Business Analysis of Eaton’s Cooper Power Systems
Business Analysis of Eaton’s Cooper Power Systems
Eaton’s Cooper Power Systems business review for the Fourth (2013) and first quarter (2014) has a strong forecast even in a sluggish markets. Eaton’s Cooper Power Systems (CPS) is located in Greenwood, South Carolina. CPS is a pioneer in manufacturing leader in the market of power capacitors. Recently purchased by Eaton in November 2012, the combination of these two organizations fortifies the global geographic footprint as a technology leader. In the electrical marketplace, it provides a world class product for all of our customer needs and a manufacturing strategy to deliver a product for a global and domestic market. In evaluating the business, the highlights will cover cost along with market share, diversification, and financial Strategies.
One of the primary focus points is cost. With huge opportunities to grow in the global capacitor market, cost is a major challenge the company faces. Cost of goods influences revenues, profits, time-to-market, competitive differentiation, and more. Managing cost takes place on many levels of products life – beginning, middle, and end. A major portion of our cost is labor. To control cost, plant departments monitor labor productivity as a control metric. In the chart below shows the direct labor productivity for each department in the first quarter.
As you review these charts above, you can see the month, ending in January 25, 2014 at 72.8 percent versus the goal of 75 percent. The figures above reflect a falloff in orders for the metal enclosed banks in January. Another contributor is a slow start up from upgrades in another department. As an outcome, the company is reviewing staffing levels for the future. All in all, the productivity of labor management has been good. Therefore, the need to focus on other fixed cost needs to be examined to make the product more profitable and sellable.
Inventory is another main concern
Eaton’s Cooper Power Systems business review for the Fourth (2013) and first quarter (2014) has a strong forecast even in a sluggish markets. Eaton’s Cooper Power Systems (CPS) is located in Greenwood, South Carolina. CPS is a pioneer in manufacturing leader in the market of power capacitors. Recently purchased by Eaton in November 2012, the combination of these two organizations fortifies the global geographic footprint as a technology leader. In the electrical marketplace, it provides a world class product for all of our customer needs and a manufacturing strategy to deliver a product for a global and domestic market. In evaluating the business, the highlights will cover cost along with market share, diversification, and financial Strategies.
One of the primary focus points is cost. With huge opportunities to grow in the global capacitor market, cost is a major challenge the company faces. Cost of goods influences revenues, profits, time-to-market, competitive differentiation, and more. Managing cost takes place on many levels of products life – beginning, middle, and end. A major portion of our cost is labor. To control cost, plant departments monitor labor productivity as a control metric. In the chart below shows the direct labor productivity for each department in the first quarter.
As you review these charts above, you can see the month, ending in January 25, 2014 at 72.8 percent versus the goal of 75 percent. The figures above reflect a falloff in orders for the metal enclosed banks in January. Another contributor is a slow start up from upgrades in another department. As an outcome, the company is reviewing staffing levels for the future. All in all, the productivity of labor management has been good. Therefore, the need to focus on other fixed cost needs to be examined to make the product more profitable and sellable.
Inventory is another main concern
References: Author: Louse Downing & Justin Doom (January 11, 2013) Retrieved from: http://www.bloomberg.com/news/2013-01-11/amsc-says-china-s-supreme-court-will-review-suit-with-sinovel.html Peng, M. W. (2014). Global business (3rd ed.). Mason, OH: South-Western Cengage Eaton’s Global Employee Magazine; Volume 7; Issue 2.2013 Eaton’s Global Employee Magazine; Volume 7; Issue 3.2013 Eaton’s Global Employee Magazine; Volume 7; Issue 4.2013 http://www.eaton.com/Eaton/index.htm