SupplierWebcast_January2013

© 2010 Eaton Corporation. All rights reserved.

EPS Supplier Web Conference

January 16, 2013


Agenda

• Eaton Overview & Program Update – Jerome Ng • SCM Overview– Brad McNett • Quality Review – Chad Alvord / Bob Budesky • Materials Review – Alison Stephanic / Eunice Maya • Summary • Closing and Next Steps • Q&A

NEW PROGRAM DEVELOPMENT – REMINDER CONFIDENTIALITY AGREEMENTS


EATON OVERVIEW


Eaton is a Leading Diversified Power Management Company

• Founded in 1911 by J.O. Eaton • Chairman & CEO – Alexander M. Cutler • Eaton Center in Cleveland, Ohio USA • Regional centers in Shanghai, China; Morges, Switzerland; Sao

Paulo, Brazil • Innovation Centers in regions around the world • Customers in more than 150 countries • Sales of $21.8 billion*, more than 50% of sales outside the U.S. • Approximately 100,000 employees * Combined results of Eaton and Cooper for the four quarters ending September 30, 2012.


Powerful megatrends will help drive our markets to grow at a multiple of global GDP

23…Percentage decrease in electricity demand possible through the application of energy efficient equipment and demand management services

100…Percentage increase in agricultural output by 2050 necessary in developing countries to feed the global population

30…Percentage decrease in fuel consumption of next generation single-aisle aircraft planned by 2020

20…Percentage decrease in fuel consumption by model year 2018 resulting from the first ever U.S. emissions standards for heavy-duty trucks

90…Percentage increase in proposed Corporate Average Fuel Economy (CAFE) standards by 2025 for passenger cars

Eaton is uniquely positioned to provide safe, reliable, efficient and sustainable power management solutions for our global customers.


Eaton – Vehicle Group

• $4.3 Billion Sales • 40% Automotive • 60% Commercial Vehicle

• Committed to develop products that provide value to our customers

• This was prevalent during the recent IAA conference last September


IAA Video


The Efficient Powershift System Advantage

EFFICIENCY REGULATIONS SERVICE DRIVABILITY

• Planned 8-10% Better Fuel Economy than Torque Converter Automatic

• My Route My Truck Fuel Economy Application Demonstrator

• Assistance in Meeting EPA’s 2014 (5%↓) & 2017 (9%↓) CO2 Emissions Requirements

• Fully Functional PowerPack Testing Facility Available

• World Class Roadranger Team After Sale Service Support

• Participation in Aftermarket Revenue Opportunity not available with other suppliers

• Mechanic Friendly, Easy to Maintain and Repair

• Unique, Tunable Controls for Urge to Move

• Hill Assist - Will Hold a Vehicle on grade without added vehicle integration

• Auto Clutch Engage on Down Grades

“This (EPS) is by far the single largest investment that our company has made in any single program” – Craig Arnold, Vice Chairman / COO


Customer Feedback

• Overall Performance • “Surprisingly different” • “Accurate” • “Good downshifts” • “That is nice! This (Hill Assist)

is the biggest thing I like – no rollback”

• “Drivers will like it” • “Impressed”

• Ranked above competition

in 9 of 10 categories during ride and drive


PROGRAM UPDATE


Accomplishments • Functionality & Performance meet

specifications • Proven in rig and vehicle testing

• 2 Winter tests completed • Issues observed on first winter test resolved and

confirmed closed on second winter test • Demonstrated cold function specification capability • Winter test will continue as part of Certification

• 3 Hot tests completed • Minor issues observed in first hot test resolved and

confirmed closed on second hot test • Passed hot test specifications

• Two urban hill tests completed • Demonstrated performance equal to or better than the

competition


Program Status

• >97% of components sourced to production suppliers • Reliability Growth (Prototype parts) Testing on-going

in vehicles • Several start up issues resolved, revised hardware is on test

(>16,000 hours accumulated = 4,000 days of service) • Accumulating ~800 hours a week of operation

• “Certification” level hardware (Proto & Production Parts) installed in first trucks – validating improvements

