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Facility Tour Report
Eaton Corporation, plc
Arden, North Carolina
James Foote
MBA 635- Creating Business Operations
05/03/2026
Welcome & Introduction-
The following report is a summary of Eaton Corporation's manufacturing location in Arden, North Carolina. This facility produces custom electrical management equipment for a wide variety of applications including; data centers, utilities, hospitals, commercial, industrial, and municipal clientele. Every product is engineered-to-order, and no two jobs are identical. This report applies operations management frameworks to analyze how Eaton's corporate strategy translates to operational output. All facility information was gathered through published materials, sourced online, as well as an in person tour and interview conducted by the author and the MBA-635 cohort on March 23, 2026. Unless otherwise cited, all data and operational observations provided in this report are derived from a personal interview and facility tour of the Eaton Arden location conducted on March 23, 2026.
Part A, Section 1- Overview of organization, facility, strategy, and operations.
1. Mission, Vision, and Guiding Values
Mission:
"We believe that power is a fundamental part of just about everything people do. That’s why we’re dedicated to helping our customers manage electrical, hydraulic and mechanical power more reliably, efficiently, safely and sustainably. To improve people’s lives, the communities where we live and work and the planet our future generations depend upon" (Eaton, n.d.a.).
Vision:
"To improve the quality of life and the environment through the use of power management technologies and services" (Eaton, n.d.b).
Values:
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Ethical- "We play by the rules and act with integrity"
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Passionate- "We care deeply about what we do. We set high expectations and we perform"
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Accountable- "We seek responsibility and take ownership. We do what we say"
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Efficient- "We value speed and simplicity"
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Transparent- "We say what we think. We make it okay to disagree"
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Learner- "We are curious, adaptable and willing to teach what we know" (Eaton Corporation plc, 2021).
2. Key Customers, Market Segments, & Value Proposition
During the interview portion of the tour we learned that Eaton has two primary customer segments. The first, was the AI infrastructure industry. The second that was discussed are established markets in the fossil fuel, mineral extraction, hospital, and municipal sectors of industry. The latter is considered the bread & butter of the firm with valuation being overshadowed by the AI sector. The core value proposition focuses on engineered-to-order customization. Eaton is a "complete package". From engineering, manufacture, delivery, installation, delivery, and warranty. Customer Satisfaction is measured through on-time-delivery, delivered parts per million (DPPM), cost of non-conformance, and delivery.
3. Key Suppliers
At this location, Eaton sources primarily raw materials like copper and steel. The operation both fabricates and sources electrical components such as transformers, breakers, and control devices from external suppliers. The details of these suppliers were not disclosed and published disclosures were not observed.
4. Key Competitors
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GE
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ABB
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Schneider
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Siemens
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Small OEMs
5. Core Competencies
Of significant reference, Eaton Arden's engineered-to-Order (ETO) customization. Eaton "hardly says no to any application". High customization means every job is different, and this location focuses on that ability. Many competitors sell a more standardized product and Eaton competes by offering complexity where others do not. Of particular note was a focus on "full solution delivery". The value isn't just the equipment. It is also engineering, installation, commissioning, and warranty all under one roof. Competition looks to third party handlers, creating variability that Eaton handles seamlessly. Directly named in our interview was the description of Eaton as a leader in markets at scale and brand with 55% of the market share, 40-45% in Large and Medium Voltage Switchgear respectively. This offers a robust service network that smaller firms cannot match. On the shop floor we learned that employee tenure with company spanned 30 plus years in some cases, so in addition to service network, comes a significant amount of institutional knowledge. Zooming out, Eaton is multi-site regional manufacturing network where a single large order often sources from manufacturing operations from Asheville, to Greenwood SC, and Fayetteville NC concurrently. This production network lands Eaton large, complex projects that a single site competitor couldn't fulfill alone. Lastly, Eaton represented workforce cross-functionality as workers are not generic assemblers in repetitive tasks. Shop workers need to read and understand wiring diagrams, perform terminations, and test high-voltage equipment. That skilled workforce is what makes the ETO model executable. Referring back to institutional knowledge, this competency can take years to develop and offers a unique competitive niche.
