Cummins Engines UK

Cummins Engines UK

Cummins UK is a diesel engine manufacturer and the Cummins US distributor for the UK and Ireland. Cummins Inc. 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. Cummins serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations.

Cummins UK had a planned budget of over £12.5m for capital repair over the next 15-year period. Litmus re-valued the need for capital funding for the period to be nearer to £9.8m; nearly £3m less that originally budgeted.

Background

In response to the needs of the UK business, Cummins UK had developed an Asset Management System Framework that demonstrated the linkages between the key elements and outputs of an asset management system.

The Framework needed to incorporate the key features of the ISO 55000 management system, however the current Asset Management Register and Lifecycle Plan was not sufficiently developed to meet the requirements of the new Framework; therefore, Litmus was approached to see how they could assist.

Brief

Litmus was briefed to carry out a comprehensive asset data collection and collation exercise for the Cummins manufacturing facility in Darlington, which consisted of 600,000 sq. ft of floor space.

Litmus reviewed the buildings and facilities, as well as all of the fabric, mechanical and electrical assets; approximately 6,000 assets in total.

This included:

  • Capturing asset data for all building fabric, mechanical and electrical elements;
  • Assess the condition age for each asset;
  • Assess the cost of replacing each asset;
  • Collate asset data on template in hard and soft copy format;
  • Develop a 15-year lifecycle model of asset replacement and renewal; and
  • Input asset data into the Maximo system.

Approach

John Brownless, the Litmus Partnership, said: “Following our formal appointment, we arranged to meet with Cummins Engines UK Facilities Team on-site in Darlington, as well as all the key stakeholders involved in the project.

“Our team of three qualified consultants commenced the asset data collection on-site and carried out inspections of all of the mechanical, electrical and building fabric assets and their components. The condition of each asset was recorded on a data template, which noted the building location, the room or area description and the asset type.

“Priority works were then recorded with a timescale for completion. This was particularly relevant where we identified Health and Safety works required to an asset.

“Each asset and sub element was categorised against the BCIS recognised construction categories – which enabled Cummins UK to download the data onto their CAFM system, which in this case was Global Maximo.

“From the completed template and cost data, we were then able to profile the replacement of assets for each year over a 15-year period, with associated costs, giving Cummins more detail with regards improvement and replacement costs over this period.”

Outcomes

Prior to the exercise Cummins UK had a planned budget of over £12.5m for capital repair over the next 15-year period. The project re-valued the need for capital funding for the period to be nearer to £9.8m; nearly £3m less that originally budgeted.  Following further scrutiny by the Cummins UK Finance Team this value was agreed.

“Following the valuation being agreed, the Cummins UK Management Team decided to release funds from the capital budget to immediately commence the refurbishment of the offices at the site.”

Karl Cundill, the Litmus Partnership