Preventative Maintenance Training Final

PREVENTIVE MAINTENANCE TRAINING

Caterpillar Confidential Green

Saf Safety Sh Sha are - Facility/Classroom • Note location of: – – –

• • • • •

Emergency Exits Nearest Fire Extinguishers Room Alerts

Iden Identi tify fy CPR CPR cer certi tifi fied ed pers person onne nell Iden Identtify ify Firs Firstt Resp Respon onde ders rs Desi Design gnat ate e who who will will cont contac actt fron frontt offi office ce Noti Notify fy staf stafff of of any any medi medica call ale alert rts s Emergency Procedures: – Evacuation – Overflow Parking Lot – Storm Shelter – Restrooms – Medical Emergency/Injury 1. Asse Assess ss the the inju injury ry 2. Contact Contact front office immediate immediately ly (by radio, phone x4800 x4800 or in person) person) 3. Emer Emerge genc ncy y #: 911 911

GLOBAL DEALER LEARNING


vi ce Are Ar ea/Sh /Sh op Saf Safety Sh Sha are – Ser vice •

• • • • •

Note location of: – Emergency Exits – Nearest Fire Extinguishers – Room Alerts Do not not ent enter er wor workin king g bays bays wit witho hout ut sta staff ff aut autho horiz rizat atio ion n because proper PPE will be required Be aware ware of movi moving ng equi equipm pmen entt Be aware ware of over overh head ead hazar azard ds Noti Notify fy staf stafff of of any any medi medica call aler alerts ts Emergency Procedures: – Evacuation – South East Shop Yard Yard – Storm Shelter – Building Interior – Medical Emergency/Injury 1. Asse Assess ss the the inju injury ry 2. Cont Contac actt front front offi office ce imme immedi diat atel ely y (by radio, phone x4800,or in person) 3. Emergency #: 911



Emergency Meeting Area Ar ea

ield & Driving Drivi ng Saf Safety Sh Sha are – Field • Obta Obtain in and and dis displ play ay cone cone on veh vehic icle le at all all tim times es • Only Only desi designa gnated ted indivi individua duals ls will will be be give given n vehi vehicle cle cones cones • Obey Obey all all pos poste ted d spee speed d limi limits ts – 25 MPH on roads – 10 MPH in service area area

• • • • • •

Obey Obey post posted ed “Do “Do Not Not Enter nter”” sig signs ns Do not not str stray ay from from you your pro progr gram am Drink plenty of of wa water Be awar aware e of of wil wildl dlif ife e and and env envir iron onme ment ntal al haza hazard rds s No una unaut utho hori rize zed d oper operat atio ion n of equ equip ipme ment nt Noti Notify fy staf stafff of of any any medi medica call ale alert rts s



Saf Safety Sh Sha are – Equip qu ipment ment Viewin Viewingg & Operatio Operationn • • • • • • • • • •

No una unaut utho hori rize zed d equ equip ipme ment nt oper operat atio ion n Clos Closed ed toe toe sho shoes es,, lon long g pant pants s req requi uire red d Remov move all hand jewelry Stay Stay wit within hin the the def defined ined area areas s Use 3 points of contact Commu Communi nica cate te leve levell of exp exper erie ienc nce e to to the the Inst Instru ruct ctor or Unde Unders rsta tand nd the the safe safe ope opera rati ting ng limi limits ts of of the the mach machin ine e Wear ear seat seatbe belt lts s AT AT ALL TIME TIMES S Know Know wha whatt to to do if the the machi machine ne gets gets out out of contr control ol If you you are are not not com comfo fort rtab able le with with wha whatt you you are are abou aboutt to do – do not not do do it! it!



Demonstration & Learning Center (DLC) Safety We are committed to the safety of all Caterpillar employees and visitors at our Demonstration & Learning Centers. As such, we have strict policies and procedures regarding the safe operation of equipment, or while engaged with equip ment. DLC personnel are trained and authorized to provide safety-related direction to Caterpillar employees and visitors who may operate or otherwise engage with equipment while on site. Failure to follow the directions of DLC personnel may result in termination of the operation or activity, or your removal from the facility.

C&D GLOBAL DEALER LEARNING


Items to Recycle in “ Mixed Recycling” Containers: Loose Paper (not neon colors) Plastic Bottles marked #1 & #2 Aluminum Cans Corrugated Cardboard (breakdown boxes) Glass Bottles



Thank you for making safety a priority during your visit. We welcome any safety observations or suggestions you may have as a result of your visit to Caterpillar.

Caterpillar: Confidential Green



Purpose This training is designed to prepare you to effectively sell Maintenance products, including filters, fluids and batteries by identifying the differences between Cat and competitive products and explaining the value associated with Cat maintenance products. This training will help address the common objections customers have to using Cat Maintenance Products.



Learning Objectives Upon completion of this Preventive Maintenance training, participants will be able to: • Identify the differentiating features of Cat Maintenance Products • Articulate the value Cat Maintenance Products can provide customers • Overcome the common objections customers have against Cat Maintenance Products



Agenda • Background • Filters – Liquid – Air

• FLEET Filters • Bulk Fuel Filtration • Fluids – Oils – Grease – Coolant

• • • •

Filters and Fluids Sales Resources Batteries Planned Maintenance Kits Maintenance Service Contracts



Why do Filters and Fluids matter? • Caterpillar is an equipment manufacturer, so why all the hype about Filters and Fluids? • Why do we care about Filters and Fluids? – Caterpillar equipment has a reputation for quality and durability – This quality and durability drives customer satisfaction and repeat business • The equipment systems and components are dependent upon Filters and Fluids

– Provide a consistent touch point for dealership, allows the dealership to offer additional parts and services



Why Focus on Filters and Fluids? Parts Revenue Opportunity 6%

4% 26%

8%

ENGINE FILTERS & FLUIDS DRIVE TRAIN HYDRAULICS

10%

ELECTRONICS UNDERCARRIAGE GROUND ENGAGING TOOLS

14%

17% 15%



OTHER

What do we hear from Customers? If they are not using Cat Filters/Fluids: • Cat Filters/Fluids are too expensive • A filter is a filter, they’re all the same • Oil is Oil, they’re all the same • The filter/fluid I’m using is good enough • I’ve been using brand X and haven’t had any issues • Donaldson makes all of Cat’s filters, they’re no different than Donaldson • Exxon Mobil makes Cat’s oil… • I have to change my filter more often when I use Cat filters



Primary Purchase Drivers

• Convenience • Price



Convenience Factors • • • • • •

One Stop Shop Delivery Availability Other Parts/Services Kits Service Contracts

Time is Money!! Anything that can reduce time is seen as convenience



Price vs. Cost Discussion 1. What is the initial purchase price of the filter/fluid? 2. How frequently does the filter/fluid have to be replaced? – Change interval

3. How well does the filter/fluid protect the system and critical components? – Repair/Rebuild costs: Parts, labor, and lost production Cat’s go al is to look at the entire picture and provi ded a solution that provid es the lowest overall owning and operating cost GLOBAL DEALER LEARNING


Total Owning and Operating Costs Filters and Fluids 3% Misc. 12%

Wear 6%

Fuel 24%

Labor 29%

Repairs 26%

* Cost of lost production is not included but is a major cost to customers





• • • •




Liquid Filters • • • • •

Fuel Fuel Water Separators Engine Lube Hydraulic Transmission



Technical Specs, What do they mean?

Common Specs

What does it mean?

» Micron Rating » Efficiency » Beta Ratio

How efficient is a filter at Different systems have different removing a specific size clearances and sensitivities. It is of particle important to know both the particle size (micron rating) and either the efficiency or beta ratio

» Capacity

How much debris can the filter hold

Effects the filter change interval

» Pressure Differential (Delta P)

Difference in pressure between dirty and clean side of filter

Some systems utilize a bypass valve and won’t filter until a certain differential pressure is achieved (lower is better)



Why does it matter?

Micron Ratings, Beta Ratios & Efficiency 1500 particles

Competitive Nominal

40 particles

Cat Absolute

> 5 µm

> 5 µm

Downstream

Downstream

3000 particl es > 5 µm

3000 partic les > 5 µm Upstream

Upstream

Filter stops 1500 partic les

Filter stops 2960 partic les

Beta Ratio (βx) = 3000 / 1500 = 2

Beta Ratio (βx ) = 3000 / 40 = 75

β5 = 2

β5 = 75

Efficiency % = 1 – (1 / βx ) 1 – (1 / 2 )

Efficiency % = 1 – (1 / βx ) 1 – (1 / 75 )

Efficiency = 50.0%

Efficiency = 98.7%



Liquid Filter Efficiency Options

Engine Lube Oil

Fuel/Water Separator

Fuel

Hydraulic

Transmission

30 – 40

> 20

> 10

27 – 40

27 – 40

μm

μm

μm

μm

μm

Advanced

15 – 30

10 – 20

4 – 10

10 – 27

10 – 27

HIGH EFFICIENCY

μm

μm

μm

μm

μm

< 15

< 10

<4

< 10

< 10

μm

μm

μm

μm

μm

Standard EFFICIENCY

UHE ULTRA-HIGH EFFICIENCY

• Cat does not typically publish micron ratings due to the confusion around them • Micron ratings are based on a test conducted in a controlled lab environment GLOBAL DEALER LEARNING


Micron Rating vs. Actual Performance Cat 1R-0749

Donaldson P551311

Baldwin BF7587

Fleetguard FF5319

Wix 33674

Published Micron Ratingand Efficiency

4 µm 98.7%Efficient

3 µm 99% Efficient

Not available

5 µm 98.7%Efficient

2 µm nominal

Cat Tested Efficiency at 4µm

4 µm 99.3%

4 µm 99.0%

4 µm 99.3%

4 µm 99.3%

4 µm 97.9%

100%

55%

41%

30%

19%

Injector Life with Filter (based on engine testing)

• Multi-pass testing on filters provides a baseline for filter efficiency and capacity – It cannot predict how a filter will ultimately perform in operation

• Multi-pass testing is a steady state test; constant temperature, flow, and pressure • In application, a filter is subjected to variable flows, fluctuating temperatures, and pressures spikes; all of which impact a filter’s efficiency and capacity.



Activity • You’ve got three filters, Which filter one is the best filter? Formulas:

1. Β5 = 75 2. Β5 = 2 3. Β4 = 50

• 

      =

      1

• Efficiency % = 1 - 

• Identify what particle size each filter is capable of filtering out • Determine how efficient each filter is at removing that size of particle



Selling • Cat does not sell based on technical specs and typically do not even publish spec information – As Caterpillar designs and validates it’s equipment it does so as an entire system – The filters and fluids are designed around the machine and system requirements – The machine is optimized based on the use of Cat filters and fluids

• Will-Fit suppliers sell based on specs – They are concerned with making a filter/fluid that will fit on/in as many applications and machines as possible so they can increase their volume on the part – They can’t validate every machine and application, so they sell based on specs



Reference PEWJ0290



What does Cat sell on? • If not technical specifications, what does Cat sell on? • Differentiation • The overall value Cat Filters can provide the customer – How can they make more money by using Cat Products?





• • • •




How we got to where we are • Historically had incoming quality concerns from supplier’s products – Inconsistent quality and cleanliness – High rejection rates – Resultant shortages

• This lead Cat to design a filter • Advanced Filtration Inc. (AFSI) – Automated – Repeatable – Reliable



Advanced Filtration Systems Inc. (AFSI)

AFSI US – Champai gn, IL (1986)

AFSI Europe – Mos t, Czech Rep. (2009)

•

Highly automated manufacturing facilities

•

Consistent production processes

•

Reliable product quality

Only Cat Filters GLOBAL DEALER LEARNING


AFSI



Differentiated Features Alum inum Top Plat e

Canist er

• Non-ferrous metal • Reduces harmful contaminates • More thread engagement

• Thickest can in the industry • One piece can design maximizes strength and minimizes potential leaks

C

Acryl ic Beading

Uret hane End Caps

• Prevents Bunching • Maximizes Media • Surface Area Utilization

Spiral Roving

•

One-piece Design Media Molded into Urethane Eliminates Possible Leak Paths

Non-Metallic Center Tube

• Reduces pleat flex and fatigue • Maximizes media surface utilization • Increases contaminate retention GLOBAL DEALER LEARNING

• •


• Stronger than metal • Maximum cleanliness

Reference LEDQ6225



What Filters are made at AFSI? AFSI Produced Part Numbers & Volume 100% Part Numbers

95%

Volume

80%

80%

80% 67% 60%

53%

52%

40% 21%

23%

20%

15% 4%

8%

10% 0% 0%

0% Total

All Liquid Filters

Liquid Engine Filters

Air

5%

4% Hydraulic Fuel/Water Separators

Fuel

Oil/Lube

• Focused on Liquid Engine Filters – Fuel, Fuel/Water Separators, Engine Oil/Lube • Only Cat and Cat Affiliate Filters GLOBAL DEALER LEARNING


Reference PEHJ0538



Why Spiral Roving?



