12 Mag Wksp1 005 Cummins - Mddb.apec

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2012/CTI2/MAG/WKSP/005Cummins RemanufacturingSubmitted by: CumminsWorkshop on Remanufacturing Researchand Development in APEC EconomiesSingapore28 March 2012

Cummins RemanufacturingBrian KuznickiCummins Remanufacturing New BusinessDevelopment Director– 14 years with Cummins, mostly in MidRange engineering– Undergraduate in Automotive and Heavy EquipmentManagement with minor in Engine Machining/Rebuilding– Masters in Business Administration2Cummins Proprietary1

Evolutionary SStrategyOverview/BackgroundCummins ReCon History1950-1966 Cummins enters the remanufacturing business with 5 distributor-owned rebuildcenters1966-1971Dil ReConR C namedd operatingti divisiondi i i off Ci DieselCummins Diesel ReCon incorporates, commences Memphis, TN operations1971-2001 Capacity expansion in SFS, Chicago, Charleston, Cornwall, Scoresby, Sao Paulo,Cumbernauld, Pune, San Luis Potosi , Toronto Various consolidation work in US, MexicoDeliberateStrategy2001-20062007-2010 Development and execution of global manufacturing strategyNA consolidation, ReCon India (DTA & SEZ), ReCon China (CXMC), ReCon Brazilgrowth, HHP Component strategy ReCon is the brand name which identifies CumminsGenuine factory-remanufactured products3Remanufacturing LocationsCumbernauld3.9L – 19L engines3.9L – 19L cyl blocks3.9L – 19L crankshafts3.9L – 19L conn rods81L – 91L cyl headsMemphis3.9L – 60L FG turbos6.7L – 15L VG turbosXiangfan (2009-2011)3.9L – 8.9L cylinder blocks3.9L – 8.9L cylinder heads3.9L – 8.9L crankshafts3.9L – 8.9L conn rodsJuarez/El Paso (CBU)3.9L – 60L injectors3.9L – 60L fuel pumpsECMsSan Luis Potosi3.9L – 19L engines3.9L – 19L cylinder blocks3.9L – 19L crankshafts3.9L – 60L cylinder heads3.9L – 60L connecting rods6.7L – 15L EGR valves3.9L – 19L lube oil pumpsSao Paulo3.9L – 14L service long blocks3.9L – 14L cylinder blocks3.9L – 14L crankshafts3.9L – 14L cylinder heads3.9L – 14L connecting rods3.9L – 60L water pumps3.9L – 50L air comps4Pune/Pithampur (2009-2011)3.9L – 19L service long blocks3.9L – 19L cylinder blocks3.9L – 60L cylinder heads3.9L – 60L connecting rods38L – 60L cam followers19L – 50L lube oil pumps38L – 60L turbochargers38L – 60L water pumpsScoresby (DBU)Cylinder headsTurbochargersAir compressorsCam followersWater pumpsRotating electricsCummins Confidential2

Remanufacturing phisTurbo/WP/ACXiangfan(2009-2011)JuarezEl-Paso (CBU)FIE / ECMsPuneSan Luis PotosiHeads/rods/LPScoresby (DBU)Sao PauloFG coreFG coreEngine core processing with component remanfor use in local rebuild (eg typically blocks,cranks, cams, rods, misc parts)5Loose componentreman typ. for exportCummins ConfidentialDesign for Reman Much more than just engineering– Purchasing – access to make up components– Finance – ability to reman and still make profit– Marketing – ability to attract the market6ComponentOE ProposalDesign for RemanSolutionCylinder BlockOne timemachiningAbility to re-machine at leastone time – maybe more ORutilize metal addition for “backto standardstandard” conditionDVA to ensurecomponent isfunctional aftermachiningUrea DoserModuleGlue-on / weldon lidInexpensive means to accessinternal componentsO-ring seal withtamper resistantcapscrewsCylinder HeadParent metalvalve guidesOversize valve stems/guidesresult in non-standard fieldconditionAdequate materialfor conversion toreplaceable guidesCummins Confidential3

Thank You4

Cummins ReCon History 1950-1966 Cummins enters the remanuf acturing business with 5 distributor-owned rebuild centers S Di l R C d ti di i i f C i trategy 1966-1971 Diesel ReCon named operating division of Cummins Diesel ReCon

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