2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. 1,631 723M Estimated financial impact in dollars of Six Sigma projects at Cummins in 2021. 5,845 Employees achieving Six Sigma belt certifications in 2021. 2.5+ BILLION Estimated savings achieved by Cummins customers from Six Sigma since the tool was first offered to them in 2005. 15 SIX SIGMA BY THE NUMBERS Equity (CARE) initiative. CARE team members have employed Six Sigma to tackle difficult social justice concerns. Over time the company added tools to its tool kit and in 2021 Cummins expanded the Six Sigma function into IQTM—Intelligent Quality Tools and Methods. The company’s IQTM function leads Cummins’ efforts to continuously improve the products and services customers depend on. EXPANDING THE MISSION These tools make Cummins a better company and help the global power leader sustain the improvements it makes to deliver on Cummins’ brand promise of powering customers through innovation and dependability. The company today offers dozens of tools employees can use to define a problem, collect relevant data, analyze the problem and ultimately find a solution. Most tools fit within the Six Sigma umbrella, but now employees have many different options, so they can choose what works best to reach their desired result. Ultimately, the IQTM function’s mission is preparing employees and the company to succeed in the digital age, adding tools and capabilities as they become available. INCREASING ACCESS In addition to expanding the tools the company offers, the IQTM team has been working over the past two years to get more tools in more hands at Cummins, providing on-line learning opportunities and moving away from classroom training, which could be something of a bottleneck as interest in courses frequently exceeded available classroom space. The IQTM team offers tools and processes specifically geared to employees’ skill levels, whether they are an experienced Six Sigma Black Belt or entirely new to the concept. The function is building on a track record of success. The company’s Six Sigma efforts have identified more than $7.5 billion in Profit Before Interest and Taxes savings since the tool was first implemented in 2000. LOOKING AHEAD As the IQTM function moves forward it wants to continue embedding “Lean” business management practices and principles across the company to eliminate waste and increase efficiency, becoming partners with each business segment to improve quality. The IQTM team also wants to help every Cummins employee gain the necessary skills to excel in manufacturing in the digital age. CUMMINS EXPANDS TOOLS FOR CONTINUOUS IMPROVEMENT Cummins is a continuous improvement company. For more than 20 years, the global power leader has used Six Sigma, the business problem solving tool, to drive that improvement, from Cummins’ supply chain to its community engagement efforts. Six Sigma’s data-based analysis is used primarily to identify defects and variation in a wide range of manufacturing and business situations. Cummins also encourages its suppliers to use the tool, and partners with customers to solve their biggest challenges using Six Sigma. In addition, Cummins uses the tool in its efforts to build stronger communities, including as part of its Cummins Advocating for Racial INTELLIGENT QUALITY TOOLS AND METHODS (IQTM) // Closed Six Sigma projects across Cummins in 2021.