• 2nd phase of Reliability Growth and Field Test planned for 2013 with production hardware


Eaton Key 2013 Tasks

• Transmission/Engine Certification • Complete phase 1 of Reliability Growth • Start Field Test and phase 2 of Reliability Growth • Production part PPAP’s • Cost Out / Cost Management • Manufacturing line run-off’s and install

2013 will a pivotal year for our Supply Chain since this will be the year we validate transmission with production hardware. Furthermore, it will be when we validate supplier readiness through your PPAP’s


SUPPLY CHAIN REVIEW


EPS by the Numbers

• Unique Part Numbers > 400 • Purchased Parts 75% • Suppliers Selected > 50 • Commodities Represented 13 • Eaton Plants Involved 6


EPS - Supply Chain Model

EATON – SLP (Mexico)

EATON – Tczew

EATON - Aguascalientes

EATON – Shenandoah

Purchased Parts Supplier (EPS Tier One Supplier)

EATON – S. Bend

Purchased Parts Supplier



EATON – Roxboro


Program has a lengthy and complex supply chain. Communication is Key!

EPS Tier 1 Supplier Tier 2 Supplier Tier 3 Supplier

EPS Final Mfg.


RG2 Labeling

Identification at staging

facility Identify necessary characteristics for export documentation

Loaded with regular weekly shipment

and will be mixed with production

product

Identification at final destination

Evan Vijithakumara 260-925-7469 Office

724-759-0254 Cell

Auburn, IN PlantRaynoldo Iniguez +52-449-910-2840 Office

'+52-449-196-4537 Cell

Auguascalientes, MX PlantPart #: Supplier:

Part Name: Quantity:

Eng. Chg. Level: Date:

EPS Transmission RG 2Qualification Samples

For Questions about this part please contact :


M F A M J J A O S D N J M F A M J J A O S D N J F J M A

EPS Program Milestones & Timing

Testing RG1Testing (12 mos) RG2/Field Testing (9 mos)

2012 2013 2014

Mfg. Install and PV

Some Suppliers will have earlier Milestones as they Support Internal Eaton Plants

RG2 - SUPPLIER MRD (PRODUCTION)

Supplier PPAP

CERT - SUPPLIER MRD (PROTO & PROD)

RG 2 Build

Revised RG 2 Build


Key Points • RG2 Delivery expectations remains the same

– January 2013 • RG2 Build at SLP

• There will be minimal impact to the start of RG2 build

• There will be a 4-8 week impact to the completion of RG2 build

• PPAP and SOP will have a similar impact to timing

• Expect Mfg. Install and Process Validation Purchase Orders in the near future


Communication Requirements

• Change Requests • Will now require supplier to fill out a Supplier

Change Request (SCR) Form

• RG2 Uses Production Intent Hardware • Any deviation from production process must be

documented • Any prototype tool use must be documented


Driving Cost-out

Approximately 3 suggestions per supplier gets to the objective of 150 submissions for review!

Goal of 150 Suggestions

Eaton will schedule

VA/VE events throughout

2013

Cost Out opportunities

identified through last

webcast survey

Contact Eaton through

webcast survey or Commodity/

Program contact


Supplier Recognition

Contributing Cost Out Ideas • Bharat Gear • Faist • GAMPCO • Ohio Screw Products • Universal Bearing

The EPS team would like to extend a personal thank you for your dedication and expert opinion


Supplier Recognition

• CAS • Delphi • Faist • General Fastener • GGB • Monticello Spring

• Nedec • S3C • TE • Western Diversified

Plastics

Again a personal thank you extended from the EPS team for your shared expertise and upfront dedication to design

Upfront Design for Manufacturability


Final Thoughts

• Suppliers Selected - Key Strategic Partners for our business

• Honored to work with you • Achieving outlined program objectives will

deliver the ultimate goal- MUTUAL GAIN

“I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that,

for you to gain, those you deal with should gain as well.” – Alan Greenspan


QUALITY REVIEW


EPS- RG 2 Quality Expectations Subject: Efficient Power Shift Reliability (EPS) Growth Phase Two Requirements EPS Tier One Supplier: Our Eaton manufacturing location will be conducting a pre-production build event called Reliability Growth Phase Two. Documentation for the requirements listed below must be received prior to the required RG2 part due date. For each requirement below (if applicable) send electronic files to your assigned Supplier Development Engineer or Supplier Quality Engineer. Put the top level Eaton part number and revision level in each file name. 1. Full dimensional layouts A ballooned drawing identifying the features and notes, and three random sampled parts from your RG 2 build requirement.

