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Last Updated

24 October 2008
Greenfield Guidebook GREENFIELD GUIDEBOOK
https://catminer.cat.com/greenfield
visit annually to download
the most recent version
INTRODUCTION
Developing a proposal for a greenfield mine site is a complex process.

The Greenfield Guidebook outlines the actions that should be taken


This guidebook is meant to and plans that should be developed between the initial customer contact
and equipment commissioning. These plans are developed at the same
be a high-level guide to assist time and are interdependent. For example, much of the Facilities,
Caterpillar and Dealers in Resources and Logistics Plan is dependent on the Maintenance and
Repair Plan, which is dependent on what level of service support the
knowing what questions to customer wishes to have. Furthermore, these plans are not set in stone.
ask and what issues must be Adjustments will be made as the customer changes their mind or the
business relationship changes.
kept in mind.
This guidebook is meant to be a high-level guide to assist Caterpillar and
It is not meant to be an Dealers in knowing what questions to ask and what issues must be kept
in mind. It is not meant to be an all-inclusive guide and it is not to be
all-inclusive guide and distributed to external parties. While providing some information, it will
also direct the reader to sites with additional information.
it is not to be distributed
to external parties. Please contact the local Caterpillar district office for information not covered
in this guidebook.
While providing some The purpose of pulling together the various plans discussed throughout
information, it will also this guidebook is to:
1. Document the customer’s expectations and what the dealer will
direct the reader to Web need to do to meet them.
sites with additional 2. Build a Greenfield Site Investment Analysis that captures the level
of investment required and the return on this investment.
information. 3. Use the Greenfield Site Investment Analysis to build an accurate
and profitable proposal.

A major greenfield project should be addressed as a project management


task with leadership goals and assigned accountabilities for the overall
outcome of the project. It is recommended that a project team be
assembled consisting of a project leader/manager with direct participation
from Product Support, Sales, Finance and IT, as required. The project
leader should stay with the project from start to finish—which could
encompass several years—to maintain continuity.

If the links are not working properly, please log in to https://catminer.cat.com and
copy and paste the link into the address bar.

Please note that this document references other documents. To download


them, an Internet connection is necessary (high-speed is recommended).
For efficiency, please be proactive and read it ahead of time to determine
what documents you may need to download to a laptop and/or print off.

© 2006-08 Caterpillar. All rights reserved.


Unauthorized use strictly prohibited.
GREENFIELD GUIDEBOOK
01
Caterpillar: Confidential Yellow INTRODUCTION
SUMMARY OF CONTENTS
03 PROJECT PROCESS MAP

04 CUSTOMER RELATIONSHIP DEVELOPMENT


These plans are developed 05 INITIAL SITE RESEARCH
at the same time and are (05) Application Description and Job Requirements
interdependent. Furthermore, (06) Equipment and Service/Support Needs

they will continue to change. (06) Mining Technology Products


(07) Government/Customer Regulations and Product Design
Adjustments will be made (07) Delivery Needs and Timing
as the customer changes (07) Geographic Description
(07) Financing and Credit
their mind or the business
relationship changes. 08 FACILITIES, RESOURCES AND LOGISTICS PLAN
(08) Facilities
(10) Materials, Parts and Components
(10) Equipment and Tooling
(11) Transportation
(11) Workforce
(12) Communications and Business Systems
(12) Technical Literature

13 SAFETY PLAN

14 MAINTENANCE AND REPAIR CONTRACTS (MARCs)

15 MAINTENANCE AND REPAIR MANAGEMENT PLAN


(15) Preventive Maintenance
(16) Condition Monitoring Plan
(19) Backlog Management
(19) Planning and Scheduling
(20) Component Management
(21) Contamination Control Plan
(22) Maintenance Strategy Reference (MSR)

23 OPERATOR AND TECHNICIAN TRAINING PLAN


(24) Operator Training Plan
(24) Technician Training Plan

25 WARRANTY AND GOODWILL MANAGEMENT PLAN


(25) Warranty and Goodwill
(25) Storage of Warranty Parts
(26) Communication Plan to the Customer
(26) Failure Analysis Processes

28 BUILDING THE PROPOSAL


(28) Tendering Plan
(28) MineEIA
(29) Greenfield Investment Analysis
(29) Proposal Development

© 2006-08 Caterpillar. All rights reserved.


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GREENFIELD GUIDEBOOK
02
Caterpillar: Confidential Yellow SUMMARY OF CONTENTS
PROJECT PROCESS MAP

Greenfield Process Map Last updated: 24 OCT 2008


Visit: https://catminer.cat.com/greenfield
annually to download the most recent
Start: Initial Customer Contact versions of the Greenfield Guidebook
End: Equipment and Support Commissioning and Process Map

36 Dealer meetings with customer


MONTHS to gather requirements Initial Site Research Investigate Customer

30
MONTHS Dealer Forms Project Team

24 Dealer meetings with customer Application decisions and Regulation and Equipment Service Create Repair
MONTHS to gather requirements service requirements Product Design and Support Needs FPO Completed Strategy-REMAN, Rebuild

18 Customer Facilities-PM, Fuel Team,


MONTHS Investment Analysis Washing, Warehouse, Emergency or Fire, Clinics

12 Machine Ordered- Project Manager Hired-Site PM Strategy-Software,


MONTHS Lead time contingent Warranty/Goodwill Established Financing and Credit Staff Identified Scheduling, Monitoring
It is “CRITICAL” to know this time line.

6 Facility Site Resources-Lights, Machine Transport-Permits,


MONTHS Power, Water, Air Roads, and Bridge Issues

Parts Logistics & Warehouse- Technical Training-Perform


5 Major Components, Parts Stocking, Maintenance and Tooling in Place-Repair, Calibration,
MONTHS Warranty Repairs, Diagnostics, Safety Plan Repair Mgt. Plan Lifting, Diagnostic, Checkout
Tooling Mgt., Assume under same Trouble Shooting
roof and site facility

3 MARC Maintenance & Repair-rate


MONTHS based on current capability-existing

1 Field Assembly-Tooling, Lifting Capability,


MONTH OJT Training during assembly and commissioning

0
MONTH MACHINES ARRIVE — When does the customer need the machines to be assembled & commissioned?

12 CRC Rebuild Capability-In place


MONTHS and functional

© 2006-08 Caterpillar. All rights reserved.


Unauthorized use strictly prohibited.
GREENFIELD GUIDEBOOK
03
Caterpillar: Confidential Yellow GREENFIELD PROJECT PROCESS MAP
Customer
Relationship
Development

The development of a solid customer relationship prior to the Aside from the obvious need to build trust, what else is important?
purchasing event is a critical success factor. In fact, it may be the
most important element of success. 1. Define and prioritize
expectations.
Large greenfield projects do not happen overnight. Mining
companies will often do exploration for years prior to taking the What does the customer want the dealer
project to a feasibility and developmental phase. It is during the to do? What level of involvement and risk
feasibility phase that the dealer will typically become more deeply sharing is the customer comfortable with?
involved. This allows the dealer to provide the customer with The dealer may think that by performing
product technical data, product support alternatives, capital and all maintenance he is removing responsibility
operating costing information, and other information appropriate from the customer. While this may be
to the project. This also allows the dealer to begin building the true, it also creates additional risk for the
relationship before the customer formally goes out to the industry customer, who must trust that the dealer
to tender bids. will follow through.

The feasibility phase of a large greenfield project can take several


years to complete. However, once the board approves the project 2. Dealer focus.
and the customer tenders bids, the execution phase begins and the The dealer must make somebody responsible
process rapidly accelerates. At that time, if a strong relationship was for working on the project to show the
built early in the project, the dealer can focus on the details of the customer that he is involved and dedicated
tender. Otherwise, in a critical and limited amount of time, the to the project’s success.
dealer will need to simultaneously establish a relationship and work
on the tender. It is very difficult to do both successfully. Access to
the customer’s people during the tender process is limited to
scheduled meetings. At that point the dealer could potentially be
viewed as just another supplier.
3. Agree to disagree.
There will be different views and opinions
whenever large dollar amounts are involved
and people are under pressure. It may take a
better understanding of each party’s views
and a willingness to compromise to get
through these areas of difficulty.

At the end of the day, relationships come down to human nature.


If a customer trusts and respects the project team, the dealer and
Caterpillar, the communications will be frequent and clear. If not,
the project team will be on the outside trying to look in.

© 2006-08 Caterpillar. All rights reserved.


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GREENFIELD GUIDEBOOK
04
Caterpillar: Confidential Yellow CUSTOMER RELATIONSHIP DEVELOPMENT
Initial Site
Research

The Initial Site Research is critical because it lays the foundation


for the plans that must be developed and feeds the overall sales
APPLICATION DESCRIPTION AND
strategy. The project team gathers and models the information
JOB REQUIREMENTS
to quantify and communicate: “What does the customer need The gathering of information on the application and what the
and want to do?" and, "How do we fit into those needs?” It customer is attempting to do begins very early. In many cases, the
must be kept current and communicated to all on the greenfield customer’s engineering team will still be formulating the site
project team. parameters while the project team will need to begin work with
rough estimates.
The broad research categories include:
The basic information needed includes:
• Materials being mined and their characteristics
Application description and job requirements » Abrasion
» Densities
» Fragmentation
Equipment and service/support needs
» Adhesion
• Annual tonnage or production rates
Government/customer regulations » Deviations such as operating hours vs. scheduled hours
and product design • Ore/mineral/waste routing
» How it will be loaded, moved and dumped
» What course it will follow
Delivery needs and timing
• Course grades and rolling resistance
• Bench height, width, length, etc.
• Highwall requirements
Geographic description
• Rippability
• Milling/Processing
• Hours
Financing and credit
• Timelines/Key milestones
• Climate/Annual variations

Other types of requirements that regulate and dictate some of the


application parameters must be identified and may include:
BROAD RESEARCH
CATEGORIES • Environmental
• Regulatory
• Geologic
• Market-based
• Risk-based
• Financing

© 2006-08 Caterpillar. All rights reserved.


