI/CSI); storage & cybersecurity implications Image quality check, connector strain relief FLIR (example professional thermal/visible systems) 59 ; Sony semiconductor imaging components and aerial imaging ecosystem resources 60 Component What to specify (typical) Notes on Remote ID-related BOM impacts (U.S. example): If you target the U.S. market and your drones need Standard Remote ID, production requirements include labeling and integration of Part 15 compliant RF equipment and associated identifiers referenced in the declaration of compliance process. 61 Supplier sourcing strategy (micro-factory reality) A very small factory typically can’t negotiate like a large OEM, so resilience comes from process and contracting: Use “dual sourcing by design” Design the mount pattern and wiring so that (for example) two GNSS modules, two ESC families, or two camera options can be substituted with minimal build disruption (while controlling configuration changes). Prefer official manufacturers, then authorized distributors Start with official manufacturer channels for critical modules (flight controllers, propulsion, GNSS, high- bandwidth radios). For commodity electronics and connectors, use reputable distributors (to reduce counterfeit risk). Counterfeit/substandard lithium batteries are specifically called out as a risk in aviation contexts. 62 Require compliance artifacts from suppliers For each Tier A part: request a supplier declaration, test reports where relevant, and lot/serial traceability. For lithium packs: require UN 38.3 test evidence from a reputable source; subsection 38.3 defines classification test procedures. 63 Implement incoming inspection gates A small factory compensates for limited supplier leverage by catching issues at receiving with a disciplined incoming inspection SOP (template provided later). Sample supplier list (official sites emphasized) This list is illustrative and non-exhaustive; it is not an endorsement. It provides starting points for official manufacturer information. • Airframe/FC ecosystem: Holybro 44 ; CubePilot 48 • Propulsion system: T‑Motor 54 ; APC Propellers 53 • GNSS: u‑blox 58 • Batteries: Tattu 52 • Radios: Doodle Labs 55 ; Microhard 64 ; Silvus Technologies

Facility, tooling, layout, and staffing Facility layout for a very small assembly factory A micro-factory for drone assembly is best designed as a one-way flow with quarantine and ESD-protected electronics zones: 1) Receiving + quarantine (incoming inspection) 2) Kitting and staging 3) ESD electronics assembly area (flight controller handling, harnessing, soldering) 4) Mechanical assembly (frame, motors, props off until end) 5) Power/battery handling area (segregated, fire-aware) 6) Test zone (bench tests, thrust tests, control link tests) 7) Final assembly + labeling + packaging 8) Finished goods quarantine (awaiting QA sign‑off) and shipping ESD discipline matters because you will handle sensitive electronics (flight controller, GNSS, radios). ANSI/ ESD S20.20 is widely used as a cornerstone for ESD control programs, covering controls like grounding, packaging, training, and compliance verification. 65 IEC 61340-5-1 similarly defines requirements for establishing and maintaining an ESD control program. 66 Tooling and equipment: comparison table (cost ranges and footprint) All cost ranges below are order-of-magnitude estimates because region, brand, and capability vary and because your product specifications are unspecified. Use them for budgeting and capacity planning, not procurement decisions. Typical footprint Typical cost range (USD/ EUR order-of-magnitude) Electronics assembly and inspection 2–6 m² per bench 1k–10k per bench setup ESD flooring or mats Reduce ESD events in EPA per room 1k–20k Precision soldering + rework stations Harnessing, connector swaps, module rework 0.5–2 m² 500–10k Stereo microscope / inspection camera Inspect solder joints, connectors, PCB issues 0.5–1 m² 200–5k Torque drivers + calibration fixture Repeatable mechanical assembly portable 200–3k Digital multimeters + continuity testers Electrical checks portable 100–2k Bench power supplies + electronic load Power-up and current draw testing 0.5–1 m² 300–10k Battery chargers + safe charging containers Charge/discharge and screening 1–4 m² 500–10k Thrust stand (single motor or multi-motor jig) Verify propulsion performance vs current draw 1–3 m² 500–10k (DIY→semi-pro) Weighing scale + CG tools Weight and balance + traceability 0.5–1 m² 100–2k RF sanity tools (basic) Pre-check emissions/ interference 0.5–1 m² 500–20k (basic spectrum tools vary widely) Label printer + serialization system Regulatory labels, serial numbers 0.5–1 m² 200–5k “Quarantine” shelving Receiving hold, nonconforming hold 2–10 m² 200–3k Fire-aware battery storage Reduce risk and isolate events 1–6 m² 1k–20k Equipment / area Purpose ESD workbenches + grounding

