Cummins Inc. 2007 Sustainability Report

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Ozone Depleting Substances In 1995, Cummins implemented a policy that stationary equipment using chlorofluorocarbons (CFCs) would no longer be purchased by Cummins. Equipment already in place would be considered for conversion or replacement depending on its age and repair costs. As a result of this policy, Cummins has replaced an estimated 60 percent of its equipment containing ozone-depleting substances. Interactions with Regulatory Agencies Cummins Filtration – Lake Mills On June 20, 2006, the U.S. Environmental Protection Agency (EPA) inspected the Cummins Filtration facility in Lake Mills, Iowa. As a result of the inspection, the EPA issued a Notice of Preliminary Findings (NOPF’s) that included the following details: • Failure to mark used oil piping with the words “used oil”; • Failure to ensure containers of hazardous waste remained closed; • Failure to manage universal waste in closed containers. The facility implemented the necessary corrective measures and submitted evidence of those measures to the Environmental Protection Agency. No monetary penalties were imposed. Cummins Filtration – Cookeville On September 13, 2006, the Tennessee Division of Solid Waste Management conducted a compliance evaluation at the 68 Cummins Inc. 2007 Sustainability Report Cummins Filtration facility in Cookeville, Tennessee. As a result of the inspection, a Notice of Violation (NOV) was received by the plant on October 6, 2006 for failing to manage the frames from the silk screen printing process as a hazardous waste. Immediately following the September 13, 2006 inspection, Cummins Filtration implemented all of the necessary corrective measures. On March 9, 2007, Cummins Filtration paid $1,258.88 in damages and $9,100.00 in Civil Penalties to the State of Tennessee. Cummins Filtration – Cookeville On June 13, 2007, the Cummins Filtration facility in Cookeville, Tennessee received a Notice of Violation (NOV) letter from the Tennessee Department of Environment and Conservation, that was related to the failure of the facility to submit a Title V Semi-Annual report within sixty days of the June 30, 2006 due date. Cummins Filtration immediately implemented the necessary corrective measures and no further action was taken by the State of Tennessee. Cummins Inc. – Olympic Testing Facility On November 9, 2006, the Indiana Department of Environmental Management (IDEM) issued a Notice of Violation (NOV) letter stating that they had not received the Title V Annual Compliance Certification Report that was due from the facility on July 1, 2006. Although Cummins had mailed the report via certified mail in March of 2006, IDEM was unable to locate the report and Cummins was unable to produce the receipt. As a result, Cummins was ordered to pay a fine of $2,750.00, which was received by IDEM on January 8, 2007.
Environmental Clean Up Efforts Cummins has also been identified as a PRP at 17 waste disposal sites under federal and state environmental statutes, three of which we expect could result in expenditures in excess of $100,000 or more based upon our estimated proportional volume of waste disposed at these sites. These sites and our estimated exposure are as follows: the Operating Industries, Inc. Site in Monterey Park, CA ($211,000), the Casmalia Site in Santa Barbara, CA ($150,000) and the Double Eagle Refinery Site in Oklahoma City, OK ($100,000). Finally, Cummins has environmental remediation projects ongoing under the auspices of local regulatory agencies at our plant in Brazil; our plants in Memphis, Tennessee, and a former facility in Canton, South Dakota; and at one of our plants in the United Kingdom. The cost of each of these projects may exceed $100,000. Cummins does not believe that the aggregate liability for resolution of the Superfund Sites or the plant remediation projects will be material for 2008. Operational Methods That Improve Energy Use Continual Improvement and Six Sigma Six Sigma is the key problem-solving tool used by Cummins for environmental improvement projects. From a facilities perspective, Cummins has implemented a number of projects to address sustainability issues, including natural resource conservation and pollution prevention. Both of these have been a continuous improvement focus at Cummins for several years. A good example of our Six Sigma efforts includes the work Cummins Filtration did with paint suppliers to reformulate coatings applied to exhaust products to significantly reduce the metals content. Successful reformulations were developed, which