Use the AIAG or similar document to complete the reports. Be sure to sign each report. 2. Proposed Production Packaging Form Complete the production packaging request approval form. (This is for production intent only packaging, not

RG 2 packaging) 3. Material Certification Provide evidence the top level drawing meets the material requirements. 4. Functional Tests. If data is available by RG-2 delivery date, provide evidence that the parts meet the functional test requirements. (if applicable)

Example: leak tests. 5. Heat Treat / Coating / Plating Provide evidence the parts meet the special processing requirement. (If applicable) 6. Container Identification Identify each RG 2 shipping container with “EPS RG-2 Components Placard” All four sides of the shipping container must

have the placard displayed. Attach a 2 D bar code label, part number and part revision level. (If Required) 7. Process Flow Chart Provide the current process flow chart. 8. Pre-Production Control Plan Provide the pre-production control plan. 9. DFMEA Checklist Complete the Design Failure Mode and Effects Analysis checklist if component / assembly is supplier owned. 10. PFMEA Checklist Complete the Process Failure Mode Effects and Analysis checklist. 11. Measurement System Analysis Provide evidence that the “critical to quality” features pass the measurement system criteria. Follow AIAG guidelines. 12. Capability results Provide capability data for any identified CTQs (Critical to Quality) on the drawing. (If applicable) Follow AIAG guidelines.


EPS- RG 2 Quality Expectations RG2 Special Identification

Container Identification Identify each RG 2 shipping container with “EPS RG-2 Components Placard” All four sides of the shipping container must have the placard displayed. Green paper may be used.

Evan Vijithakumara 260-925-7469 Office

724-759-0254 Cell

Auburn, IN PlantRaynoldo Iniguez +52-449-910-2840 Office

'+52-449-196-4537 Cell

Auguascalientes, MX PlantPart #: Supplier:

Part Name: Quantity:

Eng. Chg. Level: Date:

Qualification SamplesEPS Transmission RG 2

For Questions about this part please contact :


EPS- RG 2 Quality Expectations Container Labeling

Container Labeling 1. Bulk pack container labeled 2. Individual containers “within” the bulk pack must have bar code labels.

• Why is Eaton asking for this requirement? • For traceability in the manufacturing process.

Multiple units will be tracked in the “field”

ATTACH PHOTO OR PDF OF BAR CODE LABEL HERE:

GUIDELINES FOR CREATING STANDARD BAR CODE LABELS:Label Format: The specified identifiers shall be applied on the standard Bar Code Label in the following order:

1. Receiver (R )2. Supplier Address (A)3. Part Number (P)4. Part Description (D)5. Quantity of Parts (Q)6. Lot Number (1T)7. Supplier Name (V)8. Purchase Order Number (K)9. Serial Number (S)10. Manufacturing Date (M)11. Engineering Level of Part (2P)12. Country of Origin (4L)

The Bar Code label needs to be compliant with the following international standards:• Bar Code Symbology Specification – Data Matrix• ISO/IEC 18004 Bar Code Symbology Specification – QR Code• ISO/IEC 15415 Bar Code Print Quality Test Specification – Two-Dimensional symbols

Automotive Industry Action Group (AIAG) requirements for standard and 2D Data Matrix labels:• B-1 Bar Code Symbology Standard• B-4 Parts Identification and Tracking Application Standard• B-13 2D Symbology White Paper • B-14 Guidelines for use of Two-Dimensional Symbols (2D) with the B-10 Trading Partner Labels• B-17 2D Direct Parts Marking Guideline

GUIDELINES FOR CREATING 2D DATA MATRIX LABELS:

For programs that require a 2D Data Matrix label as part of the Bar Code Label, the following requirementsmust be included in your 2D Data Matrix label: (Label below is highlighted in pink for reference only.)