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GREENFIELD GUIDEBOOK
05
Caterpillar: Confidential Yellow INITIAL SITE RESEARCH
The customer’s engineering team will have an economic plan that
details the annual/monthly production required from each major
material type. They will also have shift schedules and operating Additional Resources
• DOZSIM
hours that could limit when a particular spread of equipment is
https://catminer.cat.com/cda/layout?m=84543&x=7
operated or when a particular material category is mined. Given these
parameters, the customer will need dealer input on equipment • FPC
https://catminer.cat.com/cda/layout?m=98041&x=7
choices, productivity and costs. Also, they may have certain
• NPI
preferences. For example, they may prefer power shovels to wheel
https://catminer.cat.com/cda/layout?m=123703&x=7
loaders. MineEIA is a useful tool to demonstrate the value of one • Performance Handbook
piece of equipment over another. https://catminer.cat.com/cda/layout?m=84542&x=7

There will be an ongoing exchange of information as the mobile


• Site Assessment
https://catminer.cat.com/cda/layout?m=122642&x=7
equipment fleet is fine-tuned. The project team should work from
the production equipment and add support equipment as the
production equipment dictates. Also, understand the dealership’s
role with regards to non-Caterpillar machines. MINING TECHNOLOGY PRODUCTS
The project team’s primary role is in translating the engineering The application of technology continues to have a positive impact on
team’s plan into a language of quantities, material types, etc., that mining operations around the world. Caterpillar offers a complete
can be understood by the dealership and Caterpillar. Consult Cat suite of technology products purposely built for the harsh mining
Global Mining, the local Caterpillar office and/or other Caterpillar operational environment. Our products combine the latest GNSS
dealers if assistance is needed. positioning technology with sophisticated electronic control modules
and database tools to help miners increase productivity, monitor fleet
Additional Resources health and lower operating costs.
• MineEIA

https://catminer.cat.com/cda/layout?m=84541&x=7 • Aquila Drill Systems increase drill and blast operational


efficiency and accuracy

• Aquila Dragline Systems are used to track and analyze all


EQUIPMENT AND SERVICE / aspects of dragline operation, providing real-time feedback
SUPPORT NEEDS to the operator

The mobile equipment needs may be simulated based on the • CAES is used on loading tools, dozers and other auxiliary
application parameters given. Tools such as FPC (Fleet Production equipment to increase ore recovery and maximize productivity
and Cost Analysis) and DOZSIM (dozer simulation software
program) are able to predict productivity and can advise on: How • MineStar FleetCommander is a comprehensive mine
many machines are needed; when they are needed; and how they monitoring and control system that tracks assets, maximizes
should be configured. These tools can also determine the range of machine utilization, and improves productivity and
support equipment needed to support the fleet and general ore recovery
operations. The team should determine if the models in question
• MineStar Health provides actionable information about the
are new to the dealership and how New Product Introduction (NPI)
condition of a fleet of mining equipment
is likely to affect the equipment chosen.
Consult Caterpillar Global Mining or the local Caterpillar office
Support and service needs will be clearer once the best estimates for
for more detailed information. The Mining Technology contacts
the following areas are established:
can be found in Catminer on the Mining Technology page.
• Fleet makeup (new, used, non-Caterpillar)
• Quantity
• Hours required Additional Resources
• Catminer Mining Technology
• Local labor situation
https://catminer.cat.com/cda/layout?m=182822&x=7
• Customer preferences
• Third-party contractor needs

While the sales strategy may dictate a particular plan for support, it
is helpful to model a Site Assessment from the basic application and
fleet requirements. A Site Assessment provides a comprehensive
checklist of services that can be offered or supported in the proposal.
At the very least, it will provide a list of items to be discussed with
the customer in the early stages.

© 2006-08 Caterpillar. All rights reserved.


Unauthorized use strictly prohibited.
GREENFIELD GUIDEBOOK
INITIAL SITE RESEARCH
06
Caterpillar: Confidential Yellow
DELIVERY NEEDS AND TIMING
The delivery schedule may vary from the mine plan due to external
limitations that influence the timing. For example, the mine needs
10 trucks running in June 200X, but logistically and technically
only four can be assembled and commissioned monthly. How will
this spread be covered?

Depending on the customer's timing and mine plan, they may not
be able to commit within the time frame needed to meet the dealer’s
ability to secure equipment delivery and therefore production
requirements. Pioneering and site preparation work will likely
require a different spread of equipment and potentially several
contractors with varying needs of their own.

Questions to answer include:


• How will equipment be delivered?
• How will it be assembled and commissioned?
• What third parties are to be involved at the site?
• What are the third party equipment lists and needs?
• What assembly issues due to climate and/or location
could be encountered?
GOVERNMENT/CUSTOMER REGULATIONS
AND PRODUCT DESIGN GEOGRAPHIC DESCRIPTION
There are many federal, local and site regulations that drive A geographic description is very important in developing the
modifications to the machine, including: Emissions, environmental, Facilities, Logistics and Resources Plan. If the site is not well
ergonomic, operator comfort and safety. known a visit should be scheduled with the product support
manager to see conditions firsthand.
Governmental requirements and customer needs must be known well in
advance to ensure machines ship with appropriate attachments. Customers Questions to answer include:
should perform a risk assessment to identify any necessary modifications or • Where is the site?
additions to Caterpillar equipment to satisfy local safety requirements. The • What is the available terrain?
dealer should be involved in the risk assessments because it is their • How will it be accessed?
responsibility to have a solution tailored to local regulations and this may • What are the limitations of the access roads?
require significant non-Caterpillar attachments. Caterpillar provides very • How is it affected by seasons?
limited reengineering/modifications. Some dealerships have their own • Where is the nearest dealer branch located?
engineering departments to address these issues.

The team should consult the local Caterpillar district office and/or FINANCING AND CREDIT
Cat Global Mining to ensure that machine performance will not be Understand where and how the mine is securing capital and how
affected by non-Caterpillar additions. Dealers who have experience approvals are likely to flow. The same information is needed for any
with a particular attachment can also be contacted. In general, contractors who will have equipment/support needs. The dealer’s
machine structures and machine control systems should not be finance department must understand who the customer and the
modified without consulting Caterpillar. partners are and how to handle invoicing and credit parameters,
currencies, etc. Customer-specific financial parameters will need to
Environmental regulations, such as how hazardous materials (oil, be included in the deal strategy. If the customer is new to the
batteries, coolant, etc.) must be disposed of, differ widely by country, territory, contact others who have dealt with them on major projects
region and even site. Check local regulations. in the past.
Customer It is advisable to always contact Cat Financial early on a new project
Review Customer with Caterpillar. Do they have an Alliance with because they may be able to play a role in the deal strategy in support
Caterpillar? Do they have a purchasing pattern with Caterpillar? Do of the dealership or in certain aspects of the mine's financial needs.
they have a cultural preference for Mechanical or Electric Drive? Have
they worked successfully with other Dealers? Cat Financial can also play a role in the initial capital raising for a
site through project finance.
Also, investigate the customer needs outside of mining. Do they need
power on site, will there be dedicated rail on site, what other segments Cat World Trade may also be able to assist with the financial side
of the Dealership and Caterpillar need to be coordinated for this tender. of the transaction.

© 2006-08 Caterpillar. All rights reserved.


Unauthorized use strictly prohibited.
GREENFIELD GUIDEBOOK
INITIAL SITE RESEARCH
07
Caterpillar: Confidential Yellow
Facilities,
Resources and
Logistics Plan

The Facilities, Resources and Logistics Plan is intended to identify


the level of investment, types and general sizing of required facilities,
FACILITIES
and any significant facility, logistics or manpower issues. The required facility types and sizes will depend on a number of
factors, including:
The site, equipment choices and scope of site services may require 1. Maintenance and Repair Plan/Strategy
extraordinary investment in inventory, facilities (site and dealership), • Depending on the customer’s service and support
equipment, and labor training and availability. This must all be needs, there may or may not be a need for certain shops
identified for costing and quoting purposes. 2. Equipment Ordered
• Model and quantity
Other dealers with experience in similar geography, fleet size
3. Delivery Schedules
and makeup, and customers can be contacted for firsthand
• If the fleet size grows with time, a smaller facility may
experience.
initially be sufficient, but should be expandable
• Also, if a CRC is planned, it may not need to be
operational at the moment the first equipment arrives
4. Neighboring Dealers/Facilities
The Facilities, Resources and Logistics Plan defines details for:
• If a neighboring dealer has a branch near the site,
and the delivery schedule is such that the equipment
population is initially small, it may make sense to
The Facilities, Resources
and Logistics Plan defines details for: Facilities outsource some of the maintenance and repair work
to the neighboring dealer until it is economically
Materials, Parts justifiable to build facilities
and Components
5. Number of On-site Employees
Equipment and Tooling • How much office space is needed, housing, mess hall
Transportation transportation, etc.
6. Number of Part Line Items
Workforce
• The more items that need to be stocked, the bigger the
Communications and Business Systems warehouse may need to be
7. Features
Technical Literature
• Contamination Control
• Climate control
• Technical library
• Designated area for failure analysis
• Technician tool box storage (if applicable)
• Specialized tooling and equipment storage
• Designated parts and component storage (including
backlog parts)
• Dedicated hazardous material storage and disposal

© 2006-08 Caterpillar. All rights reserved.