Fuel Injector Performance Test • Accelerated wear test utilizing a C9 cylinder head & factory fuel system • System dosed with ISO 22 fuel (40k particles / mL) • Conducted using a single 1R-0749 secondary & competitive filters • No primary or tertiary filters • Run at rated pressure (180 kPa) & high idle (1800 RPM) • Test terminated: – Injector reaching 3X leakage rate of new – 50 hours in duration



Cat Fuel Filters Provide the Best Protection Injector Life 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Cat 1R-0749

Donaldson P551311

Baldwin BF7587

Fleetguard FF5319

Injectors protected with Cat Filters Last Longer GLOBAL DEALER LEARNING


Wix 33674

Better Protection Results in Less Injector Leakage Injector Failure Cat

Donaldson

Baldwin

3.0 e t a R e g 2.5 a k a e L r o t c 2.0 e j n I d e z i l a 1.5 m r o N

1.0



Fleetguard

Wix

Cat Fuel Filters Provide Superior Injector Protection

Baldwin Baldwin

Cat

Fleetguard Injector Valve Seat Examination of the valve seats reveal abrasive erosion

Pictures represent typical wear of injector valve seat at test termination point.

Donaldson Wix Wix

Injector erosion causes loss of pow er and increased fuel burn. GLOBAL DEALER LEARNING


Cat Fuel Filters Provide the Best Value

Wix

Fleetguard

Baldwin Using anything other than a Cat fuel filter costs y ou over 50% more

Donaldson

CAT

Filter Cost Per Hour GLOBAL DEALER LEARNING

Injector Cost Per Hour Caterpillar Confidential Green

Reference PEHJ0349



UHE+ Fuel Filters • More efficient at removing smaller particles • More capacity to maintain intervals

140% 120% 100%

• First Fit: – C27, C32, C175

80%

• Upgrade option for engines using 1R-0751, 1R-0749, or 1R-0755 Advanced Efficiency Filters Advanced Efficiency

UHE +

1R-0751

364-5287

1R-0749

416-1225

1R-0755

422-7587


Injector Life

60% 40% 20% 0% CAT UHE+ 416-1225

Cat AHE Donaldson Baldwin Fleetguard 1R-0749 P551311 BF7587 FF5319


Wix 33674

UHE+ Fuel Filters •

Best Choice for long component life

•

Protects Tier 4 fuels system parts

•

Increased Capacity

•

Same AFSI features

•

Same Automated Manufacturing

UHE+ Conventional

Time 100

Filter Efficiency Filter Efficiency 95

90

•

The improved level of protection provided by UHE+ filters protect against variability in fuel cleanliness ensures optimal engine performance and the longest life for critical fuel system components.


New

Delta P Filter DifferentialFilter Pressure

85

80

Injector Performance Injector Performance


s t a e S e v l a V r o t c e j n I f o s e g a m i e p o c s o r c i M

Protected wi th UHE+ Filter

Protected wit h Conventional Filter

Reference PEWJ0228


Reference PEHJ0347


Fuel Water Separators

Acts as a Primary Filter • Removes larger particles extending the life of your secondary filter

• Separates water from fuel – 100% free water – 90% emulsified water

Scuffing from water damage



Bowless Fuel Water Separators

• No plastic bowl • Simplifies service/replacement – No need to remove plastic bowl – No loosing the seal between the bowl and the rest of the filter

• No cracking • No leaking • Optional metal drain – 432-4252

432-4252 Metal Drain



Reference PEWJ0227



Engine Lube Filters

• Most Engine Lube filters are AFSI produced – Approximately 80% of the volume

• Same differentiated features and spiral roving to ensure maximum particle retention • Testing shows filters with spiral roving capture and retain 33% more particles


Count of Particl es After Filt er

t n u o C e l c i t r a P

Spiral Roving


Without Spiral Roving

Hydraulic Filters

• Historically Hydraulic Filters did not have a lot of visual differentiation • It was easy for a competitor to cut open a 1G-8878 filter their filter and say they’re the same as their filter • We have added spiral roving to the high volume part numbers – Improved particle retention – Increased capacity – Increased resistance to collapse All AFSI Features

Spiral Roving

Total

Part Numbers

13

52

65

Volume Coverage of 035 PPC

18

40

58%



Spiral Roving Added

Transmission Specific Filtration

• Will Fit suppliers tend to service transmission systems with a hydraulic filter • Cat has moved away from this • Hydraulic and Transmission systems are different • Transmission Specific filters are designed to hold more contaminates – Longer intervals

• Transmission filters have a lower differential pressure – Less time in by pass during cold start ups – Better protection



Transmission Specific Filters 60 Cat Filter 50

Competitive Filter

Bypass Setting

Cat Filter providing protection while competitor is not

40 e r u s s 30 e r P l a i t n 20 e r e f f i D

10

0 0 GLOBAL DEALER LEARNING

10

20

30 40 Oil Temperature (deg. C) Caterpillar Confidential Green

50

60

70

Reference PEHJ0251



NEW PRODUCT INTRODUCTION (NPI) Liquid Filters


What’s New – New Product introduction (NPI)

• Continuation of Next Gen, Unique fit filters • Unique fit filters with a proprietary design

Fuel

• Benefits for Dealer • Because the filters are proprietary and the designs are patent protected, a customer can not use a will fit filter without having to change the filter base

• Know the machines in your territory for servicing • Benefits for the customer • Minimizes waste • Improves customer O&O cost • Insures the correct level of protection is installed every time GLOBAL DEALER LEARNING


Transmission & Hydraulic

Cat Look and Feel Changes

• Spiral Roving added to high volume hydraulic filters • Packaging update for high volume hydraulic filters

Spiral Roving Added




• Artwork changed to power edge style artwork for filters with visual differentiation: – AFSI produced with all differentiated features or – High volume hydraulic filters with spiral roving Previous Style of Artwork



New Power Edge Style Artw or k

Reference PEJJ0132



Coalescing Fuel Water Separator

• • • •

Water separation improved by 3 times Improved efficiency Same change interval Direct replacement

Note: new coalescing elements are a reverse flow design. Extra care should be used when handling the filters to keep the outside clean during service


Tier 4 NextGen Primary Fuel Filtration (C4.4, C6.6, & C7.1) Service Elements


Previous Primary FWS

New Primary FWS

4 Cylinder

360-8959

479-4131

6 Cylinder

363-6572

479-4133

Reference PELJ2083



What’s Coming Next - NPI

• Next Gen for Large Engines (C9-C18) • Coming in 3rd quarter 2017 Type

Spin-on 1R-0749 1R-0762 Secondary/Tertiary 308-9679 416-1225 326-1643 Small FWS 326-1644 423-8524 Large FWS 438-5386



Cartridge 500-0480 434-3928 436-7077 500-0481

What’s Coming Next D6-D10 Hydraulic

• Hydraulic – D6 through D10 bottom load hydraulic filter – D11 top load hydraulic filter

• Transmission

D11 Hydraulic

– NextGen transmission filter

Transmission



Compact Lube Filters

• •

• • • •

•

Ribs in cap drive element down to seal on bottom hub Element push-twist locks into Cap for installation and will extract element when removed Element determines bypass cracking pressure Element radially seals on Standpipe Element radially seals on Base Hub When the cap is loosened it will pull the element up and unseat the outer seal. This will expose the drain port and allow the filter to begin draining to sump. Production in 2018 on small engines



FILTER ACTIVITY


Class Activity

• Cut Open Filters





• • • •




Engine Air Filter Efficiency Options

• Standard Efficiency – Less capacity than Ultra High Efficiency (UHE) – More capacity that conventional competitive filters

• Ultra High Efficiency – Higher efficiency when new – Two to six times the life – Option for many machine applications



Reference PEHP7032



UHE Filter Media Technology Standard Efficiency

Ultra High Efficiency

Scanning Electron Microscope Images

Standard Air Filters FILTER LIFE

NEW FILTER EFFICIENCY


UHE Air Filters

ULTRA HIGH EFFICIENCY (UHE) FILTERS CAN LAST MORE THAN 2X THE LIFE OF STANDARD FILTERS

Standard Air Filters UHE Air Filters


Cat UHE Engine Air Filters

• Testing conducted by an independent test lab

Piston Ring Wear Donaldson

• Ran a C9 Engine at high idle • Added dust to the intake air • Added Vibration • Tested the Cat UHE filter and filter recommended by competitors

r a e W e v i t a l u m u c c A

• Measured the wear rate to the piston rings



Wix Baldwin Fleetguard Cat UHE

Time Piston rings protected with the Cat UHE fil ter saw less wear on average, than piston rings protected with other filter brands.

Piston Ring Wear

• Based on the wear rates attained during the test, on average, the Cat UHE filter provides a 50% increase in piston ring life.


Piston Ring Life 100%


80% 60% 40% 20% 0%

Cat UHE Engine Air Filters

Using the wrong filter costs more. Normalized Cost Per Hour

2.59 2.34

In order to reduce your overall operating cost, it is necessary to consider ALL of the costs associated with your engine air filter:

Not using a Cat UHE Air filter costs you over 2X as much on average 1

• FILTER COSTS

2.08

1.13

– How much do have to pay for the filter, and how frequently do you have to replace it?

• REPAIR & REBUILD COSTS (Parts, Labor & Downtime) – How well does the filter protect your engine?

Filter Cost Per Hour considers the filter purchase price and assumes changing the filter every 500 hours over the expected life of the engine. Engine Rebuild Cost Per Hour considers the price associated with parts and labor required for an engine rebuild and the expected component life based on wear testing conducted by an independent test lab. Cost of downtime is not included, but can be significant and would even further increase the cost differential.



Cat UHE Engine Air Filters – Cost Example

Annualized Cost Example Filter Cost per Year

Rebuild Cost per Year

Total Costs per Year

Cat UHE Air Filter

$395

$5,455

$5,849

Competitive Air Filter

$318

$11,585

$11,903



• Filter cost assumes changing air filter every 500 hours based on 2,000 hrs/yr machine utilization • Rebuild cost based on the parts and labor cost associated with engine rebuild spread over the expected life, based on the wear testing conducted – Longer rebuild = lower annual cost – Shorter rebuild = higher annual cost

• Additional cost of downtime and lost production is not included but can be significant and would further increase the difference in Total Cost

Reference PEDJ0296



Servicing You Engine Air Filter

Air Fil ter Servic e Indi cat or s

FILTER CHANGE INTERVAL

Optimum Life Increased Labor & Filter Costs

Poor Performance & Higher Repair Cost

• Keep the filter housing closed • Do not clean Engine Air Filters



Extending Engine Air Filter Intervals with Turbine Precleaner • The precleaner acts as a first line of defense • Uses centrifugal force to separate debris from air • Prevents most debris from reaching the engine air filter • Can extends air filter life by 3 times

Mining Truck Filter Change interval

Front End Loader Filter Change Interval

• No routine maintenance required • Can be used in on any engine with an inlet pipe GLOBAL DEALER LEARNING

Before


After

Before

After

Reference PEHP7077



Cab Air Filters

• Options allow for comfortable cab environment for a variety applications • A more comfortable operator is a safer more productive operator

Cab Air Filter

Recommended Use

Standard Efficiency

Most normal normal-duty applications

Lower Restriction

Situations with poor cab air flow

High Efficiency

Extremely dusty environments

Activated Carbon

Situations where odor is a problem

* All four options not available for each size/machine



Reference PEHJ0092

Reference PEWJ0234



Cab Air Quality System • Reduce Operator exposure to harmful particles • Extend filter life • Lengthen the life of HVAC system and cab electronics



Basic Cabin Air Precleaning Option (Not available for all machines)

• Unit is upstream of the cab air filter element • Most of the airborne particulates are removed before they reach the cab air filter element • Can be fit to most Caterpillar equipment

Without rain cap


With rain cap


Advanced Filtration Currently Offered

456-0560 Advanced Cabin Filtration (ACF) Unit

528-2361 Extended Length ACF Unit

418-6474 ACF Universal Install Kit

514-6873 Extended Length ACF Universal Install Kit



Benefits of Advanced Cabin Filtration Systems • Constant Source of Fresh Air Into the Cab – –

