from DSSResources.com

Top Six Sigma projects on display at Cummins Expo; data-driven tools used to reduce inefficiencies and errors, saving $32 million

COLUMBUS, Ind., March 31, 2005 -- Cummins Inc. (NYSE:CMI) has driven down costs, improved the quality of its products and beefed up customer service by using Six Sigma quality improvement tools over the past five years.

More than 3,000 projects have been completed since the program's inception, saving Cummins more than $600 million - and that translates into 2 percent of sales every year. Savings from Six Sigma projects are reflected in the performance of the Company in each of the past five years.

Cummins is showcasing the best Six Sigma projects of 2004 next month at an Expo being held in Columbus and the public is invited. On April 4, the Chairman's Six Sigma Quality Awards will be presented to 31 projects that either saved or helped Cummins avoid costs of more than $32 million. And those projects will be on display Tuesday, April 5, at the Six Sigma Expo at Cummins Building 96 in downtown Columbus.

"These projects are being recognized because they demonstrate the best application of Six Sigma's analytical tools at Cummins," said Cummins Chairman and CEO Tim Solso.

"They show how the principles of Six Sigma have become ingrained in our culture. We are using these tools to help us design and manufacture better products while eliminating waste and inefficiencies in our processes."

The winning projects, including one that helped a customer, Penske, reduce its repair and maintenance costs of Cummins engines, also showcase outstanding leadership by the project leaders - the Black or Green Belt.

The projects - which helped resolve problems in all parts of our business around the globe - also show how Six Sigma is part of the Cummins culture:

-- We are now taking Six Sigma to our customers, working with them to analyze processes, root out inefficiencies and save money.

-- Six Sigma is a leadership development tool - some of the best and brightest leaders of Cummins are learning Six Sigma and the analysis tools. For example, Dana Vogt, the manager at the Jamestown Engine Plant in New York, is a Six Sigma Master Black Belt.

-- Six Sigma gives us a competitive advantage because we are more efficient, provide better service and drive down costs.

The Penske project provides one of the best examples of how Six Sigma is working at Cummins. The goal was to reduce the cost of repairing a Cummins engine by about 15 percent.

The team, led by Black Belt Ginger Lirette, used Six Sigma tools to determine that technician training and parts availability played the biggest roles in the engine repair costs. So, new training procedures were put in place and more of the most used parts were kept in stock. As a result, the cost of repairing and maintaining an engine was reduced by 42 percent.

Also, the Six Sigma efforts contributed to Cummins being named Penske's top "Powertrain Supplier for 2004." This is a major recognition from one of the nation's leading truck leasing companies.

Here are details of the Six Sigma event:

-- What: Six Sigma Project Expo showcasing the 31 winners of the annual Chairman's Quality Award.

-- When: 8 a.m. to 4 p.m. on Tuesday, April 5.

-- Where: Building 96, 500 Central Ave., Columbus IN 47201.

-- If you have questions: Contact Staci York at 812-377-1463.

-- And if you are planning to attend, please send an email including your name, email address, company name, and phone number and the number of people attending from your company to staci.l.york@cummins.com.

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in more than 160 countries through its network of 550 distributor facilities and more than 5,000 dealer locations. With more than 28,000 employees worldwide, Cummins reported sales of $8.4 billion in 2004. Press releases can be found on the Web at www.cummins.com.



Janet Williams, 
Desk: 317-610-2488
Cell: 812-343-6318
janet.williams@cummins.com 

DSS Home |  About Us |  Contact Us |  Site Index |  Subscribe | What's New
Please Tell 
Your Friends about DSSResources.COM Copyright © 1995-2021 by D. J. Power (see his home page). DSSResources.COMsm was maintained by Daniel J. Power. See disclaimer and privacy statement.