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Lowering

Component Costs
Thats My Final Answer!
BIU July 2001
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How Can We Lower Component
Cost Per Hour?
Reduce component repair & rebuild costs
Increase component lives
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Questions To Consider
Whats more important to component
lifedesign, maintenance or application?
Does the application of a machine affect
component lives and repair costs?
How significant are application changes to
component lives and repair costs?
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Questions To Consider
Does good maintenance really enhance
component lives and reduce costs? Is
contamination control important?
What has happened in the Component
Management arena since BIU in 1997?
Lowering
Component Costs
Then & Now
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Then (In 1995)
Unsatisfactory major mining component life
Noncompetitive component rebuild costs
Product reliability issues
MARC health issues
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Unsatisfactory Component Life
Original life too low in difficult applications
Component second life 75% of original life
Component third life 45% to 55% of
original life
Payload contributed
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Causes Of Second And Third
Component Life Shortfalls
Dealer rebuild process
Reman quality
Component R & I process
Others?
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What Is The MAJOR Contributor
To Component Life Shortfalls?
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Dealer rebuild process
Reman quality
Component R & I process
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Component R & I Process
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Dealer Audit Results
30
40
50
60
70
80
90
100
S
H
O
P

-

1
0
%
C
L
E
A
N
L
I
N
E
S
S

-

2
0
%
C
O
M
P
.

A
S
S
M
.

-

3
5
%
T
E
S
T
I
N
G

-

1
5
%
R
&
I

-

2
0
%
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What Did We Do?
Documented R & I process
Developed CGM rebuild/installation
certification process
Increased emphasis on R & I process control
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Completed CGM Certification Audits
1999: Finning Chile, Cashman, Westrac,
Hastings Deering, Gecolsa, Wheeler,
Finning Canada
2000: Cat Reman Facilities, Wyoming,
Rust, Ziegler
2001 YTD: Empire, Sotreq, Macrosa
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10/10/20 Payload Policy
No more than 10% of payloads may
exceed 1.1 times the target payload,
and NO single payload shall ever
exceed 1.2 times the target payload.
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Component Repair/Rebuild
Cost Reduction
Develop repair/rebuild strategy
Enhance repair before failure capabilities
Establish contamination control standards
and procedures
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Repair/Rebuild Strategy
Dealer rebuild is the preferred source for 1st
and 2nd rebuilds when volume justifies
Reman for 3rd or other high value rebuilds
Cat to provide reman piece parts at
competitive prices to support dealer rebuilds
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Now (In 2001)
Generally, lives of original components have
increased 20% to 30%, depending on application
Generally, lives of rebuilt components have increased
to 85% to 90% of new
Component Rebuild Certification Program producing
desired results
Value of the Certification Program recognized by
customers worldwide
Continued focus on the R & I process
Lowering
Component Costs
Contamination Control
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What Is Contamination
Control About?
Why Is It Important
To Our Customers?
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Contamination Is The Top Cause
Of Premature Wearout
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Believers
Newmont
Exxon-Mobil
Morrison-Knudsen
Simplot
Billiton
Caterpillar Inc.
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Effects Of Contamination
Hydraulic System experts attribute 75% to
85% of all component failures to particle
contamination in the fluid and NOT a weakness
in the system components.
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Component Life vs.
Contamination Level
ISO
22/19
21/17
20/15
19/16
18/15
17/14
16/13
15/12
14/11
13/10
12/09
Component Life Over Time
---

