Sallie Malmstrom lead a Cummins Power Generation cross-functional Kaizen team, June 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.

5. Scrap locations identified in the yard.

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.