6. Competitive Priority Ranking; Quality, Flexibility, Speed, Cost
#1 Flexibility: Bespoke, "Engineered-to-Order" products epitomizes flexibility and Eaton "hardly says no to any application". As also evidenced by the manufacturing floor itself as having no visible traditional assembly line appearance. Eaton's "Pay for Skill" cross-training program incentivizes operator flexibility. Customer segments span oil & gas, data center, municipalities, hospitals all requiring vastly different engineering and production specs.
#2 Quality: Products are engineered for and operate in environments where safety is a priority and accidents occur with high consequence. In example, hospitals, large industrial operations, and municipal facilities where arc events at high voltage can kill workers. This makes Eaton's explosion-proof enclosure design non-negotiable. Eaton "I Own Quality" policy initiatives. Mentioned in our interview explicitly are DPPM, "cost of non-conformance" (CONC), and service delivery are actively tracked. The policy metrics regarding these details were reviewed in high detail during our interview. DPPM was currently reported at higher than the firm would prefer and with such, a "customer obsession" initiative has been implemented with a stated improvement priority conforming to delivery improvement.
#3 Cost: From the interview, Eaton competes on solution, not price. The facility is a regional manufacturer of a high dollar product. Management discussed actively tackling waste reduction and tracking scrap and its sale to buyers. Another feature to address this is "Project Tectonic", a lean systems policy targeting inventory waste and material loss across regional locations. Cost is managed but not a strategic marketing position.
#4 Speed: Eaton, Arden is a textbook job-shop. In terms of delivery, with high customization comes with high variability. Depending on the product line order fulfillment averages 40–42 weeks and build cycles hover around 3 weeks. Speed is constrained by engineering with this being the longest pole in lead times quoted at 20-30 weeks.
On-time delivery is a stated strategic priority and current improvement focus.The "Customer Obsession" initiative is explicitly tied to delivery reliability. The interview reviewed a substantial pecuniary and unit volume of back-orders on more than one occasion.
7. Additional Central Values and Organizational Priorities
The safety culture at Eaton is pervasive and a little intimidating in the sense that electrical safety hooks can be observed from every place we stood on the shop floor. Clear protocols and barriers around live testing zones were consistently observed. Given the product involves exceptionally high voltage testing and electrical arc risk, safety is an operational foundation. The orgs "Pay for Skill" program promotes hybridization of task knowledge. In this way, worker salaries are compensated if new skills are learned. This incentive extends to experienced employees who can take advantage of the program, earning higher rates, by training newer staff. A "Customer Obsession" action was explicitly named as a new and ongoing strategic initiative. With the emphasis on transparency, this policy is set to get ahead of surprises, host plant visits, and ensure communications integrity in view of delivery statuses with customers. Continuous improvement of organizational operations in lean orientation, Project Tectonic a multi-facility consolidation initiative, Andon systems, tier boards, as well as safety, quality, delivery, inventory, productivity, and people or Eaton's (SQDIPP) enterprise are reviewed daily. These principles reflect a deliberately lean manufacturing philosophy without sacrificing other values. Discussed explicitly during the interview were programs supporting community and inclusivity with "inclusion Eaton Resource Groups" (iERG). These include the following; PRIDE (LGBTQ+), ENGAGE (intergenerational awareness), iConnect (diverse backgrounds, experience, & perspectives), SOAR (Asian employees and their allies), #VAMOS! (Hispanic/Latino), VETERANS (Veterans), WAVE (women), and EnABLE (disability issues) (Eaton, n.d.c).
Part A, Section 2-
Key inputs, outputs, customers, suppliers, and employees for the facility.
1. Key Value-Added Outputs & Output Metrics
Outputs
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Low Voltage Assemblies- switchgear that takes incoming power and distributes it downstream with overcurrent protection, relaying, and metering. Market leader at ~55% share ( Eaton, n.d.d.).