----------
----
Clean New Oil
C
o
n
t
a
m
i
n
a
t
i
o
n
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What Is Contamination?
Anything in a fluid that
does not belong
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Where Does Contamination
Come From?
Generated WEAR
Factory or Rebuild Assembly Process
Installation Process System
Debris from Previous Failure
Fluid Storage and Refill Practices
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ISO Standards
29 ISO Levels
Particle count doubles at each level
Contamination Particle Count
In 1 mL of Fluid
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ISO Code Chart
ISO Code
23
22
21
20
19
18
17
16
15
14
13
12
Number of Particles / mL
40,000 - 80,000
20,000 - 40,000
10,000 - 20,000
5000 - 10,000
2500 - 5000
1300 - 2500
640 - 1300
320 - 640
160 - 320
80 - 160
40 - 80
20 - 40
----- Very Clean (Fill Oil) -----
(16/13)
---- Clean (Hyd. System) ----
(18/15)
----------Very Dirty ----------
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ISO Cleanliness Code
Explained in ISO Standard 4406
Expresses amount of contaminant in
1 mL of fluid
15 microns 5 microns 2 microns
AC Calibration
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ISO Cleanliness Code
Caterpillar uses the 2 factor code:
Express as X/Y where
X # particles > 5 microns
Y # particles > 15 microns
e.g. ISO 18/15
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Cat Hydraulic
System Clearances
Particles You Cannot See Are Harmful!
MICRONS
Smallest Visible
To The Eye
40
Human Hair
80
2
Fuel
5
30
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Caterpillar Fluid Cleanliness Standards
Fill Oil ISO 16/13
Fuel ISO 20/17/13
Hydraulic Systems ISO 18/15
OHT Final Drives / Diff ISO 21/17
Transmissions ( Electronic ) ISO18/15
Transmissions ( Mechanical ) ISO 21/17
Engine Rollout ISO 18/15
Pumps & Governors ISO 16/13
Injector Calibration Fluid ISO 15/13
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Particle Counter
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Portable Contamination Kit
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150 GPM
Kidney Loop Cart
(5W-90W)
183-9301
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OHT Axle/Final Drive/Wheel
Gp./Diff. Off-Line Filtering
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90 GPM
Kidney Loop Cart
(5W-50W)
188-3242
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90 GPM
Kidney Loop Cart
(5W-50W)
194-2897
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Transfer Cart and Fluid
Recovery System
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When Do We Use Filter Carts?
When contamination exceeds specs
With extended oil changes
After any failure which created debris
After rebuild break-in
Fuel and oil dispensing
Worldwide Filter Cart Sales
NACD 37
COSA 20
CACo 21
CAPL 24
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What percent of your customers
presently employ contamination
control as part of their normal
maintenance program?
What do these customers say
about the benefits of a
contamination control program?
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How do you plan to increase
customer awareness of the
importance of a contamination
control program?
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What Is Contamination Control?
Awareness, Measurements, Standards
Build it Clean, Keep it Clean
Why Is It Important?
Helps maximize component life
Helps get lowest cost-per-ton
Lowering
Component Costs
Application Management
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How does machine application
influence component life?
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What application factors do YOU
think affect component life?
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Application Factors Like
Payload
- Overloading, Underloading
- Distribution10, 10, 20 Rule
Haul road condition
Haul road profile
Mine operational efficiency
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Powertrain Repair Cost Breakdown
793 Mining Truck
40%
4%
9%
7%
40%
Engine
Converter
Transmission
Differential
Wheel Groups
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A Case Of Overloading?
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Payload problems?
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An Increase In Payload Causes:
Decrease in component lives/Increase in costs
Wheel GroupsSignificant
DifferentialsSignificant
EnginesMay or May Not Be Significant
Slight increase in production
Insignificant change in fuel efficiency
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Where is the haul road?
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Lowering Component Costs
Component lives?
Machine productivity?
Fuel efficiency?
What is the impact of haul road rolling
resistance changes on:
And
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Are the changes significant?
And
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What additional costs will
those changes drive?
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What Is Rolling Resistance?
The force that must be overcome to roll
a wheel over a surface
Affected by ground conditions and load
Normally 1.5% of GMW per inch of
tire penetration
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Increase In Rolling Resistance Causes:
Decrease in component lives
Wheel GroupsSignificant
DifferentialsSignificant
EnginesMay or May Not Be Significant
Significant decline in productivity
and fuel efficiency
Increase in MARC costs
Significantly higher repair costs
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An Increase In Haul Road Grade
Alone Causes:
Significant decrease in differential and wheel
group lives
Minor changes in engine life
Minor changes in productivity
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Summary
Wheel Gp/Diff
Life
Wheel Gp/Diff
Life Cost/Hr
Engine
Life & Cost/Hr
Production
Fuel
Efficiency
Payload
Increase
Haul Road
Resistance
Increase
Haul Road
Grade
Increase
Significant
Decrease
Very
Significant
Decrease
Very
Significant
Decrease
Significant
Increase
Very
Significant
Increase
Very
Significant
Increase
Insignificant
Change
May or May
Not Be
Significant
No Change No Change
Significant
Decrease
Slight
Increase
No Change
Significant
Decrease
Insignificant
Change
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What Can You Do?
Emphasize the importance of minimizing
rolling resistance
Improve productivity
Lower fuel consumption and cost
Longer component lives
Lower component cost/ton
Keep motor graders and wheel dozers running
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What Can You Do?
Be alert to haul road profile changes
Steeper grades significantly reduce certain
component lives and increase cost/hr
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What Can You Do?
Emphasize the importance of
contamination control
Higher component lives & lower cost/hr
Reduced downtime from unexpected failures

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