For Caterpillar Dealers Only============================================== CCR Process Manual By CCR Team February 19, 2015 Table of Contents I. WHAT IS A CAT CERTIFIED REBUILD? ..................................................................................................................... 5 A. Purpose .............................................................................................................................................................. 5 B. Background ........................................................................................................................................................ 5 C. Requirements for Participation ........................................................................................................................... 6 D. Description of the Certified Rebuild Process ..................................................................................................... 7 II. CAT CERTIFIED REBUILD IDENTIFICATION GUIDELINES ................................................................................ 11 A. The Different Cat Certified Rebuild Options ..................................................................................................... 11 CCR ......................................................................................................................................................................... 11 CPT ......................................................................................................................................................................... 11 CPT Plus ................................................................................................................................................................. 11 CHR ......................................................................................................................................................................... 11 CMCR ...................................................................................................................................................................... 12 CER ......................................................................................................................................................................... 12 B. Presenting the CCR Options ............................................................................................................................ 12 C. Objections / Responses ................................................................................................................................... 13 D. Customer Involvement ..................................................................................................................................... 14 E. Salesmen’s Compensation .................................................................................................................................. 15 F. Dealer Profit ......................................................................................................................................................... 15 G. Field Follow-Up ................................................................................................................................................ 16 III. Work Order Purpose and Use ................................................................................................................................. 17 A. Segments and Operations ............................................................................................................................... 17 B. Job Times ......................................................................................................................................................... 17 C. Job Descriptions ............................................................................................................................................... 17 D. Recondition and Salvage Segments ................................................................................................................ 17 IV. Usage of the Cat Certified Rebuild Work Order ...................................................................................................... 18 A. Literature References ....................................................................................................................................... 18 B. Dealer Modification of the Work Order ............................................................................................................. 18 C. Job Scheduling and Control ............................................................................................................................. 18 D. Return-By-Dates .............................................................................................................................................. 19 E. Cost Control ......................................................................................................................................................... 19 F. Cost/Quality Watcher ........................................................................................................................................... 21 G. Specialized Activities and Outside Work .......................................................................................................... 22 Specialized Jobs...................................................................................................................................................... 22 H. Specialization Areas vs. Main Shop Bays ........................................................................................................ 22 I. Salvaging Techniques ......................................................................................................................................... 23 J. Team Concept ..................................................................................................................................................... 23 K. Special Recognition ......................................................................................................................................... 23 L. Managing Quality and Efficiency Improvement ................................................................................................... 23 M. Reusability/Replacement/Salvage Decisions ................................................................................................... 24 N. Disassembly and Assembly ............................................................................................................................. 24 O. Reconditioning.................................................................................................................................................. 24 P. Handling Removed Parts and Components ........................................................................................................ 24 Q. Team Composition ........................................................................................................................................... 24 R. Effective Job Assignments ............................................................................................................................... 25 S. Parts Reusability .................................................................................................................................................. 25 T. Parts Procurement ............................................................................................................................................... 25 U. Customer Parts Manuals .................................................................................................................................. 26 V. Post Completion Review .................................................................................................................................. 26 W. Communication ................................................................................................................................................ 27 V. Determining the Actual Price and Quote for a CCR ................................................................................................ 30 A. Proposal and Price Quote ................................................................................................................................ 30 B. Placement/Distribution ..................................................................................................................................... 30 C. Promotion ......................................................................................................................................................... 30 D. Training ............................................................................................................................................................ 31 E. Finance ................................................................................................................................................................ 32 F. Equipment Protection Plan (EPP)........................................................................................................................ 32 G. Dealer Requirements ....................................................................................................................................... 33 Delivery.................................................................................................................................................................... 33 Claims...................................................................................................................................................................... 33 INITIAL WARRANTY ............................................................................................................................................... 34 Equipment Protection Plan ...................................................................................................................................... 34 SIMS ........................................................................................................................................................................ 34 Records ................................................................................................................................................................... 34 H. Dealer Options for Equipment Protection Plan ................................................................................................ 34 Cat Filter Usage....................................................................................................................................................... 34 Use of Exchange Components................................................................................................................................ 34 VI. Enrollments, Deliveries and Credits ........................................................................................................................ 35 A. Certified Rebuild Enrollment Request .............................................................................................................. 35 VII. Delivery Notice ........................................................................................................................................................ 38 VIII. Parts Credit (if applicable) ....................................................................................................................................... 41 IX. Quality ..................................................................................................................................................................... 42 A. Engine / Transmission & Torque Converter ..................................................................................................... 44 B. Crankshafts ...................................................................................................................................................... 