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Supply Chain

Supply Chain. Steven Call. Miscellaneous Project Memphis RDC – Backup Generator. Background Memphis RDC experiences 2-3 power disruptions a year Memphis RDC has lost power for a week at least twice in the last five years General Strategy

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Supply Chain

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  1. Supply Chain Steven Call

  2. Miscellaneous ProjectMemphis RDC – Backup Generator • Background • Memphis RDC experiences 2-3 power disruptions a year • Memphis RDC has lost power for a week at least twice in the last five years • General Strategy • Overall cost for the last power interruption was approximately $60K • This included generator rental, installation, fuel and overtime • Lost sales shipped per day is approximately $1M • Current Status • A used generator cost approximately $100K. Currently looking for an appropriate generator on the market.

  3. FY08 Exhibit 109 Update Summary Current FY08 Materials +2.9%, +$5.1M Impact $1.1M favorable to Financial Review

  4. Exhibit 109 FPC

  5. Key Procurement Projects

  6. Key ProjectsSouth Milwaukee Sand Casting Project Project Summary • Background - Emerson History • Copeland - $150M buy in high volume • EPT - $30M buy – similar to EGS – 6,000 total patterns/ 64 suppliers • Strategy • Outsource all aspects to suppliers • (Cores, casting & scheduling with CO/AT) • Staying away from Focus 55 – and Kanban castings where possible • Researched and divided the castings into 4 groups • Status • 11 suppliers quoted – Nine 2013 ductile & grey, two malleable and one 2110 • 2013 Ductile and Combo – Castwell • 2013 Grey – Donsco • 2110 Ductile and Grey – Advance Casting • 2013 Malleable – Frazer/Anvil • Hunter 10 & 20 – At least 7 have expressed interest • 15 DISA 2013 patterns have shipped totaling 215T annually and 80T backlog • Selecting next group to equal a total of 200T backlog

  7. Key Projects Die Casting Resourcing • Event WS15470 – Aluminum Die Casting Project • Annual Spend $3.2M - 40 SKU’s • Site impact: CO and AT • Bid date: Jan 30,2008 • Incumbents: Alloy DC, Pentacast, Alpe • Top Bidders: Allcast, Empire, Alpe, Ningbo, CQS, General, Pace • Result: North American bidders showed very competitive • Annual savings $650K • Potential suppliers visited: Empire, General, Allcast. • Risk: Continuity of supply during supplier transition • Meeting in CO in March 05, 2008 for awarding decision and implementation plan

  8. Key ProjectsRegionalization of HCS Bare Copper Wire International Wire (Old Supplier) Magnekon (New Supplier) Atizipan EGS Plant Target Completion 3QFY08

  9. Key ProjectsATX Regionalization of Luminaire TSet Base & Plastic Cover IBV (New Supplier) ATX EGS Plant Cluj EGS Plant Stratinor & Neyr (Old Suppliers) Target Completion 3QFY08

  10. Key ProjectsSola Enclosure Project • Background • Current top part numbers - spend totals $1.1M – 16 SKU’s • Spend split between Mode ($545K) and MPC ($579K) • Current Status • E-Source event ran Dec 2008 • $80K total savings • Mode retained the “Potted” Enclosures • Gas House won the “Standard” Enclosures • To kick off Gas House by 3/31/08 • Total Supply Chain Improvement Gas House is located logistically in an ideal location – less than 5 miles away from the plant. Current supplier located in TN • Reduced inventory and floor space • Daily Deliveries - Lead time improvement

  11. Key ProjectsRubber Project Background • Current rubber spend $2.1 M – 85 SKU’s • Supply base of 55 suppliers – 46 have less than $20K in spend • General Strategy • Narrow down distribution rubber spend to a few suppliers via a global e-source event. • Current Status • Data Collection being done by GMDC • Print collection tooling information - 80% complete • Inventory turn information – 20% complete • Supplier investigations ongoing - 5 visited in the last two months • Target Bid date August, 2008 • Total Supply Chain Impact – Consolidate suppliers, improve logistic and inventory costs, generate savings potentially $210K at 10% savings • Risk • Will need to facilitate tooling moves and the required qualifications

  12. EGS Supplier OTP Castwell 19% NJ Shell 68%Kenro 53%Fastenal 63% HD Design 66%ATX 38%Laube 47% Metal Product 63%EIS 81%Temple 57% Glecko 82%Ryerson 63%

  13. Educational Background:BS Industrial Engineering, Adamson University 2003 Hire date in GMDC:April 23, 2007 Reports to: In APSCO-GMDC: Adrian Terania In Corporate/Division: Natja Guzman Work Experience prior GMDC: July, 2003 to March, 2004, Production Control Leader SANKYO SEIKI MANUFACTURING PHILS. March, 2004 to June, 2006 , Production/ Material Planner REMEC Manufacturing, LLC June, 2006 to April, 2007, NPI Planner REMEC BROADBAND WIRELESS INT’L. INC. Positions Held in GMDC: April 23, 2007 to present, EGS Industrial Automation Procurement Analyst Current Job Description/Responsibilities: Responsible in supporting EGS requests in reporting, analyzing and management of procurement data. Responsible for MIN data clean up and maintenance. Monitor and drive the decrease of MIN Data Quality Issues by identifying and correcting discrepancies (commodity codes, payment terms, freight terms) in BPCS. Responsible in analyzing Procurement reports such as DPO, ITO, and IM Responsible in handling parametric data gathering and drawings translation into database for division managed commodities. Responsible to support Commodity Managers for special projects such as: parts rationalization, parts consolidation, MPN analysis, identification of supplier consolidation opportunities Full E-sourcing support for Commodity Managers Get drawings; Download Part Analysis; RFQ data preparation; Contact suppliers about events and train suppliers to use eSourcing tool; Launch/Publish RFQ for simple auctions; Monitor bid; Fill out supplier decision tool; Implement auction results Name: Lienette Soriano Ilarde Nickname: Liegh Team/Business Group/Division: IA-EGS Electrical GroupCurrent Position: Procurement Analyst

