CUMMINS IS A COMPANY WITH OPERATIONS ACROSS THE GLOBE.
To help ensure the Company operates smoothly, Cummins relies on three primary tools:
Cummins is a big proponent of Six Sigma, using the business improvement tool to save the company and its customers billions of dollars.
Since it was initiated at Cummins in 2000, Six Sigma has provided a common procedure and language for employees to solve problems and develop new products and processes.
Six Sigma uses data-based analysis to identify defects and variation in a wide range of manufacturing and business situations. Since it was introduced at Cummins in 2000:
- Approximately 23,000 people at Cummins have been trained on Six Sigma tools over 3 million hours.
- Six Sigma projects have identified an estimated $6.3 billion in savings over the tool’s 15-year history at Cummins.
- Customers have saved an estimated $1.37 billion through Six Sigma initiatives with the company since the tool was first offered to them in 2005.
Cummins also uses Six Sigma in its community work, helping its community partners address problems. Employees completed 110 Community Impact Six Sigma projects on behalf of their community partners in 2015.
The impact of Six Sigma on the company, however, goes beyond cost savings and community engagement. It has provided Cummins with a common language and collective mindset that can be used to address a problem or challenge almost anywhere in the world.
In 2016, the company announced some changes to its Six Sigma program designed to keep projects targeted at Cummins’ most important business needs. The company’s top leaders will play a key role in determining Six Sigma priorities with a special focus on product quality, working capital, distributor synergies, direct material cost reductions and telematics.
After 15 years and so many people trained on the tool, though, it seems likely that a Six Sigma mindset will continue to be behind almost everything the company does.
The company will also continue performing Community Impact Six Sigma projects.
CUMMINS OPERATING SYSTEM
The Cummins Operating System helps develop common practices and approaches to improve customer satisfaction. The 10 practices are:
- Put the customer first and provide real value.
- Synchronize flows (material, physical and information).
- Design quality in every step of the process.
- Involve people and promote team work.
- Ensure equipment and tools are available and capable.
- Create functional excellence.
- Establish the right environment.
- Treat preferred suppliers as partners.
- Follow common problem- solving techniques.
- Use Six Sigma as the primary process improvement method.
CUMMINS BUSINESS MODEL
The Cummins Business Model is a simplified view of how the Company is organized that starts and ends with customers and the business.
The business model was updated in 2013 to more accurately reflect how Cummins delivers products and services to our customers around the world through an integrated supply chain. The new model more clearly represents how we work together to meet or exceed customer expectations.