EATON
Meeting the needs of tomorrow
Team 8: Dalinala
David Qian
Lauren Liu
Lindsay Peng
Najib Yang
Agenda






(Lauren)
Intro and Background
Current process
Problems
Short term strategy
Long term strategy
Conclusion
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Background
(Lauren)
Eaton Cooperation:
 Power management company provides energy
efficient solutions
 Four main sectors of business: Electrical,
Aerospace, Vehicle and Hydraulics
 Electrical: Biggest sector that offers electrical
solutions including distribution, generation,
and quality control equipment, engineering
and support services
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Current Process
(Lauren)
Source from Sustainability Growth through Network Optimization
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Problems
(Chenghao)
•
Bottleneck: Shortage of
customization products
•
High level of Inventory
•
Long lead time
•
Not meeting customers’
needs
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Problem
(Chenghao)
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Problem
(Chenghao)
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Problem
(Chenghao)
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Short term strategy
(Lindsay)
 Extend warehouse W87
 Subcontract to third-party warehouse
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Short term strategy
(Lindsay)
Extend warehouse W87
Pros:
1. Improve productivity
2. Less capital investment than building a new
warehouse
3. Shorten lead time
Risks:
1. Consolidate with existing warehouse
2. Changes in future demand
3. Limitation in location
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Short term strategy
(Lindsay)
Subcontract to third-party warehouse
Pros:
1.
2.
3.
4.
More flexible with demand change
Easy to implement
Alleviate the pressure of W87 and W34
Shorten distance to CMSCs
Risks:
1. Communication issue
2. Cooperation issue
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Eaton Is Everlasting
(Najib)
 Western Division Plant – Location!
 Rising transportation costs
 Increasing demand for products
 Population Dynamics
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Mitigating Risk
(Najib)
 Foreseeable Risks:
 High Capital Expenditure
 New Efficiencies – Less Need For Support
 Time to Reflect Financials
 Rebuttles
 Infrastructure Foundation
 Unlikely To Exceed Demand
 PPE Assets vs. Accelerated Depreciation
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Conclusion
(Chenghao)
 Short term strategy
 Extend warehouse
 Long term strategy

Western Division
Plant
 Subcontract to third
party warehouse
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Thank you !
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Q&A
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