Production workflow with QC checkpoints Production should be run with a traveler (build record) and defined inspection gates: • Incoming inspection checkpoint: verify part numbers, vendor, lot/serial numbers for Tier A components; visually inspect motors/ESC connectors, flight controller connectors, and battery physical condition. • In‑process checkpoint (electronics): connector torque/retention, polarity checks, continuity, and correct harness routing before applying power. • Power-up checkpoint: current-limited power-up first; validate flight controller boots, sensors present, and radio link is controllable. • Propulsion checkpoint: verify ESC calibration, motor direction, and measured thrust/current within expected band before fitting propellers. • Final acceptance checkpoint: remote ID behavior (where applicable), failsafes, logging functionality, packaging contents, labels. A U.S. Remote ID producer specifically may be required to permit inspection of facilities/technical data and to perform recurring independent audits, depending on how production is regulated under the Remote ID rules. 10 Assembly and QC workflow (Mermaid) flowchart TD A[Receiving] --> B[Incoming Inspection + Quarantine Decision] B -->|Pass| C[Kitting + Traveler Issued] B -->|Fail| Q[Nonconforming Material Area (NCMR)] C --> D[ESD Electronics Assembly] D --> E[Mechanical Assembly (Props OFF)] E --> F[Harness Check + Continuity + Polarity] F --> G[Power-up on Current Limit] G --> H[Firmware Load + Parameter Set] H --> I[Sensor + Radio + ESC Calibration] I --> J[Bench Functional Tests (No Props)] J --> K[Propulsion Performance Test (Thrust Stand)] K --> L[Flight Readiness Review] L --> M[Controlled Flight Test Protocol] M --> N[Final QA + Labeling + Pack-out] N --> O[Finished Goods Quarantine] O --> P[Ship + Record Retention]

Staffing roles, skills, and labor estimates Because production volume is unspecified, staffing is described as a minimal “cell” that scales. Minimal launch team (very small factory) - Manufacturing lead / production engineer (process design, work instructions, fixtures) - Electronics technician (ESD, harnessing, rework) - Mechanical assembler (frame, motors, fasteners, torque discipline) - QA technician (incoming inspection, in‑process checks, final acceptance) - Test operator / remote pilot (bench tests + flight tests under local operational rules) Training recommendations - ESD program training aligned to ANSI/ESD S20.20 program concepts. 65 - Electronics workmanship criteria anchored in widely used acceptability concepts (IPC-A-610 is broadly recognized as an electronic assembly acceptability reference). 67 - Battery hazard training and emergency action plan integration (OSHA stresses the need for incident response procedures and training for lithium-ion battery failures/thermal runaway scenarios). 68 Labor estimates (non-binding) In early manual assembly, labor per unit is dominated by harnessing, configuration, and testing. Expect that the first units will take many labor-hours and only stabilize after work instructions, fixtures, and kitting discipline are refined. (Because product complexity and volume are unspecified, numeric labor-hour-perunit figures are intentionally not asserted as facts here.) Manufacturing choices, firmware provisioning, calibration, and testing PCB assembly vs buying modules Buying modules (recommended at micro-factory stage) Most micro-factories buy flight controllers, GNSS modules, radios, and power modules as finished assemblies and focus on mechanical integration, harnessing, and configuration management. Advantages: shorter time-to-market, suppliers may have their own QA controls, and you reduce internal ESD/solderrework burden. In-house PCB assembly (usually later) In-house PCBA demands additional