Increases oxygen levels Lowers carbon dioxide levels

• Pressurizes the Cab –

Keeps contaminated environment out of the operator cab

• Replaces existing filter with the ability to upgrade to higher filtration levels – – – –

3 levels for standard length 4 levels for the extended length Improved operator safety by limiting exposure to dust & contaminants Ability to meet most worldwide regulations

• Built-in Precleaning Feature –

Longer filter life



Digital Cab Pressure Monitor

Features • Greater compatibility • Reduced size • Visual display • Audio alarm

Benefits • Real-time pressure • Simple installation • Multiple indicators • Adaptable



NEW PRODUCT INTRODUCTION (NPI) Air Filters


What’s New – New Product introduction (NPI)

• Continuation of Next Gen, Unique fit filters • Unique fit filters with a proprietary design • More filter media in a smaller area

• Benefits for Dealer • Because the filters are proprietary and the designs are patent protected, a customer can not use a will fit filter without having to change the filter base

• Know the machines in your territory for servicing • Benefits for the customer • Insures the correct level of protection is installed every time



Air


Yellow Media, Black Wrap

Yellow Media

Change coming this Year

Changed occurred in 2016

Changed occurred in 2016 Yellow Media



Special Application Engine Air Filter Elements • Intended for Waste/Transfer Station applications • Minimizes face plugging with fibrous, cotton linter type materials • Should not be used in other applications (shortens life)

Face Plugging GLOBAL DEALER LEARNING

Existing Media Caterpillar Confidential Green

Engine

Standard

UHE

UHE Special Application

C7

386-2097

422-1089

518-1709

C9

386-2099

456-9847

490-3648

C13/C15

396-2122

420-5282

518-1710

C18

396-2123

467-2012

Pending

Special Applic ation Media

Reference PEJJ0166



What’s Coming Next – New Product Introduction (NPI)

• Engine Air – Family architecture to cover multiple machines and sizes – Multiple mounting configurations – Integrated precleaner option – Styling cues from machine (hex pattern) – First machine launch • G series Hydraulic excavators (323G-390G)



AIR FILTER ACTIVITY


Air Filter Activity

• Machine Walk Around



SELLING IT ACTIVITY Filters


Sales Call Example

• You’ve got a customer who is not purchasing Cat Maintenance Products that you plan to call on to see if you can gain their business • The customer is currently purchasing Baldwin filters and says they are cheaper than Cat filters and are good enough • What would you do to convince them to use Cat Filters?



Dollarization Selling

• All customers care about their bottom line • Cat filters provide the best protection for the customer – show the customer how the better protection saves them money • Cat Products may have a higher initial purchase price, but they can provide value that is often overlooked by the customer during the purchase process • It is your job to show the customer, how Cat Products can make them more money and positively impact their bottom line • Costs – – – –

Maintenance – Customers tend to focus on initial purchase price of maintenance items Repairs Labor Downtime



Selling

• It is important to pre-call plan and know as much as possible about your customer before attempting to sell them on Maintenance Products • Some key information to be gathered: – Site Requirements – Equipment Status – Maintenance and Repair History



Site Requirements If the customer is local this will make gathering service and repair history easier

Is the customer and work conducted by the customer all local, or If the customer utilizes multiple dealers, you may need to does the customer move equipment across dealer territories? understand the service and repair history at the other dealerships the customer conducts business This will help determine the cost of downtime and the opportunity they are missing out on as a result of downtime. Examples on ho the customer may measure downtime are Tons/hr., Revenue/Ton or Revenue/job.

How does the customer measure productivity?

It is important to understand what product or products the Where does the customer currently purchase their maintenance customer uses to identify areas where Cat products can benefit products? and save the customer money. Are there any additional services beyond the product itself that the This will help you understand what additional services you can customer requires or is receiving today? Examples would be offer to bring value to the customer? delivery, stocking or consignment. Does the customer conduct their own maintenance and repairs, utilize the dealer, or utilize a 3rd party


Labor rates may vary depending on where they conduct their maintenance, this will be a factor when calculating the cost savings potential of Cat MaintenanceProducts.


Equipment Status This will help you understand your opportunity, and can be used to calculate cost savings potential with Cat products How many pieces of competitive equipment does the customer If the customer has competitive equipment, do you have a parts have? offering to cover the competitive equipment? How many pieces of Cat equipment does the customer have?

What is the customer's machine utilization rate? How many hours does the customer operate their equipment per year?

This will help you understand your opportunity and can be used to calculate the cost savings potential with Cat products

Does the customer tend to purchase new equipment or used equipment?

If new, what kind of warranty or good will claims has the customer made? - Could these warranty claims be linked to maintenance products

If the customer keeps their equipment, how long are their rebuild cycles? Does this meet their expectations, how does it compare to what you normally see for the same machine model and Does the customer tend to keep their equipment for long periods similar applications? or does the customer sell off their equipment before it reaches If the customer tends to sell off the equipment before the rebuild rebuild? cycle, how long does the customer keep the equipment for? Could they keep it longer? What unplanned downtime and repairs do they have that could be linked to maintenance products?



Maintenance and Repair History If so, You may be able to look into historical data and look at repair history while the customer was on the contract and utilizing Cat Filters & Fluids vs. when they are not on contract and using alternate products. Has the customer always utilized competitive products or have they purchased Cat Filter & Fluids in the past? If customer has used Cat Filters & Parts purchase history Fluids in past, is there any difference in unplanned repairs and downtime when the customer was using Cat Filters & Fluids vs. the competitive product? Have any inspections been completed on the customer's equipment such as If so, were any issues identified? Could those issues be linked to maintenance TA-1 or TA-2 Inspections? products? What unplanned downtime or premature rebuilds have the customer Look into work order history with this customer, what maintenance and repairs experienced, can this be linked to Filters & Fluids? If so, What were the cost have been conducted on their equipment? and downtime associated with the repairs? Could the re-occurring issues be linked to Filters & Fluids? As an example, Does the customer have any re-occurring issues with their equipment? does the customer make frequent injector replacements? This could be a sign their fuel filters are not providing adequate protection. Has the customer had any premature rebuilds? If so, what was the cause, can Does the customer reach their planned component rebuild cycles it be linked to Filters & Fluids? Does the customer have or have they ever had any contracts, such as a MARC or CSA contract?

Is there any data that can be gleaned from the customer's historical S∙O∙S

Does the customer utilize S∙O∙S℠ Services?

Does the customer have any connected assets? What brand or brands of maintenance products is the customer using?

data? Any Red or Yellow Alerts? If so, are there any fault codes that could be linked to Filters & Fluids? Has fuel consumption increased? This will help you understand what features you can show the customer and what price differentiation you may need to overcome

Does the customer use Cat parts for one major class but will-fit for another type of part?

If so, why does the customer see the value in one product but not the other?

What is the customer's filter and oil change interval?

Maintenance interval will be used it determine the opportunity with the customer. Extended intervals may be an opportunity with Cat Filters and Fluids.



Sales Call Example

• You’ve got a customer who is not purchasing Cat Maintenance Products that you plan to call on to see if you can gain their business • The customer is currently purchasing Baldwin filters and says they are cheaper than Cat filters and are good enough • What would you do to convince them to use Cat Filters?



Site Requirements

Is the customer and work conducted by the customer all local, or does the customer move equipment across dealer territories?


If the customer is local this will make gathering service and repair history easier If the customer utilizes multiple dealers, you may need to understand the service and repair history at the other dealerships the customer conducts business This will help determine the cost of downtime and the opportunity they are missing out on as a result of downtime. Examples on how the customer may measure downtime are Tons/hr., Revenue/Ton or Revenue/job.

Lets assume the customer is local and conducts all work within the dealer’s territory

This customer does general construction and measures their productivity in revenue/job

It is important to understand what product or Customer purchases $100,000 worth of Where does the customer currently purchase their products the customer uses to identify areas where Baldwin filters and states Cat is 15% more maintenanceproducts? Cat products can benefit and save the customer expensive money. Are there any additional services beyond the This will help you understand what additional product itself that the customer requires or is services you can offer to bring value to the Baldwin provides delivery receiving today? Examples would be delivery, customer? stocking or consignment. Labor rates may vary depending on where they Customer conducts their maintenance and Does the customer conduct their own maintenance conduct their maintenance, this will be a factor minor repairs in house and utilizes the and repairs, utilize the dealer, or utilize a 3rd party when calculating the cost savings potential of Cat dealer for major repairs MaintenanceProducts.



Equipm qu ipment ent Status Status This will help you understand your your opportunity, and can be used to calculate cost savings 68 potential with Cat products If the customer has competitive equipment, do How many pieces of competitive equipment does you have a parts offering to cover the competitive 27 the customer have? equipment? How many pieces of Cat equipment does the customer have?

What is is the customer's mac machine hine utilization utilization rate? rate? This will help you understand your your opportunity How many hours does the customer operate their and can be used to calculate the cost savings equipment per year? potential with Cat products Does the customer tend to purchase new equipment or used equipment?

If new, what kind of warranty or good will claims has the customer customer made? made? - Could these warrant warranty y claims be linked to maintenance products products

If the customer keeps their equipment, how long are their rebuild cycles? Does this meet their expectations, how does it compare to what you normally see for the same machine model and similar applications? Does the customer tend to keep their equipment for long periods or does the customer sell off their If the customer tends to sell off the equipment equipment equipment before it it reaches rebuild? rebuild? before the rebuild cycle, how long does the customer keep keep the equipment equipment for? Could they keep it longer? What unplanned downti downtime me and repairs do they have that could be linked to maintenanceproducts? aintenance products?



2,000 2,000 hrs/year hrs/year

Customer tends to purchase new or newer equipment

The customer customer tends to keep their equipment.

Main Maintenance tenance and and Repair Repair History Histor y If so, You may be able to look into historical data and look at repair history while the customer was on Does the customer have or have they ever had any the contract and utilizing Cat Filters & Fluids vs. contracts, such as a MARC or CSA contract? when they are not on contract and using alternate products. Has the customer always utilized competitive products or have they purchased Cat Filter & Fluids in the past? If customer has used Cat Filters & Parts purchase history Fluids in past, is there any difference in unplanned repairs and downtime when the customer was using Cat Filters & Fluids vs. the competitive product? Have any inspections been completed on the If so, were any issues identified? Could those customer's equipment such as TA-1 or TA-2 issues be linked to maintenance products? Inspections?

Customer does not have any any contracts

History does not show the customer customer ever ever purchasing maintenance products from the dealer

No inspection data is available

Look into work order history with this customer, what maintenance and repairs have been conducted on their equipment?

What unplanned downtime or premature rebuilds have the customer experienced, can this be linked to Filters & Fluids? If so, What were the cost and downtime associated with the repairs?

Injector Injector purchases purchases – customer customer purchased purchased 156 injectors Hydraulic Pumps Pins

Does the customer have any re-occurring issues with their equipment? equipment?

Could the re-occurring issues be linked to Filters & Fluids? As an example, does the customer make frequent injector injector replacements? replacements? This could be a sign their fuel filters are not providing adequate protection.

Injectors



Main Maintenance tenance and and Repair Repair History Histor y Rebuild cycles cycles seem to be 15-20% less

Has the customer had any premature rebuilds? If Does the customer reach their planned component compared to another customer that so, what was the cause, can it be linked to Filters & rebuild cycles operates in a similar application that is Fluids? utilizing Cat Filters and Fluids.

Is there any data that can be gleaned from the Does the customer utilize S∙O∙S℠ Services?

customer's historical S∙O∙S data? Any Red or

Yellow Alerts? Does the customer have any connected assets?

If so, are there any fault codes that could be linked to Filters & Fluids? Has fuel consumption increased?

Customer does not use the dealer’s SOS services The customer has a couple newer machines that came with the initial free subscription

This will help you understand what features you can Baldwin Filters What brand or brands of maintenance maintenance products products is is show the customer customer and what price differentiation differentiation Shell Oil the customer using? you may need to overcome Does the customer use Cat parts for one major class but will-fit for another type of part?


Customer uses Cat undercarriage, because they have seen the benefits and longer life associated with Cat


Maintenance interval will be used it determine the opportunit opportunity y with the customer. customer. Extended Extended intervals may be an opportunity with Cat Filters and Fluids.