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Medium Voltage Controls- motor control centers for higher-voltage applications (Eaton n.d.e.).
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Medium Voltage Drives- variable frequency drives that ramp motors gradually to reduce power surges; highly energy-efficient (Eaton n.d.f.).
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Automatic Transfer Switches- instantaneous power switching for hospitals, data centers, and critical infrastructure when grid power fails (Eaton n.d.g.).
Metrics
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250 substantial customer orders shipped per month
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165 units in other product categories were mentioned parallel
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Regional production output exceeding $1 billion.
2. Key Inputs
Discussed during the interview were the facility's primary physical inputs reported as raw steel and copper, and a wide range of purchased electrical components including circuit breakers, transformers, PLCs, control wiring, and enclosure hardware . Most of this material is worked and fabricated on site. Crucial to this specific location relies heavily on engineering specifications and customer configuration data. These data points are significant inputs to Eaton, Arden as a "complete package" supplier.
3. Key Process Steps
Again Eaton is a highly specialized job shop application. The shop floor is composed of two mirrored main lines of work which offer the same processes. It is set up this way so that if a particularly complex job is on the line, less demanding work can be shifted to the other line. With work being engineered-to-order the shop floor appears modular, it was hard to discern in person where an actual assembly line was. The primary processes are configured in the following manner.
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Engineering & BOM configurations: Customer specs and produce custom configuration. Those specs are validated and recorded in a formal BOM.
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Fabrication: Raw steel and copper inputs are cut, bent, and formed in the on-site fabrication shop to produce enclosures and bus bars.
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Assembly: Shop technicians install components, wire panels according to schematics, and integrate controls.
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Testing: All assemblies undergo electrical testing under stringent live power conditions before shipment. The presence of red tape and safety barriers on the floor marks active test zones — these are genuine hazard boundaries.
The flow is not line based but project-based. During the tour we learned that workers describe moving to the work rather than product moving down a fixed conveyor.
4. Key Customers — Internal and External
Key external customers are rapidly growing segments in the data and AI infrastructure industry, the fossil fuel and resource extraction sector, hospital, university, and municipal organizations. Internal customers are downstream workflows receiving assemblies from upstream stages. Institutional legacies pertaining to internal customers. On more than one occasion the tour facilitators spoke about decades of continuous employment of shop technicians offering deep institutional knowledge.
5. Key Suppliers & Supplier Count
Specific suppliers and details were not disclosed during our tour however key inputs, as mentioned above include vendors for steel and copper as well as component manufacturers providing breakers, transformers, Programmable Logic Controllers (PLCs), and electrical hardware. Detailed supplier count or details were not offered but suggested as varied. The demands of facility production required components from numerous vendors.
6. Employees
The interview portion of the tour offered excellent data on employee numbers. The main Arden plant employs approximately 1,070 workers. In 2026, the facility added nearly 25 engineers and close to 60 operators to support growth. We were able to see new hires identifiable on the floor by orange safety vests.
7. Measuring Capacity, Productivity, Efficiency & Effectiveness
During the tour our group was able to observe Eaton's (SQDIPP), Safety, Quality, Delivery, Inventory, Productivity, People. The tiered review board structure was present in meeting rooms and on the shop floor. These metrics are reviewed in a daily team meeting and integrated across the organization. A digital Andon and physical system flags production issues in real time, providing bottom-up visibility into where the line is stalled and why. Various stations toured demonstrated communications about production process that were integrated on large touchscreen platforms. A productivity tracker on the main LVA line shows output rates by workstation section, allowing leadership to identify where productivity is constrained and whether the cause is a bottleneck, a material shortage, or a staffing gap.
8. Balancing Efficiency vs. Flexibility
From our tour, the core operational tension at the Arden plant and the most interesting thing I observed was this point. By definition, the ETO prioritizes responsiveness and flexibility over efficiency. The plant's current lean transformation, Project Tectonic, is attempting to improve efficiency without sacrificing flexibility by streamlining inventory, tightening BOM accuracy, and implementing pull-based replenishment. This was described as work in process and that this balance was exposing a number of process issues old safety stock had obscured variance. The metaphor of lowering the water to expose the rocks was directly referenced during our interview.