met product quality requirements and resulted in a more environmentally-friendly coating. As a result of the largely metal-free formulation, hazardous wastes generated at six Wisconsin exhaust component manufacturing plants were reduced by 70%. In addition, each of the six participating plants reduced their hazardous waste generator status from large quantity to that of a small quantity generator. Analysis-Led Design In analysis-led design, computer simulations replace traditional hardware testing, which involves building and testing many expensive prototypes. Instead, a “virtual engine” is built and then tested in a computer simulation which allows us to look at more designs in a shorter time. Using analysis-led design on our recent product launches has allowed us to increase the number of analysis hours by as much as 200 percent, while cutting total program costs by more than 20 percent. In one engine family alone, more than 10,000 hours of testing was avoided – along with the prototypes that go along with it. The process yields better designs faster, at a lower cost and with substantial reductions in test cell time and the fuel use and its associated emissions. Verification of Manufacturing Quality Engine attribute testing requirements have been reduced on certain product lines because in-process verification allows the identification of potential problems upstream of the test cell process. This product quality initiative promotes the concept of “Right First Time,” a more effective means to test a component and engine system, with an associated environmental benefit. Environment 69
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Cummins Inc. 2007 Sustainability Re
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Cummins Inc. About this Report The
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“Corporate responsibility and wor
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The power of our Company is not jus
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“On any given day, there are appr
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As of the end of 2007, Cummins was
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“Cummins can create an advantage
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Cummins uses a voice of the custome
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Cummins has launched a focused effo
Page 20 and 21: We continuously work with customers
Page 22 and 23: “We rely on our core values to gu
Page 24 and 25: Going back to its earliest days, Cu
Page 26 and 27: “Cummins has created an environme
Page 28 and 29: In 2007, Internal Audit issued more
Page 30 and 31: “Cummins leverages the expertise
Page 32 and 33: The primary mission of the Board of
Page 34 and 35: “Every employee at Cummins should
Page 36 and 37: As a result of our outstanding tech
Page 38 and 39: “We believe we can’t be success
Page 40 and 41: Having the ability to meet a broade
Page 42 and 43: Cummins has worldwide experience an
Page 44 and 45: “We believe the right technology
Page 46 and 47: “We take pride in our work and ar
Page 48 and 49: “Being a lowcost producer is esse
Page 50 and 51: Emission Solutions offers exhaust a
Page 52 and 53: “The best way to have great emplo
Page 54 and 55: “Cummins’ future is based on ho
Page 56 and 57: The Cummins Science and Technology
Page 58 and 59: By the end of 2007, Cummins had 42
Page 60 and 61: “I am honored to work at a compan
Page 62 and 63: Manufacturing Operations For perspe
Page 64 and 65: Materials Category 2004 2005 2006 M
Page 66 and 67: “Working for a winning organizati
Page 68 and 69: Significant emissions reductions ha
Page 72 and 73: “We view our vendors and supplier
Page 74 and 75: Our goal is to make Cummins a best-
Page 76 and 77: “The safety and well-being of our
Page 78 and 79: Entities are recognized at four dis
Page 80 and 81: “Creating a great place to work i
Page 82 and 83: “Every person must be treated wit
Page 84 and 85: “Being a successful company means
Page 86 and 87: Cummins Named Among Top 50 Companie
Page 88 and 89: “At Cummins, we strive to foster
Page 90 and 91: Cummins’ focus on corporate respo
Page 92 and 93: From raking leaves to reading to ch
Page 94 and 95: “Six Sigma is an indispensable im
Page 96 and 97: The Cummins Foundation Report Cummi
Page 98 and 99: The Cummins Foundation - 2007 Grant
Page 100 and 101: Grantee Community Purpose Amount Pa
Page 102: Cummins Inc. 500 Jackson Street Col
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Cummins Inc. 2007 Sustainability Report

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