equipment and process controls (solder paste, reflow profiles, inspection, rework skill, component storage/MSL control). If you go this route, you typically adopt richer workmanship standards and inspection regimes. A pragmatic intermediate step is outsourcing PCBA to a contract manufacturer, while you keep firmware, calibration, serialization, and final assembly in-house. Firmware loading, version control, and Remote ID integration Two widely used autopilot ecosystems are PX4 69 and ArduPilot 70 . PX4 documentation explicitly notes that PX4 does not manufacture autopilots and directs hardware compliance/support issues to manufacturers—highlighting that the compliance burden sits with the product maker/integrator. 50 Remote ID integration (where required) often relies on standardized message sets. A key interoperability layer is MAVLink 71 , including services for OpenDroneID 72 message transport; MAVLink’s Open Drone ID messages are described as compliant with ASTM F3411 and prEN 4709-002 Direct Remote Identification references. 73 If you are producing for U.S. Standard Remote ID requirements, note that a declaration of compliance submission is central and includes RF equipment identifiers and assertions about compliance and production controls. 74 Calibration procedures (bench) Most autopilot stacks require calibration of accelerometers, gyroscopes, compasses, radios, and ESCs prior to flight. Examples of explicit procedures documented by PX4/QGroundControl include: - Accelerometer calibration guided by QGroundControl, moving the vehicle through defined orientations. 75 - Compass calibration via the same Sensors setup flow. 76 - ESC calibration with an explicit safety step: remove propellers before calibration. ArduPilot documentation similarly treats calibrations (accelerometer, compass, radio) as mandatory setup steps for many vehicle types. 78 Testing: rigs, protocols, and flight test discipline A micro-factory should treat flight as the final test, not the first. Recommended test stack: Bench test (no props) - Current-limited power-up; verify stable boot and no abnormal current draw - Sensor presence and sanity checks - Telemetry/control link binding and failsafe checks - Remote ID message presence (if applicable) and receiver checks (e.g., using a known receiver workflow) PX4’s Remote ID documentation suggests verifying that Open Drone ID messages are present (e.g., via MAVLink inspection tools) once configured. 79 Propulsion test (thrust stand) - One motor+ESC+prop at a time or a fixture for a full arm - Measure thrust vs current draw at several throttle points - Validate motor direction and vibration signature (basic) Tethered/contained test - First spin-up with restraints or a test enclosure (props on) - Verify stability of attitude and response to command inputs Flight test protocol - Define a dedicated test area and legal operational procedure under local UAS rules - First hover: low altitude, short duration, confirm controllability - Failsafe tests: simulated link loss (where safe/legal), return-to-home behaviors - Incremental expansion: longer hover → translational flight → mission profile Because operational rules differ by country and risk category, you must align flight tests with the local aviation regulator’s UAS operation framework (ICAO model frameworks and national implementations are the starting point). 80

Quality system, documentation, traceability, and safety Quality management system categories For a small factory, the minimum workable QMS is a set of controlled documents and records that ensure: you build what you claim you build, - you can prove it, - you can react to defects without chaos. International Organization for Standardization 81 describes ISO 9001 as a globally recognized standard for quality management systems. 82 If you intend to supply to aerospace-grade customers, aerospace-specific QMS schemes (e.g., AS/EN 9100 family) are often expected, but the decision depends on your target customers and markets, which are unspecified. 83 Documentation and record retention anchors U.S. Remote ID producers: record retention is specified: retain means of compliance documentation/ substantiating data, test results, and other compliance evidence for as long as the model is produced plus 24 months. 