UPS CASE STUDY EXECUTIVE SUMMARY

Faced with inconsistent quality from three gas engine suppliers, multiple bills of materials, and increasing downtime, UPS turned to Reviva to develop a drop-in remanufactured gas engine program. “Engines were a pain point for us. As they became more complicated, we saw the replacement long-block and components, as well as installation practices become less and less consistent. Also, failure after an expensive engine replacement increased to 2.5%,” noted David Hunt, UPS’s now retired head of Global Ground Fleet Procurement. Reviva took over the process of qualifying the long-block, qualifying over 30 parts needed to replace an engine, remanufacturing the engines, and dyno-testing the engines prior to shipment to one of UPS’s 1,400 locations. As a result of the program, UPS has reduced downtime for engine replacements by over 66%, significantly improved the quality, reducedthe number of suppliers, and saved money in the process.

• Engine replacement time was reduced from 32 hours to 9 hours. In some cases, engines are replaced overnight, eliminating downtime.
• Engine issues upon start up went from 2.5% to virtually zero, as a result of Reviva’s dynamometer test, assuring a quality engine every time.
• Labor hours were reduced by 36,000 hours annually. Technicians are difficult to hire, train and retain in today's market. This drop-in engine solution significantly reduced that need.