Cooper Lighting

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Cooper Lighting

• Background and Potential Projects

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Contents

• Cooper Industries Overview
• Cooper Industries Portfolio
• Cooper Lighting Overview
• Brands and Markets
• Potential Projects
• Make to Stock Supply Chain Optimization
• Key Supplier Inventory Model
• High Mix Inventory Modeling

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Cooper Industries Overview
Our history began in 1833 as a foundry started by
Charles and Elias Cooper in Mt. Vernon, Ohio. As
the third oldest non-financial company in the SP
500, Coopers history has spanned 37 U.S.
Presidents, numerous global events such as the
Great Depression and two World Wars, and
transformational technology advances such as the
automobile and personal computer. Since the
beginning, our success has been attributable to a
focus on innovation, modernizing our business
practices while maintaining the highest ethical
standards, and meeting our customers needs. As
we celebrate the history and accomplishments of
the Cooper team over the past 175 years, we come
to better understand our role in securing this
proud companys bright future. Cooper's
employees, product portfolio, business model,
Cultures Values, Principles and ability to
execute its Business Initiatives combine to
provide us a great sense of optimism for the
years ahead Culture Values Principles1.
Integrity 1. Passion for the Customer 2.
People Leadership 2. Innovation is Our
Lifeblood3. Accountability 3. Leveraging
Technologies4. Speed Adaptability 4. Excel
at Globalization5. Execution 5. Continuous
Improvement in Everything We Do Cooper
Industries is organized in two business segments
Electrical Products and Tools Group. Each segment
contains divisions, typically focused on key
product lines and services. Contact information
for the Company's corporate office and division
headquarters locations appears below
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Cooper Industries Business Portfolio
Lighting 1,300/- million (1956)
Crouse-Hinds 700/- million (1897)
Bussmann 450/- million (1914)
B-Line 300/- million (1969)
Power Systems 1,000/- million (1911)
Wiring Devices 300/- million (1890)
Hand Tools 500/- million (1864)
Menvier 450/- million (1975)
Power Tools 250/- million (1967)
Global Company with World-Class Collection Of
Businesses
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Cooper Lighting Overview

• Division founded in 1986, with products dating to
  1956
• Headquarters Peachtree City, GA
• 5,400 employees in 24 facilities, 3,300 Employees
  in US
• Broad Product Offering Reaching Commercial
  Industrial, Residential, Utility, International
  and Energy Markets
• Strong Focus on Continuous Improvement through
  6-Sigma and Lean Activities

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Cooper LightingBrands and Markets
Leadership BrandsServing
Broad Range of Offerings in Multiple Markets
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Project Make to Stock Supply Chain Optimization
Project Description Cooper Lighting sales are
55 from make-to-stock (MTS) products. More than
half of these are produced in 6 core factories in
North America, and all are distributed through 8
distribution centers. Using customer demand and
location data, students will create
recommendations for distribution center stocking
that minimize replenishment freight, outbound
freight, and inventory, without reducing service.
For the purposes of the study, manufacturing
locations will be considered as fixed for
products. Proposal must incorporate cost
impacts of any modal (e.g. full truck load vs
less than truck load) shifts. Cooper Lighting has
extensive data available on freight costs,
product demand, customer locations, demand
patterns, and product flow. Student Skills
Capability to create and program complex
modeling tools, and the ability to use these to
propose changes to Cooper Lightings distribution
network and stocking plan. Cooper Sponsors
Ed Russman Supply Chain Director Mandy
Timmons Demand and Forecast Manager Cooper Data
Resources Mel Frazier Transportation Services
Manager Eric Copeland Logistics Systems
Manager Kathryn Snow Demand Planning
Analyst Dollar Impact Achieve 2M reduction
in combined freight and distribution center
costs Achieve 1M in inventory reduction
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Project Make to Stock Supply Chain (contd)

• Six Core Manufacturing Plants
• Americus, GA
• Eufaula, AL
• Vicksburg, MS
• Juarez, Mexico
• Monterrey, Mexico
• Mexicali, Mexico
• Major service center in Peachtree City, GA
• Large Retail DCs in Southaven, MS and Ontario,
  CA
• Regional DCs in
• Elk Grove (Chicago)
• Cranbury
• Mississauga
• Monterrey
• Dallas

Cooper Lightings Distribution Network Includes
4800 finished goods produced, stored, and
delivered within N. America. Can we optimize
stocking locations so that freight and inventory
are minimized and service maximized?
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Project Key Supplier Inventory Model

• Project Description
• The Senior Design Team will evaluate current
  buying practices for high variability products
  and develop a process to improve cost and
  inventory, and non value work. Additional
  Details
• Over 3000 spun SKUs purchased annually from
  Atlanta based supplier.
• Current ordering process is manual and based on
  SAP historic demand using APU (Average Purchasing
  Units) Current Requirements.
• Review SKUs and determine MOQ using the standard
  EOQ (Economic Order Quantity) formula and develop
  best method to establish standard price and
  reduce costing impacts to the business.
• Student Skills Analytical, Process oriented,
  Diligence.
• Cooper Sponsor Ed Russman Supply Chain Director
• Cooper Data Resource Dan Woodham Associate
  Director for Strategic Sourcing
• Dollar Impact 400,000 in cost savings 50,000
  inventory reduction

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Project High Mix Inventory Modeling

• Project Description
• Cooper Lighting provides a wide variety of
  products to many end markets. In order to offer
  a full portfolio, and thereby capture project
  business, Cooper must necessarily stock high mix,
  low volume skus. Traditional inventory reorder
  practices are inadequate for these items, many of
  which have a standard deviation to mean ratio of
  gt3. The project is to develop a non-traditional
  inventory modeling tool that provides
  recommendations that improves service and reduces
  inventory.
• Student Skills Outstanding analytical and
  statistical skills
• Cooper Sponsor Mandy Timmons Forecast and
  Planning Manager
• Cooper Data Resource Kathryn Snow Demand
  Planning Analyst
• Dollar Impact 250,000 in inventory reduction