Document XznOB9n8k2bnEbkB7Q47Mgdk4

Eaton Corporation Inter-Office Correspondence Date To Division & Plant From Division & Plant Copy to Subject December 2, 1985 Prcd Kovalik Axle & Brake - Galesburg Tom Bruggeman Axle & Brake - Galesburg See List PROPOSED PROCRAM TO DEPLETE RESULTING PROM NON-ASBESTOS rv\ Oy % vj EXCESS R3L SROk'EOTENTORY DEMAND IN THlP] PEACE. ' At your request a recent review was -made tlfi^emrfSifeStlie total quantity of excess R31 shoe assemblies generated wha^hasfn&V&i non-asbestos lining. %A AN J Several assumptions were made In formhlatinfr-*\jlan to minimize the amount of additional labor put into the* raeiXer aPerb' and utilizing the maximum quantity of loose R31 shoes whileNalflisingAin'non-asbestos. They are as follows: . "old style" bracke^cesIJpCWailer axle inventory to be depleted fir^C^j , ^V1 '0*v v'vv . MarketinawCyt pha^e |re-\on-asbestos 'by customer' rather than an "z^nrtSss the''board" approach. . AOX-vnf^aleaf'ijOfen-asbestos. . RAM'-wLLyba nblc to supply April '86 requirements with axles b.ttfkesh f|y^Eatt^EnginEering to approve the use of Italian manufactured iCT 3JiQJQV67 non-asbestos on RABA supplied trailer axles by Jan'86. ^ jw^RjliBA will supply 3030-67 non-asbestos axles to satisfy June'86 Scales requirements. A r^^ew of the attached spread sheets with Marketing resulted in a realization t^xadditanal excess Inventory of R31 shoe assemblies will accumulate fp^model #1009096 because the phase in of non-asbestos on this model lags ^yj^four to five months behind other models. Wc will have to switch out , approximately 3000 axles in order to meet a suggested target date of O^Vi''v September - October 1986 for a complete phase out of asbestos. The ' additional shoe inventory resulting from this model is included in the following summary: 2.880 p For inier-ollice and inter-plant correspondence only Fotm 3M] IRna 4-11) EXHIBIT SCF-EC-3025 EAB 046164 Page Two Fred Kovallk December 2, 1985 58,200 9,672 38,603 12,916 1,366 31,196 151,953 ( 9,700) 142,253 loose shoes at RABA shoes on axles at RABA 0, shoes to be returned to RABA for rework shoes shipped early October to RABA current shoe inventory in Gallatin ^ W'O' ... v .shoe inventory generated from Nov'&^'V \ through Sept*86. \t CC'v\O'1 Current schedules top&BA whfeli^will require R31 lined assys' ^ KVj Total nsscrahlle^ja^ba ^n^feeted. ' The attached spread sheets do not address dTlC^delftflmJers referenced In the profit plan (Exhibit I) or the report rejP-ectin^'vffiUlA Month-End Inventory Quantities (Exhibit 2). _aV 'oOsrO * N 1 . Models 1009101 and 1009102 do^a$6 haVeQtay forecasted sales requirements. Lonnie Dye^apqO' Bugl^&that if no requirements exist by mid*86 shoes be pjhl-il&d ft^m these axles and sold lu the the aftermarket. . **^0" >P' Model 30V requiremenfq^iare hd^TVlearly defined. . Other models notjjl^&n plan (Exhibit 1) are either obsolete or potentia^^Qjltased^jJv . I suggest that tdic foll&nMg stops be taken in order chat the phase in of non-asbest6^ wLningidfqposing of R31 shoe assemblies and the depletion o"f existing \|^iler. axie^iinventory transpire in a manner most economical to the div^gepn. -4 ^ * ,*OT^eceiijJje\2, ^ilogram^\. Hi designate me as the coordinator for this A\J X^ v Hce^ite hold by December 5 with all disciplines involved in ^X^tuting this program to discuss the following! c> 1% The general concents and logic behind the development of the attached spread sheets. - Suggested target date of Sept-Oct',86 for a complete phase out of asbestos lined trailer axles. - Service parts program for marketing R31 shoe assemblies in the aftermarket. * - Approximate monthly or quarterly volumes of shoe assemblies necessary to support marketing program which must begin in Jan'86. EAB 046165 Page Three Fred Kovalik December 2, 1985 - Aftermarket target price for H31 shoe assembly. Notify MBA of the following by no later than December 18, - April and May trailer axle receipts to be less brakes O-V' - June trailer axle receipts to have non-asbestos lined brakes {current test results indicate Italian manufactured 309>j5^!&7 most favored material.) . w r>v s' *** ftyy.. - Suggest RABA secure a quote from Abex (Frenfln). kJOl - Eaton requests a delivered price of^ip^perf*npS6 assembly on 58,200 manufactured by RABA with<iut>hktonns^a$t1i.ority. ; ^ryO - Return loose H.3L Lining block tto\CarLlsey&rfr the following schedule: X: 45,000 January)*' vC\* 45,000 ApjS> 'fcAv 45,000 jaay 4 N 47,328% f^8dtoberO>/r ; ; 1 - A tentative shl^ih#'' sch&mlie on the 58,200 shoe assemblies will be forwan^^jimme^iat^feiy if our requested price Is met. This shippin^VdhedjiM^mjht coordinate with the accumulation of shoe iay&jbry jgi QhtLlatin and Service Parts projected sales volumes. ^^ . At theEafe^i^i^ineering approves Italian manufactured 3030-67 RABA M|o&ld be nSt'fflad immediately so that releasea can be issued to Rodnbo. *. ' ,v\ v An aggressive i^arfceFlng program 1b absolutely necessary as the demand for aab^cos lined shoe assemblies is rapidly diminishing. Current Information IntiiCitefes t1iatNjO%-70% of the aftermarket requirments are for non-asbestos. I recqipnpiiJiJthat the coordinator of this program publish a detailed monthly updatfe ^'implementation and completion of the above action items is aan^cldl. <JEjj?s]nlust be realized that the success of the above program will be determined the market place and its demand for non-asbestos. r TB/ cc: G. Cotter, D. Bryant, L. Dye, W. Hoenea, R. Ille, P. Johnstun, J. Lilly, I. O'Boyle, D. Sims, R. Young . EAB 046166