PCC - Costos Componentes

LoweringComponent CostsThat’s My Final Answer!

BIU July 2001

BIU July 2001

Caterpillar Confidential Green

How Can We Lower ComponentCost Per Hour?• Reduce component repair & rebuild costs• Increase component lives

BIU July 2001


Questions To Consider• What’s more important to component

life—design, maintenance or application?• Does the application of a machine affect

component lives and repair costs?• How significant are application changes to

component lives and repair costs?

BIU July 2001


Questions To Consider• Does good maintenance really enhance

component lives and reduce costs? Iscontamination control important?

• What has happened in the ComponentManagement arena since BIU in 1997?

LoweringComponent CostsThen & Now

BIU July 2001


Then (In 1995)• Unsatisfactory major mining component life• Noncompetitive component rebuild costs• Product reliability issues• MARC health issues

BIU July 2001


Unsatisfactory Component Life• Original life too low in difficult applications• Component second life 75% of original life• Component third life 45% to 55% of

original life• Payload contributed

BIU July 2001


Causes Of Second And ThirdComponent Life Shortfalls• Dealer rebuild process• Reman quality• Component R & I process• Others?

BIU July 2001


What Is The MAJOR ContributorTo Component Life Shortfalls?

BIU July 2001


• Dealer rebuild process• Reman quality• Component R & I process

BIU July 2001


Component R & I Process

BIU July 2001


Dealer Audit Results

30

40

50

60

70

80

90

100

SHOP - 10%

CLEANLIN

ESS - 20%

COMP. ASSM. -

35%

TESTING - 1

5%

R&I - 20

%

BIU July 2001


What Did We Do?• Documented R & I process• Developed CGM rebuild/installation

certification process• Increased emphasis on R & I process control

BIU July 2001


Completed CGM Certification Audits1999: Finning Chile, Cashman, Westrac,

Hastings Deering, Gecolsa, Wheeler,Finning Canada

2000: Cat Reman Facilities, Wyoming,Rust, Ziegler

2001 YTD: Empire, Sotreq, Macrosa

BIU July 2001


10/10/20 Payload Policy

“No more than 10% of payloads mayexceed 1.1 times the target payload,

and NO single payload shall everexceed 1.2 times the target payload.”

BIU July 2001


Component Repair/RebuildCost Reduction• Develop repair/rebuild strategy• Enhance repair before failure capabilities• Establish contamination control standards

and procedures

BIU July 2001


Repair/Rebuild Strategy• Dealer rebuild is the preferred source for 1st

and 2nd rebuilds when volume justifies• Reman for 3rd or other high value rebuilds• Cat to provide reman piece parts at

competitive prices to support dealer rebuilds

BIU July 2001


Now (In 2001)• Generally, lives of original components have

increased 20% to 30%, depending on application• Generally, lives of rebuilt components have increased

to 85% to 90% of new• Component Rebuild Certification Program producing

desired results• Value of the Certification Program recognized by

customers worldwide• Continued focus on the R & I process

LoweringComponent CostsContamination Control

BIU July 2001


BIU July 2001


What Is ContaminationControl About?

Why Is It ImportantTo Our Customers?

BIU July 2001


Contamination Is The Top CauseOf Premature Wearout

BIU July 2001


Believers• Newmont• Exxon-Mobil• Morrison-Knudsen• Simplot• Billiton• Caterpillar Inc.

BIU July 2001


Effects Of ContaminationHydraulic System experts attribute 75% to85% of all component failures to particlecontamination in the fluid and NOT a weaknessin the system components.

BIU July 2001


Component Life vs.Contamination Level

ISO22/19

21/17

20/15

19/16

18/15

17/14

16/13

15/12

14/11

13/10

12/09

Component Life Over Time

---

----------

----

Clean New Oil

Con

tam

inat

ion

BIU July 2001


What Is Contamination?

Anything in a fluid thatdoes not belong

BIU July 2001


Where Does ContaminationCome From?• Generated WEAR• Factory or Rebuild Assembly Process• Installation Process System• Debris from Previous Failure• Fluid Storage and Refill Practices

BIU July 2001


ISO Standards

• 29 ISO Levels• Particle count doubles at each level

Contamination Particle CountIn 1 mL of Fluid

BIU July 2001


ISO Code ChartISO Code

232221201918171615141312

Number of Particles / mL40,000 - 80,00020,000 - 40,00010,000 - 20,0005000 - 10,0002500 - 50001300 - 2500640 - 1300320 - 640160 - 32080 - 16040 - 8020 - 40

----- Very Clean (Fill Oil) -----(16/13)

---- Clean (Hyd. System) ----(18/15)

----------Very Dirty ----------

BIU July 2001


ISO Cleanliness Code• Explained in ISO Standard 4406• Expresses amount of contaminant in

1 mL of fluid

15 microns5 microns2 microns

AC Calibration

BIU July 2001


ISO Cleanliness Code• Caterpillar uses the 2 factor code:

Express as X/Y whereX # particles > 5 micronsY # particles > 15 microns

e.g. ISO 18/15

BIU July 2001


Cat HydraulicSystem Clearances

Particles You Cannot See Are Harmful!

