Truck & Off-Highway Engineering - June 2021 - 9

EXECUTIVE VIEWPOINTS
Cummins collaborated with XCMG to design and build a 3.5ton
electric excavator. The tech demonstrator is powered by
Cummins BM5.7E battery modules delivering 45 kWh.
whole bunch of microprocessor chip manufacturers
out there that meet the standards for our business.
They're very specific. "
With its global network of manufacturing plants
and suppliers, Cummins has been able to shift some
of its supply around " to maintain a reasonable
amount of continuity - probably better than some
have in the rest of the industry, " Neal said. For example,
" if we have a microprocessor that we need on
a Cummins engine, but there's a transmission shortage
at that OEM, we don't want to waste that ECM or
that engine that's going to just sit stagnant in a warehouse
somewhere. "
Neal noted in late March that the shortage would
likely continue " for several months to come. " The lead
time for microprocessors - to process and get the
material through the system to build wafer boards and
all the different subsystems to grade - can take up to
six months, according to Neal. " That means the forecast
that we put into our system six months prior,
that's the base supply that we're dealing with now. "
While electronics have posed the main supply chain
challenge, other components can be a limiting factor
depending on the day, Neal shared. " Two months from
TRUCK & OFF-HIGHWAY ENGINEERING
now, is it going to be castings and forgings? I don't know. It depends
on how the operations within those Tier 2 and Tier 3 suppliers go.
The honest answer is it's a very uncertain dynamic and it changes
literally every day. "
Neal suspects many in the industry will " replay the tapes from
2020 " and reexamine their supply chains: " 'Do I have the right portfolio
of suppliers? Do they have backup systems? Do we need to be
dual-sourced where we can?' Now that all comes at a cost, " he said.
" There have been some awakenings [in supply chain management]
in terms of the trade-off between cost and sustainability during
times of pandemics or other natural disasters happening around
the world. "
Emissions convergence delayed
A trend toward more " nuanced " global emissions regulations is impacting
product planning and timing, according to Neal. " A few years
ago, many of us in the industry were talking around this concept of
'global emission convergence' happening amongst us. And we thought
it was going to be happening probably in the next five years, " he explained.
" What we're actually seeing now is a little bit different signal.
Where we thought China Stage IV was going to be close to [EU] Stage
V and [EPA] Tier 4 Final, for example, we're now seeing a lot of nuances
being added into some of the regional emissions. "
June 2021 9
XCMG/CUMMINS

Truck & Off-Highway Engineering - June 2021

Table of Contents for the Digital Edition of Truck & Off-Highway Engineering - June 2021

Truck & Off-Highway Engineering - June 2021 - CVR4
Truck & Off-Highway Engineering - June 2021 - BAND1
Truck & Off-Highway Engineering - June 2021 - BAND2
Truck & Off-Highway Engineering - June 2021 - CVR1
Truck & Off-Highway Engineering - June 2021 - CVR2
Truck & Off-Highway Engineering - June 2021 - 1
Truck & Off-Highway Engineering - June 2021 - 2
Truck & Off-Highway Engineering - June 2021 - 3
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Truck & Off-Highway Engineering - June 2021 - CVR4
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