Part B)
Analysis-
Alignment of facility operations with organizational strategy.
1. Operations Strategy
The plant's main operations strategy reflects a deliberate choice to compete on a highly customizable solution rather than cost efficiency or timely delivery. This is most apparent in the ETO production style and the 40–42 week order cycle. ETO is what the facility does well. A built to spec technically complex, highly customized product that competitors either cannot compete on. An effective moat to competition. Other operations measures reviewed and discussed were productivity and efficiency through the SQDIPP framework and daily tier board reviews, with DPPM, on-time delivery, and CONC as performance indicators.
Management discussed responsiveness tradeoffs and clientele needs with the tension between the growth in data center demand which is more repetitive and higher-volume and the more traditional service bases. Leadership had not spoken to addressing these streams in terms of operations management however there was discussion of plans for a new location.
2. Process Analysis & Design
With Eaton, Arden's being a purely "complete package", ETO model, process design is definitionally, job shop (Cachon & Terwiesch, 2019). The custom packages offered include machine fabrication and treatment of all component. Despite there being two mirrored manufacturing lines, operators often move to the project. This process keeps moving in a cycle time fashion versus more a drumbeat type of process with a takt time found in more of an classic flow/ assembly line fashion. With a custom, non-linear process the bottlenecks shift based on order, this assumes that process metrics are measured by job and not necessarily the product type.
Both Andon and the SQDIPP process analysis platforms were used to measure metrics across, process times, utilization, project lead times, and delivery. Both of these systems were observed and reviewed during the interview. Bottlenecks consisted of projects with wiring intensive engineering and high PLC count. On the floor it was explained that wiring for these types of projects were measured in miles. The challenge presented is that it can be difficult to specifically measure bottlenecks with large projects and highly customizable processes. A brief review of other integral processes is cross training. Here pay for skill and pay to train incentives are offered for employees willing to learn new skills and those willing to train new hires. This program will be reviewed in more detail latter in the report.
3. Process Variability
The variability the Arden location works with is demand variability. This is represented in the surge for AI data center infrastructure which has increased significantly in recent years which demonstrates a classic Bullwhip Effect (Cachon & Terwiesch, 2019). This occurs while uneven order flow with established customer orders continuing to be accepted. During the interview we learned that other factors in variability were the result of BOM errors. late changes to orders in the process cycle, and differences in operator skill all create variation in lead time. Third, are issues presented with supply variability through late purchase orders versus issues with supplier fulfillment. Primarily the facilities approach to variability is by the inclusion and implementation of Project Tectonic, workforce cross training, implementation of SQDIPP, and Andon systems.
4. Quality Management
Eaton's most forward facing policy in quality management is the team promise, "I own quality". Here, employees at every level are expected to surface quality issues rather than pass them downstream. Due to the safety implications of products manufactured at this facility quality carries a higher standard than many manufacturing environments. Failures in the facility or the field can cost lives. A much higher claim than a warranty.
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Current initiatives related to DPPM are a thorough and current improvement target.
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Metrics related to CONC related to internal and external quality failures, service calls, and shipped short units require completion in the field
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Newly implemented tracking protocols addressing delivery metrics
One of the more costly tradeoffs noted during the tour concerned quality on service delivery. As the result of supply chain disruptions during Covid, the facility began shipping units short of completion and would send service technicians to complete builds in the field. This has still persisted despite supply-chain recovery.
5. Lean Operations
Underway the most significant lean initiative is Project Tectonic. This was the most clear example of TPS principles observed with leadership quoting the metaphor of lower the water to reveal the rocks (Cachon & Terwiesch, 2019). The rocks seemed to be present in a significant way and supported the implementation of these policies. This project was a large multi location initiative centralizing inventory from workstation to warehouse. This included data node measuring cycle counting, BOM reconciliation, and Kanban based workflow systems, as well as the presence of other leadership and management on the floor during our tour.