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GREENFIELD GUIDEBOOK
08
Caterpillar: Confidential Yellow FACILITIES, RESOURCES AND LOGISTICS PLAN
The types of facilities may include: Important information that will need to be gathered includes:
• Warehouse • Machine width and height
• Shop • Height requirements to include overhead crane
» Truck • Future Expansion—machine size and fleet quantity
» Support Equipment • Side access for lift trucks
» Fabrication (welding, machining, & painting) • Number of people
» PM • Number of parts line items (indoor and outdoor storage)
» Tire Shop • Services that will be provided to efficiently position the tools
» Undercarriage/Track shop and services
» Fluid Analysis
• Wash pad/Oil separation system Additional Resources
• CRC • Facility Planning and Development overview

• Office https://catminer.cat.com/cda/layout?m=1776&x=7
• Housing, Mess, Commissary, Recreation • "Ideal" Sequence of Steps to Plan a New Facility
https://productsupportglobalcontent.cat.com/cda/components/fullArticle?m=19948
The location of shops (main, tire, fabrication, support equipment, &x=7&id=781681
light duty, machine washing, etc.) and assembly areas must be • Facility design services available
considered and may be impacted by mine expansion and machine/ https://catminer.cat.com/cda/components/fullArticle?m=1776&x=7&id=81570
fleet size increases.

Facilities are major capital expenditures and long-term investments.


The design and layout of a facility has a significant impact on Example of Shop Layout
quality, productivity and efficiency, and can affect dealer profitability
and customer base.

Cat Global Mining recommends contacting the Facility


Planning and Development Group, a valuable consulting service
available to Caterpillar dealers and customers who are planning
facility-related projects. This specialized group of dealer facility
consultants can provide various facility-related services.

Utilizing Caterpillar’s Facility Planning and Development group


from the beginning helps dealers avoid costly and time-consuming
“briefing sessions” with their architect/engineer. Also, Caterpillar
dealers have unique needs that require knowledge and experience
not typically found through architects or engineers. This process
begins with a questionnaire, which allows a conceptual plan layout
to be complete.

While site facilities offer obvious advantages, there is significant risk


in investing in property the dealership does not own. Alternative
arrangements with the dealership sharing site facilities with the
customer seems logical, but may lead to unexpected conflicts later
on. To the extent possible, the dealership must either provide for
their own on-site and off-site facilities or have an explicit
understanding of how facilities will be shared.

Dealer designated Parts and Service management will need to


coordinate with the customer and Caterpillar facilities representatives
to work through the design of the facilities early in the process. If the
dealer is responsible for the facilities, then the dealer will take the
lead role but will still need to involve the customer and Caterpillar
facilities representatives. Due to varying local laws and practices, the Additional examples can be seen at:
timeline for the facilities process could vary significantly. • https://catminer.cat.com/cda/components/fullArticle?m=1776&x=7&id=70353

© 2006-08 Caterpillar. All rights reserved.


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GREENFIELD GUIDEBOOK
09
Caterpillar: Confidential Yellow FACILITIES, RESOURCES AND LOGISTICS PLAN
PSel is a free Caterpillar software program that assists dealers and
MATERIALS, PARTS AND COMPONENTS
customers with Caterpillar parts stocking decisions. The program
Effective mine site support operations ensure availability of the right helps dealers establish dealer branch store and customer inventory
parts by maintaining an adequate parts inventory on site, levels and can be used as a sales tool to demonstrate parts support.
supported by an efficient external supply system. The identification PSeL 2.0 replaces Parts Consumption Lists.
of the right inventory for the different stages of a project requires
guidelines, continuous involvement of planning, and efficient Note: Dependent on rebuild strategy as well as Maintenance
parts supply system management. Dedicated parts and major and Repair Plan.
component storage should take into account quality,
maintainability and contamination control. Note: Strategic recommendations for Major Component (Rebuild
versus REMAN) sourcing is addressed in the Major Component
Once the major component, minor component, and parts Support Strategy (MCSS) tool.
stocking strategies are established, major/minor component sourcing
decisions must be made. Dealers may offer rebuild, REMAN, or
Additional Resources
repaired components. • PSel

https://catminer.cat.com/cda/layout?m=102048&x=7
These decisions would be affected by:
• Component replacement volume for territory (long term)
• Component inventory volume/turnover
(repair/rebuild urgency)
• Site volume/life EQUIPMENT AND TOOLING
• Site component needs vs. REMAN production Using appropriate and properly maintained equipment and tooling
• Site (country) REMAN import laws/difficulty helps ensure safety, efficiency and reliability of repairs and services.
» Check if customs and tax regulations will allow the Mine sites require significant remote management of equipment
re-exportation of core material and tooling which may require a more robust management system
• Dealer location and transportation logistics than traditionally employed.
(to site and parts depot)
• Dealer labor/skill availability Should include:
• Dealer technician development strategy • What special tooling is required for assembly and service
• Dealer capital availability • How the site will stay current on tool offerings
• Dealer rebuild vs. REMAN incremental profit • How tooling will be stored, inventoried and handled on-site
• Caterpillar incentives • How replacement tooling will be ordered
» Core seeding • How tooling for new machine model arrivals will be handled
» Investment loans • Who will own the tooling
» Warranty/policy commitments • Who will be responsible for tooling inspections and repairs
(for example, overhead and jib cranes)
Should include the following: • How tooling will be “checked out” and returned
• Recommended parts stocking (on-site and off-site)
• Shipping plans for inbound parts/outbound cores • How lost, missing, or broken tooling will be replaced
• Local warehousing • Number of: Diagnostic laptops, Electronic Technicians
• Importation routines and VIMS PCs, and other licensed electronic diagnostic
» Duties payable on parts software needed
» Will the mine operators be eligible for any special
tax considerations? Tool Watch (tooling inventory program) is recommended.
• Emergency shipping
• Restocking process Additional Resources
• Parts returns to Caterpillar • Tool Watch

• Warranty parts storage http://www.toolwatch.com/


• Transportation method (vehicle, rail, etc.)

© 2006-08 Caterpillar. All rights reserved.


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GREENFIELD GUIDEBOOK
10
Caterpillar: Confidential Yellow FACILITIES, RESOURCES AND LOGISTICS PLAN
May include the following
• Develop management/technician structure based
on customer’s needs
• Rostering requirements
• Number of shifts
• Scheduling (for example: two weeks on, one week off )
• Transportation
• Accommodations (who will provide and at what cost)
• Guidelines for expansion due to fleet growth
• Guidelines for attrition

Typical roles and responsibilities would include the following:


• Dealer Project Manager
» Day-to-day parts and service operations
» Key contact for customer site maintenance
superintendents
» Component rebuild forecasts
• Dealer Service Technical/Service Manager
» Coordination of repairs with customer at the site
» Role depends on the size of the project
» Oversees scheduling of dealer technicians
• Dealer Parts Manager
» Coordinates parts usage with Dealer Technical Service
Manager and customer workload planners
» Parts logistics
» Warehousing
TRANSPORTATION » Transportation
Dealers typically utilize the existing transportation offered through » Parts usage forecasts
the parts department. Evaluations should be considered to have
dedicated specialized transportation personnel and equipment to The Performance Metrics for Mobile Mining Equipment
manage all the transportation issues mentioned below. document provides useful information on the Maintenance Ratio.
The Maintenance Ratio is an indication of the amount of effort
• Equipment required to keep equipment in service, as well as the efficiency with
• Parts which the labor is deployed. It also includes the effectiveness of the
• Supplies workforce in carrying out its duties. The Maintenance Ratio is
• Personnel calculated by dividing Maintenance and Repair Man-Hours by
Operating Hours. However, before using the maintenance ratios
WORKFORCE given in this document to estimate the required workforce, make sure
Attention should be given to adequate manpower as it helps ensure to read the Usage section that describes the limitations of doing so.
early success and an improved customer relationship. Management
and technician structure should be developed based on the needs of As illustrated on the following page, the Maintenance Ratio is lower
the customer. This structure can range from just on-site technicians for off-highway trucks where the site performance is defined as
to a full maintenance department with project managers, planners, excellent versus poor. It is not realistic to say that a greenfield
fleet analysts and service billers. site will be operating at “excellent” immediately.

Parts and Service should be involved in developing the staffing


Additional Resources
requirements for on-site personnel. A review of existing staffing • The Performance Metrics for Mobile Mining Equipment Document.

should be considered if functions such as invoicing and warranty https://catminer.cat.com/cda/files/324297/7


will be conducted off site. • A student workbook can be found on KnowledgeNetwork
https://kn.cat.com/msgget.cfm?type=discussion&id=22084
linked via
https://kn.cat.com/message.cfm?id=151659&parent=56848&type=discussion

© 2006-08 Caterpillar. All rights reserved.


