Sub Title Cummin’s Inc By: Allen, Evans, Moldovan and Noey Cummins Inc By: Allen, Evans, Moldovan and Noey Cummins

Sub Title

Cummin’s Inc By: Allen, Evans, Moldovan and NoeyCummins Inc

By: Allen, Evans, Moldovan and Noey

Cummins

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Company and Division

❏ Vision: “Making people’s lives better by unleashing the power of Cummins.”

❏ Company division❏ Engine❏ Power Generation❏ Components Business❏ Distribution

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Order Processing

❏How to look at parts❏ Catalog❏ Online

❏How to order❏ Phone, Fax, Mail❏ Electronic Data Interchange (EDI) from a Value

Added Network (VAN)

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Supplier(Aerostar)

WarehouseAssemble to Order

Distributor/Dealer

CustomerEnd Customer

Push Pull Push

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Procurement

❏ Purchasing organizations for each business segment

❏ Arriba (Buy It Now) - Web based procurement system

❏ Automate, Monitor and Control Purchasing Life Cycle

❏ Lead processing - exposure for more suppliers

❏ Integration with current ERP system

Engines | Power Generation | Components | Filtration | Turbo | Emissions | Fuel | Distributions

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Information Systems

❏ Oracle E-Business Suite R12 - Comprehensive and Adaptive

❏ Oracle istore, Configurator and Advanced Pricing❏ Oracle Advanced Supply Chain Planning and

Warehouse Management❏ Oracle Business Intelligence - Global Views Across

Business Segments

“Design Anywhere, Make Anywhere and Sell Anywhere”

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Manufacturing

Six Sigma

PProjects Successfully Completed 13,367

Total Savings $2.5 Billion

Green Belts Trained 9,320

Green belts Certified 1,492

Black belts Certified 465

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Inventory, Logistics and Transportation

❏ Automotive type relationships with suppliers

❏ Commodity Swap contracts to avoid fluctuations

❏ Parts

❏ WIP

❏ Very little finished product

❏ Certain Logistics providers are required for suppliers

❏ Warehousing is simply near manufacturing plants - Parts

❏ Mostly ground transportation to distributors - class 8 haulers

❏ Favorable cost structure for their fleet

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Competitors

Main Competitors

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hallenges and Recommendations

❏ Challenges

❏ EPA 4 Tier regulations

❏ Tier 1-3 completed

❏ Tier 4 is in work expected completion is 2016

❏ Recommendation

❏ JIT from supplier to warehousing - Opportunistic integration

❏ Problems with acquiring suppliers

❏ Pros and cons

❏ Setup costs - fleet expansion, logistics expansion

❏ Warehousing and inventory holding

Documents

Sub Title Cummin’s Inc By: Allen, Evans, Moldovan and Noey Cummins Inc By: Allen, Evans, Moldovan and Noey Cummins