12 EU CE marking contexts: EU guidance emphasizes technical documentation and an EU declaration of conformity as the basis for affixing the CE mark. 84 The EU “Blue Guide” also discusses roles (manufacturer/importer/distributor) and long retention expectations in many harmonization regimes (example excerpted context indicates 10-year traceability/ availability concepts for some operators). 85 Traceability: what to track (minimum viable) Track at least: - Finished goods serial number (unique) - Flight controller serial + firmware version + parameter set revision - Battery pack serial/lot (and UN 38.3 evidence reference) - Motor and ESC lot/serial (Tier A) - Radio module identifiers (where required—e.g., FCC identifiers referenced in remote ID declarations) - Final test results and flight test summary Record-keeping templates (copy/paste) Build traveler (manufacturing record) BUILD TRAVELER (Drone Assembly) Model: ____________ Revision: _________ Unit Serial: ____________ Build Date: ____ / ____ / ______ Work Order #: ____________ Customer/Batch: ____________ Tier A Components (record serial/lot): - Frame/arms lot: ________ - Motors (M1..Mn) serials: ____________________________ - ESCs (E1..En) serials: ______________________________ - Flight controller serial: __________ Firmware: ________ - GNSS module serial/lot: ____________ - Radio module type/serial: __________ - Battery pack serial/lot: ___________ UN38.3 doc ref: _______ Process steps (initial by operator + QC): 1) Incoming inspection complete Op: ___ QC: ___ Date: ___ 2) Harness build + continuity Op: ___ QC: ___ Date: ___ 3) Mechanical assembly + torque Op: ___ QC: ___ Date: ___ 4) Power-up (current limit) Op: ___ QC: ___ Date: ___ 5) Firmware load + params Op: ___ QC: ___ Date: ___ 6) Sensor calibration (accel/gyro/compass) Op: ___ QC: ___ Date: ___ 7) ESC calibration (props off) Op: ___ QC: ___ Date: ___ 8) Bench functional tests Op: ___ QC: ___ Date: ___ 9) Propulsion test (thrust/current) Op: ___ QC: ___ Date: ___ 10) Flight test summary Pilot: __ QC: ___ Date: ___ 11) Labeling + pack-out Op: ___ QC: ___ Date: ___ Nonconformances / rework: NCR #: ______ Description: ________________________________ Disposition: [ ] Rework [ ] Use-as-is [ ] Scrap Approved by: ______ Incoming inspection checklist (high-impact items) INCOMING INSPECTION (Tier A / Flight Critical) PO #: _________ Supplier: __________ Date: _________ 1) Packaging condition / damage evidence: Pass / Fail 2) Part number & revision match PO: Pass / Fail 3) Quantity / lot traceability present: Pass / Fail 4) Visual inspection: - Flight controller connectors intact: Pass / Fail - GNSS antenna/cable intact: Pass / Fail - ESC solder joints clean: Pass / Fail - Batteries: no swelling/dents/leaks: Pass / Fail 5) Sample electrical checks (as applicable): - Battery voltage within range: Pass / Fail Inspector: ________ - Motor shaft smooth rotation: Disposition: [ ] Accept NCR #: ________ [ ] Quarantine Pass / Fail [ ] Reject (NCR opened)

Safety and hazardous-material handling (batteries emphasized) Workplace risk Lithium-ion batteries present hazards including thermal runaway; OSHA emphasizes that workplaces should integrate lithium-related incident response procedures into emergency action plans and train workers on those procedures. 68 General hazard summaries (e.g., corrosive/flammable/toxic releases during thermal runaway) are described in occupational safety guidance such as CCOHS. 87 Storage and charging controls (practical minimum) - Separate battery storage/charging from the main assembly line - Use nonflammable surfaces and enforce “no unattended charging” policy - Establish a damaged-battery quarantine workflow - Train staff on early warning signs and response steps (per OSHA/NFPA-aligned guidance) Transport compliance UN Manual of Tests and Criteria 38.3 defines classification test procedures for lithium cells and batteries (tests applicability is described in the subsection). 21 IATA’s lithium battery guidance (2026) references special provisions and approval processes for transport conditions such as state of charge and operator approvals. 89 Environmental compliance (EU examples) - RoHS substance restrictions (including amendments adding restricted substances) 90 - WEEE frameworks for electrical and electronic equipment waste management (producer responsibility concept) 91 - REACH SVHC candidate list managed by European Chemicals Agency 92 in the EU context 93