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GREENFIELD GUIDEBOOK
11
Caterpillar: Confidential Yellow FACILITIES, RESOURCES AND LOGISTICS PLAN
Figure one: Figure two:
Site Performance through Range of Off-Highway Maintenance Ratio Guidelines for Mining Machines
Truck Maintenance Ratios

Machine/Model Maintenance Ratio


.30 to .35 Excellent
High percent of scheduled downtime;
Equipment Management
Organization is highly proactive
16 MG .10 to.15

24 MG .15 to .20

992 / 994 WL’s .35 to .45


.35 to .40 Acceptable
Majority of downtime is scheduled; D10 / D11 TTT’s .40 to .50
substantial emphasis on Equipment
Management 5000 HEX .50 to .60

.40 to .50 Marginal COMMUNICATIONS AND BUSINESS SYSTEMS


Approximately half of all downtime is Communications and Business Systems should be efficient, accurate
scheduled; Equipment Management and timely. Site facilities may be hooked up via satellite, cellular or
discipline is not fully functional telephone lines. The dealer and/or Caterpillar may request access
to the Web through the customer’s “firewall(s),” not to access the
customer’s information, but to conduct the dealer’s and or
Caterpillar’s business as efficiently as the local infrastructure
will allow. Day-to-day business operations, such as work-order
.50 to .60 Fair management, invoicing and parts ordering, must have accessibility
to those systems. Also, two-way radios may be required on site.
Over 40% of downtime is scheduled;
minimal effort on Equipment Do not assume the dealer can utilize or “piggy-back” from the
Management customer’s system(s).

The dealer’s business resources and Information Technology (IT)


groups should work with the customer’s business resources and IT
groups and outside consultants (e.g., local telephone provider) as
> 0.60 Poor needed. For remote locations, the question of satellite connections
may need to be addressed.
Only PM’s are scheduled; Equipment
Management Organization is purely
reactive TECHNICAL LITERATURE
Up-to-date service literature is critical for efficient and effective
repairs. Consider including a technical library for service and parts
personnel to use and storage/access to SISWEB/SIS Disc and
paper literature.

• Determine how the maintenance and parts departments will


have access to technical literature
• Determine who, within these departments, will have access
• SISWEB terminals with high speed LAN access are highly
desirable
» SIS Disc is a fundamental requirement if the SISWEB is
not available
» Consider paper service literature where appropriate

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Caterpillar: Confidential Yellow FACILITIES, RESOURCES AND LOGISTICS PLAN
Safety
Plan

The Safety Plan should consider resource, equipment, facility and • Resources and Training
regulatory requirements to ensure safe operations before start-up. » Safety Manager
It will all impact the investment, staffing, and timeline of the overall » Safety Committee/Action Team
project. The plan evolves into an ongoing program, which in turn » Safety Certification
evolves into a core value to the business. » Safety Reporting and Tracking System
Metrics and Reports (integrated with mining
Up-front communication and planning is needed between the customers)
dealer and customer to ensure the participation of key personnel in » Safety Training
the program » Safe Job Procedures
» Off-Site Safety (driving, health, local issues, etc.)
The Safety Plan includes, but is not limited to:
» Equipment Plan
• Facilities and Equipment » Mining Machine Safety
» Appropriate ergonomic devices and tooling » Operator Safety Training
» First aid and medical treatment areas (e.g., eye-wash » Task Training
stations) » Hazard Training
» Fire and rescue equipment (ambulances, personnel » Proper walkthrough procedures to work on
carriers, fire and rescue vehicles) the equipment
» Access to life flight
» Abatement (sprinkler system, alarm systems, etc.)
» Personal protective equipment Additional Resources
• http://safety.cat.com/cda/layout?m=128061&x=7
• Regulations
» Adherence to safety, environmental and regulatory
• Catminer Safety Home Page
https://catminer.cat.com/cda/layout?m=195964&x=7
requirements are specific to regions of the world and to
• List of over 250 PowerPoint presentations on safety information, listed A-Z
local ordinances http://siri.uvm.edu/ppt/powerpt.html
» Contact the Caterpillar International Standards and • The Environment/Regulatory Links section features direct links to organizations
Regulations Group that discuss environmental and regulatory issues with a global perspective. Links
are listed by country.
https://catminer.cat.com/cda/layout?m=197561&x=7
• Contact the Caterpillar International Standards and Regulations Group
http://tsd.cat.com/etsd/index.cfm?fuseaction=view.tech&tech_id=8475

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Caterpillar: Confidential Yellow SAFETY PLAN
Maintenance
and Repair
Contracts

• Parts Only
MAINTENANCE AND REPAIR » Dealer provides major components and parts for
CONTRACTS (MARCs) running repairs while customer performs preventive
As it relates to Maintenance and Repair, maintenance and remove and installs
there are three types of customers:
1. Do it all for me The CSA Toolkit suite of software tools is approved by Caterpillar
» Dealer is hired to perform bumper-to-bumper service for developing rates and managing MARCs. It is a comprehensive,
2. Work with me end-to-end solution that represents a "win/win" situation for dealers
» Dealer provides counsel and expertise and customers. Solutions that not only increase customer satisfaction
3. Do it myself but also reduce exposure to risk for both parties. The CSA Toolkit
» Customer mobilizes staff, tooling, etc. to perform their consists of three PC applications: Builder, Calculator, and Analyzer.
own maintenance
• Builder customizes repair options based on the dealer labor
Each customer will, through due diligence, review the hour rates, parts prices, and other miscellaneous costs.
environmental conditions that must be overcome to perform
• Calculator uses the data from Builder to determine projected
equipment maintenance and repairs for a greenfield site. Each
costs of various repair options over a specific period of time.
will also have different requirements based on what they can
Dealers can customize contracts by including or deleting
currently do for themselves or are willing to invest in to keep
services, changing labor responsibilities, or incorporating
a service in-house.
inflation and other financial factors into multi-year contracts.
The customer will approach the local Caterpillar dealer for the pieces
• Analyzer sets a target budget
of the business that need to be supported (i.e. parts availability).
for the life of the contract ANALYZER
The dealer will need to evaluate the customer’s request and determine
prepared by Calculator. As
what support can be provided as well as the cost to deliver the
actual data accumulates
support. The other aspect of this evaluation is a non-current
against the contract, Analyzer
capability. If the customer requires a service the dealer does
can import the actual data to
not perform, the dealer will need to determine whether the BUILDER CALCULATOR

project costs, availability, labor


service opportunity is sufficient enough to invest in and
hours, and other key metrics.
deliver to the customer.
Once the MARC is in place, MARC Managers evaluate contract
Contract types developed to respond to customer needs include: performance trends for revenue and expense variance on a "to date"
• Full MARC and "remaining forecasted" basis that results in a projection to the
» Dealer performs all maintenance and repairs end of the contract. The time frames used enable managers to
(preventive maintenance services and all component react to ensure the business outcome.
removals and installs)
• Partial MARC
Additional Resources
» Customer performs preventive maintenance • MARCs

services, dealer performs remove, install https://catminer.cat.com/cda/layout?m=123101&x=7


and component rebuilds

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GREENFIELD GUIDEBOOK
14
Caterpillar: Confidential Yellow MAINTENANCE AND REPAIR CONTRACTS
Maintenance
and Repair
Management
Plan

The Maintenance and Repair Management Plan is a collection An Effective Maintenance and Repair Strategy includes element such as:
of short, medium and long-term activities that ensure the • Preventive Maintenance
accomplishment of key performance indicators (KPIs) • Condition Monitoring
established as goals for the machine or engine or fleet. The • Backlog Management
accomplishment of the goals requires constant validation and • Planning and Scheduling
adjustment of these activities or sub-processes to maintain them • Repair Management
on target and to effectively support the changes in the application • Parts Management
of the equipment. • Component Management
• Human Resources/Training
The Maintenance and Repair Management processes outlined below
• Performance Evaluation Management
will enable service and maintenance management and technicians
• Continuous Improvement
to effectively and efficiently perform their roles and responsibilities.
These roles and responsibilities must be defined and documented, Note: All of the above processes and activities should be documented in
and will depend on the type of customer: the Maintenance Strategy Reference (MSR).

Additional Resources
Do it all for me. • M & R Best Practices

https://catminer.cat.com/cda/layout?m=186641&x=7
Dealer is hired to perform bumper-to-
bumper service.
PREVENTIVE MAINTENANCE
Preventive Maintenance is defined as: High frequency, fixed-interval,
planned activities, including well-defined service routines, proactive
defect detection and repair execution that support the goals of
equipment reliability and availability. Effective, efficient and timely
Work with me. PM execution is a core strength of any successful mining operation.
Dealer provides counsel and expertise.
Field data analysis has shown the average downtime for
unplanned/unscheduled work is up to eight times greater than the
downtime for planned/scheduled activity. The Planning and
Scheduling department should track and manage the percentage of
work that is planned and scheduled through the use of coded work
orders or coded downtime hours.
Do it myself. Service Accuracy:
Customer mobilizes staff, tooling, etc. Determine how the preventive maintenance (PM) processes will be
to perform own maintenance. developed and implemented on site. Through effective planning and
scheduling, preventive maintenance (including lubrication services)
should be the highest cause of machine or engine downtime due to its
repetitive and consistent nature. Service Accuracy is a statistical
calculation that predicts the probability that the next PM service will
occur, and is used to measure PM performance.
© 2006-08 Caterpillar. All rights reserved.
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15
Caterpillar: Confidential Yellow
FLUID DATA
ANALYSIS ANALYSIS

DEBRIS CAPTURE MACHINE / ENGINE


DEVICES ELECTRONIC DATA

OPERATOR
INSPECTION
PRE-PM APPLICATION
INSPECTION REVIEW / ANALYSIS
WALK AROUND
INSPECTION
DURING PM SPECIALIZED MACHINE / ENGINE
INSPECTION MONITORING ELECTRONIC DATA
MACHINE APPLICATION SITE CONDITION
MONITORING MONITORING OBSERVATIONS
END OF PM SEVERITY
INSPECTION ANALYSIS
OPERATIONAL
OBSERVATION
PERFORMANCE OPERATIONS
TESTS DATA
PERIODIC FIELD
INSPECTION CONDITION
MONITORING