Information to be included on a 2D Data Matrix label:• Part Number - Data Identifier (P) field length an1-14• Revision Level - Data Identifier (2P) field length an1-5• Lot Number - Data Identifier (1T) field length an1-10• Quantity - Data Identifier (Q) field length an1-5• Supplier Name or Supplier Vendor ID Number (if available) - Data Identifier (V) field length an1-5.

**Note: Full packaging approval is contingent on approval of your submitted Bar Code Label. **


EPS Label Requirements Format: The specified identifiers shall be applied on the part in the following order:

1. Receiver (R )

2. Supplier Address (A)

3. Part Number (P)

4. Part Description (D)

5. Quantity of Parts (Q)

6. Lot Number (1T)

7. Supplier Name (V)

8. Purchase Order Number (K)

9. Serial Number (S)

10. Manufacturing Date (M)

11. Engineering Level of Part (2P)

12. Country of Origin (4L)


Information to place in the 2D Data Matrix

• Follow AIAG Specifications • Part Number • Revision Level • Lot Number • Quantity • Supplier/Vendor ID (only if applicable)

• If you do not know your vendor code, please contact your respective Commodity Manager • http://collaborate.etn.com/communities/home/SiteDirectory/quality/Industrial%20Sector%20Site/vg/VG%20

SCM%20Purchasing/Truck%20Vendor%20Part%20ID%20Matrix-MASTER.xlsx

http://collaborate.etn.com/communities/home/SiteDirectory/quality/Industrial Sector Site/vg/VG SCM Purchasing/Truck Vendor Part ID Matrix-MASTER.xlsx

http://collaborate.etn.com/communities/home/SiteDirectory/quality/Industrial Sector Site/vg/VG SCM Purchasing/Truck Vendor Part ID Matrix-MASTER.xlsx


EPS- RG 2 Quality Expectations Proposed Production Packaging Form

Proposed Production Packaging Form Complete the production packaging request approval form. (This is for production intent only packaging, not RG 2 packaging)

RUST PREVENTION METHOD (IF APPLIED) OILING VOLATILE CORROSION INHIBITOR (VCI) SILICA-GEL (DESICCANT) OTHER: N/A

NO NAME DIMENSIONS PCS.

PART WEIGHTL W H (lbs)

SINGLE WALL MODULAR CARTONS - NO PALLET DOUBLE WALL MODULAR CARTONS ON A PALLET TRIPLE WALL UNIT LOAD (BULK OR PALLET BOX TYPE)

PIECES PERCONTAINER L W H

72 22 19 19PIECES PER

PALLET LOAD L W H576 38.5 45 43 Date

PALLETSTYLE

STACKABLE?NOTES: Date

Date

CONTAINERS PER PALLET 8

Note: Approval of this Form does not constitute approval of minimum order quantities or fixed lot multipliers. MOQ's / FLM's will be negotiated with the Eaton Commodity Team where applicable.Note: It is the supplier’s responsibility to ensure that products are delivered safely and free from damage or contamination. Note: Each box must have 2 bar code labels attached on opposite or adjacent sides. On very small boxes, one label is acceptable.Note: At a minimum, one Bar Code label should be attached to the forklift entry side of the pallet load.Note: The maximum gross weight for any hand held box cannot exceed 30 lbs. Any exception must be approved by Eaton.Note: All wood pallets must be virgin hardwood and kiln dried to 15% moisture level. Maximum load weight per wood pallet is 2000 lbs.Note: All Supplier pkg requirements not shown on this Form are listed in the "Eaton Supplier Packaging & Labeling Standard MP-024".

Supplier Quality Manager / Supplier Quality Engineer

Receiving Coordinator / Shipping Technician

FORKLIFT ENTRY ISPM 15 COMPLIANT?

