2017 Cummins Team Project

OPTIMIZATION OF REMANUFACTURING OPERATIONS THROUGH MECHANIZATION AND TECHNOLOGY

The Challenge:
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 Solution:
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.

Student Team:
Rahul Aggarwal–Master of Supply Chain Management
Jack Bryce–Master of Supply Chain Management
Avneesh Singh–Master of Supply Chain Management

Project Sponsors:
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.

Faculty Advisors:
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.

Each two to three person Tauber Team consists of graduate engineering, MBA, and/or MSCM students. Along with receiving high-level corporate support from the sponsoring company, each team is advised by a College of Engineering and a Ross School of Business faculty member and overseen by a Tauber Institute Co-Director. The projects begin on-site in May and continue for 14 weeks.  Students present the results of their projects and compete for over $40,000 in scholarships at the U-M Tauber Institute's annual Spotlight! event, held each September in Ann Arbor, Michigan.  Spotlight! provides outstanding opportunities for students and corporate partners to establish relationships while exploring innovations in operations and manufacturing.
 
Access Spotlight! book for project details.
2017 Cummins Team
2017 Cummins Team Project
2017 Cummins Team Project