Cummins Inc. 2007 Sustainability Report

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
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