COVID-19

NA Supplier CommunicationApril 15, 2020

Cummins Confidential

2

AGENDA

• Introduction

• Priorities in the Covid-19 crisis

• Current operational status

• Cummins chipping in for fight against Covid-19

• Supplier Quality Expectations

• Final Message

• Q&A

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Covid-19Cummins priorities at this time

1. KEEP OUR EMPLOYEES HEALTHY AND SAFE

2. Maintain operations and meet customers’ needs

(especially essential businesses)

3. Align with community, regional, and federal efforts to

slow the spread of the virus

4. Reduce impact on health care systems

4

Cummins operational status

Cummins Confidential

• Cummins production continues to be impacted due to federal, state, and local mandates on Covid-19

• We will communicate any down time or shut downs of specific plants

• EDI is being updated all the time to reflect demand implications and changes – Reach out to your plant

materials or purchasing personnel if you have questions

• Plants are still receiving parts

• Need to focus on the ramp up and site readiness out of shut down

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Essential Supplier Status

Cummins Confidential

• In alignment with the US federal government (Department of Homeland Security), Cummins is deemed as a

critical manufacturing supplier to essential businesses (CISA guidelines) such as but not limited to:

• Machinery Manufacturing

• Power Transmission Equipment

• Earth Moving, Mining, Ag, and construction

• Transportation Equipment

• With this designation, we need our suppliers to continue to ship to support our manufacturing/service

• Reach out to your purchasing representative for support

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Cummins is working to make a difference in the fight against Covid-19

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Quality Operational Readiness

• Safety:

Adhere to federal, state and local safety guidelines

• Operational Start-up:

Executable start up plan for mass production

• Capability:

Maintaining quality levels during the pandemic

• Capacity:

Ability to produce at rate for Cummins demand

CMI Supplier Quality Expectations: COVID-19

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CMI Supplier Quality Expectations: COVID-19

Provide the following information via email to:

Supplier.Quality@cummins.com

• Supplier Company Name, Mailing Address

• Supplier Site Identification Number (SSID)

• Site Quality Leader (if company provides product to CMI from multiple locations, provide all point of contacts for EACH location) -Name and Title -Email Address-Phone Number

ALL RESPONSES DUE by APRIL 20, 2020

mailto:Supplier.Quality@cummins.com

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• Safety is critical for our employees, our customers, and our suppliers –

please ensure you’re taking necessary precautions to keep your work

environments safe

• Cummins needs supply to continue to support critical product into essential

industries

• Service and distribution demand will be vital to keep essential industries up

and running

• Demand will follow EDI unless otherwise communicated

• Suppliers need to focus on safe-launch procedures to ensure product

quality upon restart / ramp up

Closing Messages

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Q+A

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Appendix – Slides from previous webinar on 4/2/2020

Covid-19

NA Supplier CommunicationApril 2nd, 2020

Cummins Confidential

14

AGENDA

• Introduction

• Priorities in the Covid-19 crisis

• What Cummins is doing for employee safety

• Impact of Covid-19 on CMI demand (US only)

• Final Message

• Q&A

15

Covid-19Cummins priorities at this time

1. KEEP OUR EMPLOYEES HEALTHY AND SAFE

2. Maintain operations and meet customers’ needs

(especially essential businesses)

3. Align with community, regional, and federal efforts to

slow the spread of the virus

4. Reduce impact on health care systems

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Employee Safety – Examples from Cummins Manufacturing Plants

• Conduct Risk Assessments on all areas of the facility and put in appropriate mitigation including:

• Introduced Temperature screening and health questionnaire on entrances

• Review every process to ensure that operators are working 6ft (2m) away from each other – If not wear appropriate

protective equipment

• Clear signage in multiple locations on hygiene and social distancing

• Regular communication with employees on why we have to continue to work as critical business

• Excess labor sent home on rolling rotation

• Office staff working from home

• Support Staff rotated and put on call rather than being in plants

• Staggered shifts so that operators do not interact on shift changeover

• Spread work to 3 shifts if feasible to better segregate employees

• 6 ft (2m) Floor marking in all corridor / queuing areas

• Canteen cashless only where possible

• Increased cleaning / wipes / sanitizers

• Labels placed on office desks where used ‘please clean me’ so cleaners can target

• Audit Process in place to ensure plants are working on all actions

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Customer demand has been impacted

▪ Cummins continues to build at normal rates in many plants however due to falling customer

demand, suppliers may experience some reductions to schedules.

▪ Please connect with the materials teams from the plants that you supply to ensure appropriate

demand and supply synchronization.

▪ Situation remains very fluid.

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Please respond to survey about impact of Covid-19

▪ Survey was sent out on 3/27 to many of our

suppliers

▪ Questions are centered around readiness to

support supply continuity through the Covid-19

crisis

▪ Need response by Friday, 4/3

▪ If you did not receive the survey, please reach

out to your purchasing representative and we

can send you the link

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• Unprecedented time in global economy; need to continue to be flexible to

ever changing environment

• Safety is critical for our employees, our customers, and our suppliers –

please ensure you’re taking necessary precautions to keep your work

environments safe

• Cummins needs supply to continue to support critical product into essential

industries

• Service and distribution demand will be vital to keep essential industries up

and running

• Demand will follow EDI unless otherwise communicated

Closing Messages