Lubrication services, as part of preventive maintenance (oil changes,


oil filter changes and greasing), should be tracked for accuracy and
CONDITION MONITORING PLAN
timeliness. The intervals and specifications for lubrication services Condition Monitoring is a proactive data collection and analysis
should be managed closely to the Caterpillar recommendations as process using machine or stationary engine and application
oils and their additives wear out and filters have finite capacity. data/information from multiple sources to assist customers and
Increased intervals from Caterpillar recommendations should be Caterpillar dealers in making informed decisions about application
managed using approved Caterpillar methodology and consultation effects, maintenance, repair, and component repair and replacement.
with the Caterpillar dealer. Consequences are abnormal and Ineffective condition monitoring increases the probability that failures
accelerated wear and damage, which result in lower component will occur and poor reliability of major components will result.
lives and increased costs and downtime. The customer and the dealer should decide and document (using
An effective PM program: MSR) who will be the site’s Condition Monitoring specialists. The
• Guarantees higher equipment availability
specialists will be responsible for the various activities relating to
condition monitoring within their respective organizations. Results
• Reduces non-scheduled repair time
of condition monitoring should be tracked, trended and analyzed
• Ensures customer and or Caterpillar dealer satisfaction at a in order for appropriate action plans to be executed and managed.
controlled cost The dealer and customer must periodically evaluate the results and
• Evolves/is dynamic make necessary adjustments.
Critical elements are: Condition Monitoring includes the following five routines:
• A well developed plan (use MSR) • Inspections
• An efficient planning and scheduling organization • Fluid Analysis
• Trained personnel • Machine Electronic Data
• Repair History Analysis
• Dedicated facilities and equipment
• Site Conditions
• Ongoing communication between parties responsible for
PM activities A more detailed description of these five routines follows:
Develop Inspection Routines
Additional Resources Operator inspection routines
• World Class Maintenance
• Operator feedback is critical to successfully attaining the
https://catminer.cat.com/cda/layout?m=122624&x=7
goals of early defect detection and failure prevention
• The Operation and Maintenance Manual for the applicable
• Well-trained operators can alert maintenance of important
machine/engine. See Operation Section (Walkaround, Before Starting
Daily Inspection) equipment performance symptoms that can lead
https://catminer.cat.com/cda/layout?m=51826&x=7 technicians to timely and accurate diagnostics and repairs
• Oil Renewal System • The Operator feedback process must be documented
https://catminer.cat.com/cda/layout?m=47242&x=7 (checklist) and formalized (backlog process)
• Preventive Maintenance Checklists (Mining Machines) » Input must be reviewed by a qualified technician before
https://catminer.cat.com/cda/layout?m=122565&x=7
it is transformed into repair action (immediate or backlog)
• Site Management
https://catminer.cat.com/cda/layout?m=122641&x=7 » Once repair action is deemed necessary it should be acted
• Fluid Cleanliness Best Practice upon in a timely manner to retain cooperative operator
https://catminer.cat.com/cda/layout?m=191444&x=7 feedback
» Updates/feedback to the operators is important so they
know their voice is being heard

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MAINTENANCE AND REPAIR MANAGEMENT PLAN 16
Caterpillar: Confidential Yellow
Field inspection routines
• Should be directed toward several objectives:
» To detect abnormal machine operating conditions
» To serve as the primary point of contact for the
operators’ technical concerns
» To perform regular inspections in the field
» To report any opportunities to improve the
application/operation of the equipment
• Normally guided by:
» Written checklists
» Up-to-date ranking of current machine problems
» Up-to-date report of all pending backlogged repairs
» Information about any special conditions being monitored
• Any new, unreported repair should be documented,
prioritized and a backlog entry generated and passed to • PM inspection documents should be dynamic and updated
the planning and scheduling department to reflect the latest maintenance and repair practices,
conditions and circumstances
Post-PM inspections
• Validate execution of the backlog
• Update backlog with incomplete or additional defects identified
• Can be used to measure the quality of the PM
» Maintenance personnel are briefed on omissions or errors
• Potential improvements to the PM process
• Understand local labor and management culture before
implementation

Develop Fluid Analysis Routine


Scheduled Oil Sampling (SOS™) program
• Used to monitor, analyze and trend oil, coolant and fuel
conditions
• Applicable to all fluid compartments and bulk fluid system
Pre-PM (Preventive Maintenance) inspection routines • A system should be in place to capture, ship, evaluate, trend
• Should be completed on every machine two to three days samples and report in a timely and consistent manner to
prior to PM facilitate decisions and act on results
• Should be accomplished in the field during a “window of • Some customers have their own analysis labs or acquire the
opportunity” such as shift change or refueling—avoid use of a third-party lab
creating a shutdown » Caterpillar dealer site personnel must have access or
• Accomplish a number of specific objectives, including: receive copies of sample results if the customer uses their
» Operator feedback own or a third-party lab
» Backlog validation • Develop particle count routines and order the necessary portable
» Defect detection particle count equipment and off-board filtration equipment
» Fluid sampling » Used for a variety of reasons, including:
» Electronic data downloading ° Monitoring the accumulation of particles in
• Performing these tasks in advance increases the conjunction with magnetic plug inspections
effectiveness of the next scheduled PM and facilitates the ° Validation of post-repair compartment, system and
allocation of all needed resources component cleanliness prior to releasing machine
PM inspection routines to work
• Present a unique opportunity to perform a thorough ° Off-board filtration control
inspection using the advantage of having a clean machine ° Onboard filtration management
or engine and a scheduled time window ° Assessing bulk fluid systems and new oil supplies
• Potential problems and substandard conditions can either be: » Yields a more complete picture of fluid condition
» Corrected immediately monitoring and component condition when used in
» Recorded as pending repairs and entered into the conjunction with the other fluid analysis and condition
backlog database monitoring routines

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Caterpillar: Confidential Yellow
Critical factors related to Fluid Analysis Repair History Analysis
• Fluid consumption: Top-up fluids are tracked and trended • Repair history may affect current and future repairs by being
for each compartment on every machine or engine and able to detect repeat failures
recorded on each fluid sample document • Develop repair and work order history process
• Magnetic Plug and Screen Inspections: The assessment (e.g. (electronic preferred)
size and accumulation) of particles on the magnetic plugs • A good system is able to accurately track all aspects relating
and screening devices triggers warnings to the Condition to repair history to include critical major piece
Monitoring specialist to follow-up and analyze area(s) parts/components as well as minor piece parts
under investigation
» Correlate with other condition monitoring activities Site Conditions Routine
• Machines should not be allowed to return to work without Develop Application Analysis Routines
meeting fluid system/compartment cleanliness • Measurement, analysis and response to changes in
specifications application is critical
• Fluid Inspections: Oil filter cutting, medium inspection • Can provide valuable information in the search for the root
and analysis cause of substandard performance, reduced component lives
and product failures
Machine Electronic Data Routine • Establish who will perform this analysis at the site and with
Establish Machine Systems Performance Tests for each model what frequency
in the fleet • Develop an undercarriage inspection routine for the track
• Necessary to assess:
machines in the Caterpillar fleet (and consider including
» The systems and components that are not monitored competitive machines)
by an electronic device • Update and adjust the Maintenance Strategy Reference
» The conditions that cannot be evaluated without (MSR) as needed
actually operating the machine/system
• Results obtained from these tests are typically reported in
Additional Resources
terms of flows, temperatures, speeds, pressures and time • Condition Monitoring/VIMS

• The parameters can then be compared against machine or https://catminer.cat.com/cda/layout?m=122587&x=7


engine service specifications or acceptable criteria (such as • VIMS
new machine commissioning Signature Baseline or https://catminer.cat.com/cda/layout?m=122549&x=7
new/dealer rebuild/Reman component rebuild testing • Technical Analysis 1 and 2 (TA1 and TA2) Inspections
results and or Signature Baselines) and trended to Access through Service Technician Workbench and Pocket PC
document any degradation in system performance over time • Component Based Troubleshooting (CBT)
https://cbt.cat.com/prod/prod/1/delivery/index.html
Develop routines for the acquisition and recording of Electronic • World Class Maintenance
Data and Prognostics for the fleet https://catminer.cat.com/cda/layout?m=122624&x=7
• Acquire the hardware and software to measure, record and • Application Awareness
analyze machine or engine data https://catminer.cat.com/cda/layout?m=122595&x=7
• Tools/Routines used to improve the analysis of the • The Operation and Maintenance Manual for the applicable machine or
data include: engine. See Operation Section (Walkaround, Before Starting, and
Daily Inspection)
» Signature Baseline tests: Completed at machine https://catminer.cat.com/cda/layout?m=51826&x=7
commissioning or after major component replacement • Scheduled Oil Sampling (S•O•SSM) Services
» VIMS data: Routine download (preferably wireless) of https://catminer.cat.com/cda/layout?m=122557&x=7
VIMS equipped machines • Performance Handbook
https://catminer.cat.com/cda/layout?m=84542&x=7
° Data should be merged, trended and analyzed with
exception reports/prognostics communicated by the • Service Tools for Mining and Support Products
(Service Tool links through SISWeb and Marketing Product Support Division
Condition Monitoring specialist to Planning and “MPSD” Website)
Scheduling for action or entry in the backlog system https://catminer.cat.com/cda/layout?m=122544&x=7
» Advanced prognostics: Contact Cat Global Mining
» RAC: Used to assess haul road conditions and
determine areas that need additional maintenance or
reconfiguration
» Tires: Using onboard systems or field observation, observe
TKPH (TMPH) and reduce haul speeds when limits
are reached
° Monitor tire wear and tire temperatures
° Particularly important for long hauls
© 2006-08 Caterpillar. All rights reserved.
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Caterpillar: Confidential Yellow
BACKLOG MANAGEMENT PLANNING AND SCHEDULING
Backlog is described as the accumulation of documented Proper planning and scheduling is the foundation of the entire
defects/problems that have been determined to be a potential maintenance program. Machine or engine uptime or mechanical
failure or shutdown and are scheduled for future repair. Scheduled availability is critically important to both the customer and the
repairs are more efficient because labor, parts, tooling and shop dealer who are involved in planning and scheduling for preventive
bay space are coordinated and organized. maintenance, and both minor and major repairs.