Varies by compartment, 500 hour engine intervals, intervals, 4,000 4,000 hr hydraul hydraulic, ic, 1,000 hr transmission & drivetrain



• Based ased on the pre-wo pre-work rk some some areas areas we we can can focus focus on: on: – Inje Injec ctor lif life – Mixe ixed Flee leet Soluti lutio on – Ins Inspectio tions



• Injec jector life life – Based on pre-work we know: • The customer customer has has 68 pieces of of cat equipment equipment that that runs 2,000 hrs a year year • The The custom customer er purcha purchased sed 156 156 injectors last year year • If you esti estim mate there are are 6 injectors on each each of the 68 68 pieces of Cat Cat equipment equipment

– Thing ings we can calcu lculate late:: • The customer customer has a total of 408 injectors running on their equipment equipment (6 x 68 = 408) 408) • Each Each of of the 408 408 injectors injectors are running running 2,000 2,000 hrs hrs a year year which which results results in 816,000 816,000 hrs of accumulated time on the injectors (408 x 2,000 = 816,000) • Based Based on on the fact that 816,000 816,000 hrs hrs are accum accumulated ulated on on the injectors annu annuall ally y and and the custom customer er purchased 156 replacement injectors in the last year, they are getting an average of 5,231 hours of life life from their injectors injectors (816,000 (816,000 / 156 156 = 5,231) 5,231)

– This is a rough calcu lculat lation ion to understand what the customer is gettin ting for inje injec ctor life life,, it is always best to speak with the customer and run through the numbers with them



• We know Cat fuel filters provided better protection than Baldwin based on testing • Testing shows 60%longer injector life with Cat filters vs. Baldwin • If we take a conservative approach - Lets say you can get 30% longer injector life with Cat Filter - we can calculate how many fewer injectors the customer would purchase with Cat filters and how much money this would save them GLOBAL DEALER LEARNING

Injector Life 100% 80% 60% 40% 20% 0% Cat Donaldson Baldwin Fleetguard 1R-0749 P551311 BF7587 FF5319


Wix 33674

• Today customer is purchasing 156 injectors, and they are getting an average life of 5,231 hours from their injectors • 30% x 5,231 = 1,569 hours of additional injector life • 1,569 + 5,231 = 6,800 hours Injector Life with Cat Fuel Filters • Based on the 816,000 of accumulated time on the injectors that we calculated previously, the customer would only have to purchase 120 injectors (816,000 / 6,800 = 120) • 156 – 120 = 36 fewer injector purchases



• Now that you have calculated the customer will have to purchase 36 fewer injectors when they use Cat Fuel Filters, you can calculate how much Cat Filters can actually SAVE the customer – Part Cost = Cost of injector X fewer injector purchases • $540 X 36 =$19,440

– Labor Cost • Customer does the labor himself – What do they pay their maintenance staff/hr? • $50/hr X 2 hrs = $100 / injector • $100 X 36 injectors = $3,600

– Cost of Lost Production • • • •

2 hrs X 36 injectors = 72 hours of lost production Ask customer what additional work they could do with 72 hours of uptime How much money could th ey be making with that 72 hours of up time? This is si gnificant and should be consid ered in the savings

– $19,440 + $3,600 = $23,040 Savings + the additional revenue they could have made with uptime



• Based on the pre-work some areas we can focus on: – Injector life – Mixed Fleet Solution • The customer has 27 pieces of other manufacturer’s equipment • Do you have a solution for the customer?

– Inspections • Prework showed no history of inspections • Explain/show benefits of the inspections • This shows how you can add value that a simple will-fit supplier can not







• • • •




Mixed Fleet Filters

• How we got to where we are – Went to DAG meetings in 2013 & asked PM Specialists for feedback



Why Mixed Fleet Filters? • Convenience is a major factor for a customer when selecting where to purchase maintenance products • Allows dealer to be a one stop shop for maintenance products without having to offer an alternate brand of filter that directly competes with Cat Filters • Enables the sale of more Yellow Filters

– This is the ultimate goal – Sell more Cat Yellow Filters!



Mixed Fleet Filters

• We’ve done this before, what’s different?

– Nexus was the latest attempt – Baldwin Branded Filter – Historical marketing materials and PCB’s showed poor performance of Baldwin product



Cat FLEET Filters ARE:

ARE NOT:

• A secondary line of filters for equipment made by other OEM’s

• Intended for use on Cat Equipment • A General Duty Filter • A Classic Part

• Cat Branded

• Branded the same as Cat Yellow filters

• Differentiated from other will-fit filters

• Just painted black

• 75-80% coverage (initial pilot only had ~60% coverage)

• 100% coverage, but can leverage Donaldson brand to reach 100% coverage



Cat Fleet Filter – What it looks like

Moving to Differentiated

• • •

Differentiated from Cat Yellow line, But still carries the Catbrand Branded Cat FLEETparts.


• •

Dealer feedback differentiation is necessary. Working to get spiral roving on product.


• •

Packaging is generic with Cat Label. May look at additional printing on packaging in the future.

Fleet Filters – Program Details

• List Prices will be in line with competitive product • Ordered through ANTARES just like other Cat parts • Warranted just like any other Cat part • Includes all types of filters (Liquid, Engine Air and Cabin Air) • Separate PPC codes for tracking purposes • Cross reference tool will be developed



Fleet Filters – Program Details

• Program supported by Donaldson – Dedicated support: Donaldson Reps focused solely on Cat Dealer sales • Transition • Training • Cross Referencing • Sales Support • Market insight



Mixed Fleet Filter Pilots

Feedback from pilot process & actions being taken – Need better coverage • Adding additional part numbers to increase coverage from ~60% to ~75-80%

– Finning Canada – Finning Chile – Harnish Group (NC Machinery and T&E)

– Need differentiation • Adding spiral roving to product starting with hydraulic filters

– Need to be able to compete on corporate accounts (Donaldson discounts 50-60% off) • Investigating way to be competitive at deeper discounts


Current pilot dealers


– Toromont

Others (haven’t ordered yet) – – – – –

Finning UK Zeppelin VT Barloworld Trakindo

Marketing Materials

• • • • •

Video animation Zift webpage Zift email Web Banners Brochure


• Counter Display • Giveaway item (Koozie)


Cat Fleet Filter Timeline

2016 Jun

Jul

2017

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Jul

2018 Aug Sep Oct Nov Dec Jan Feb Mar Apr

North America Initial Pilots Launched Extended Pilot Program Launch - Starting with North America

Rest of World Initial Conversations with Pilots Pilot Program Launch* *Will Depend on Success of Pilots and North America Launch



Key Take-Aways: Cat Fleet Filters

• Cat-branded • Differentiated product • Serves the Fleet

• Helps sell more Yellow filters!!





• • • •




What is Clean Fuel?

Caterpillar now defines clean fuel as ISO 18/16/13 for maximum particulate content and 500 ppm maximum water content.


Many fuel system components require a maximum ISO 16/13/11 for particulate content and a maximum 500 ppm content water.


Fluid Cleanliness Codes – ISO 4406 Very Dirty

Very Clean GLOBAL DEALER LEARNING

ISO Code 23 40,000 - 80,000 22 20,000 - 40,000 21 ---------- Very Dir ty ---------- 10,000 - 20,000 20 5000 - 10,000 Number of 19 2500 - 5000 particles of a 18 ------------ Clean Fuel ------------ 1300 - 2500 (18/16/13) given size or 17 640 - 1300 larger present in a 16 --- Fuel System Components --- 320 - 640 (16/13/11) 1mL fluid sample. 15 160 - 320 14 80 - 160 13 40 - 80 Lubricants Diesel Fuel 12 20 - 40 21 / 19 / 16 21 / 19 / 16 11 10 - 20 10 5 - 10 4µm / 6µm /14 µm 4µm / 6µm / 14 µm 9 2-5 8 1-2 Caterpillar Confidential Green

Why Bulk Fuel Filtration?

• Removing water and particles allows the onboard filtration to last longer and be more effective at removing the most damaging particles • Prolongs the life of injectors and other components of the fuel system • Can significantly lower owning and operating costs in areas where fuel is not clean when delivered



Bulk Filtration Units 50 GPM Unit, 370-8568

100 GPM Unit, 370-8569

200 GPM Unit, 370-8570

300 GPM Unit, 370-8571



Bulk Filtration The filtration unit delivers fuel at ISO 18/15/13 or better and water at 500 ppm or less, regardless of the quality of the inlet fuel.

• Pre-Filter – Removes solid and semi-solid contaminant & protects the Coalescer/Separator

• Coalescer/Separator – Removes water and extremely fine contaminant



Bulk Filtration COALESCING FILTER ELEMENTS Coalescing fibers attract water and form large water droplets that fall to the bottom 4-MICRON PARTICULATE FILTER Removes abrasive particles.

COALESCING UNIT Contains multiple elements SEPARATOR CANISTER Repels smaller water droplets suspended in moving fuel flow and prevents them from escaping with the clean dry fuel

DELTA P GAUGES Indicated pressure drop and filter restriction

OUTLET SAMPLEING VALVE Valve provides access for filtered fuel samples SLUG CONTROL VALVE Slows down or shuts off fuel flow if the amounts of water in the fuel exceed the flow capacity of the water drain valve or if the particulate or coalesce filters start to plug

INLET SAMPLING VALVE Valve provides access for unfiltered fuel samples GATE VALVE Shuts off flow to permit filter service

WATER METER Continually measures and records the total volume of water removed from the fuel

Inlet Outlet

AUTOMATICE WA TER DRAIN Allows excess water to drain from the sump of the unit



Bulk Filtration – Custom Success Story

West Virginia Coal Mine Installation • 200 gpm unit installed August 2008 (284-0416) • Installed at the sites bulk fuel location, where a 5000 gal. fuel truck fills for site deliveries • In-line particle counters used upstream and downstream of the bulk filtration unit • Twelve tests were run – each a 2 min duration • Particle counts taken at 4, 6, and 14 microns

• Fuel Cleanliness (ISO Levels) Initial level: 21 / 19 / 16 GLOBAL DEALER LEARNING

Filtered level: 14 / 12 / 9 Caterpillar Confidential Green

Portable Bulk Filtration • Lightweight – easy to move • Fill rate 20 GPM (75 LPM) • Powered by a 12V pump • Removes both particulates and water • Delivers clean/dry fuel in a single pass Part Number

Description

464-8510

Portable Bulk Fuel Filtration System

461-5138

Filtration Housing Assembly

461-6622

Element - 1 micron

461-6623

Element - 5 micron

461-6624

Element - 25 micron



Reference PEHJ0156 PELJ0671 PELJ1706





• • • •




Cat Fluids

• Just like with filters, Cat equipment is designed to perform optimally with Cat fluids • Cat equipment systems, components, fluids and filters work together to provide the best – – – –

Fluids

Filters

Performance Efficiency Durability and life Owning and operating costs

• You need the whole package to be optimized


Systems Caterpillar Confidential Green

Components

Caterpillar and ExxonMobil – How it Works • Cat Engineering team works with ExxonMobil technical team to develop a fluid – Cat provides specs, standards, performance requirements – ExxonMobil conducts lab testing – Cat conducts component and on machine testing

• Cat commercial team and ExxonMobil work together to ensure availability – Cat specifies what products are sold where – ExxonMobil works with their distribution system to ensure availability – Cat and ExxonMobil worked together to ensure proper package sizes are available



Caterpillar and ExxonMobil – How it Works

• Cat commercial team works with ExxonMobil Cat dedicated sales team to make sure they have everything they need to support dealers • ExxonMobil Cat dedicated sales teams work with dealers for training, sales plans, OTO offers • Cat team and ExxonMobil team meet quarterly to review program goals, review sales, review concerns & voice of the dealer, and review development projects

Work Together to provide the best overall products and support to our Dealers GLOBAL DEALER LEARNING


Cat Oil – What goes into it?