As noted above other lean operations initiatives are incentivized programs that include a Pay for Skill program where operators are offered salary incentives to learn new skills. This also includes training pay programs for established operators to train new hires. During our interview leadership explained that the facility prioritizes attitude over skill with on boarding new employees relating to be an operator in the plant took many months of specific training and experience which parallels the demand of such a specific product.
6. Project Management
Project management is concurrent with every order since the plant is such a made to order process. As such each project has a unique BOM, schedule, and engineering requirement. Processes are tracked by order, including bottlenecks, engineering, schedule, delivery, installation, and service. On the floor we observed a large wiring intensive job that received an extensive prebuild engineering review last year and as such has enabled the build phase of production on the floor to be significantly smoother. The facility is working diligently to track order and finance back logs in multi-disciplinary fashion, from tracking finance, inventory, manufacturing, delivery, and service metrics. The sense is that current management is taking initiative to develop means to keep up with demands and balance the Bullwhip Effect of current demand trends (Cachon & Terwiesch, 2019).
7. Sustainable Operations
Our interview covered sustainable operations in several operational and organizational ways. The first was at the operational level with the management of waste through contracts with purchasers of scrap and hazardous waste materials such as paint and e-waste handling operators. For the Arden facility the most significant operations initiative tacking the ship-short process addressing waste, rework, overextended transportation commitments, and costs. On an organizational level, Eaton has commitments to sustainability standards in the categories of carbon neutrality and responsible sourcing (Eaton n.d.h.). There are also initiatives to support community, diversity, equity, and inclusion among corporate values and initiatives as outlined in Section A, Part 1.7 of this project.
8. Forecasting
This is an area of discussion that facility leadership was particularly candid. Gaps in communication with suppliers was explained as work in process. Attempts have been made however it was explained that strategic planning for the type of operations made it difficult to aggregate. The facility leaders offered explanation in terms of upstream volume expectations with growth expectations as a measure but again one that is structurally difficult to quantify due to the ETO nature of the product.
9. Inventory Management
Currently production process are undergoing changes to inventory management. It was gathered from the interview that current operations has operators pull from parts bins on the shop floor and materials were supplied in excess suppressing BOM accuracy as Andon triggers were not effective as a result of that excess. Project Tectonic intends to resolve that with a centralized inventory process across material storage, cycle count, and Kanban replenishment. A key component to reconfiguration is a reduction in the purchase of bloated and unused safety stock to resolve and better control waste and throughput.
10. Sales & Operations Planning (S&OP)
The operations planning template that was reviewed during the interview portion of this tour discussed strategic planning following the "EBS" Eaton (Business System Process). This includes an operations review for the coming year of projected revenue, production, targets, capital expenditure, and leadership efficacy. Mezzo and micro-level planning is informed further by the SQDIPP, and Andon data points which in turn offer operational visibility to macro-level operations management. Other details in the planning stage are a growth plan including the addition of a second shift, hiring new operators and engineers, and expansion of facility footprint.
11. Supply Chain Management
My conceptualization of this is that there are basically two simple pathways of up and downstream movement in terms of supplier network and and delivery respectively. From the interview it was disclosed that both are currently under fair extensive review and focused on implementation of new management strategies. On the supplier side Eaton is working on objectives that offer their contractors more time to alleviate issues with gaps in their materials supply. Again, Project Tectonic's plan is to begin addressing these issues at the organizational level. Downstream management issues present with the ship-short practice along with facilities management of data center contracts which have increased significantly which has diverted resources away from established clientele. The ship-short delivery was described as product that had an incomplete BOM at the time of delivery the to customer which required follow up from service technicians and was flagged as CONC. The focus here is customer communication and improved operational performance with on time delivery. The presentation of supply chain management issues makes room for strategic opportunity which is covered in the following section.
