Supplier Six Sigma at Cummins

January 2010

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Suppliers Eligible for the Cummins Six Sigma Program Cummins Supplier Six Sigma is primarily intended for

suppliers which have been identified as critical to each business unit of the Company.

Given the magnitude of Cummins entire supply base, it is recognized that we cannot provide all elements of the program effectively to the total supply base.

Cummins business units each have methods of identifying which suppliers have been selected as ‘critical’ to their business.

Purchasing representatives and quality champions, using the methods identified by their business, will determine if a supplier is eligible to participate in the Cummins Supplier Six Sigma Program.

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Training Summary Project Selection

– Each supplier must have a project selected prior to training. – The selection of projects by using a common methodology which requires gathering and

analyzing data, selecting projects aligned with business priorities, defining projects with clear objectives and assigning targeted dollar value of improvement.

– Please contact your purchasing representative to help you develop a project objective and charter to work during training.

Supplier Project Sponsors Training – Focuses on the project selection process and what it means to be a sponsor, as well as the

statistical tools that are used in the improvement process, so that sponsors understand why they are used, what they mean, and how they are linked together.

Black Belt / Green Belt in-depth training– Training is for project leaders on the Six Sigma methodology and use of statistical tools. – Three weeks of training are delivered in four months, with Belts working a project as they are

trained using a learn-by-doing approach. – There is an expectation that the belt is proficient in simple math skills and computer skills The

belt will also be required to bring a laptop computer with Minitab Statistical Software. This software can be purchased at www.minitab.com.

Training Benefits– Cummins has an expectation of benefits from supplier Six Sigma projects, including reduced

costs, improved quality and improved delivery. Realized benefits to Cummins including dollar savings are negotiated between the supplier and a Cummins commercial purchasing representative. Savings are based on the actual outcome of the project.

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Six Sigma Training Availability

Eligibility for a supplier to attend Cummins Six Sigma training must be approved by a Cummins commercial purchasing representative and the quality champion representing the business area.

There is no fee to attend the training if the project selected will be providing a benefit to Cummins.

Only suppliers that are providing a service or product to Cummins should be invited to Six Sigma Training.

Critical Suppliers are encouraged to attend ‘Supplier Designated’ training launches if they are available for the business area. The Cummins purchasing representative for each supplier shall be contacted for availability.

Six Sigma training is offered throughout the world within Cummins facilities. If supplier designated training launches are not available, suppliers may be scheduled to attend any Cummins Six Sigma training launches with Cummins participants. Training instructors will work to the guidelines contained in this document.

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Six Sigma Project Support for Suppliers All Six Sigma training participants must work an improvement

project with benefit to Cummins as part of the training. A Cummins co-belt is required on the project. Technical project guidance (Master Black Belt Support) will be

provided during the period of training and continue until project closure.

Technical project guidance for subsequent projects worked after the training by the supplier will be provided if a Cummins co-belt is identified and the project is tracked on Cummins Six Sigma database. Technical project guidance is also available if a Cummins representative has been assigned to participate on the team.

All projects will need to meet the evidence requirements upon completion whether they have been worked solely by the supplier or with Cummins technical guidance and an assigned Cummins co-belt.

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Roles of Supplier Six Sigma Program ParticipantsSupplier Belt Attends all training if registered in a Cummins training launch and leads the project

with a Cummins Six Sigma co-belt.

Supplier Sponsor Performs all the requirements as defined by the Cummins Six Sigma program as a

project sponsor. Attends day 1 of the first week of training with the supplier belt to understand the responsibilities of a Six Sigma sponsor.

Supplier Team Participant Participates in the Six Sigma project as an active team member. Does not attend

training.

Cummins Belt A Cummins Six Sigma belt will be matched to work with the supplier belt. The

Cummins Six Sigma belt will go through the training with the supplier belt or will have been previously trained.

Cummins Sponsor Performs all the requirements as defined by the Cummins Six Sigma program as a

project sponsor.

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Supplier Six Sigma Project Sponsors are expected to:1) Participate in project selection process and project charter

development.2) Identify supplier team members on Six Sigma teams either led by the

supplier belt or a Cummins Six Sigma belt. 3)Remove political roadblocks to help the belt and team stay on

schedule and meet goals of the Six Sigma projects.4)Mentor and coach belt on areas where you have expertise related to

the project.5)Understand the basic DMAIC process by attending sponsor training

for one day during supplier launches.6)Hold Weekly project reviews (minimum) and monthly MBB review with

belt.7)Required to report results to the Cummins sponsor and/or purchasing

leadership during sponsor review sessions.

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Supplier belts / Lead belts are expected to:

1) Lead and successfully close a Six Sigma project.2) Attend all of the required training sessions, if

registered in a Cummins training launch.3) Participate in Master Black Belt Reviews as necessary.4) Utilize the ‘Project Tracker’ to communicate progress.5) Provide monthly updates to the Cummins sponsor

review meeting through your Cummins Sponsor/Belt highlighting any issues or concerns.

6) Provide data to your Cummins sponsor/belt to load into the Cummins data base.

7) Agree to present your project results to Cummins senior leadership upon successful completion if requested by Cummins.

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Supplier Team Participants are expected to:

1. Agree to participate actively on the team being led by either the supplier or Cummins Six Sigma belt as needed.

2. Agree to participate throughout the entire project lifecycle.

3. Participate in Master Black Belt Reviews as necessary.

4. Attend all team meetings as required by either the supplier or the Cummins Six Sigma belt.

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Cummins co-belts are expected to support the supplier belt by:

– Attending the training launch with the Supplier Belt, if needed. (Cummins belt does not need to attend training with supplier if already trained)

– Participating as a core team member, allowing the Supplier Belt to LEAD the project.

– Providing Cummins data as required for the project.– Updating and maintaining the project on the Six Sigma

data base.– Updating the Cummins Sponsor.– Attending all Master Black Belt reviews.– Facilitating any required internal changes for Cummins