• Cat specifies base stocks to be used • Cat works with ExxonMobil to develop additive package that is optimized for our equipment and applications • Extensive testing to ensure best protection possible

Additives

Base Stock

Mineral Synthetic Semi-Synthetic

– In the lab – Component level – Machine level in real world applications GLOBAL DEALER LEARNING

Viscosity Index Improver Detergent Anti-Acid Dispersant Anti-Wear Anti-Oxidant Corrosion Inhibitor Rust Inhibitor Anti-foam Pour Point Depressant


Cat Oil Products Cat® Oil Options Diesel Engine Oil – Ultra Low Sulfur (API CK-4)

Cat DEO-ULS™ Cat DEO-ULS SYN Cat DEO™ Cold Weather

Diesel Engine Oil (API CI-4/API CI-4 PLUS)

Cat DEO

Multi Application Engine Oil Diesel Engine Oil (API CF) Natural Gas Engine Oil

Pre Combustion Oil Transmission/Drive Train Oil Special Application Transmission Oil Automatic Transmission Fluid Final Drive and Axles Oil Gear Oil Hydraulic Oil Multipurpose Tractor Oil GLOBAL DEALER LEARNING

Cat MAEO Plus (Non-Cat Mixed Fleets) Cat DEO (3600 engines only) NGEO Ultra 40 NGEO Advanced 40

Cat PCO Cat TDTO™ Cat TDTO TMS™ Cat TDTO Cold Weather Cat SATO Cat ATF-HD2 Cat FDAO™ CAT FDAO SYN Cat GO Cat Synthetic GO Cat HYDO™ Advanced Cat Bio HYDO Advanced (HEES™) Cat MTO

• Other Oil companies design oils to fit in as many different types of applications as possible • Cat Oils are designed and tested specifically for the tough applications Cat equipment is designed to work in • Check the latest version of SEBU 6250 for complete listing of machine fluids and fluid recommendations


Cat Diesel Engine Oils

• Cat DEO – Industry-leading engine oil technology that provides exceptional engine protection and oil life. Trusted by Cat and by Cat engine customer world-wide to keep engine running at peak performance for the life of the engine.

• Cat DEO-ULS – The most advance Cat engine oil technology. Compatible with the latest engine aftertreatment technology while delivering the highest level of engine protection available.

• Cat DEO Cold Weather – Similar performance as DEO-ULS, but the fully synthetic formulation keeps engine oil flowing even in the most severe cold weather conditions



Cat DEO

Cat DEO ULS

Cat DEO Cold Weather

Use when:

Use when:

Use when:

•

Engine emission technology in use is Tier 3/ Stage IIIA or lower.

•

•

Considering extended drain intervals in conjunction with Cat

•

•

Engine emissions technology in use is Tier 4 Interim / Stage IIIB or higher Engine is equipped with a Diesel Particulate Filter (DPF).

S∙O∙S Fluid Analysis

•

Considering extended drain intervals in conjunction with Cat S∙O∙S Fluid Analysis



Temperature on your job dips below -18°C (10°F). Suitable for use in engine emission tiers.

•

Considering extended drain intervals in conjunction with Cat S∙O∙S Fluid Analysis.

Reference PEHJ0374



Diesel Engine Oil (DEO)

• Designed to work in conjunction with Cat Filters to provide the: – – – –

Best protection for Cat engines Highest efficiency for Cat engines Longest rebuild cycles Lowest Operating cost

• DEO-ULS – Formula updated in Dec 2016 to meet API CK-4 standards – This will be covered in more detail in later slides



Cat DEO Proof of Performance • A Cat® customer conducted on engine testing of a competitive diesel engine oil that claimed to meet industry and Caterpillar recommended specifications. The oil was recommended as a lower cost option with the same level of protection as Cat DEO™. The Result s: Upon completion of the 3,000 hour test, the engines run with competitive oil showed significantly more deposits, lacquer, and component wear. Had the engines with competitive oil continued to be run, a catastrophic failure would likely have occurred. A failure would mean unplanned downtime and increased repair costs making the competitive ‘low cost’ oil much more expensive in the long run.

The Test Protocol: Four Cat® 3516 Electric Power engines were run for 3,000 hours. Two engines were run with Cat DEO and two were run with the competitive oil that claimed to provide equivalent performance and protection. •

•

•

•



No Top off’s were performed during the trial All engines used a common fuel supply Oil pans were cleaned and new bearings, pistons, rings and liners were installed in each engine prior to testing Oil sampling occurred every 500 hours

Cat DEO Proof of Performance

Oil Sump and Cam Case Cover

Competitive Oil

Cat DEO

l i O e v i t i t e p m o C

Sludge is a thick, dark, sticky material that attaches to surfaces. Overtime it can clog passageways, increase engine wear and lead to engine failure.

O E D t a C


Images of the oil sump and cam case cover taken after the test show significant buildup of sludge in the engines that used the competitive oil. Sludge buildup did not occur in the engines run with Cat DEO.


Cat DEO Proof of Performance Competitive Oil

Cat DEO

Pistons Hard, rough deposits were found on the pistons from the engines run with the competitive oil. Pistons protected with Cat DEO remained smooth with no deposit build up. Hard piston deposits can cause premature wear to cylinder liners resulting in increased oil consumption and decreased engine performance.



Cat DEO Proof of Performance Cylinder Liners Deposits and lacquer were found on the cylinder liners from the engines run with the competitive oil. The cylinder liners from the engines run with Cat DEO remained free of deposits with the crosshatching remaining clear and free of damage.

Competitive Oil

Cat DEO

As lacquer builds up on the liners it begins filling the crosshatching. Once the crosshatching becomes fully filled the cylinder loses oil control, resulting in the engine consuming large amounts of oil. If not caught in time, this may result in engine failure. GLOBAL DEALER LEARNING


Cat Hydraulic Oils

• Cat Hydo Advanced – The most advanced hydraulic oil on the market. Our exclusive additive package is unequaled in minimizing wear, reducing corrosion and eliminating water damage – all the while, providing up to three times the drain interval of standard hydraulic oils. It’s a formula designed to save customers money.

• Cat Multi-Purpose Tractor Oil (MTO) – Our multipurpose transmission and hydraulic oil is designed to meet the needs of your Cat hydraulic system.

• Bio Hydo Advanced – Readily biodegradable and non-toxic so that it can be used in environmentally sensitive areas without concern.



Cat Hydo Advanced

Cat MTO

Cat Bio Hydo Advanced

Use when:

Use when:

Use when:

•

Extending drain intervals up to 6,000 hours is valued.

•

When changing hydraulic oil every 2,000 hours is acceptable

•

•

Lowest operating cost is desired.

•

Lowest initial purchase price is desired.

•

Thedisposal costs of used oil are high –or doing so is difficult.

•

The proper disposal of used oil is easy and inexpensive.



Operating in environmentally sensitive areas.

Reference PEHJ03746



Cat HYDO Advanced

• Cat HYDO Advanced 10 is the best product for Cat hydraulic systems. Tested side by side under severe wear application conditions on Cat’s proprietary destructive piston pump test, Cat HYDO Advanced 10 clearly outperforms the SAE 10W standard hydraulic oil. • The piston pump is in excellent condition after 200 hours of testing with HYDO Advanced 10. • The piston pump tested with standard hydraulic oil failed after 178 hours.


200 hou rs HYDO™ Advanced 10 provides superior protection and prevents premature slipper socket wear


178 hours Standard Hydraulic Oil test was terminated early due to catastrophic failure caused by slipper wear

Hydo Advanced

78% savings on oil over a 12,000 hour period Additional Cost Savings: Disposal cost Labor Cost Increased Uptime



Reference PEDJ0088



Cat Hydo Advanced Proof of Performance

• Extended intervals possible with S∙O∙S – 980H: 12,762 hours • Service done through CSA

– 988G: 9,000 hours – 980G: 8,500 hours



Drive Train Oils • Cat TDTO – Transmission and drive train oil for transmissions, wet brakes and final drives

• Cat TDTO-TMS – Multiseasontransmission and drive train oil for transmissions, wet brakes and final drives

• Cat FDAO – Final drive oil for front wheels, differentials and final drives of off-highway trucks and final drives of large track-type tractors. FDAO allows for extended drain intervals in these applications

• Cat FDAO SYN – A fully synthetic final drive axle oil for front wheels, differentials and final drives of off-highway trucks and final drives of large track-type tractors. FDAO SYN allows for extended drain intervals in these systems and is designed for high production applications where uptime is critical.

• SATO – Special application transmission oil is a semi-synthetic oil that offers extended drain intervals in Advanced Powertrain Transmissions (CVT) as well as traditional powershift transmissions

• ATF HD2 – Transmission fluid that is fully synthetic for use in automatic transmissions GLOBAL DEALER LEARNING


Cat TDTO

Cat TDTO-TMS

Cat SATO

Use when:

Use when:

Use when:

•

Seeking up to 2,000 hours between drain intervals

•

Seekingup to 2,000 hours between drain intervals

•

•

Wide temperature variations are not expected on your job.

•

•

Cat TDTO is available in a viscosity to suit your needs. Consult your Cat dealer for local recommendations.

Seeking to utilize a single fluid capable of operating through wide temperature ranges, including the elimination of costly seasonal fluid changes.

Operating a machine with advanced powertrain transmission – Machines designated with XE (966 XE 966M XE, 972M XE)

•

Seeking to extend drain intervals when utilizing a machine with powershift transmission (950M, 962M, 966M, 972M, 980M, 982M)

•

•

The proper disposal of used oil is easy and inexpensive •


Cat TDTO-TMSis designed to operate in transmission temperature ranges from -20°C to 43°C (-4°F to 100°F). The disposal costs of used oil are high – or doing so is difficult.


* Should not be used in lower powertrain components including final drives, axles, and differentials

Cat FDAO

Cat FDAO SYN

Cat ATF HD2

Use when:

Use when:

Use when:

•

Seeking to extend the drain interval in final drive systems – up to 4,000 hours of operation

•

Seeking to extend the drain interval in final drive systems – up to 8,000 hours of operation.

•

•

The disposal costs of used oil are high – or doing so is difficult.

•

Maximizing the machine production is the most important criteria.

•

The disposal costs of used oil are high – or doing so is difficult.



In Cat vocational trucks with automatic transmission and other heavy duty automatic transmissions

Reference PEHJ0375



Transmission Drive Train Oil (TDTO)

• Optimized for Cat Transmission Systems – – – – –

Eliminates transmission slippage Increases clutch disk life up to 45% Controls brake chatter Increases machine break-out force Provides Improved protection against gear wear and bearing fatigue – Engineered as an integral part of Cat power shift transmissions, most wet brake compartments, and hydrostatic systems



Cat DEO and Cat TDTO Proof of Performance

• Customer operates 40 Cat machines conducting road and infrastructure projects • Customer used other readily available brand of oils and experienced significant increase in operation and maintenance cost • Dealer created a CSA agreement with customer utilizing Cat DEO for engine compartments and Cat TDTO for drive train and transmission compartments • Used S∙O∙S to justify extended drain intervals • $16,500 annual savings due to extended drain interval • 42% reduction in wear metals in critical components • Maintenance cost saving of $45,000



Reference PEHJ0431



Final Drive Axel Oil (FDAO)

• Allows for double-length drain intervals in off-highway truck final drives compared to TDTO and other transmission fluids – ~35% cost saving (doesn’t include savings due to decreased labor or increased up time and bearing life)

• Not appropriate for compartments with friction materials • Advantages – – – – –

Bearing and wear protection Pitting protection Inhibits rust and copper corrosion Oxidation protection at high temperatures Protects against foaming and damaging effects of air



FDAO Applications

• Track Type Tractors – D6 through D10: 2000 hour interval vs. 1,000 hr – D11: 500 hour interval vs. 250 hr

• Off-Highway Trucks – 4,000 hour interval vs. 2,000 hr



NGEO



NGEO


Cat NGEO Ultra

Cat NGEO Advanced

Use when:

Use when:

•

Seeking extended drain intervals.

•

Lowest initial purchase price is desired.

•

Lowest operating cost is desired. •

The proper disposal of used oil is easy and inexpensive.

•

Thedisposal costs of used oil are high –or doing so is difficult.

•

Maximizing the engine uptime is the most important criteria.


NGEO Proof of Performances

• PEHJ0432 – – – –

Customer operates 4 Cat Natural Gas Engines Switched from competitive natural gas engine oil to Cat NGEO Advanced 40 Extend drain interval from 1,000hr to 1,200hrs 15% cost savings

• PEHJ0542 – Customer operates a 13 CG260 natural gas engines – Switched from NGEO Advanced to NGEO Ultra 40 – 50% Oil drain interval extension (3,300hrs to 6,500hrs) – 50% reduction in downtime – 50% reduction in labor costs GLOBAL DEALER LEARNING


Reference PEHJ0432


Reference PEHJ0542


Gear Oil



Gear Oil Cat Gear Oil Use for: •

Sealed and lubricated track pins on track-type tractors and track-type loaders

•

Track-type tractor equalizer bar ends

•

Differential and final drives on Cat wheel-tractor scrapers, wheel and mini excavators and certain backhoe loaders

•

Differentials and final drives in specific articulated trucks

•

Excavator and motor grader circle drives

•

Cold planar direct drive transmissions, differentials and final drives

•

Drum bearings on vibratory soil compactors

•

Speed reducer on augers and elevators

* See SEBU6250 for proper selection of Gear Oil for your application



NEW PRODUCT INTRODUCTION (NPI) Oils


DEO-ULS API CK-4 Engine Oil Introduction

Why? • 10 years since API CJ-4, the last API specification change • CK-4 and FA-4 will represent the latest lubricant technology for heavy-duty diesel engines

Where? • Global impact to CK-4 and FA-4 • Primary applications in the United States, Canada, and Mexico

When? • First release date is December, 2016 • Customers may not see the new diesel engine oils until early 2017



December, 2016 Early 2017

Why a new oil specification? New industry standards are calling for both vehicle and engine designs improvements capable of: • Reducing CO2 and greenhouse gas emissions • Enhancing fuel efficiency in on-highway applications with lower viscosity SAE xxW-30 grade API FA-4 oils • Helping fleets meet their aggressive sustainability-related goals These improved engine designs require commercial vehicle engine oils with performance capabilities far designed to exceed those of the current CJ-4 category.