MICRONS

Smallest VisibleTo The Eye

40

Human Hair

80

2Fuel

530

BIU July 2001


Caterpillar Fluid Cleanliness StandardsFill Oil ISO 16/13

Fuel ISO 20/17/13

Hydraulic Systems ISO 18/15

OHT Final Drives / Diff ISO 21/17

Transmissions ( Electronic ) ISO18/15

Transmissions ( Mechanical ) ISO 21/17

Engine Rollout ISO 18/15

Pumps & Governors ISO 16/13

Injector Calibration Fluid ISO 15/13

BIU July 2001


Particle Counter

BIU July 2001


Portable Contamination Kit

BIU July 2001


150 GPMKidney Loop Cart(5W-90W)183-9301

BIU July 2001


OHT Axle/Final Drive/WheelGp./Diff. Off-Line Filtering

BIU July 2001



BIU July 2001


Transfer Cart and FluidRecovery System

BIU July 2001


When Do We Use Filter Carts?• When contamination exceeds specs• With extended oil changes• After any failure which created debris• After rebuild break-in• Fuel and oil dispensing

Worldwide Filter Cart Sales

NACD 37

COSA 20

CACo 21

CAPL 24

BIU July 2001


What percent of your customerspresently employ contaminationcontrol as part of their normal

maintenance program?

What do these customers sayabout the benefits of a

contamination control program?

BIU July 2001


How do you plan to increasecustomer awareness of the

importance of a contaminationcontrol program?

BIU July 2001


What Is Contamination Control?• Awareness, Measurements, Standards• Build it Clean, Keep it Clean

Why Is It Important?• Helps maximize component life• Helps get lowest cost-per-ton

LoweringComponent CostsApplication Management

BIU July 2001


How does machine applicationinfluence component life?

BIU July 2001


What application factors do YOUthink affect component life?

BIU July 2001


Application Factors Like…

• Payload- Overloading, Underloading- Distribution—10, 10, 20 Rule

• Haul road condition• Haul road profile• Mine operational efficiency

BIU July 2001


Powertrain Repair Cost Breakdown

793 Mining Truck

40%

4%9%7%

40% EngineConverterTransmissionDifferentialWheel Groups

BIU July 2001


A Case Of Overloading?

BIU July 2001


Payload problems?

BIU July 2001


An Increase In Payload Causes:• Decrease in component lives/Increase in costs

– Wheel Groups—Significant– Differentials—Significant– Engines—May or May Not Be Significant

• Slight increase in production• Insignificant change in fuel efficiency

BIU July 2001


Where is the haul road?

BIU July 2001


Lowering Component Costs

• Component lives?• Machine productivity?• Fuel efficiency?

What is the impact of haul road rollingresistance changes on:

And…

BIU July 2001


Are the changes significant?

And…

BIU July 2001


What additional costs willthose changes drive?

BIU July 2001


What Is Rolling Resistance?• The force that must be overcome to roll

a wheel over a surface• Affected by ground conditions and load• Normally 1.5% of GMW per inch of

tire penetration

BIU July 2001


Increase In Rolling Resistance Causes:• Decrease in component lives

– Wheel Groups—Significant– Differentials—Significant– Engines—May or May Not Be Significant

• Significant decline in productivityand fuel efficiency

• Increase in MARC costs• Significantly higher repair costs

BIU July 2001


An Increase In Haul Road GradeAlone Causes:• Significant decrease in differential and wheel

group lives• Minor changes in engine life• Minor changes in productivity

BIU July 2001


SummaryWheel Gp/Diff

LifeWheel Gp/DiffLife Cost/Hr

EngineLife & Cost/Hr Production

FuelEfficiency

PayloadIncrease

Haul RoadResistance

Increase

Haul RoadGrade

Increase

SignificantDecrease

VerySignificantDecrease

VerySignificantDecrease

SignificantIncrease

VerySignificantIncrease

VerySignificantIncrease

InsignificantChange

May or MayNot Be

Significant

No Change No Change

SignificantDecrease

SlightIncrease

No Change

SignificantDecrease

InsignificantChange

BIU July 2001


What Can You Do?• Emphasize the importance of minimizing

rolling resistance– Improve productivity– Lower fuel consumption and cost– Longer component lives– Lower component cost/ton– Keep motor graders and wheel dozers running

BIU July 2001


What Can You Do?• Be alert to haul road profile changes

– Steeper grades significantly reduce certaincomponent lives and increase cost/hr

BIU July 2001


What Can You Do?• Emphasize the importance of

contamination control– Higher component lives & lower cost/hr– Reduced downtime from unexpected failures

PCC - Costos Componentes

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