Brent is going to kill me for posting this but I just have to brag on my hubby! For 3 1/2 months over the summer Brent worked as the Project Supervisor of a team of 2 students from the University of Michigan. Friday, September 12th, Brent flew up to Michigan to watch his team present their projects. There were 20 teams that presented and Brent's team won 2nd Place!! This is the first time ever that Cummins has had a team place in this competition. His students were rewarded $4,000 each in scholarship money. Here is what was shared on the University of Michigan's website:
Second Place: Cummins Inc.
"North American B-series Engine Remanufacturing Operations Value Stream Assessment" Student Team: Joshua Johnson - Master of Science Industrial & Operations Engineering Juan Lopez - MBA
Project Liaison/Supervisor: Brent Lollar - Director of International Operations and Strategy, Parts and Service Manufacturing
Project Champion: Allen Pierce - General Manager, Powercare Manufacturing
Faculty Advisors: Xiuli Chao - College of Engineering
Brian Talbot - Ross School of Business
The Parts and Service division of Cummins Inc. operates multiple global remanufacturing centers which produce factory-remanufactured Cummins components and engines. This division, as part of the Engine Strategic Business Unit, is responsible for ensuring service parts and service information availability to a global network of distributors, dealers, and OEM partners. The Tauber team analyzed the North American 4 and 6 cylinder B-series engine remanufacturing value streams to identify specific opportunities for improving inventory turns and customer responsiveness. The analysis encompassed plant operations, links to internal and external suppliers, and information flows between all stakeholders.
The team identified four critical areas of opportunity for analysis:
*Plant performance metrics and the impact on inter-plant order management, supply chain WIP and production scheduling.
*Replenishment lead time variability for remanufactured “make to stock” engines and the influence on finished goods and raw materials inventory levels.
*Proliferation of make to stock engine models and the influence of such proliferation on forecast accuracy.
*Execution of general inventory management policies for both raw materials and finished goods.
The team began by delivering a current state map of the entire value stream from order receipt to finished product shipment to customers. Subsequently the analysis transitioned to the identification and prioritization of improvements across the extended value stream. This led to an exhaustive review of the current make-to-stock engine model and the development of a new business model proposal. This recommendation will ultimately reduce complexity in the make-to-stock engine portfolio, will improve the forecast accuracy of the new B-Series make-to-stock portfolio, and will reduce finished goods inventory levels required to maintain Cummins’ desired service levels.
The team’s recommendations are expected to yield an increase of customer service levels by 19 percentage points and a lead time reduction of up to 15% for the selected make-to-stock engines while maintaining the same finished goods inventory investment. These improvements are expected to be implemented across Cummins’ several engine families and improve the overall remanufacturing business and ultimately the parts and service division’s competitive position.