Two new sub-categories

CK-4

Enhanced replacement for CJ-4 oils (traditional HTHS*)

FA-4

Low viscos ity (low HTHS oils )

*High temperature/high shear



How will the 2 categories differ?

CK-4

Enhanced replacement for CJ-4 oils (traditional HTHS*)

•

Upgrade to today’s CJ-4 engine oils

•

Available in XXW-40 and XXW-30 viscosity grades

•

Recommended for all engines in off highway applications

•

Will deliver superior oxidation stability, aeration and shear stability

…compared to their CJ-4 counterparts

FA-4

Low viscosity (low HTHS oils )

• Improved fuel economy retention • Limited backwards compatibility • Only available in XXW-30 viscosity grade • Lower high temperature/high shear stability viscosity • Intended for newer engine technology to help meet EPA 2017 emissions requirements



CK-4 features Backwards Compatible

Improved High-Temperature Viscosity Control Improved Oxidation Resistance Enhanced Shear Stabilit y

Improved Oil Aeration



CK-4 Benefits Summary

• Better engine performance and durability • Enhanced equipment protection and performance in extreme operating conditions • Potential longer oil drain intervals when following Cat SEBU6250 guidelines for extended drain intervals • Optimal machine life and performance with Cat filters and S∙O∙S

179 GLOBAL DEALER LEARNING


S∙O∙S Services CK-4 Interpretation • Many CK-4 oils will have reduced Phosphorus (P) levels from current CJ-4 formulations. • Phosphorus levels of 800 ppm and lower will enable these oils to meet API “SN” claim for gasoline engine requirements for mixed fleets. • Cat DEO ULS 15W-40 and 10W-30 will have equivalent levels Phosphorus as the previous formulations and will not make the API “SN” claim for gasoline engines. • Other elements, such as Mg and Ca, will be rebalanced for optimized overall engine oil performance to aid in soot control, engine cleanliness, and acid neutralization. • CK-4 oils may have a higher starting Oxidation value as new oil compared to previous CJ-4.



Which products are impacted?

• Caterpillar has released a CK-4 engine oil, replacing its current CJ-4 engine oil commonly referred to as Cat DEO-ULS. • Caterpillar will not release a FA-4 engine oil. 

FA-4 engine oil it is not compatible with off-highway, heavy duty diesel engines, including all Cat engines.



What are Caterpillar’s Recommendations? Cat Engines

CK-4

FA-4 Off-Road Applications





CK-4

FA-4



On-highway Engines

CK-4

FA-4

• Only Cat DEO-ULS is validated to provide maximum protection for all your Cat diesel engineswhile meeting CK-4 requirements. • Cat DEO-ULS engine oils are backwards compatible • CK-4 engine oils are formulated for all diesel engine with previous API oil grades. applications. • Cat DEO-ULS can be your single CK-4 engine oil for all of your diesel powered equipment. • Both CK-4 and FA-4 engine oils can be used in onhighway applications. • FA-4 engine oils are formulated with a lower viscosity to improve fuel efficiency in select onhighway applications (consult your OEM guidelines).





Where to Find Details

Resou rces Available in CMIC PEJJ0128

FAQ Document for Dealers

PEDJ0271

Customer Facing brochure that explains CK-4 vs. FA-4

PEDJ0300

Marketing brochure for DEO-ULS

PEHJJ0159-09

Updated DEO-ULS Datasheet



Reference PEJJ0128 PEHJ0159 PEDJ0271 PEDJ0300 PELJ0251



What’s Coming – New Product Introduction (NPI)

• New package sizes available – 2.5 gallon container size

• ISO 220 Gear Oil • 4-stroke oil for portable generators



SELLING IT ACTIVITY


Sales Call Example

• You’ve got a customer who is not purchasing Cat Maintenance Products that you plan to call on to see if you can gain their business • Same Customer that is using Baldwin Filters, is currently purchasing Shell Oil. – Using Shell because it’s cheaper and does a good job. Shell’s an oil company, they know what they’re doing – They change their engine oil every 500 hours, hydraulic oil around 4,000 hours and are utilizing transmission oil in their final drives

• What would you do to convince them to use Cat Oil?



Site Requirements





This customer does general construction and measures their productivity in revenue/job Customer purchases $100,000 worth of

It is important to understand what product or Baldwin filters and states Cat is 15% more Where does the customer currently purchase their products the customer uses to identify areas where expensive, Customer purchasing 12,000 maintenanceproducts? Cat products can benefit and save the customer gallons of oil from Shell average price of money. $12.99/gal

Are there any additional services beyond the product itself that the customer requires or is receiving today? Examples would be delivery, stocking or consignment.

This will help you understand what additional services you can offer to bring value to the customer?

Labor rates may vary depending on where they Does the customer conduct their own maintenance conduct their maintenance, this will be a factor and repairs, utilize the dealer, or utilize a 3rd party when calculating the cost savings potential of Cat MaintenanceProducts. GLOBAL DEALER LEARNING


Baldwin provides delivery. Shell delivers and provided bulk tanks Customer conducts their maintenance and minor repairs in house and utilizes the dealer for major repairs

Equipm qu ipment ent Status Status This will help you understand your your opportunity, and can be used to calculate cost savings 68 potential with Cat products If the customer has competitive equipment, do How many pieces of competitive equipment does you have a parts offering to cover the competitive 27 the customer have? equipment? How many pieces of Cat equipment does the customer have?

What is is the customer's mac machine hine utilization utilization rate? rate? This will help you understand your your opportunity How many hours does the customer operate their and can be used to calculate the cost savings equipment per year? potential with Cat products Does the customer tend to purchase new equipment or used equipment?

If new, what kind of warranty or good will claims has the customer customer made? made? - Could these warrant warranty y claims be linked to maintenance products products

If the customer keeps their equipment, how long are their rebuild cycles? Does this meet their expectations, how does it compare to what you normally see for the same machine model and similar applications? Does the customer tend to keep their equipment for long periods or does the customer sell off their If the customer tends to sell off the equipment equipment equipment before it it reaches rebuild? rebuild? before the rebuild cycle, how long does the customer keep keep the equipment equipment for? Could they keep it longer? What unplanned downti downtime me and repairs do they have that could be linked to maintenanceproducts? aintenance products?



2,000 2,000 hrs/year hrs/year


The customer customer tends to keep their equipment.

Main Maintenance tenance and and Repair Repair History Histor y If so, You may be able to look into historical data and look at repair history while the customer was on Does the customer have or have they ever had any the contract and utilizing Cat Filters & Fluids vs. contracts, such as a MARC or CSA contract? when they are not on contract and using alternate products. Has the customer always utilized competitive products or have they purchased Cat Filter & Fluids in the past? If customer has used Cat Filters & Parts purchase history Fluids in past, is there any difference in unplanned repairs and downtime when the customer was using Cat Filters & Fluids vs. the competitive product? Have any inspections been completed on the If so, were any issues identified? Could those customer's equipment such as TA-1 or TA-2 issues be linked to maintenance products? Inspections?

Customer does not have any any contracts

History does not show the customer customer ever ever purchasing maintenance products from the dealer




Injector Injector purchases purchases – customer customer purchased purchased 156 injectors Hydraulic Pumps Pins

Does the customer have any re-occurring issues with their equipment? equipment?

Could the re-occurring issues be linked to Filters & Fluids? As an example, does the customer make frequent injector injector replacements? replacements? This could be a sign their fuel filters are not providing adequate protection.

Injectors



Main Maintenance tenance and and Repair Repair History Histor y Rebuild cycles cycles seem to be 15-20% less







This will help you understand what features you can Baldwin Filters What brand or brands of maintenance maintenance products products is is show the customer customer and what price differentiation differentiation Shell Oil the customer using? you may need to overcome Does the customer use Cat parts for one major class but will-fit for another type of part?




Maintenance interval will be used it determine the opportunit opportunity y with the customer. customer. Extended Extended intervals may be an opportunity with Cat Filters and Fluids.

Varies by compartment, 500 hour engine intervals, intervals, 4,000 4,000 hr hydraul hydraulic, ic, 1,000 hr transmission & drivetrain



• Based ased on the pre-wo pre-work rk some some areas areas we we can can focus focus on: on: – Hydraulic lic pump lif life – Drain inte interrvals – S∙O∙S Services



• Hydrau raulic pu pump life life – Cost of hydraulic lic pump ~$500

• Exten xtended Drain rain interv intervals als – Lets loo look at 1 compartment to keep the example simp imple – Hydraulic lic oil: il: The customer is purchasing ing approxima imately 400 gallo llons hydraulic lic oil annually lly at a cost of 12.99/gallon – They are changing ing their hydraulic lic oil every 4,00 ,000 hours – The change inte interrval Cat Hydo Advanced is 6,00 ,000 hours – Based on this this,, the the custom tomer would need to purchase 1/3 les less hydraulic lic oil (267 gallo llons) – 400 gallo llons X $12.99 .99 = $5,196 – 267 gallo llons X $15.39 .39 = $4,109 – $5,19 ,196 - $4,10 ,109 = $1,0 $1,087 87 savings on oil o il purchased p urchased – The custom tomer also lso has to disp ispose of 133 few fewer gallo llons of used oil GLOBAL DEALER LEARNING


• • • • • •

95 machines running 2,000 hrs/year = 190,000 hours of operation 190,000/4,000 hr drain interval = 47 oil changes 190,000/6,000 hr drain interval = 31 oil changes 47 – 31 = 16 fewer hydraulic oil Changes $50 (labor cost) X 16 = $800 in labor cost 16 more hours of machine uptime

• Benefit for the customer • $1,087 + $800 = $1,887 + 16 more hours of machine uptime & 133 fewer gallons of used oil to dispose of + $500 for the hydraulic pump that catastrophically failed that shouldn’ t have





• • • •




Grease Performance Addi ti ves

Basic Function Composition • Lubricate • Base oil – Type (Mineral, Semi• Keep out contaminates Synthetic, Synthetic) (Dirt, Dust, Water) – Viscosity • Prevent direct metal to • Thickener metal contact and provide – Metallic Soap prolonged component life – Lithium Complex – Calcium Sulfonate

• Performance Additives – – – –


Oxidation & rust inhibitors Extreme pressure Anti-wear Anti-friction


Thickener

Base Oil

Grease Product Offering

Cat Utility Grease Cat Prime Application Grease Cat Extreme Application Grease 1 Cat Extreme Application Grease 2 Cat Extreme Application Grease –Arctic Cat Extreme Application Grease – Desert Cat Ball Bearing Grease



Grease Properties

NLGI Grade

Thickener System

Moly Content

Application

Operating Temp Range

Cat Utility

2

Lithium Complex

0%

Low Load

-20 to 140°C -4 to 284°F

Cat Prime Application

2

Lithium Complex

3%

Medium Load

-20 to 140°C -4 to 284°F

Cat Extreme Application 1

1

Calcium Sulfonate

5%

High Load

-20 to 140°C -4 to 284°F

Cat Extreme Application 2

2

Calcium Sulfonate

5%

High Load

-15 to 140°C +5 to 284°F

Cat Extreme Application – Arctic

0.5

Lithium Complex

5%

Low Temp

Cat Extreme Application Desert

2

Calcium Sulfonate

5%

High Temp

-10 to 140°C +14 to 284°F

Cat Ball Bearing

2

Polyurea

0%

Low Load/High Speed

-20 to 160°C -4 to 320°F



-50 to 130°C -58 to 266°F

Lithium Complex vs. Calcium Sulfonate

• Lithium Complex – Less extreme/severe applications – Lower price

• Calcium Sulfonate – Better protection for extreme pressure applications – Higher price, but pays for itself in extreme pressure applications