Part C) Make recommendations in context of current trends, innovations, & challenges.
Eaton, Arden has taken significant steps to adjust to turbulent market changes as the result of Covid-era supply chain issues and the current changes in industry demand. The following recommendations are based on my observations of facility operations and my grasp of the course material.
Recommendation 1:
Formally re-assess the scale and scope of Project Tectonic. The objective is well reasoned however the scope is too large. The Eaton facility has too many projects moving in too many directions. If Project Tectonic were initially implemented at this location the facility can research, perform, and test before a multi-location or regional implementation. Similarly as above if one campus was restructured using better processes regarding MRP's a larger roll out of the projects larger vision would support its performance in a long term vision.
Recommendation 2:
Design and implementation of more accurate SKU & MRP systems. The forecasting issues in materials ordering was described as self inflicted. Data center sales were represented as a sector that require more repetitive and similar build cycles suggesting that more efficient product cycle management in this area could improve production bottlenecks alleviate Bullwhip Effect (Cachon & Terwiesch, 2019). A roll out of this program could be introduced tested and proven in stages in order for strategies to be adjusted before larger implementation.
Recommendation 3:
Restructure policy regarding ship-short delivery. The current policy is that ship-short product is shipped as CONC and there seems to be no upper limit in terms of how many units are shipped in this fashion. Policy review in this area may consider thresholds for ship-short products.
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Targeted metrics to reduce the overall number ship-short products by end of quarter, end of year, etc.
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Connect ship-short metrics to recommendation one above in order support on time delivery and operations management function.
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Clarify ship-short policy with products of outstanding BOM values above 5%, 10%, etc.
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Establish upper limits on how many units that fit this category is tolerated.
Recommendation 4:
During the interview management explained dated processes regarding legacy systems communications between engineering departments for the firm. This often led to discrepancies in their project hand-offs and BOMs. An accelerated implementation of an integrated ERP/ SAP platform offering streamlined MRP tools for communication and monitoring systems, BOMs, build cycles across engineering departments could reduce this friction and offer a needed update.
Recommendation 5:
Segment traditional and data center work flows. Eaton's facility is currently experiencing a boom in orders as the result of AI data center expansion. It is reasonable that the facility attempt meeting this demand. From the interview the data center orders had a more streamlined approach to builds including a higher demand for these products. Since the established facility has spent many decades building a traditional product very well, Eaton could focus plans for its expansion on the data center with dedicated production line while continuing to serve its established clientele. This recommendation would still allow for the previous recommendations for a staged restructuring of the Arden campus without the new facility inheriting current state operations management.
Part D) 3 discussion questions.
Question 1: Are the fundamentals of lean systems compatible with this facility and offer insight into why or why not, what limitations are presented by the application of lean operations for a unique operation such as this?
Question 2: Pick one of the recommendations above and analyze what the risks of applying that recommendation might be to the facility in its current state?
Question 3: Focusing on the demands of a traditional service line product while trying to compete with the demands of rapid growth in the AI data center markets, what is one strategic recommendation you can make for a production facility such as the Eaton, Arden location?
Part E) Appendix with Academic Integrity Policy Statement & Works Cited
Statement of Academic Integrity
I affirm that this report and its presentation represents my own work. The analysis, observations, and reflections are of my own process and application. I attest that the work contained herein are in alignment with the academic integrity policies of Western Carolina University, and MBA 635- Creating Business Operations (Western Carolina University, n.d.; Ratcliffe, 2026).
Artificial Intelligence was used in the creation of this project in the following ways:
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Wix AI media generator was used for the creation of webpage graphics. Examples for the prompts used are as follows; "vector art, blue, white, operations management, birds eye view, node on network, supply & demand, electrical control equipment", etc (Ratcliffe, 2026).
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Google Gemini was used as an embedded Google search function. Examples of prompts pertain to the following examples: "Eaton energy vision, mission, and values statements," "Eaton suppliers", and "Eaton annual reports", etc (Ratcliffe, 2026).