Document 6bye57qbmrMbmq5QNL9DzKoyd

Improving Productivity For three years running. Eaton has achieved its corporate goal of at least 4 percent improved produc tivity annually. Inventory manage ment, judged by annual turnover, has improved 25 percent in the last five years. The spotlight on numbers does not obscure our clear and continuous focus on the customers who deter mine our success. Our goal is total customer support. We seek to antic ipate their needs so completely that they are delighted by their associa tion with Eaton. Here are a few of the ways Eaton's service translates into customer delight. i Strategic alliances between Eaton and its customers are nourishing. Eaton and Cummins, the leading manufacturer of engines for heavyduty trucks, now work jointly on valve train designs. This alliance gives Cummins access to Eaton's extensive technical expertise and gives Eaton the inside track on new business. Engineers at Black & Decker, a company renowned for its power tools, routinely form cross-functional teams with their Eaton counterparts to design better, more versatile power tool switches. Total service is an everyday goal. Cutler-Hammer recently worked closely with Ford Motor Company and Lamb Technicon. an equipment manufacturer, to design a multi plexed, microprocessor-based sys tem to control a transfer machine that processes engine parts at Ford's plant in Windsor, Ontario. Canada. Cutler-Hammer also worked hand-in-glove with Moore Electric Supply. Inc., its distributor in Charlotte. North Carolina, to win the multi-million dollar electrical contract for the new stadium where the National Football League's Carolina Panthers will play. Generating New Business High quality and timely delivery often mean more orders. Since 19d 1. Eaton's business with Chrysler has grown four-fold and today Eaton is Chrysler's preferred supplier of valves and hydraulic roller lit'ierv Eaton is also a major supplier to Chrysler of automotive controls, including switches, cruise controls, air conditioning expansion valves and drier receivers. Kiihrri !_ ShwH'hitfil. tell- u-mni- jiinitm I ilvt clofuiirui etnjtnet i: ainl Ihuntus M. Hull, itninulut luring i'Uytnrv. eunntue i hi'`fhfnucr cl11/ of Ituul th stiihiiiimi imulfilc !n the he lu lu fftia I he IIHU\ fiitii till' n\/. (Hitt 'f.V '<n timl tnv e\nvtnel\ ichithlc aiu! efficient in /i er alumni am mft. * Tackling tough problems builds goodwill. Boeing and Pratt & Whitney were delighted when Eaton designed problem-free hydraulic and differential pressure switches that resolved problems and enabled jet engines to perform at optimum efficiency. The focus on customers is at the heart of operational excellence and the essence of good business - and of growing market leadership. But having market leadership - as Eaton does - is not enough. The challenge is to sustain and build on that lead ership to steadily improve financial performance. The hard-won finan cial rewards of our success are being carefully reinvested to achieve this coal. T