How it Works - Calcium Sulfonate Grease


Grease Grease Sele Select ctor or Guide

• Consult onsult SEBU SEBU-625 -6250 0 for addit additional ional selection recom recomm mendations endations



Reference PEWJ0260 PEHJ0403



Utility Utilit y Grease Grease Pro Proof of of o f Perfor Performances mances • PWHJ0535 – Customer operates tes a granite ite mine ine and used 980H wheel loa loader to hand lar large, heavy bloc locks of granite ite – Utiliz ilize ed a multip ltipu urpose lit lithium ium grease, regreasing ing every 17 hours of operation ion – Switc itched to Cat Utilit ility y Grease and was able to extend grease inte interrvals to every 50 hours • • • •

Increase Increased d greas grease e interva intervall by 3 times times Reduce Reduced d grease grease consu consum mption by by 17% 17% Saving aving of of $1,40 $1,400 0 annu annually ally Decrease ecreased d dow down time time by 66% 66%

• PEHJXX JXXXX (World (World’s ’s largest largest airport airport project project – Istanb Istanbul, ul, Turke Turkey) y) • Custom ustomer operating operating 367 367 pieces pieces of of Cat equipm equipmen entt and evalua evaluated ted best best method for keeping their equipment greased • Evalua Evaluated ted simple simple lithium soap soap grea grease se and and Cat Cat Util Utility ity Grease Grease • Cat Util Utility ity grease grease in com combination bination with with a central central grease grease system systemresulted resulted in: – – – –

Decrea reased annual grea rease consumptio tion by 16% (16 (16,50 ,500 kg) $60,50 ,500 in saving ings due to red reduced grea rease consumptio tion $770,00 ,000 annual saving ings due to red reduced downtim time $481,00 ,000 annual saving ings due to red reduced lab labor costs



SEL L IN SEL ING G IT ACTIVITY A CTIVITY Grease


Sales Sales Call Example Exampl e

• You’ve You’ve got got a customer customer who who is not purchasing purchasing Cat Cat Maintena Maintenance nce Products roducts tha thatt you plan to call on to see if you can gain their business • Same ame Cus Custom tomer er that that is is using using Baldw Baldwin in Filters, Filters, and and She Shellll Oil is getti getting ng their their greas grease e from Granger – – – –

They’re ’re purchasing ing their grease for for $2,09 ,092.80 .80 for for a 400 lbd lb drum They purchase approxima imately 50,000 lbs lbs a year A drum of Cat Utili tility ty Grease is $2,26 ,260.23 A drum of Cat Extre treme Applic lication ion Grease is $2,64 ,644.46



Site Requirements





This customer does general construction and measures their productivity in revenue/job

Customer purchases $100,000 worth of Baldwin filters and states Cat is 15% more It is important to understand what product or expensive, Customer purchasing 12,000 Where does the customer currently purchase their products the customer uses to identify areas where gallons of oil from Shell average price of maintenanceproducts? Cat products can benefit and save the customer 8.59/gal money. Purchasing Grease from granger, $2,092.80 for a 400 lb drum

Are there any additional services beyond the product itself that the customer requires or is receiving today? Examples would be delivery, stocking or consignment.

This will help you understand what additional services you can offer to bring value to the customer?

Labor rates may vary depending on where they Does the customer conduct their own maintenance conduct their maintenance, this will be a factor and repairs, utilize the dealer, or utilize a 3rd party when calculating the cost savings potential of Cat MaintenanceProducts.



Baldwin provides delivery. Shell delivers and provided bulk tanks Granger delivers the grease Customer conducts their maintenance and minor repairs in house and utilizes the dealer for major repairs

Equipment Status This will help you understand your opportunity, and can be used to calculate cost savings 68 potential with Cat products If the customer has competitive equipment, do How many pieces of competitive equipment does you have a parts offering to cover the competitive 27 the customer have? equipment? How many pieces of Cat equipment does the customer have?

What is the customer's machine utilization rate? This will help you understand your opportunity How many hours does the customer operate their and can be used to calculate the cost savings equipment per year? potential with Cat products Does the customer tend to purchase new equipment or used equipment?

If new, what kind of warranty or good will claims has the customer made? - Could these warranty claims be linked to maintenance products

If the customer keeps their equipment, how long are their rebuild cycles? Does this meet their expectations, how does it compare to what you normally see for the same machine model and Does the customer tend to keep their equipment similar applications? for long periods or does the customer sell off their If the customer tends to sell off the equipment equipment before it reaches rebuild? before the rebuild cycle, how long does the customer keep the equipment for? Could they keep it longer? What unplanned downtime and repairs do they have that could be linked to maintenanceproducts?



2,000 hrs/year


The customer tends to keep their equipment.

Maintenance and Repair History If so, You may be able to look into historical data and look at repair history while the customer was on Does the customer have or have they ever had any the contract and utilizing Cat Filters & Fluids vs. contracts, such as a MARC or CSA contract? when they are not on contract and using alternate products. Has the customer always utilized competitive products or have they purchased Cat Filter & Fluids in the past? If customer has used Cat Filters & Parts purchase history Fluids in past, is there any difference in unplanned repairs and downtime when the customer was using Cat Filters & Fluids vs. the competitive product? Have any inspections been completed on the If so, were any issues identified? Could those customer's equipment such as TA-1 or TA-2 issues be linked to maintenance products? Inspections?

Customer does not have any contracts

History does not show the customer ever purchasing maintenance products from the dealer




Injector purchases – customer purchased 156 injectors Hydraulic Pumps Pins

Does the customer have any re-occurring issues with their equipment?

Could the re-occurring issues be linked to Filters & Fluids? As an example, does the customer make frequent injector replacements? This could be a sign their fuel filters are not providing adequate protection.

Injectors There are a limited number of machine that have had repeated pin replacements



Maintenance and Repair History Rebuild cycles seem to be 15-20% less







This will help you understand what features you can Baldwin Filters What brand or brands of maintenance products is show the customer and what price differentiation Shell Oil the customer using? you may need to overcome Does the customer use Cat parts for one major class but will-fit for another type of part?




Maintenance interval will be used it determine the opportunity with the customer. Extended intervals may be an opportunity with Cat Filters and Fluids.

Varies by compartment, 500 hour engine intervals, 4,000 hr hydraulic, 500 hr transmission & 1000 drivetrain Greases 2 times a week



• From the Pre-w Pre-work ork we we have have identifi identified ed the the following following areas areas of of foc focus us • Potential grease interval extension: extension: They They are currentl currently y greas greasing ing 2 tim times a week week – With ith agreement fro from the customer you conducted ted a study with ith the them and proved with ith the the Cat Utility grease they can grease 1 time a week

• You identi identifified ed that that the they y have have a few machines achines where where they they seem seem to have repeated repeated pin failures. Upon further investigation you find out these machines are in high impact applications that are hard on the pins. – You also lso recommend using ing extre treme applic lication ion grease on the machine ines tha that have had repeated repeated pin issues – you esti estim mate this is 10% of the theirir overall overall volume volume

• Automatic utomatic Lube system system could could save them them money oney – ensure ensure con consistent sistent grease grease application and eliminate downtime



• 50,00 ,000 lbs lbs / 400 400 lb drum rum = 12 125 drum rums • 125 125 drum drums X $2,0 $2,092 92.80 .80 = $261,6 $261,600 00 Spend on Grease today with w ith Granger • Decrease ecrease grease grease interval to wee weekly kly – use half half as much much grease grease (25,000 (25,000 lbs) • 25,00 25,000 0 lbs X 10% 10% = 2,500 2,500 lbs of Extre Extrem me applica application tion • 25,0 25,000 00 lbs X 90% 90% = 22 22,500 ,500 lbsof lbs of Utility Utility Gre Greas ase e • 2,50 ,500 lbs lbs / 40 400 = 7 drum rums • 22,50 ,500 lbs lbs / 400 400 = 57 dru drum ms • 7 drum drums s X $2,64 $2,644.4 4.46 6 = $18,5 $18,511 11.22 .22 • 57 drum drums X $2,26 $2,260.2 0.23 3 = $128 $128,83 ,833.1 3.10 0 • $18,51 ,511 + $1 $128.83 .833 = $147,3 $147,344 44 Spend wi th Cat Grease



• Grea rease Saving ings – $261,60 ,600 Spend on Grea rease tod today with ith Gran ranger – $147,34 ,344.30 .30 Spend with ith Cat Grea rease – $261,60 ,600 - $147,34 ,344.30 .30 = $114,255.7 $114,255.700 Saving on Grease Gr ease

• Time – – – – –

Time ime to Grea rease .25 .25 hr (15 (15 min) in) X 95 machine ines = 23.75 .75 hrs 23.75 .75 hrsX rs X 2 tim times a week = 47.5 hrsa rs a week 23.75 .75 hrsX rs X 1 tim time a week = 23.75 .75 47.5 – 23.75 .75 = 23.7 23.755 hrs a week week less downtime This could be reduced further with the install of automatic automatic lub e system

• Reduce Pin failu failure res s – How much does a pin cost?

• $114,2 $114,256 56 + 23.75 23.75 hrs of upti u ptime me + Fewer Fewer Pin replacements repl acements



Ag A g end en d a • Backgro rou und • Filters – Liq iqu uid – Air

• FLEET Fililte ters rs • Bulk Fu Fuel Filt Filtra ratio tion n • Fluids – Oilils s – Gre rea ase – Coolant

• • • •

Filters an and d Fluids Sale ales s Res esou ource rces s Batteries Plan lann ned Ma Mainte inten nan ance ce Kits Main ainten tenan ance ce Ser ervice vice Con ontrac tracts ts



Coolant

• Coolan lant is often ften overlooked • Over ver 40% 40%of prem premature ature engine failures are due to problems in the cooling system



Coolant Products – What’s the Difference? • Three main components of Coolant Additives •

Additives

Inorganic Acid Technology (IAT) (Conventional Silicate Containing)

•

Organic Acid Technology (OAT)

Water

(Extended Life Coolant)

Water •

Distilled or Deionized Recommended Antifreeze

Antifreeze •

Ethylene Glycol

•

Propylene Glycol



Coolant Additives – What’s the difference? • Additives – Inorganic Acid Technology (IAT)

OAT (Extended Life Coolant)

• Conventional Silicate containing • Forms barrier layer to protect

– Organic Acid Technology (OAT) • Extended Life coolant • Carboxylates protect –no barrier layer • Cleaner & Better heat transfer

IAT Coolant (Conventio nal) Layer of Silicates Metallic Surface


Layer of salt impedes heat transfer

IAT (Conventional Silicate Containing)

OAT Coolant (Extended Life) Inhibitors are


Metallic Surface

suspended in fluid and do not form a barrier layer

Coolant Antifreeze Freeze Point at 50% Concentration Compared to Water

• Ethylene Glycol vs. Propylene Glycol Cat Coolants utilize ethylene glycol – Protects at lower temp that propylene glycol – Has better biodegradability than propylene glycol – Has better heat transfer than propylene glycol

Water

Propylene Glycol

Ethylene Glycol

-40°C

-35°C

Biodegradability

-30°C

-25°C

15

20

25

30

35

40

45

Propylene Glycol

Days


-5°C

0°C

Best

Better

Ethylene Glycol

10

-10°C

Water

Ethylene Glycol

5

-15°C

Heat Transfer Characteristics

Propylene Glycol

0

-20°C


Good

5°C

Cat Coolant Products DEAC

NGEC

ELC

ELI

Diesel Engine Antifreeze Coo lan t

Natural Gas Engine Coolant

Extended Life Coolant

Extended Life Inhibitor

Addi tive Technolo gy

Conventional (IAT)

Extended Life (OAT)

Drain Interval (hrs)

3,000

12,000

Every 250 hrs

6,000 hrs

Supplemental Coolant Addi tive/Extender Addi tion s (SCA) Purchase Price

Lower than ELC

Higher than DEAC

Less than ELC

O&O Cost s

Higher the ELC

Lower than DEAC

Lowest

Leading Technology

Features/Benefits

Proven technology used for decades

Unsurpassedcorrosion and cavitation protection No Antifreeze– no freeze protection Environmentally friendly (no glycol)

Available in:


Concentrate

Premix


Concentrate and Premix

ELC vs. Conventional Coolants

12,000 Conventional

3,000 hr interval 44 additi ons o f SCA

12,000 hr interval 1 addition of Extender

ELC

Ratio Coolant Price

1

1.5

Coolant Changes

4

1

44

1

4

1

4

1

Supplemental Coolant s g (SCA) or n Additive i Extender Additions v a S Disposal Quantity Down Time

9,000

6,000

3,000

Conventional

SCA Added



ELC

Extender Added

ELC Proof of Performance

Conventional Commercial Automotive Coolant 5,300 hours

Cat Extended Life Coolant (ELC) 10,103 hours



Corrosion Test



Reference PEWJ0211 (ADSD) PEWJ0212 (APD) PEWJ0213 (EAME)



Cooling Systems and Nitrite Depletion Some cooling systems with newer aluminum components are experiencing very early nitrite depletion along with an ‘ammonia smell’ and coolant discoloration.