EATON PART NUMBER

PART NAME

CONTAINER WEIGHTFAX

5

WEIGHT (lbs)170

Paper

(lbs) MAX: 30 lbs18

EATON APPROVALS

SUPPLIER CONTACT

PALLET DIM. (in) GROSS PALLET

164" x 6"

SUPPLIER NAME4301001

Corrugated double wall

Stretch wrap

Eaton Packaging Engineer

EMAILPHONE

6

7

SHIPPING PALLET LOAD PHOTO

8

9

10

SUPPLIER ADDRESS

SHIPPING TYPE

CONTAINER DIM. (in)400

Shield Cover

PACKAGING SPECIFICATION DATA SHEET

560 x 480 x 480

as required

550 x 470

INTERIOR CONTAINER PHOTO WITH PARTS SHOWN

1

2

MATERIALS

LIST OF MATERIALS

8

8

3

Box

Tape kraft paper tape

1

paperboard layer pad

4 Pallet

Partition

as required

980 x 1140 x 127

8

1hardwood

clear wrap

Bar Code Label

EXTERIOR CONTAINER PHOTO

(ECT or PSI)

PHOTO OF PART

PART DIM. (in)

7.88 5.90 2.00 0.20

EXTERIOR CORRUGATED MATERIALBURST STRENGTH

ExpendablePACKAGING METHOD Returnable

SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE

2-way 4-way YES N/A

1

2

3

4

5

6

7

8

9

10

YES NO

6


PPAP lessons learned:

• Communication is key • Use the PPAP request letter • Work to improve your PFEMA • Be sure to submit Qualified Laboratory

Documentation (A2LA / ISO 17025, or international equivalent)

• Packaging Approval (Includes 2D Bar code) • PSW: Need contact name, Revision (ECO)

and add n/a where required


Supplier WISPER Overview


Application Overview

• Web-based, Interactive Application • Created, Designed, Programmed, Maintained, and

Owned by Eaton Corporation • We have the ability to modify and enhance

• Related Specifically to Direct Material Suppliers • MRO suppliers are currently not in the scope of WISPER

• Data Repository for Suppliers, Parts, Shipments, Defective Material Reporting (DMR), Audits, and Supplier Performance • Information is shared across the corporation

• Primary Method of Evaluating and Managing Direct Material Suppliers Across Eaton Corporation


WISPER Supplier Benefits

• Move from local Eaton plant visibility to worldwide exposure • Eaton is a diversified industrial manufacturer with over 180 plants

worldwide • Locate Eaton plants worldwide that use their commodities • Gain exposure to 700+ Eaton supplier resource management

professionals worldwide • Showcase capabilities, products, and commodities

• Benchmark competitors • Benchmark supplier performance data within their commodity

• Streamline business transactions with Eaton • Decrease time and increase accuracy of transactions

• Improve performance data with Eaton • Impact data integrity and Eaton’s view of supplier performance


WISPER Supplier Minimum Expectations

• Utilize WISPER processes with plant • Respond to Discrepancy Material Reports (DMR), documenting

corrective actions • Participate in PPAP process • Utilize Advanced Product Quality Planning (APQP) process • Respond to Process Audit, documenting corrective action, if required

• Keep supplier profile, capabilities, and contact list current • Review quality performance score • Pay annual supplier subscription service fee (Covers all Eaton Web Based

Applications. i.e. EFT, WISPER, Supplier Viz.)

Supplier Web Address: https://www.supplierselect.eaton.com

Fully Utilize the WISPER Application


Supplier Access

• Accessible only by current direct material suppliers • If an account is needed Suppliers can register at the

web site below by clicking WISPER Registration • Valid DUNS ID & e-mail address required • Access Path

• Supplier Portal (Supplier Select) • Site Address is https://www.supplierselect.eaton.com

https://www.supplierselect.eaton.com/


How to request WISPER access for Eaton Suppliers

Opex Team 2012


Click on: https://www.supplierselect.eaton.com


https://supplierselect.eaton.com

Supplier Login

Supplier Registration

Additional Documentation


Scroll down and look for the Eaton Plant that you are looking for


Click on the Eaton Plant that you are selling in the USA or Mexico


Fill the form (Important: e-mail account and correct DUNS no. assigned to your company)

After all fields filled click on submit button


After submission, the Eaton contact chosen in the plant will load all your data and you will be receiving your username and password that you will be able to use after the 24 hrs. After receiving it.