An effective backlog system is managed through the Planning and The planning and scheduling roles and responsibilities between the
Scheduling department and includes activities in four major areas: organizations must be defined and documented because the efficient
• Prioritization: Establishing repair priorities based upon the use of downtime is directly linked to the effectiveness and
likelihood of failure or shutdown should the repair be thoroughness of repair planning and subsequent scheduling. The
deferred to a “window of opportunity” Planning and Scheduling Department supports the entire
• Scheduling: Finding the right “window of opportunity” maintenance organization with specialized analysis of key performance
and keeping the amount of pending backlogs at a indicators (KPIs) or metrics and recommends the course of action(s),
manageable level which are then transformed into repair plans and schedules. This
• Estimating downtime and labor requirements
process of “maintenance engineering” should be a distinct person(s) or
group within the Planning and Scheduling department as
• Allocating parts according to the urgency
documented in the Maintenance Strategy Reference (MSR).
defined/documented
Dedicated parts backlog storage area/bins for each machine The Planning and Scheduling Department is the central resource
located in, and managed by, the Parts Department. for information as well as assisting and ensuring the smooth
performance of all processes and professionals within the system.

Additional Resources Planning and Scheduling is responsible for:


• World Class Maintenance • Preparation of the maintenance strategy and results management
https://catminer.cat.com/cda/layout?m=122624&x=7 • Defining “tactical” and “logistical” planning functions
• Site Management • Planning and scheduling of machine or engine stops for
https://catminer.cat.com/cda/components/fullArticle?m=122641&x=7
maintenance and repairs
• Management of scheduled component repairs and replacement
• Scheduled ordering and pre-ordering of replacement parts
in a timely manner to ensure a smooth running
maintenance schedule
Application Impact On Haulage Component Lives

Wheel Gp/Diff Wheel Gp/Diff Engine Life Production Fuel


Life Cost/Hr Cost/Hr Efficiency

PAYLOAD SIGNIFICANT SIGNIFICANT INSIGNIFICANT SLIGHT INSIGNIFICANT


INCREASE DECREASE INCREASE CHANGE INCREASE CHANGE

HAUL ROAD VERY VERY MAY OR MAY


SIGNIFICANT SIGNIFICANT NOT BE SIGNIFICANT SIGNIFICANT
RESISTANCE DECREASE DECREASE
INCREASE DECREASE INCREASE SIGNIFICANT

HAUL ROAD VERY VERY


GRADE SIGNIFICANT SIGNIFICANT NO CHANGE NO CHANGE NO CHANGE
INCREASE DECREASE INCREASE

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Caterpillar: Confidential Yellow
• Utilizing machine/engine stops (including tire stops) as Even though changes in maintenance and design occur,
windows of opportunity for reduction of the repair backlog application changes can have significant impact on component
• Orientation and optimization of available labor, shop space, lives. Two application factors that should be jointly focused on and
tools and equipment managed by the site production, maintenance and Caterpillar
• Providing recourse so that the service shop and parts dealer for haulage are: payload and total effective grade.
warehouse perform respective relevant activities
• Identifying training needs and opportunities Achievement of component life goals depends on the correct
• Collecting and maintaining data related to service and implementation and management of all routines involved, including:
technical support
• Management (measuring/reporting/controlling) of the results of
all equipment maintenance metrics and performance indicators
• Evaluation and documentation of fleet and contracts
Key
performance Performance
Indicators
Additional Resources Preventative Inventory
• Performance Measurement and Benchmarking Maintenance Control and
Logistics
https://catminer.cat.com/cda/layout?m=122624&x=7
• Maintenance Metrics (pdf)
https://catminer.cat.com/cda/files/316689/7
• World Class Maintenance Planned
https://catminer.cat.com/cda/layout?m=122624&x=7 Component COMPONENT Storage
Rebuild (PCR)
Program LIFE GOALS
COMPONENT MANAGEMENT
Component Life Management is a vital tool in reducing operating
costs. Major components are known to be the most significant Remanufacturing
Removal and
factor in overall repair and maintenance costs. A good component Installation
management system is able to accurately track all aspects relating Component
to component life history. Rebuild

If the Caterpillar dealer is responsible for component life tracking,


the dealer’s business system should be employed in conjunction
with Caterpillar’s Major Component Tracking System (MCTS).

Depending on the involvement in component management


between the customer, the Caterpillar dealer site and component Additional Resources
• Major Component Tracking System
rebuild center personnel, a communication plan should be
https://catminer.cat.com/cda/layout?m=122591&x=7
developed and implemented. Analysis of relevant condition
• Improving Component Durability:
monitoring, site conditions and application data should be Engines, Fuel System, Powershift Transmissions, Final Drive and Differentials,
disseminated to all involved. Action plans should be developed and Hydraulics, Component Removal and Installation
implemented from these analyses to improve component life. https://catminer.cat.com/cda/layout?m=122589&x=7

The factors that affect component costs are parts, labor and
component lives. The major factors that affect component lives are
design, maintenance and application. Refer to “The Impact of
Application on Component Life and Costs” presentation in the
Additional Resources box. The chart below illustrates how
application impacts component lives. Note the significant impact
of haul road resistance and grade on component lives.

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Caterpillar: Confidential Yellow
Tooling
CONTAMINATION CONTROL PLAN
• What tooling will be required for Contamination Control
Second to a strong machine and engine preventive maintenance
on site
and inspection program, the most significant process that can be
• Who at the site will stay current with tooling updates
adopted and performed to enhance machine efficiency, lower
operating costs and maximize machine longevity is to keep Training
machine and engine fluids and respective compartments as clean • How initial and subsequent Contamination Control training
as possible. will be managed
• Who will perform the training
Contamination Control practices as they relate to machines and Costs
engines should be incorporated into the maintenance and repair • How the capital costs for bulk fuel and oil filtration,
strategy, practices and procedures. Contamination Control also machine modifications, off-board filtration carts and particle
extends to the supply and storage of fluids. counter will be handled
Caterpillar plants and Caterpillar dealers are placing an increasing Evaluation Process
emphasis on fluid contamination control. Standards have been • How and when periodic reevaluation of a mine site’s
established that are being implemented worldwide. A contamination Contamination Controls will be completed
control program must be established and clear roles and
responsibilities for the customer, dealer and Caterpillar must
be defined and documented. Additional Resources
• Contamination Control

https://catminer.cat.com/cda/layout?m=3590&x=7
It is suggested the Condition Monitoring Specialist(s) manage the • Application Awareness
on-site contamination control process. https://catminer.cat.com/cda/layout?m=122595&x=7
Considerations: • The Impact of Application on Component Life and Costs (ppt)
Contamination Control processes https://catminer.cat.com/cda/files/319238/7
• Establish a Contamination Control plan that include metrics • Caterpillar Large Off-Highway Truck Overload Policy (pdf)
https://catminer.cat.com/cda/files/22501/7/Truck%20Overload%20Policy.pdf
» Who will be responsible for establishing and
• Reman
monitoring the various aspects of the plan https://catminer.cat.com/cda/layout?m=122530&x=7
» Consider performance cleanliness targets for machine • Engine Management Guide—Caterpillar media number PEDP7028-01 (pdf)
system/compartment, shop and field and repair, and https://catminer.cat.com/cda/files/223829/7
bulk fluid supply and storage • Transmission Maintenance Guide—Caterpillar media number
• Machine compartment fluid targets PEGJ0039 (pdf)
https://catminer.cat.com/cda/components/secured
» Who will be responsible for maintaining machine
File/displaySecuredFileServletJSP?fileId=703879&languageId=7
compartment fluid cleanliness • Hydraulic System Management Guide—Caterpillar media number
» How and when samples will be taken, how results will PEGP6028-04 (pdf)
be interpreted and how intervention will be determined https://catminer.cat.com/cda/files/223883/7/PEGP6028-05.pdf
» Best practices are available to assist with managing fluid • Bearing Maintenance Management Guide—Caterpillar media number
PEGJ0037 (pdf)
cleanliness targets
https://catminer.cat.com/cda/files/286023/7
» Set a Contamination Control goal (e.g., 3 Star) ServletJSP?fileId=286023&languageId=7
• Shop and field repair • Defending Undercarriage Business
» How the recommended practices for Contamination https://catminer.cat.com/cda/layout?m=50081&x=7
Control will be integrated into the shop and into • Undercarriage Maintenance Guide—Caterpillar media number
maintenance and repair processes PEGP5027-02 (pdf)
https://catminer.cat.com/cda/files/12147/7
• Bulk fluid storage, filtration and analysis
» How bulk fluid is going to be delivered, handled, and
stored on site
» Filtration requirements for the bulk tanks
» Filtration requirements for the shop
» How and when samples and particle counts are taken,
analyzed, and acted upon and how intervention will
be determined