•

Cat recommends using Cat Cooling Conditioner for Aluminum Components (CCAC) – ‘Passivates’ the raw aluminum components – Dosage determined by system capacity

•

ELC Extender needs to be added to boost nitrite level ─ Dosage determined system capacity Cat Cooling Conditioner ELC Extender 416-2417

15.0mL

0.5 fl oz

369-0804

44.4 mL

1.5 fl oz

369-0805

73.9 mL

2.5fl oz


119-5152

0.946 L

1 quart

210-0786

3.785 L

1 gallon


Cooling System Cleaning Products • Cooling system cleaner needed when: – Changing from a conventional to a extended life coolant – Oil contamination in the cooling system – Scale, rust or other problems are present

• Reference SEBU-6250 for the cooling system cleaning procedure



Coolant Filters New Part Number

435-5142


Replaced Part Numbers 111-2369

9N-3366

111-2370

9N-3367

111-2371

9N-3368

111-2373

9N-3717

112-0926

9N-3718

117-0189

9N-6123

1W-5518

9Y-1022

•

Replacement for all the “blue” elements

•

No chemical additives inside

•

System must be dosed with liquid SCA’s Caterpillar Confidential Green

Reference PEHJ0448


Reference PELJ1586


NEW PRODUCT INTRODUCTION (NPI) Coolant


• ELC Advanced – Compatible with aluminum components – Resolves the nitrate depletion issues and eliminates the need for Coolant Conditioner for Aluminum Components (CCAC) – Available in 2018



SELLING IT ACTIVITY Coolant


Selling Coolant – Key Points

• Cat ELC – Lower O&O cost compared to conventional coolants – Slightly more expensive from a purchase price perspective – Delivers Significant Savings • • • • •

Extended drain interval – 12,000 hrsvs. 3,000 for conventional Best protection against cavitation and corrosion Less down time and Labor – Changing coolant and adding additives Less coolant to dispose Less opportunity for contamination to enter system

• For Customers who don’t need freeze protection and are utilizing a water based coolant – ELI provides superior protection than other water based coolants – Cost and environmental benefit due to no glycol





• • • •




Cat Filters and Fluids Resources

Filters

Fluids

www.CatFilterCrossReference.com

www.CatFluidSelctor.com

www.ChooseCatFilters.com

Filters and Fluids

Parts.cat.com

SEBU Documents

Posters

Cat Filters Connections Site

Cat Fluids Connections Site

Filters and Fluids Flip Book

Competitive Filter Display

Grease Counter display

Filters and Fluids App

Best Economic Value (BEV) Tool

Filters and Fluids Application Guide



Resources Flipbook Posters

Displays

PEWJ0319 PEWP9734

PEWJ0328 PEWJ0183 PEKP9420 GLOBAL DEALER LEARNING




• • • •




Cat Battery Options • Premium High Output -

Built to Cat specs Original equipment in large Cat machines Identified by Raised Logo & Part #

• General Service Line -

A quality line of batteries designed for less demanding applications that can support your customer’s total battery needs.



Battery Sales World Wide Battery Sales GSL 3%

GSL Sales by Region

PHO 97%



APD

4.34%

EAME

1.77%

ADSD-S

4.31%

ADSD-N

3.48%

Premium High Output (PHO) Batteries

• Cat PHO batteries are engineered to withstand the extreme conditions that Cat equipment faces – Vibration is the #1 killer of battery life – PHO batteries must pass 5 stringent performance test that other batteries cannot pass



What makes a Cat PHO Battery Different?



High Technology Plates

Optimum acid/paste combination resists material shedding and protects against shorts.



Rugged Elements Elements are locked at top and anchored at container bottom to resist vibration. Full frame grid increases durability and provides overcharge protection.



Robust Internal Posts

Thicker internal posts provide lower electrical resistance resulting in higher output under starting conditions.



Rugged Connectors

Through-partition connectors shorten electrical path and maximize starting power.



Premium Separators Microporous polyethylene separators provide protection against “shorts” and vibration damage.



Premium Separators

Flame arrestor safety vents reduce possibility of explosion from external sparks.



Forged Terminal Posts

Heavy-duty, forged terminal posts provide resistance to acid seepage.



Robust Cases/Covers Solid, Reinforced Case provides maximum vibration resistance in all temperature extremes. Side and Bottom brickwork prevents flexing and punctures.



Cat Specifications* vs Competition Caterpillar

Competition

100-hour Vibration Test

18 to 36-hour Vibration only

(5x) 72-hour Deep Discharge/Charge Test

NIL

30-day Discharge Stand

Similar Test with Much Longer Recharge Time Allowed

Cold Soak Test

NIL

SAE J2185 Heavy-Duty Life Cycle Test

Automotive-type Life Cycle Test Only

Toughest requirements in the industry; Built to perform in harshest environments GLOBAL DEALER LEARNING

*Meets or exceeds SAE J 537, SAE J 930, SAE J 1495


100 Hour Vibration Resistance Sales

18 Hours

100 Hours

Industry Standard Caterpillar Standard

5X the Industry Standard 5 g’s of force

DURABILITY



(5x) 72 Hour Deep Discharge/Recharge

• • •

Simulates radio or other electrical power left on for 72 hours Battery must recover to 25 charging amps within 20 minutes Means dependable battery power when needed

RECHARGE ABILITY



30 Day Complete Discharge / Recharge Test •

Tier 4 Regulations

• •

Discharged for 30 days Must recover to 25 charging amps within 60 minutes Must meet all electrical performance requirements successfully after recharging

•

RECHARGE ABILITY



Cold Soak Test

•

Batteries cold soaked in test labs

•

Sub-freezing temperatures

•

Must start an equally cold engine to pass

DURABILITY



SAE J2185 Heavy Duty Life Cycle Test •

Deeper discharge and charge cycles at extreme temperatures

•

Simulates heavy-duty, severe service applications

•

Completed 24%, 36% and 50% more cycles

•

Reliable in harshest environments and applications CYCLE ABILITY



Cat PHO vs Competition Interstate

•

3 out of 4 test batteries failed to achieve their advertised CCA

•

2 out of 4 failed to achieve their advertised Reserve Capacity



Cat PHO vs Interstate (cont’d)

•

None of the Batteries had any electrical capacity left to pass the required electrical discharge requirements after 100-hours of vibration testing

•

Significant vibration damage was found, i.e., dropped plates, torn separators and loss of active material



Battery Value Story Battery Test Plan

Testing is currently in process



•

Cold Cranking Amp Test

•

Reserve Capacity

•

100+ hour Vibration Test

•

Heavy-Duty Life Cycle Test

What Batteries to Stock Matters



Cat General Service Line (GSL) Batteries

• Available in most BCI sizes • High performance • Durable - long lasting product • Lower cost fleet solution



Temperature Effects on Battery Life Operating Temperature vs. Battery Life e f i L n g i s e d s ’ y r e t t a b f o %

100% 75% 50% 25% 0% 20

30

40

50

60

Temperature (°C) *This data is based on no water additions and usage of flat voltage regulator on charging voltage. Water additions and usage of temperature compensation of the charging voltage can prolong life of batteries.



Temperature Effects on Battery Life* • Maximum operating temperature for Caterpillar batteries is 52º C • When exposed to extreme heat – Results in wasted heat causing loss of water producing hydrogen and oxygen gasses – Excess heat is damaging to the plates and separators and causes bulging – Loss of water lowers the electrolyte level and increases specific gravity (SG) of electrolyte – Higher SG enhances positive grid corrosion – All of these factors contribute to loss of performance, dry out, shorter battery life and the potential for an explosion. • Batteries used in colder or moderate conditions can last between twice and three times as long as batteries used in hot climates – Colder ambient locations: life expectancy is approximately 48 and 54 months – Warmer ambient locations: life expectancy is approximately 18 to 23 months *This data is based on no water additions and usage of flat voltage regulator on charging voltage. Water additions and proper maintenance can prolong life of batteries.



Maintenance Free Accessible Design Benefits • Benefits of CAT MFA batteries compared to Low Maintenance (Hybrid), and Maintenance batteries are: – Safety: when properly maintained less likely to dry out, lowering risk of battery incidents. – More robust to overcharging – Less water loss – Longer useful or service life with capability of adding water – Longer shelf life due to a low discharge rate – Faster deep discharge recovery



Caterpillar Battery Price Comparison -Caterpillar is currently 26% more expensive than competitors when customers return batteries to competitors

In bulk deals CAT dealer do not utilize Recycling(core) credit • Focus on adding Recycling credits at point of sale • Need bulk pricing study Caterpillar Batteries Weighted Average Premiums* by Competitor - June 2016

50% 45%

44%

40% 35%

28%

30%

26%

25%

17%

20% 15% 10% 5% 0%

Deka Core Return

Exide Core Return

*Based on 2015 order mix



Interstate Core Return

Avg

Importance of Cat Battery Recycling Program to Customers, Dealers, and Caterpillar • Ensures every spent lead-acid battery dealers collect is 100% recycled— safely, efficiently and properly • Guarantees compliance with government disposal regulations • Helps Caterpillar maintain dealer net price level by reducing demand for virgin lead for new battery production • Allows the dealer to be more cost competitive by passing on the recycle credit to the customer



New Tools



New Battery Analyzer 484-4859. Capable of testing all lead acid batteries. Cat batteries can be tested by entering the Cat part number. Save test data, can be downl oaded to thumb drive, uplo aded to spreadsheet. Capable of fu ture cloud storage of battery t est data. Hand held portable. Will identif y near end of battery li fe.



Smart Charger Release 4th quarter 2016. Capable of charging all lead acid batteries. Cat batteries c an be charged w ith correct p arameters by entering Cat battery part numb er. Can also store charge info rmation. Will abort charging sequence if it detects a bad battery….saves time by not waitin g to fu ll time then testin g.



Register



Activity

• Analyze Battery





• • • •




Planned Maintenance Kits • This is a convenience and cost savings service that many customers value – Reduces the amount of time a customer spends identifying required service parts – Helps customers control inventory levels, parts have identified usage associated with them – Reduces prep time for the customer’s technicians, one box contains all required parts for the given service interval • Filters • Fluids • S∙O∙S Sampling

• Different dealers do this differently – Boxes Available • 332-1471 (16”x18”x12”) • 390-3319 (19”x18”x15”)

• Documented best practices available GLOBAL DEALER LEARNING


PM Kit Tool Available on parts.cat.com

• Select Planned Maintenance Kits from “Shop By Category” • Or scroll down when on home page



• Customer can enter serial # or drill down by equipment family/model



• Customers can add individual items to their shopping cart or can add all items to cart

Pulls in info from dealer system for fluids – make sure descriptions in your system make sense for customer facing





• • • •




Maintenance Contracts

• Maintenance Contracts are another service that provides convenience and cost savings for customers • Ensures the customer utilizes Cat products during the contract period • Critical this is discussed with the initial sale of the machine – Allows customer to lock in financing with purchase of machine

• Customers with CSA contracts report direct impact on – – – –

Productivity Machine availability Owning and operating costs Resale value


Maintenance Contract Options Parts Contract Parts and Service Contract Parts, Service and Repair Contract


Proof of Performance

• PEHJ0434 • Customer has 18 pieces of Cat equipment running in their gold mine – Used Cat parts throughout the warranty period, but had the practice of switching to another brand once the warranty period expired – After several years of running competitive maintenance products the company started to experience early hour failures, one on an engine

• After the engine failure, the company enrolled their entire fleet in maintenance contracts with their dealer – Experience prolonged component life – Reduced their cost per hour by 66%





• • • • •

Filters and Fluids Sales Resources Batteries Planned Maintenance Kits Maintenance Service Contracts Wrap up/Conclude



Preventative Maintenance Training Final

Recommend Documents