Economics, timeline, risk, and certification testing Startup costs and recurring expenses (sample budgeting framework) Because production volume, product cost, and local labor rates are unspecified, budgeting is provided as a structured template with ranges. Startup cost categories (CapEx + launch costs) Typical range (order-ofmagnitude) Category What it includes Facility fit-out benches, power drops, storage, safety cabinets, signage 5k–100k Typical range (order-ofmagnitude) Category What it includes Assembly & inspection tools ESD benches/mats, soldering/rework, microscopes, torque tools 5k–50k Test equipment power supplies, chargers, thrust stand, telemetry stations 5k–50k IT + traceability labeling, barcode/QR system, file server, configuration mgmt 1k–25k Initial inventory Tier A spares + work-in-process buffers 10k–250k Compliance pre-testing pre-scan EMC, RF sanity checks, prototypes Formal compliance testing & certification accredited RF/EMC/safety testing, documentation support 5k–50k 10k–200k+ Formal test costs vary widely by scope and jurisdictions; accredited testing organizations market services for FCC testing/certification and RED conformity assessment support (examples include UL, Intertek, SGS, TÜV SÜD). 94 Pricing model options (hardware + support realities) Given the drone market’s operational risk, pricing often must fund support and liability controls: • Cost-plus: price = (COGS + allocated overhead) ÷ (1 − target margin) • Value-based: price tied to mission outcomes (inspection time saved, data quality, reliability) • System pricing: bundle drone + spares + training + support + optional software, smoothing revenue and supporting compliance maintenance (e.g., firmware updates, recall capability) Sensitivity analysis (unit economics drivers) Because product BOM and volume are unspecified, sensitivity is shown as directional impact. Driver change Typical effect on unit economics Scrap rate increases (electronic failures, battery rejects) COGS rises sharply (Tier A parts dominate cost) More test time per unit Higher labor + lower throughput automate test scripts and fixtures; tighten traveler Certification scope expands (more radios, internet connectivity) Higher lab + documentation cost; longer lead time restrict SKUs; modular radio options; plan RED cybersecurity compliance if in scope 18 Mitigation lever stronger incoming inspection, supplier qualification, ESD controls Driver change Typical effect on unit economics Mitigation lever Supply disruption (motors/ ESC/batteries) Production stoppage or forced redesign design dual-source compatibility; buffer critical parts Regulatory change Rework of labeling, firmware, docs; potential stop-ship keep compliance matrix alive; monitor regulator updates 95 Time-to-market timeline (Gantt-style Mermaid) This is an indicative sequencing model (durations depend on unspecified product scope and jurisdictions). The point is the dependency structure. gantt title Micro-Factory Drone Assembly Launch Timeline (Illustrative) dateFormat YYYY-MM-DD axisFormat %Y-%m section Definition Requirements matrix + target markets (unspecified) :a1, 2026-03-01, 30d Product scope freeze (airframe family + 2 payload SKUs max) :a2, after a1, 21d section Supply Chain Supplier shortlist + samples + QA criteria :b1, after a1, 45d Dual-source design adjustments :b2, after b1, 30d section Factory Setup Facility lease + layout + ESD program :c1, 2026-03-15, 60d Work instructions + travelers + training :c2, after c1, 45d section Prototype & Pilot Builds EVT builds (engineering validation) :d1, after a2, 45d DVT builds (design verification + test fixtures) :d2, after d1, 60d PVT builds (process validation, yield tracking) :d3, after d2, 60d section Compliance & Market Access Pre-compliance RF/EMC checks :e1, after d1, 30d Accredited RF/EMC/safety testing :e2, after e1, 60d Documentation pack (DoC/tech file, product labels) :e3, after e2, 30d section Launch Controlled release + field feedback loop :f1, after d3, 30d Full micro-production start :f2, after f1, 1d Risk analysis and mitigation Supply chain risk - Risk: long lead components (GNSS, radios, batteries) block production - Mitigation: dual-source footprints; keep safety stock on Tier A; implement early incoming inspection + quarantine discipline. Regulatory risk - Risk: shipping a product that is noncompliant in a target market; stop-ship/recall - Mitigation: compliance matrix; keep a single controlled configuration per market; align Remote ID documentation and record retention if targeting the U.S. 96 Safety risk - Risk: battery thermal runaway during storage/charging; injury/property damage - Mitigation: segregated battery area, emergency procedures, worker training (OSHA emphasizes EAP integration and training). 