2011 eaton corporation. all rights reserved. eaton business system overview

2011 Eaton Corporation. All rights reserved.

Eaton Business System Overview

2011 Eaton Corporation. All rights reserved. 2

Eaton as One Company

The goal of EBS is to drive performance excellence through the deployment of company-

wide values, tools and practices, thereby enabling Eaton to become a premier diversified

industrial enterprise.

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The Eaton Business System

• It’s about time and consistency of performance – not rules and initiatives

• Standardize and stabilize the core or foundation infrastructure

• Break free time:• To drive breakthrough results in improving

profitability and asset velocity

• To focus on growth

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The Eaton Business System – Why

EBS frees up your time by providing you with proven practices – thereby allowing you to focus upon becoming a world class executor, and an executive with time to focus upon growing your business.

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The Eaton Business System

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Wherever there is significant

advantage to commonize

and deploy an aspect of our

business, we will do so by

developing and deploying a

common tool or business

process. The SUM of all those

tools and processes, aligned

and integrated is EBS.


EBS is a powerful integration of proven foundation elements, tools and processes that will give Eaton a significant advantage when they are deployed as prescribed across the organization.

• Foundation

• Planning

• Growth & Operational Excellence

• Functional Excellence

• Assessment

• Learning

• Foundation

• Planning

• Growth & Operational Excellence

• Functional Excellence

• Assessment

• Learning

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Foundation• Vision• Mission• Goals• Values• Eaton Philosophy• Global Ethics• Quality Policy

Foundation• Vision• Mission• Goals• Values• Eaton Philosophy• Global Ethics• Quality Policy

We care how we get results, and we have defined a number of EBS Foundation elements that will be consistent throughout the enterprise.

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Foundation


Our Values

• Make our customers the focus of everything we do.

• Recognize our people as our greatest asset.• Treat each other with respect.• Be fair, honest and open.• Be considerate of the environment and our

communities.• Keep our commitments.• Strive for excellence.

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Our Eaton Philosophy

• We expect the best of ourselves and each other.

• We are committed to attracting, developing, and keeping a diverse work force that reflects the nature of our global business.

• Our communications with one another are open, honest and timely.

• We strive for the active involvement of every employee in our continued success and growth.

• We accept the challenge of lifelong learning.

• We do our work with a sense of urgency.

• We are accountable for our commitments and expect that our performance will be measured.

• Compensation at Eaton is fair and competitive for performance that contributes to the success of the business.

• We value employees' ideas, and we purposefully build an environment in which new ideas will flourish.

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Our Code of Global Ethics

• Obeying the Law

• Integrity of Recording and Reporting our Financial Results

• Respecting Human Rights

• Delivering Quality

• Competing Ethically

• Respecting Diversity and Fair Employment Practices

• Avoiding Conflicts of Interest

• Protecting our Assets

• Offering / Accepting Gifts, Entertainment, Bribes or Kickbacks

• Selling to Governments

• Political Contributions

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Planning Strategic Planning Profit Planning Organizational Capability

Assessment (human resource planning)

Planning Strategic Planning Profit Planning Organizational Capability

Assessment (human resource planning)

Economic Forecast

Strategic Planning

Organizational Capability Assessment

Profit Planning

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Planning


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Growth & Operational Excellence

Eaton Value Cycle Corporate Accounts PROLaunch Eaton Lean Six Sigma Eaton Quality System Supply Chain Management Fixed Capital Optimization

Growth & Operational Excellence

Eaton Value Cycle Corporate Accounts PROLaunch Eaton Lean Six Sigma Eaton Quality System Supply Chain Management Fixed Capital Optimization

We have identified and will continue to identify tools that, when rigorously applied across all our businesses, can make us the best, most profitable operating company in the world.

Growth & OperationalExcellence


Corporate Accounts

• General Motors

• Freightliner

• United Technologies

• Paccar

• Ford

• John Deere

• DaimlerChrysler

• Caterpillar

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Lean: Waste Reduction

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DEFECTS

UNNECESSARY PROCESSING

INVENTORYTRANSPORTATION

OVERPRODUCTIONMOTION

WAITING7Wastes


Six Sigma

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Process Input:

Strategic and Annual Business

Goals and Targets – Critical

Customer Requirements

Process Output:Make the NumbersAchieve Customer Satisfaction

Select theRight

Projects

Select andTrain the

Right People

Develop andImplement

ImprovementPlans

Manage forExcellence in

operations

Sustain the Gains

Define Measure Analyze Improve Control

DD MM AA II CC


Integration of ELS and Six Sigma

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Current State Future State

VSM is the driving force

ELS KaizenEvents

Six SigmaProjects


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Functional Excellence Human Resources Information Technology Finance Environment, Health and

Safety Legal Communications Sales & Marketing Technology Security

Functional Excellence Human Resources Information Technology Finance Environment, Health and

Safety Legal Communications Sales & Marketing Technology Security

We will drive standardization in functional areas whenever appropriate, which will enable us to automate and eliminate work as a result.

FunctionalExcellence


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Assessment EBEA Balanced Scorecard Customer Survey Employee Survey Cost-Out

Assessment EBEA Balanced Scorecard Customer Survey Employee Survey Cost-Out

We will focus on key metrics and processes at Eaton to measure our progress and identify opportunities for improvement.

Assessment


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Learning EBS Courses –

Eaton University Best Practices

Learning EBS Courses –

Eaton University Best Practices

One of the concepts expressed in the Eaton Philosophy is the idea that we contribute to Eaton's business goals when we accept the challenge of lifelong learning.

Learning

2011 eaton corporation. all rights reserved. eaton business system overview

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