OPTIMIZATION OF REMANUFACTURING OPERATIONS THROUGH MECHANIZATION AND TECHNOLOGY
The Cummins New & Recon Parts (NRP) division specializes in remanufacturing; a complex enterprise of restoring used parts back to new part specifications. The NRP division wanted to improve the economic viability of their operations by: 1) identifying opportunities for automation at two plants in the U.S. and Mexico and then scaling globally to apply to all eight division plants, and 2) sorting the incoming parts to avoid non-value-added labor and inventory costs.
The Tauber team created an automation framework by using a comprehensive set of questions that, when answered, are capable of generating a complete cost-benefit analysis. Using this framework, the Tauber team recommended three turnkey solutions that will result in $1.8M NPV after a $540K investment. The team also provided Cummins with a five-year roadmap of 13 automation solutions specific to its U.S. and Mexico remanufacturing plants which included timelines, cost estimates, benefits, and priorities for each of the recommendations.
Read the 2017 Cummins Team Project Executive Summary in the 2017 SPOTLIGHT! book.
Rahul Aggarwal–Master of Supply Chain Management
Jack Bryce–Master of Supply Chain Management
Avneesh Singh–Master of Supply Chain Management
Robert Enright–General Manager, New & ReCon Parts, Cummins Inc.
Leon Huerta–Business Development Manager, NRP, Cummins Inc.
Nikhil Vajandar –Functional Excellence Manager, NRP, Cummins Inc.
Shawn Zwicker–Director, NRP Global Operations, Cummins Inc.
W. Monroe Keyserling–College of Engineering
Owen Wu–Ross School of Business
About Tauber Team Projects:
The 2017 Tauber Team Projects resulted in $575 million in savings according to sponsoring company calculations, an average of $18.5 million per project over 3 years.