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Outside Inventory and Material
        Storage Improvement
Date:   April 27, 2011 to June 18, 2011
Area:   Fridley Yard, East Side of Manufacturing Plant & Tech Center
        5S / Material Reduction
PROJECT:
 Identified and removed excess & obsolete materials
 and possible safety hazards, as well as consolidate
 current inventory away from employee parking
 (parking lots 4 & 6);
 Identified non-inventory scrap materials and safely
 removed them from the property;
 Developed a location ID system for outside inventory
 (i.e. Line Mapping Grid);
 Identified new material and inventory yard storage
 locations for future outside inventory.
 Save Cummins money by recycling scrap material.
OUTSIDE INVENTORY AND MATERIAL
   STORAGE IMPROVEMENT KAIZEN TEAM




Team Members
(Front Row) Andrew Jenson, Tom Gerrety, Trish Pike, Sallie Malmstrom
(Team Lead), Jim Callander, (Back Row) Anita Costello, Gayle Gruber,
Jacob Kriesel, Ryan Paulson, Greg Schrader.
(Not Shown) Jim January, Bart Bashynski, Sheila Minske, Ron Rahier,
Patrick Eng, Jennifer Schumann, Lynn Keate, Niki Yuds, Larry Hokenson,
Al Stephens, Paolo Caffari, Brian Walton, Pete Awsumb.
TEAM’S GOALS:
 Make Cummins a safe work environment for everyone by
 removing potential safety hazards;
 Reclaim valuable space by removing scrap inventory;
 Reclaim areas for their intended purpose (i.e. area that is
 designated as employee parking).

                                             PARKING LOT #4
                                             SPACE INCREASED BY
                                             68% AFTER SCRAP
                                             WAS REMOVED.




Parking Lot #4 – before...    and after.
Scrap locations identified in the yard.
WHAT THE TEAM SET OUT TO DO:
 Tech Center/ Engineering: Identify obsolete prototype
 equipment for removal behind the building and in the yard.
 LNE 22/ T-REX: Identify obsolete and NCMR trailers and
 tanks in parking lot #6 for removal or resale.
 BEAR: Identify obsolete prototype equipment for removal
 behind the HHTF building and in the yard.
 THOR 1 & 2: Identify obsolete equipment for removal
 behind the manufacturing building and in parking lot #4.
 LNE 26/27: Identify obsolete prototype equipment for
 removal from parking lot #4 and in the yard.
 PAC-NET/ STEEL WASTE: Identify damaged wood
 packaging and steel skids as well as obsolete equipment
 (i.e. radiators) for removal from various yard locations.
WHAT THE TEAM ACHIEVED
                        1. RECLAIM DESIGNATED AREAS
 Kaizen Results Tracker 2. REMOVE SAFETY HAZARDS
                                                   3. SAVE VALUABLE YARD SPACE
                                                             June 18, 2011
                                    Before           After        Total Space       Area %
          YARD AREA
                                    Kaizen          Kaizen          Savings        Increase
Lot #4 Outside Inventory          24,600 sq. ft. 7,825 sq. ft.    16,775 sq. ft.     68%
Lot #6 Outside Inventory          11,500 sq. ft. 7,100 sq. ft.    4,400 sq. ft.      38%
By H.H.T.F. Fence                 9,750 sq. ft.   5,000 sq. ft.   4,750 sq. ft.      49%
By Plant Doors #21A / 22          8,450 sq. ft.   6,630 sq. ft.   1,820 sq. ft.      22%
Behind Tech Center                20,650 sq. ft. 2,800 sq. ft.    17,850 sq. ft.     86%
By Hazardous Materials Building   6,800 sq. ft.   5,000 sq. ft.   1,800 sq. ft.      26%
By Murphy Warehouse Door #198     2,600 sq. ft.   2,600 sq. ft.     0 sq. ft.        0%
By JP-8 Tank                      3,000 sq. ft.     0 sq. ft.     3,000 sq. ft.     100%
GRAND TOTAL (sq. ft.)               87,350          36,955           50,395          58%
OUTSIDE INVENTORY SPACE USED                           TOTAL AMOUNTED
         AFTER
         KAIZEN                                        SAVED BY RECYCLING
                                                       SCRAPED MATERIAL:
                                                              $5622.51
                                   BEFORE
                                   KAIZEN
KAIZEN TEAM TASK LIST
                                                                            Status
                   Kaizen Task Tracker
                                                  Date
                     Issue                                  Priority Owner COMPLETE DOC. Project
                                                Assigned
IDENTIFY DEPARTMENT REPRESENTATIVES FOR TEAM     04/27/11    High   JS847        √    √     √
IDENTIFY OUTSIDE INVENTORY SCRAP LOCATIONS       04/27/11    High   JS847        √    √     √
LIST ALL OUTSIDE INVENTORY AS SCRAP OR NOT       04/27/11    High   JS847        √    √     √
IDENTIFY SCRAP OWNERSHIP; DEPTS. VERIFY ITEMS    04/27/11    High   JS847        √    √     √
DEVELOP A LINE MAP GRID FOR OUTSIDE INVENTORY    04/27/11    High   JS847        √    √     √
IDENTIFY NEW OUTSIDE INVENTORY LOCATIONS         04/27/11    High   JS847        √    √     √
PUT "ORANGE FLAGS" ON SCRAP ITEMS                06/06/11    Med    JS847        √          √
PUT "YELLOW FLAGS" ON ITEMS FOR RELOCATION       06/06/11    Med    JS847        √          √
IDENTIFY SCRAP TANKS WITH FUEL; DRAIN THEM       06/06/11    High   CI546        √          √
LOCATE FLAT BED TRUCKS FOR SCRAP LOADING         06/06/11    Med    CI546        √          √
LOCATE TEAM MEMBERS FOR HELP WITH EVENT          06/13/11    Med    GQ660        √          √
LOCATE EQUIPMENT FOR USE DURING EVENT            06/13/11    Med    GQ660        √          √
COMPLETE EVENT ON SATURDAY, JUNE 18, 2011        06/18/11    High   JS847        √          √
WRITE UP "LESSONS LEARNED" FOR JIM JANUARY       06/22/11    Low    JS847        √    √     √