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MAINTENANCE AND REPAIR STRATEGY MANAGEMENT PLAN
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Caterpillar: Confidential Yellow
MAINTENANCE STRATEGY REFERENCE Additional Resources
Maintenance Strategy Reference (MSR) establishes and documents • Maintenance Strategy Reference

a common strategy between the customer’s production and https://catminer.cat.com/cda/layout?m=122645&x=7


maintenance departments, the dealer and Caterpillar. • MSR Philosophy Document (pdf)
https://catminer.cat.com/cda/files/239428/7/Philosophy.pdf
• MSR Customer Brochure (pdf)
MSR takes into account: https://catminer.cat.com/cda/files/239571/7/MSR%20Customer%20Brochure.pdf
1. Financial (total equipment lifecycle cost) • MSR Dealer Value Story
2. Application (current and intended) https://catminer.cat.com/cda/layout?m=122645&x=7
3. Maintenance practices and processes • MSR Template Downloads for various mining machines
https://catminer.cat.com/cda/layout?m=122646&x=7
Properly planned and executed maintenance and repair of a fleet • Mining Project Manager's Toolkit Link
(or even a single machine or engine) maximizes uptime to meet or https://kn.cat.com/cat.cfm?id=6232
exceed production and maintenance requirements. MSR is • MSR 2.0 Training
designed to document all facets of fleet and/or machine or engine https://catminer.cat.com/cda/layout?m=122647&x=7
maintenance, including customer verses dealer responsibility for • MSR Caterpillar Contacts
each activity. The repair management processes should include https://catminer.cat.com/cda/layout?m=122648&x=7
inspections, fluid analysis, machine or engine electronic and VIMS • Product Support Training
data, application-site analysis, work order history and failure https://catminer.cat.com/cda/layout?m=122636&x=7
analysis. Other factors documented in MSR are the present and • Caterpillar Performance Handbook
https://catminer.cat.com/cda/layout?m=84542&x=7
expected changes in site conditions and machine application(s). All
of these can affect the maintenance and repair strategy.

The MSR document should be dynamic and reviewed/updated as


circumstances change. Ultimately the recommendations from a
MSR should reside in a site's working maintenance documents.
(Maintenance Standard Jobs, Schedule, Maintenance Plan)

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Caterpillar: Confidential Yellow
Operator and
Technician
Training Plan

Training is an important function that supports the organization with The Operator and Technician Training Plan should be developed
specialized guidelines and knowledge of the different areas and for multiple reasons:
phases of the site operation.

A sound operator and technician training program is key to the


success of a given proposal. There is significant value in providing
or selling these services as a part of the overall agreement with 1. Customer Support
the customer. To demonstrate the dealership’s ability
• Training activities must be estimated based on the needs of to support the customer.
the entire project
• Some of the training cost may be built into the proposal
while additional periodic training may be quoted on a
flat-rate basis
• A clear agreement is needed as to when machines will be
made available for both operator and technician training
2. Training
after machine commissioning To clarify what training the dealer will
provide and what training will be at an
added cost or provided by the customer.

3. Quantify the Cost


To quantify the cost of delivering the
specified training.

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Caterpillar: Confidential Yellow OPERATOR AND TECHNICIAN TRAINING PLAN
TECHNICIAN TRAINING PLAN
1. Determine who (customer, dealer, Caterpillar) will deliver
maintenance and technical training.
2. Develop the skills inventory. Define the specific skills needed
by PM and repair technicians at both the mine site and
the dealership.
3. Identify training staff required. Estimate the number of
maintenance and repair technicians to be trained (see
Facilities, Resources and Logistics Plan). Define the training
instructors required to deliver the needed training in an
acceptable time frame.
4. Identify available training. Identify available training courses
and materials needed.
5. Identify gaps in available training. Identify and cost needed
training courses and materials not currently available. Work
with marketing profit center and Marketing Product Support
Division (MPSD) to ensure that needed resources are
developed and provided in a timely manner to support
fleet mobilization.
6. Identify the training required for dealer service instructors.
OPERATOR TRAINING PLAN Training should include the operation and maintenance
1. Determine who (customer, dealer, Caterpillar) will deliver manual, inspections, safety, braking, VIMS category 1, 2, 3
operator training. events, alarms, lights and how to read and use the message
2. Develop the skills inventory. Define the specific skills needed center and all specific equipment operating systems.
by operators. • Service Training Meeting Guides. Dealer instructors use

3. Identify training staff required. Estimate the number of service training meeting guides to develop their
operators. Define the number of training instructors required training packages.
• Service Training Classes. CAT Service Training is used to
to deliver the needed training in an acceptable time frame.
train dealer instructors on proper maintenance and repair.
4. Identify available training. Identify available training courses Training classes need to provide training on engines,
and materials needed. powertrain, electrical and electronic systems, hydraulic
5. Identify gaps in available training. Identify and cost needed systems, VIMS, CMS, contamination control, leak detection,
training courses and materials not currently available. Work welding, joints, fluids and levels, safety, hoses and harnesses
with marketing profit center and Marketing Product Support and clipping.
Division (MPSD) to ensure that needed resources are 7. Additional resources for technician training.
developed and provided in a timely manner to support
fleet mobilization. 8. Dealer training classes for technicians. Dealer instructors
should periodically assess the skill levels of technicians. Refer
6. Identify the training required for dealer operator instructors. to Skills Assessment.
Training should include the operation and maintenance
manual, inspections, safety, braking, VIMS category 1, 2, 3
events, alarms, lights and how to read and use the message Additional Resources
• Product Support Training
center and all specific equipment operating systems.
https://catminer.cat.com/cda/layout?m=122636&x=7
• CAT Equipment Training Solutions Group offers training
• Global Service Learning and Performance
to Dealer operators, Level I, Level II, Level III and can https://productsupportglobalcontent.cat.com/cda/layout?m=120203&x=7
include; Caterpillar operator certifications, site visits and • Immersive Technologies
specialized performance training. http://www.immersivetechnologies.com/
• Advanced training for dealer operator instructors includes:
Caterpillar Certified Dealer Instructor Training Course.
7. Additional resources
• Contact the Cat Global Mining Account Manager
for information on machine simulators if needed.

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Caterpillar: Confidential Yellow OPERATOR AND TECHNICIAN TRAINING PLAN
Warranty and
Goodwill
Management
Plan

Warranty and Goodwill administration can often lead to confusion Additional Resources
between customer, dealers, and Caterpillar. To avoid -Marketing Profit Center sites
• NACD
misunderstandings down the road, it is recommended that a https://nacd.cat.com/infocast/frames/psfulfill/warranty/
Warranty and Goodwill Management Plan be created prior to, • LACD
and discussed at the time of the proposal. https://lacd.cat.com/cda/layout?m=27700&x=7
• EAME
A Warranty and Goodwill Management Plan should document:
https://eame.cat.com/cda/layout?m=10860&x=7
• Warranty and Goodwill • APD
• Storage of warranty parts https://apdnet.cat.com/cda/layout?m=47881&x=7
• A communication plan to the customer
• Failure analysis processes Contact the local Caterpillar district office for training, information on training
and questions.
The following is not intended to replace the content of the warranty
statements or goodwill handbook.

STORAGE OF WARRANTY PARTS


WARRANTY AND GOODWILL Parts removed during warranty repairs, as well as defective parts
It is important to establish and document responsibilities for the from stock, may be required for support of dealer service claims to
customer, dealer, and Caterpillar when administering warranty for Caterpillar. They may also be required to provide engineering
a Greenfield site. Service Management at a dealer is ultimately information to Caterpillar.
responsible for warranty and goodwill administration.
Caterpillar has specific policies regarding how long these parts
Caterpillar has many policies in place regarding the documentation must be held, how they should be shipped, etc. It is the dealer’s
required and deadlines for filing warranty and goodwill claims. responsibility to fully understand these policies. If the policies are
Unless prior authorization is given, claims submitted after the time not correctly followed, the dealer puts warranty reimbursement at
limit require district representative approval. risk. Defects in material/workmanship must be proven.

Document the following (not all-inclusive): Document the following (not all-inclusive):
• Have roles and responsibilities been established? • Where and how parts will be stored for warranty returns
• Has training been provided? • Warranty return and core return processes
• Is the administration and processing of Caterpillar warranty
and goodwill understood? Additional Resources
• NACD
• Have warranty procedures been outlined?
https://nacd.cat.com/infocast/frames/psfulfill/warranty/bul/sec11/
• Who will make goodwill decisions?
• Do those responsible understand the philosophy of goodwill?
• LACD
https://lacd.cat.com/cda/files/101056/7/1.04.pdf
• Have they been provided training?
• EAME
• Have reasons for using goodwill been documented?
https://eame.cat.com/cda/files/295558/7/ge109_a_bulletin_partsstorate+disposition.pdf
• Has the procedure to submit goodwill claims within the
• APD
warranty support plan been documented? https://apdnet.cat.com/cda/layout?m=10120&x=7, tab 11

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Caterpillar: Confidential Yellow WARRANTY AND GOODWILL MANAGEMENT PLAN
COMMUNICATION PLAN TO THE CUSTOMER
As mentioned previously, warranty can be a source of confusion
between the customer, dealer and Caterpillar, so set expectations
up front. Review the warranty statements, preferably at the time
of the proposal, so that the customer understands the legally binding
commitments and limitations that cannot be altered. This is critical
because the customer has specific individual responsibilities that
impact warranty.

