Cummins Researchand Technology India Ltd.

John O’HalloranFebruary 2 / 3, 2005

CRTI

Leveraging Indian Talentin support of Cummins Global R&D

Economic Times of IndiaInnovation & Trade Competence

Cummins …Cummins …

Fortune 500 Company

Design, manufacture and market

diesel and alternative fuel engines,

filtration and exhaust systems,

power generation systems and

related components

Largest independent engine manufacturer

world-wide

BrazilSao Paulo

Japan Oyama

ChinaBeijingShanghaiXiangfan

IndiaPuneJamshedpur

United StatesColumbus, INCookeville, TNStoughton, WIFridley, MN

United KingdomDarlington RamsgateDaventry HuddersfieldHinckley Stamford

Technical Centers around the WorldTechnical Centers around the World

FranceQuimper

Technology LeaderTechnology Leader

Technological Leadership:

Brings OEMs to Cummins

Unique Technology Integration

– Fuel Systems

– Electronic Controls

– Air Handling Systems

– Filtration & After-Treatment

– Combustion Technologies

InnovationInnovation

Products and Services

Engineering Design and Analysis

Backdrop for a New Tech CenterBackdrop 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?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?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

Newage Electrical India Ltd.

Pune, IndiaCRTICummins India Ltd.Cummins Diesel Sales & Service Ltd.KPIT Cummins Infosystems Ltd.Cummins Auto Services Ltd.International Purchasing OfficeFleetguard Filters Ltd.

India

Valvoline CumminsNew Delhi

Tata Holset LtdDewas

Low Horsepower facility.Nelson Engine SystemsDaman

Tata CumminsJamshedpur

Cummins Operations in India

CRTI MissionCRTI Mission

Provide world class Engineering Design and Analysis for Cummins Technical Centers

world-wide at globally competitive price & value.

Cummins CompaniesEngine Business

Power GenerationFiltration Business

All Products / All Markets

Mechanical Design, Structural Analysis,Computational Fluid Dynamics & System Modeling

CRTI – Vision to RealityCRTI – 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 InnovationCRTI – 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 InnovationCRTI – 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 Required1st Job & Every Job!

• On-time Delivery, Quality, Responsiveness, Attitude

• Recruit Top people, Ongoing Training / Coaching

Challenges …Challenges …

• Recruiting Top TalentFocus 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 …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

CommentsComments

• Great Personal Experience

• Very Bright Future – Growth and Delivery

• Another Success for India and Cummins