Cummins: Cisco Assimilation Plan

Early in College Internship

Amanda Taylor ~ Konrad Krolls ~ Rebecca Gonzalez

June 19 2015

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Cummins’ Business

Goals

Business

Solutions

1. Just-in time

production

2. Factory Automation

3. Low-risk Cloud

Services

4. Unify communications

5. Real-time location

6. Virtualize data

Seek profitable

growth

Lead in critical

technology

Lower warranty

cost

Pursue cost

leadership

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Strengths• Extensive

manufacturing and distribution network

• Engines comply with new EPA emission standards

Weaknesses• Declining financial

performance

Opportunities• Strategic initiative

to acquire North American distributors

• Potential to lead the market with the Connected Factory

Threats• Highly

competitive market

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Industry Overview (Engine & Turbine Manufacturing)

8.3

Cummins adapts and leads the pack

Developed engines adhering to these standards

EPA imposes Tier-4 emission standards Calls for 70% reduction in

emissionsGreat impediment for

manufacturers

Key DriversStringent environmental restrictions

29%

19%10%

42%

Market Share

General Electric Caterpillar CumminsOther

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Technology: Real Time Location System backed by Cisco’s

Wireless Network

Routers & Switches

Cisco Industrial Ethernet 3000 Solutions

Plant Automation

Data Virtualization

Low risk cloud services

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Case StudiesStanley Black and Decker, Inc. and the Real Time Location System (RTLS)

Solutions• RTLS backed by Cisco’s

Wireless Network• Implemented Wi-Fi RFID

tags on production line material

• Cisco Wi-Fi Infrastructure and plantwide Ethernet

• Set up access points on plant floor to provide production line information

Results• Improved labor

utilization by 12%• Increased throughput

by 10%• Reduced material

inventory carrying costs by 10%

Challenges• Transparency of

production output• Visibility to real time

overall equipment effectiveness and line productivity

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Case StudiesMelbourne Water and Routers & Switches

Solutions• Cisco Unified Fabric

improves energy efficiency and SAN support

• Cisco Nexus and Catalyst Switches increase network throughput and reduce complexity

Results• Contributed to

Melbourne Water’s data center sustainability goal of reducing energy consumption by up to 40%, (US) $200,000, 600 fewer tons of CO2 per year

• Improved response time and performance

Challenges• Increase

performance, virtualization, capacity, and energy efficiency of data center

• Manage risk and avoid disruptions of mission-critical services and apps

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Case StudiesAmcor Beverage Cans and Plant Automation

Solutions• Rockwell Stratix 8000

Ethernet switches based on Cisco IE 3000

Results• Improved line

performance because of fast, reliable, secure network communications

• Mfg. automation: connecting machines, sensors, and software

Challenges• Wanted to double

plant capacity by adding second production line

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Reduce data replication and consolidation costs 50-75%

Faster data analytics and business intelligence

Options to implement:

a) SAP HANA

b) UCS

See Case Study

Data Virtualization: Data Insight

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Cummins’ PlanImplement IoT in incremental steps over the next 12-18 months

Utilize Data Virtualization to process plant’s data

Implement RTLS backed by Cisco Wireless Network

Focus on plant automation using Cisco Ethernet solutions

Integrate new switches and routers in Data Center

Install low risk cloud services such as a VPN for employees

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Key Insights: Manufacturing

• Oversees manufacturing strategy

• Concerned about Health and Safety of workers

• Environmental Concerns of Manufacturing

• Lead central manufacturing IT organization

• Create active global IT strategy

• Works with Chief Manufacturing Officer

• Chosen by CIO

Bryan MoormanDirector- Global Manufacturing Systems

Stan Woszczynski Chief Manufacturing Officer

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Key Contacts: Influencers

• Looking at benefits of Cloud computing

• Working with R&D to see how IoE will impact manufacturing

• Wants voice, video, and content Capabilities

• Concerned about security

• Responsible for purchasing, Quality, Logistics, Transportation and Trade

• Sponsors Cummins’ Environmental Challenge

• Active in integrated, value-based approach to deliver IT systems

Lisa YoderVice President- Global Supply Chain and Manufacturing

Sherry AaholmChief Information Officer

Thank you.