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 S&P 500, Cooper’s 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 company’s 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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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)

Lighting$1,300+/- million

(1956)

Crouse-Hinds$700+/- million

(1897)

Bussmann$450+/- million

(1914)

Global Company with World-Class Collection Of Businesses

Cooper Industries Business Portfolio

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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 Lighting—Brands and Markets

Broad Range of Offerings in Multiple MarketsBroad Range of Offerings in Multiple Markets

Commercial &Industrial

Residential

Utility

International

Leadership Brands…Serving:

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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 Lighting’s distribution network and stocking plan.

Cooper Sponsors: Ed Russman; Supply Chain DirectorMandy Timmons; Demand and Forecast Manager

Cooper Data Resources: Mel Frazier; Transportation Services ManagerEric Copeland: Logistics Systems ManagerKathryn Snow; Demand Planning Analyst

Dollar Impact: Achieve $2M reduction in combined freight and distribution center costsAchieve $1M in inventory reduction

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Cooper Lighting’s 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?

Cooper Lighting’s 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?

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 DC’s in Southaven, MS and Ontario, CA

Regional DC’s in – Elk Grove (Chicago)– Cranbury– Mississauga– Monterrey– Dallas

Vernon Hills

Core Plants

Major Distribution Centers

Denver

Vicksburg

Juarez

Monterrey

Eufaula

Vicksburg

Juarez

Monterrey

Americus

Eufaula

Mexicali

CalgaryMississauga

Cranbury

Peachtree City

EGV (BLine)

Dallas

Ontario

Southaven

Project: Make to Stock Supply Chain (cont’d)

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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 sku’s. Traditional inventory reorder practices are inadequate for these items, many of which have a standard deviation to mean ratio of >3. 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