  14. Educational Background:BS Industrial Engineering, Mapua Institute of Technology, 2000 Hire date in GMDC:July 03, 2007 Reports to: In APSCO-GMDC: Adrian Terania In Corporate/Division: Cyndi Knackstedt & Jim Dimitri Work Experience prior GMDC: Oct 04, 2004 to June 30, 2007: PerkinElmer Optoelectronics Inc. – PSC Officer 2 Planner/Buyer June 16, 2003 to Oct. 03, 2004: Swift Foods Inc. – Senior Inventory Planning and Control Analyst Sept. 11. 2000 to June 01, 2003: Fujitsu Computer Products – Industrial Engineer / Parts Control Engineer Positions Held in GMDC: July 03, 2007 up to present: Planner/Buyer EGS Electrical Group Current Job Description/Responsibilities: Maintain & track material & supply levels communicating with Finished Goods Program Managers. Executes DPS planning tool including PO execution coupled with coordinating & resolving material constraints which would impact production, customer fill rates, and inventory exposure. Introduce new products into volume manufacturing, managing supplier performance specifically relating tom delivery, inventory levels and fill rate objectives. Review DPS planning signals on an on-going basis to execute expediting and schedule push outs as required providing accurate forecasts for incoming material control and projected inventory analysis and control. Responsible for maintaining and in-putting accurate data in BPICS/DPS including but not limited to ABC classification, service level codes, lead time, unit cost for assigned suppliers/part numbers. Supports supply chain initiatives including but not limited to cycle time reduction, customer service level improvements, and integration of supplies into EGS planning process Develops reports and trend analysis schedules as required to track major objectives but not limited to supplier lead time, inventory dollars, fill rate objectives, and other items as assigned . Manages supply issues including lead time development, on time shipping performance, and logistics lead times to support rate objectives. Name: Sherwin Ending Discaya Nickname: SherTeam/Business Group/Division: IA-EGS Electrical GroupCurrent Position: Planner/Buyer

  15. Educational Background: BS Industrial Engineering, Mapua Institute of Technology 1991 Hire date in GMDC: February 6, 2007 Reports to: In APSCO-GMDC: Adrian Terania In Corporate/Division: Traci Grever Work Experience prior GMDC: March 2000 to February 2007, Dainan International Inc., Logistics Officer April 1999 to February 2000, Triumph Development Inc., Assistant Purchasing Supervisor March 1996 to March 1999, Extensive Woods Processing Corp., Purchasing Coordinator Positions Held in GMDC: February 6, 2007 – present, EGS Logistics Analyst Current Job Description/Responsibilities: Handle the daily processing of International Shipment Detail Forms for Payment authorization Maintain Freight Claims Log and work with various EGS personnel to obtain proper documentation to file freight claims. Maintain transportation related functions in Logpro and BPCS (including freight rate tables, NMFC codes, and HTS codes). Review Freight Payment Files for appropriate allocation to proper business units. Publishing transportation activity reports and non-compliance reports Assist Transportation Department in their evaluation of potential freight optimization alternatives (new lanes, new carriers, alternative modes, warehouse options, etc). Assist Transportation departments in the management of annual NAFTA certification process, including verification from vendors. Assist Transportation Department with mapping new process and establishing/ maintaning Standard Operating Procedures (SOPs). Name: Ma. Isabel Reyes Olarte Nickname: Bheng Team/Business Group/Division: IA-EGS Electrical GroupCurrent Position: Logistics Analyst

  16. Educational Background: BS Industrial Engineering, Mapua Institute of Technology 2002 Hire date in GMDC:February 26, 2008 Reports to: In APSCO-GMDC: Adrian Terania In Corporate/Division: Natja Guzman Work Experience prior GMDC: April 2005 to February 2008, Digitel Mobile Phils Inc, Purchaser April 2004 to April 2005, Werdenberg Intl Corp, Purchasing Assistant & Liaison Officer October 2002 to October 2003, Manpower Outsourcing Services (Intel), Transaction Specialist Positions Held in GMDC: February 26, 2008 to present, Industrial Automation EGS E-Sourcing Analyst Current Job Description/Responsibilities: Responsible in organizing Reverse Auction Bid, Coordinate and monitor bid event schedules Responsible in data gathering drawings and technical specifications (T&C, Other division requirements) Responsible in Supplier management such as invitation of bidders, confirmation of supplier interest and supplier training. Responsible on Parts Analysis maintenance and contract management. Responsible in supporting Commodity Managers for special projects and data analysis which is not limited to E-Sourcing function. Name: Charity Grace Ortha Villapando Nickname: Cha Team/Business Group/Division: IA-EGS Electrical GroupCurrent Position: E-Sourcing Analyst

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