                                                             RECLAIMED 49% MORE AREA
                                                             BEHIND H.H.T.F. BUILDING
                                                             AFTER SCRAP REMOVED
NEXT STEPS:
 Reduce wood packaging waste from reoccurring
 through better Bill of Material management;
 Reduce safety stock quantity and/or relocate it in a
 warehouse to keep from being weather-damaged;
 Provide equipment and trailer racking for better
 consolidation of yard space;
 Appoint an outside inventory yard manager to
 oversee the oversized inventory material storage.
                                     RECLAIMED 41% MORE
                                     PARKING AREA IN LOTS
                                     #4 AND #6 WHEN SCRAP
                                     WAS REMOVED.

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Kaizen Presentation Js847 Slideshow Sept 2011

  • 1. Outside Inventory and Material Storage Improvement Date: April 27, 2011 to June 18, 2011 Area: Fridley Yard, East Side of Manufacturing Plant & Tech Center 5S / Material Reduction
  • 2. PROJECT: Identified and removed excess & obsolete materials and possible safety hazards, as well as consolidate current inventory away from employee parking (parking lots 4 & 6); Identified non-inventory scrap materials and safely removed them from the property; Developed a location ID system for outside inventory (i.e. Line Mapping Grid); Identified new material and inventory yard storage locations for future outside inventory. Save Cummins money by recycling scrap material.
  • 3. OUTSIDE INVENTORY AND MATERIAL STORAGE IMPROVEMENT KAIZEN TEAM Team Members (Front Row) Andrew Jenson, Tom Gerrety, Trish Pike, Sallie Malmstrom (Team Lead), Jim Callander, (Back Row) Anita Costello, Gayle Gruber, Jacob Kriesel, Ryan Paulson, Greg Schrader. (Not Shown) Jim January, Bart Bashynski, Sheila Minske, Ron Rahier, Patrick Eng, Jennifer Schumann, Lynn Keate, Niki Yuds, Larry Hokenson, Al Stephens, Paolo Caffari, Brian Walton, Pete Awsumb.
  • 4. TEAM’S GOALS: Make Cummins a safe work environment for everyone by removing potential safety hazards; Reclaim valuable space by removing scrap inventory; Reclaim areas for their intended purpose (i.e. area that is designated as employee parking). PARKING LOT #4 SPACE INCREASED BY 68% AFTER SCRAP WAS REMOVED. Parking Lot #4 – before... and after.
  • 6. WHAT THE TEAM SET OUT TO DO: Tech Center/ Engineering: Identify obsolete prototype equipment for removal behind the building and in the yard. LNE 22/ T-REX: Identify obsolete and NCMR trailers and tanks in parking lot #6 for removal or resale. BEAR: Identify obsolete prototype equipment for removal behind the HHTF building and in the yard. THOR 1 & 2: Identify obsolete equipment for removal behind the manufacturing building and in parking lot #4. LNE 26/27: Identify obsolete prototype equipment for removal from parking lot #4 and in the yard. PAC-NET/ STEEL WASTE: Identify damaged wood packaging and steel skids as well as obsolete equipment (i.e. radiators) for removal from various yard locations.