88 Cybersecurity risk - Risk: connected radios/payloads create cybersecurity obligations and reputational risks - Mitigation: minimize internet-connected features until you can support lifecycle security; if selling into EU and your radio equipment is in-scope for RED cybersecurity essential requirements, implement a compliance plan aligned with the scope described in Delegated Regulation (EU) 2022/30 and the applicable application dates used by regulators. 18 IP, certification testing, and “approvals” pathways IP and licensing - If you use open-source autopilot stacks (PX4/ArduPilot) you must manage software licensing, configuration control, and customer update commitments. (This is not legal advice; engage counsel for license compliance and any patent/FTO issues.) FCC / radio approvals (U.S.) - FCC equipment authorization procedures describe how devices are approved, and 47 CFR Part 15 provides the framework for unlicensed operation and marketing conditions. 97 - For U.S. Remote ID declarations of compliance, the producer must include the FCC Identifier of Part 15compliant RF equipment integrated into the unmanned aircraft (as specified in the Remote ID declaration submission rule). 11 EU CE marking (radio-equipped drones) - CE marking guidance emphasizes the manufacturer’s responsibility to perform conformity assessment, compile technical documentation, sign an EU declaration of conformity, and affix the CE marking. 98 - For radio-equipped drones, RED 2014/53/EU is commonly central; it references EMC objectives and safety objectives and requires spectrum compliance. 17 - RED cybersecurity essential requirements (for applicable categories/class of radio equipment) are defined in the Delegated Regulation (EU) 2022/30 scope text (e.g., internet-connected radio equipment). 18 Airworthiness / type certification (higher-risk UAS) - In the U.S., the FAA explains that 14 CFR Part 21 defines type, production, and airworthiness certifications and identifies its approach for UAS certification in that framework. 99 - The FAA has also published policy on type certification of certain UAS as a “special class of aircraft.” 100 - In Europe, operations in the “certified” category require certification of the UAS and operator in the EU framework, and EASA provides certification specifications work such as “Special Condition Light UAS.” 101 Typical test types and labs Common tests you may encounter (depending on markets, radios, and design): - RF performance + regulatory emissions (FCC/RED) - EMC immunity/emissions (RED/EMC expectations) - Electrical safety objectives (as applicable) - Battery safety + transport evidence (UN 38.3; sometimes IEC/UL depending on market expectations) 102 - Environmental robustness (temperature, vibration) for industrial customers - Cybersecurity assessments for connected radio equipment (where legally required) Test labs and certification bodies market these services; examples include UL Solutions 103 (FCC testing/TCB services), Intertek 104 (FCC certification services), SGS 105 (RED services), and TUV SUD 106 (RED and cybersecurity support). 107 https://www.icao.int/UA/icao-model-uas-regulations https://www.icao.int/UA/icao-model-uas-regulations https://www.law.cornell.edu/cfr/text/14/89.510 https://www.law.cornell.edu/cfr/text/14/89.510 https://www.law.cornell.edu/cfr/text/14/89.530 https://www.law.cornell.edu/cfr/text/14/89.530 https://www.osha.gov/sites/default/files/publications/OSHA4480.pdf https://www.osha.gov/sites/default/files/publications/OSHA4480.pdf https://www.faa.gov/uas/advanced_operations/certification https://www.faa.gov/uas/advanced_operations/certification https://www.law.cornell.edu/cfr/text/14/89.515 https://www.law.cornell.edu/cfr/text/14/89.515 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