These responsibilities include:


• Operating the product properly and within the application it
was designed for
• Properly maintaining the product
• Notifying the dealer promptly if a problem exists

These discussions should include a review of the warranty statements.


Warranty statements are legal documents that outline the warranty FAILURE ANALYSIS PROCESSES
period, and also the customer, dealer and Caterpillar The Failure Analysis Process is the use of a logical, fact-based
responsibilities and limitations. Contact the local Caterpillar method of analyzing product failures to determine the root cause
district office for warranty statements. of a problem so that it can be corrected or managed. This leads to
more planned repairs (less repetitive failures), reduced repair and
It is much easier to clarify responsibilities and warranty rebuild costs and increased availability.
administration policies at the time of the proposal than when a
claim is filed. Typically there are two alternatives when a failure occurs and
they are to find and repair the damage and return the machine
Document the following (not all-inclusive): or engine back to operation or to find the root cause of the
• Do the customer and dealer agree to the warranty? failure. When the root cause of the failure is found or known
• The warranty covers parts and labor at the place of dealer’s the failure can be avoided altogether or managed until a final
business. Document who is responsible for TTM on haulage. solution can be implemented.
• Does the customer want seed units (i.e. spare components)?
Availability is worth something to the customer and they There are eight steps to Applied Failure Analysis:
may be willing to pay for it. 1. State the problem clearly and concisely
2. Organize fact gathering
3. Observe and record facts
4. Think logically with the facts
5. Identify the most probable root cause
6. Communicate with the responsible party
7. Make repairs as directed
8. Follow up with the customer

Failure analysis relies on the use of facts and not preconceived


ideas. Facts are found in the following:
• Application/operation
• Maintenance and repair
• In the pieces/parts

Facts are then interpreted to identify events and the events are
put in logical sequence on a timeline, which then leads to the
root cause.

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Caterpillar: Confidential Yellow WARRANTY AND GOODWILL MANAGEMENT PLAN
Trained individuals should perform all site failure analysis using Additional Resources
• Applied Failure Analysis training and consulting
Caterpillar’s principles of Applied Failure Analysis as well as
https://productsupportglobalcontent.cat.com/cda/layout?m=19982&x=7
additional supporting processes that include a standard report
• Applied Failure Analysis documents
template with all the pertinent work order information and https://sis.cat.com/sisweb/sisweb/homepage/homepage.jsp?mode=MainMenu
supporting photographs. The work order information and the
Use the “Advanced Full Text Search” or the “Basic Search” function and
failure analysis report must be submitted to SIMS (Service select “Applied Failure Analysis.” The following documents are available.
Information Management System) and the work order packet. Note: A Caterpillar Corporate Web Security password is required for access
Note: SIMSi is the system along with the DSN (Dealer Solutions to SISWeb
Network) that feeds CPI (Continuous Product Improvement), • Guideline for examining failed parts—SEBF9066
and all work orders must be submitted regardless of warranty status. • Oil and your engine—SEBD0640
• Diesel fuels and your engine—SEBD0717
• Engine valve failure modes—SEBF9050
Where applicable, lessons learned from failure analysis must be • Hydraulic Cylinder Seal Failure Analysis—REHS2811
incorporated into the Condition Monitoring process. This would • Additional information on SIMSi (https://sims.cat.com/sims/simsi/index.jsp)
include the prevention of failures as well as managing issues or • Additional information on Continuous Product Improvement
problems before they become repeat failures. (CPI)https://quality.cat.com/cda/layout?m=24070&x=7
• Failure Analysis Management—Obtain through Applied Failure Analysis
All failure analyses start on site and may continue to the
• Training Course (Caterpillar media number SEBF8947)
component repair and rebuild areas as necessary. As a result, the
failure analysis process must include documented communication
from the site to the component repair and rebuild areas as well as
communication back to the site. The communication of the failure
analysis report must be distributed to all the appropriate site
personnel including the dealer, customer and where applicable
Caterpillar personnel.

All site service and selected parts personnel must have


appropriate failure analysis training to facilitate the failure
analysis process. The same personnel must receive training on
template completion, the communication process and photography.
Resources will be required to develop the failure analysis template
as well as work order process development to include failure analysis
reporting in SIMSi if not already being performed.

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Caterpillar: Confidential Yellow WARRANTY AND GOODWILL MANAGEMENT PLAN
Building the
Proposal

A Greenfield mine site is among the most complex proposals a


TENDERING PLAN
dealership will produce. The scale, timeframes, degree of
customizations and scope of work all add complexity and the The tendering plan has two aspects:
potential for errors and miscalculation. Because of this, it is 1. Influence the tender. Get all on the team to raise any issues
important to have a lead person that can stay with the project early and have the opportunity to dialog with the customer
from start to finish—which could last several years—to maintain to avoid a problem in the response and, ideally, to influence
continuity and coordinate and build the proposal. the wording of the request for quotation such that
Caterpillar’s products and services are put in the most
In the development of the commercial proposal the team should favorable position.
establish an overall strategy of how they intend to win the business. 2. Packaging and Pricing. Establish a decisive process for
Consult with other dealers who have dealt with the same customer how products and services will be bundled, priced and
and Cat Global Mining on what has and has not worked in the presented in the proposal. Ensure that all costs are included
past. The customer, territory, mine type, equipment capability and in the tender process. This would include tooling, training,
availability, dealership capabilities, goals, etc. can influence the management activities, consulting costs, etc.
strengths, weaknesses, opportunities and threats of any proposal.
In both aspects the team should consult Cat Global Mining to ensure
The mining company will typically form a cross-functional team Caterpillar support as needed.
and use a very analytical approach in evaluating the dealer’s proposal.
The dealer should therefore have all of the appropriate departments Pricing and delivery costs of various models and configurations will
involved (as recommended in the introduction) to ensure the correct need to be estimated at an early date because the mine will want to
pieces have been pulled together. While this is “team selling,” the work through their budgeting processes. It would be advisable to
project leader needs to drive the appropriate customer contact. keep budgetary quotes well above best estimates until the overall
mine plan is entering its final stages. Caterpillar generally does not
The mining company will generally enlist the assistance of consulting guarantee pricing for deliveries outside of two years and does not
companies, contractors and partners, and this will complicate the expect quotes to remain fixed for more than 90 days.
selling processes.

It is important not to underestimate the capabilities of competitors. MineEIA


The competition will have ample time and opportunity to respond to MineEIA is Caterpillar’s most comprehensive investment analysis tool
every customer request. for machines. The advantage of MineEIA is in the dialog with the
mine in the planning phases to influence the ultimate tender and, to
whatever extent possible, the job requirements. It can also be useful
in helping the team quantify where they are likely to stand versus
the competition as virtually all mine plans ultimately come down
to the net present value (NPV) of cost per unit of production in
evaluating equipment choices. It is a very useful tool in selling the
value of Caterpillar machines.

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GREENFIELD GUIDEBOOK
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Caterpillar: Confidential Yellow BUILDING THE PROPOSAL
MineEIA or similar techniques should also be used to evaluate
support strategies versus alternatives. In all pre-tender analyses PROPOSAL DEVELOPMENT
make every attempt to be consistent with the mine’s engineering The ultimate proposal will require significant staff and clerical
teams’ parameters. This will minimize last minute surprises in support as multiple documents from various authors and
quantity and models. perspectives are pulled together to address what the customer has
requested and properly present the value message. While the
proposal will be a combination of virtually everything entailed in
Additional Resources
• MineEIA
this guidebook, it could be packaged as follows (not intended to
https://catminer.cat.com/cda/layout?m=84541&x=7 be all-inclusive):
• Safety plan and services for the customer
• Machines and Attachments
» Prices and configuration, options, descriptions
GREENFIELD INVESTMENT ANALYSIS » Delivery and related commitments
• Services and Support
As mentioned in the introduction, the intent of pulling together the
» Parts, components, materials, tooling, equipment
various plans discussed throughout the document is to:
» Site services, training, logistics
1. Document the customer’s expectations and what the dealer » Facilities, vehicles, housing, dealer branches
will need to do to meet them » Site labor and management
2. Build a Greenfield Site Investment Analysis that captures » MARC and other packaged services
the level of investment required and the return on • Performance
this investment » Cost per ton, cost per hour, cost per month
3. Use the Greenfield Site Investment Analysis to build an » Speeds, rates, comparisons
accurate and profitable proposal » Equipment availability, service turnaround
• Continuous Improvement
Additional Resources • Financing details
• Investment Analysis specific to Component Rebuild Centers • Legal and regulatory requirements (liability, insurance,
https://catminer.cat.com/cda/layout?m=122588&x=7 environmental)
• Common goals
• Clear definition of roles and responsibilities between the
dealership and customer when it comes to support of the
customer’s maintenance and operations at the site
• Testimonials and overall value of the proposal, individual
models or services

Contact the local Caterpillar district office with further questions.

Please contact the Cat Global Mining Product Support Analyst at


(309) 675-6193 with comments/suggestions on content.

CAT, CATERPILLAR, their respective logos, and “Caterpillar Yellow,”


as well as corporate and product identity used herein, are
trademarks of Caterpillar and may not be used without permission.

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GREENFIELD GUIDEBOOK
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Caterpillar: Confidential Yellow BUILDING THE PROPOSAL

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