  • 7. WHAT THE TEAM ACHIEVED 1. RECLAIM DESIGNATED AREAS Kaizen Results Tracker 2. REMOVE SAFETY HAZARDS 3. SAVE VALUABLE YARD SPACE June 18, 2011 Before After Total Space Area % YARD AREA Kaizen Kaizen Savings Increase Lot #4 Outside Inventory 24,600 sq. ft. 7,825 sq. ft. 16,775 sq. ft. 68% Lot #6 Outside Inventory 11,500 sq. ft. 7,100 sq. ft. 4,400 sq. ft. 38% By H.H.T.F. Fence 9,750 sq. ft. 5,000 sq. ft. 4,750 sq. ft. 49% By Plant Doors #21A / 22 8,450 sq. ft. 6,630 sq. ft. 1,820 sq. ft. 22% Behind Tech Center 20,650 sq. ft. 2,800 sq. ft. 17,850 sq. ft. 86% By Hazardous Materials Building 6,800 sq. ft. 5,000 sq. ft. 1,800 sq. ft. 26% By Murphy Warehouse Door #198 2,600 sq. ft. 2,600 sq. ft. 0 sq. ft. 0% By JP-8 Tank 3,000 sq. ft. 0 sq. ft. 3,000 sq. ft. 100% GRAND TOTAL (sq. ft.) 87,350 36,955 50,395 58% OUTSIDE INVENTORY SPACE USED TOTAL AMOUNTED AFTER KAIZEN SAVED BY RECYCLING SCRAPED MATERIAL: $5622.51 BEFORE KAIZEN
  • 8. KAIZEN TEAM TASK LIST Status Kaizen Task Tracker Date Issue Priority Owner COMPLETE DOC. Project Assigned IDENTIFY DEPARTMENT REPRESENTATIVES FOR TEAM 04/27/11 High JS847 √ √ √ IDENTIFY OUTSIDE INVENTORY SCRAP LOCATIONS 04/27/11 High JS847 √ √ √ LIST ALL OUTSIDE INVENTORY AS SCRAP OR NOT 04/27/11 High JS847 √ √ √ IDENTIFY SCRAP OWNERSHIP; DEPTS. VERIFY ITEMS 04/27/11 High JS847 √ √ √ DEVELOP A LINE MAP GRID FOR OUTSIDE INVENTORY 04/27/11 High JS847 √ √ √ IDENTIFY NEW OUTSIDE INVENTORY LOCATIONS 04/27/11 High JS847 √ √ √ PUT "ORANGE FLAGS" ON SCRAP ITEMS 06/06/11 Med JS847 √ √ PUT "YELLOW FLAGS" ON ITEMS FOR RELOCATION 06/06/11 Med JS847 √ √ IDENTIFY SCRAP TANKS WITH FUEL; DRAIN THEM 06/06/11 High CI546 √ √ LOCATE FLAT BED TRUCKS FOR SCRAP LOADING 06/06/11 Med CI546 √ √ LOCATE TEAM MEMBERS FOR HELP WITH EVENT 06/13/11 Med GQ660 √ √ LOCATE EQUIPMENT FOR USE DURING EVENT 06/13/11 Med GQ660 √ √ COMPLETE EVENT ON SATURDAY, JUNE 18, 2011 06/18/11 High JS847 √ √ WRITE UP "LESSONS LEARNED" FOR JIM JANUARY 06/22/11 Low JS847 √ √ √ RECLAIMED 49% MORE AREA BEHIND H.H.T.F. BUILDING AFTER SCRAP REMOVED
  • 9. NEXT STEPS: Reduce wood packaging waste from reoccurring through better Bill of Material management; Reduce safety stock quantity and/or relocate it in a warehouse to keep from being weather-damaged; Provide equipment and trailer racking for better consolidation of yard space; Appoint an outside inventory yard manager to oversee the oversized inventory material storage. RECLAIMED 41% MORE PARKING AREA IN LOTS #4 AND #6 WHEN SCRAP WAS REMOVED.