Click on:

https://supplier1.eportal.eaton.com/dana-na/auth/url_8/welcome.cgi

https://supplier1.eportal.eaton.com/dana-na/auth/url_8/welcome.cgi


If you already have an account and you are unable to access WISPER and/or for any problem with your account you should contact in first place the Eaton Global Support Center sending them an e-mail with an explanation of your problem or call the number below:

[email protected] Phone 1-216-523-4578 Help Line 24/7

mailto:[email protected]


Where can I obtain more information? For questions related to quality scores you can contact any SQE that you currently work with

For questions related to OTD delivery, contact the Eaton Material Planner that you work with

TNA SQE Team: MD & HDT-King's Mountain NC Plant Mahesh Nesari Ph. 704-937-4363 [email protected] HDT-Shenandoah IA Plant Gabriela Valdes Ph. 712-246-6073 [email protected] MD, HDT & Clutch - San Luis Potosi MX Plant Hector Morales Ph. 01152 444-826-7989 [email protected] Clutch - Auburn & South Bend IN Plants Adam Walker Ph. 260-925-7438 [email protected] ELC / Loose Parts Travas Cupp Ph. 317-347-5741 [email protected] Clutch – Charlotte NC Plant Luke Nevins Ph. 704-597-4718 [email protected] Aguascalientes, MX Plant Gina Lazzarotto Ph. 449-478-2793 [email protected]









MATERIALS REVIEW (TRUCK)


Preparing for RG2 and Production • Trade compliance requirements • Packaging Approval Form • Introduction of Automotive materials systems

in Aguascalientes • Supplier Tactical Day update


Trade Compliance Requirements – Country of Origin

• Eaton requires suppliers to provide evidence of the country of origin by submitting a Certificate of Origin for parts moving from one country to another

• Why is a Certificate of Origin required? • Country of origin declaration is required to import product into US

or Mexico – Certificate of Origin is the “proof” of the country of origin

• Required for product to classify for NAFTA (or other FTA) status • Required to classify our end product for sale to customers • Significantly reduces customs delays!

• Over the coming weeks Eaton will be contacting suppliers as required to request this information


Packaging Approval Form Feedback • By the numbers…

• 12 submitted • 8 approved • 356 outstanding • 2.17% complete

• Accomplishments • Final packaging form released in November; updates include

additional samples and specifications based on supplier FAQs and feedback

• Latest version also includes additional information regarding 2D barcoding specifics

• Please contact your APQP representative or SDE if you need a copy of the latest form


Packaging Approval Form Feedback • Opportunities for Improvement

• Ensure ALL information is completed, including • Burst strength • ISPM compliance • Accurate materials list (with dimensions and quantities)

• Ensure units of measure are in pounds and inches • Ensure forms are received in Excel format (NOT .pdf)

0%10%20%30%40%

Frequency of Errors

Components missing from"Materials List"Inaccurate standard measures

Incomplete checkboxes

PAF received in .pdf format


Top Frequently Asked Questions • How do I know if my packaging is ISPM compliant?

This international standard applies only for wood pallets or packaging; compliance should be indicated with a marking (usually found at one of the sides) certifying that the wood is compliant to this standard

• What does a “PSI” stand for? PSI = pounds per square inch; can also be referred to as “ECT” (edge crush test).

This measure describes the strength of the cardboard used for packaging; in most cases, the standard PSI for a single-walled container is 32. You can also reach your packaging engineer to obtain further data.

In general, all containers, trays, caps, and multi-wall tubes must have a box maker's certificate with ECT or PSI visible on the assembled container (generally found on the bottom of the container)


Top Frequently Asked Questions (cont’d) • How many labels for identifying the materials are

necessary? Four (one on each side) (NOTE: if the package is very small two labels may be

acceptable – please note your comments on your PAF for review)

• What should I do if I need a copy of the packaging specifications from Eaton? Please contact your Eaton APQP representative or SDE. If you have specific

questions, such as those regarding returnable dunnage, expendable packaging, packaging sizes, etc., please contact the VG packaging engineer.

