Cummins Research and Technology India Ltd CRTI Leveraging

Cummins Research and Technology India Ltd. CRTI Leveraging Indian Talent in support of Cummins Global R&D John O’Halloran Economic Times of India February 2 / 3, 2005 Innovation & Trade Competence Cummins Confidential

Cummins … n Fortune 500 Company n Design, manufacture and market diesel and alternative fuel engines, filtration and exhaust systems, power generation systems and related components n Largest independent engine manufacturer world-wide

Technical Centers around the World United States Columbus, IN Cookeville, TN Stoughton, WI Fridley, MN United Kingdom Darlington Ramsgate Daventry Huddersfield Hinckley Stamford France Quimper China Beijing Shanghai Xiangfan Japan Oyama Brazil Sao Paulo India Pune Jamshedpur

Technology Leader n Technological Leadership: Brings OEMs to Cummins n Unique Technology Integration – Fuel Systems – Electronic Controls – Air Handling Systems – Filtration & After-Treatment – Combustion Technologies

Innovation n Products and Services n Engineering Design and Analysis

Backdrop for a New Tech Center • Engineering Technology - cornerstone of Cummins Business • Intellectual Property Protection - critical to Competitive Advantage • Design and Analysis capacity - increasing demands due to new Cummins Engineering Processes / Analysis Led Design • Time to Market – reduce Engineering Cycle Time • Engineering Globalization

Why CRTI? • Each existing Cummins Technical Center has specific Product or Market focus • Example: Air Filtration Products, Indian Market, etc. • Difficulty in quickly sharing Engineering Resources in response to work fluctuations • Need for a new Technology Center • Supporting all Cummins Tech Centers Worldwide • All Products, All Markets • Dedicated Mechanical Design & Analysis • No Test Cell or Laboratories • “Virtual Co-location” permits rapid redeployment of analytical resources worldwide

Why India? India has the right environment • Large Numbers of Highly Qualified Engineers • Excellent Academic Institutions • English Language for Engineering • Excellent IT Infrastructure • Intellectual Property Protections

Cummins Operations in India Valvoline Cummins New Delhi Tata Holset Ltd Dewas Tata Cummins Jamshedpur India Low Horsepower facility. Nelson Engine Systems Daman Pune, India CRTI Cummins India Ltd. Cummins Diesel Sales & Service Ltd. KPIT Cummins Infosystems Ltd. Cummins Auto Services Ltd. International Purchasing Office Fleetguard Filters Ltd. Newage Electrical India Ltd.

CRTI Mission Provide world class Engineering Design and Analysis for Cummins Technical Centers world-wide at globally competitive price & value. Cummins Companies Engine Business Power Generation Filtration Business All Products / All Markets Mechanical Design, Structural Analysis, Computational Fluid Dynamics & System Modeling

CRTI – Vision to Reality • March ‘ 03 – Engineering Leadership Benchmarking trip to India • April ‘ 03 – Management approves India Technical Center • July ‘ 03 – Began On-site Infrastructure Development • December ’ 03 – CRTI Operations Underway • January ’ 04 – CRTI Inauguration & Opening Ceremony • January ’ 05 – Expansion continues ahead of Plan

CRTI – Process Innovation • High-end, complex Engineering at launch • Typically starting point is Low-end Drafting & Legacy Conversion - many years until High-end • Driving Virtual Co-location to quickly redeploy analytic resources • Center of Engineering Excellence • Develop Worldwide Expertise in: Design, Applied Mechanics, Computational Fluid Dynamics, System Modeling

CRTI – Process Innovation • Central “Pooled” resources for all Cummins Entities • Push work into CRTI • High-level Targets for CRTI Resources, Regular Review • Pull Work into CRTI • Customer Satisfaction Required 1 st Job & Every Job! • On-time Delivery, Quality, Responsiveness, Attitude • Recruit Top people, Ongoing Training / Coaching

Challenges … • Recruiting Top Talent Focus on building a Diverse Organization: Male and Female, Geographic, etc. • On-time Delivery – Critical for Engineering • Communications – Language & Time Zones • Infrastructure

What is Working Well … • Highly competent Engineers available • Successfully Recruiting from all across India – Broad Geographic Coverage – Top Academic Credentials – Great attitude and ability to Learn • Excellent Results Delivering to Cummins Technical Centers

Comments • Great Personal Experience • Very Bright Future – Growth and Delivery • Another Success for India and Cummins

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