• May I send the PAF even prior to completing the 2D Data Matrix label? Yes, the PAF may be submitted in order to obtain approval of your packaging design

but please be aware that submission of the 2D Data Matrix label is a requirement for full PPAP approval


Eaton Truck vs. Eaton Auto

• Suppliers shipping to Aguascalientes, MX (automotive plant) will have a slightly different set of systems

Truck

• Supplier Vis • Divisional Planner • Eatonroute.com • ERS or Self-Service

Invoicing

Auto

• Discrete Releases • Plant Planner • Eatonroute.com


MATERIALS REVIEW (AUTOMOTIVE)


Current Status

RG2 • Receiving material from suppliers (1Q13).

PPAP • PPAP parts request(January 2013) • Contacts : Karina Pineyro (Plant Buyer) & Gina Lazzarotto (Quality) • Ship to Aguascalientes´ facility

Production • Blanket orders (1Q14) • Contacts : Karina Pineyro ( Plant Buyer) & Eunice Maya ( Materials

Planner)


Materials Planning

EDI requirements or PDF file will be sent

every 2 wks.

Supplier to confirm agreement on our

requirements, after 3 days without any reply

we will assume supplier agrees

Carrier name and account # will be provided, to ship

according to release report

Send ASN thru EDI and emailed paperwork

Open order report will be emailed every 2 wks.


Materials Planning • Material release information will be sent thru EDI every two weeks. In case you are not capable to read and send

information thru EDI, the release report will be emailed.

• It is important that you advise immediately if you disagree on shipment dates or quantities. If we do not get any reply from you after 3 days of sending our requirements, we will assume you agree with our requirements.

• Dates on the release are shipping dates, and your delivery performance will be measured based on that date. Please do not ship ahead, unless we require so.

• We will provide carrier name, and account number for you to book shipments according to our requirements.

• Please include the blanket order number and schedule number in your invoices, we need these two references to process your payments.

• Once you ship the components, please send the ASN thru EDI, but I will also need to provide copy of the paperwork for customs clearance (Invoice, packing slip or bill of lading, and tracking number).

• Even when parts are in transit, JDE system will show the order open until we receive the parts.

• Every two weeks, you will receive by email an open order report with the firm orders and schedule shipping dates. It is important that you advise of any delay in deliveries.


Release Report


Open Orders Report

# OPLinea(Line) Item

Descripcion(Description)

Cantidad (Quantity) UM

Precio Unitario (Unit Price)

Total (Extended Cost)

Moneda (Currency)

Comprador(Buyer)

Request Date LT

Fecha de Embarque(Delivery Date )

Guia (Tracking Number)

Comentario(Comments)

12500512 1 30,000 EA USD 3022673 12/11/2012 12-Nov12500702 1 30000 EA USD 3022673 03/12/2012 03-Dic


Supplier Tactical Day

• Targeting April, 2013 for EPS Supplier Tactical Day in SLP, MX

• Tactical day includes: • Plant and line-side tour • Explanation of Eaton forecast and business cycles • Opportunity to interface with Eaton planners • Opportunity to see your parts move through Eaton’s facility

• Also exploring the possibility of a separate event in Galesburg, MI for a hands-on introduction to Eaton systems for new suppliers • Please provide your opinions and feedback via the supplier

survey


SUMMARY


Summary

• EPS is a Key Strategic Program • It is one of the largest program we are currently undertaking • We have a long and complex supply chain – we value open &

upfront communication • We have a product that offers great value to our customers and

allows us to further penetrate the automation market • We have pretty high expectations for all of you as outlined by our

quality and materials team • With your active support and engagement, we will succeed in

launching flawlessly


Closing and Next Steps

• We are very excited about this program, it is a big program and we are glad you are part of it

NEXT STEPS • Survey – We value your feedback

• Upon completion of survey, you will be directed to a link to access this presentation.

• Next Web Conference


QUESTIONS

SupplierWebcast_January2013

Documents

Transcript of SupplierWebcast_January2013