44 C. Camshafts ........................................................................................................................................................ 44 D. Cylinder Heads ................................................................................................................................................. 44 E. Alternators and Starters ....................................................................................................................................... 44 F. Wearing Undercarriage Components .................................................................................................................. 44 G. Track Type Tractor Equalizer Bars .................................................................................................................. 45 H. Scraper Hitch Components .............................................................................................................................. 45 I. Loader Lift Arms................................................................................................................................................... 45 J. Loader Levers ...................................................................................................................................................... 45 K. Linkage Pins (Solid) ......................................................................................................................................... 45 L. Hydraulic Cylinder Components .......................................................................................................................... 45 M. General Purpose Hardware ............................................................................................................................. 45 N. Muffler .............................................................................................................................................................. 46 O. ROPS Hardware .............................................................................................................................................. 46 P. ROPS Structure ................................................................................................................................................... 46 Q. Air Conditioning ................................................................................................................................................ 46 R. CAT CERTIFIED REBUILD Decals and Identification Plate ............................................................................ 46 S. Safety Related Items ........................................................................................................................................... 46 Backup Warning Alarm ............................................................................................................................................ 46 Electric or Air Horn .................................................................................................................................................. 46 Fire Extinguisher...................................................................................................................................................... 47 Safety ...................................................................................................................................................................... 47 T. Integrated Quality Checks ................................................................................................................................... 47 X. Remanufacturing Overview ..................................................................................................................................... 47 A. Required Parts Replacement ........................................................................................................................... 48 B. Engine .............................................................................................................................................................. 49 C. Crankshafts ...................................................................................................................................................... 49 D. Camshafts ........................................................................................................................................................ 49 E. Cylinder Heads .................................................................................................................................................... 49 F. Alternators and Starters ....................................................................................................................................... 50 G. General Purpose Hardware ............................................................................................................................. 50 H. Cat Certified Machine Rebuild Decals and Identification Plates ...................................................................... 50 I. Product Updates .................................................................................................................................................. 50 J. Optional Upgrades ............................................................................................................................................... 51 K. Product Improvement Program/ Product Support Programs ........................................................................... 51 L. Final Inspection .................................................................................................................................................... 52 XI. Final Inspection Procedure ...................................................................................................................................... 52 A. Data Recording ................................................................................................................................................ 52 Operation - Part 1 .................................................................................................................................................... 52 Operation - Part 2 .................................................................................................................................................... 52 B. After Operation ................................................................................................................................................. 53 C. Visual - After Paint ........................................................................................................................................... 53 D. Machine Appearance & Identification .............................................................................................................. 53 E. Proper Identification ............................................................................................................................................. 53 XII. Check List for the Dealer When Performing a Cat Certified Rebuild ...................................................................... 54 A. Required Items Needed to Save for CCR, CPT, CHR, CER Rebuilds and Audits .......................................... 54 B. Customer needs ............................................................................................................................................... 55 Table of Figures Figure 1 ... CCR Comparison Chart ................................................................................................................................. 9 Figure 2 ... Cat Certified Rebuild Process ...................................................................................................................... 10 Figure 3 ... Sample Job Scheduling and Control Chart .................................................................................................. 28 Figure 4 ... Sample Cost Control Plan ............................................................................................................................ 29 I. WHAT IS A CAT CERTIFIED REBUILD? Cat Certified Rebuild is a process endorsed by Caterpillar for rebuilding Caterpillar equipment. The products are remanufactured and marketed by dealers that are authorized to perform and sell Certified Rebuilds under terms of an agreement between Caterpillar and the dealer. The process includes specific requirements such as parts which must always be replaced, product updates which must be incorporated, procedures which must be performed, and certain quality checks which must be conducted both during and after the rebuild process. The product which results may be then marketed by the Caterpillar dealer with Caterpillar identification, including a new Cat Certified Rebuild number (on full CCR only) and a specified minimum warranty which is supplied to the user by the selling dealer. The placement of one of these units with a user qualifies the dealer for certain types of Caterpillar support. The Cat Certified Rebuild program has grown to include six different options of rebuilds: Cat Certified Rebuild (CCR), Certified Power Train (CPT), Certified Power Train Plus (CPT+), Certified Hydraulic Rebuild (CHR), Certified Machine Component Rebuild (CMCR), and the Certified Engine Rebuild (CER). The CCR is a full certified rebuild, which includes the whole machine being rebuilt. The CPT is all of the power train components and the radiator. The CPT+ is all of the power train, radiator, and anything else the customer wants or the machine needs. The CHR is the complete hydraulic system of a hydraulic excavator. The CMCR is a component rebuild which could be the captive engine or transmission and torque converter. The CER is the industrial engines such as from a generator, a marine engine, locomotive engine, etc. A. Purpose The purpose of the Cat Certified Rebuild Program is to demonstrate superior Caterpillar value. One means of accomplishing this is by demonstrating the "Second Life" that is built into Caterpillar products. For many years, the superior durability of our equipment has been recognized by users although we have not specifically identified the "Second Life" feature as part of the Cat Price/Value Concept. We have supported the claim through the rebuilding of undercarriage, engine repair options, exchange, remanufactured components and through emphasis on parts reusability. Now, through the Cat Certified Rebuild Program, we are prepared to assist dealers in applying the "Second Life" concept to a complete machine and thereby further enhance the reputation of Caterpillar machines for their long life and reliability. Caterpillar guidance is intended to provide a broad framework of procedures to remanufacture Caterpillar equipment to predetermined standards and to foster a high level of rebuild efficiency. Dealers who undertake these repairs must exercise good judgment and discretion to ensure users receive a quality product at a price, which represents good value. Some machines should not be rebuilt because they are in such poor condition that the parts and labor required to bring the machine to the required standards would make the process cost prohibitive. The Cat Certified Rebuild Program should result in a profit for the dealer while also representing good value for the customer. We see the Cat Certified Rebuild Program as a means of enhancing the preference for Caterpillar equipment and increasing parts and service revenue opportunities in the years ahead. Machines which are reliable and economical to operate generate more wear parts potential and repair business than machines on a "standby" status. B. Background Every machine has a life cycle. Repairing the machine extends the life cycle by maintaining productivity and reliability. But at some point, the cost to maintain acceptable levels of productivity will exceed the level the machine can generate. The equipment Replacement Analysis Model, (Figure 1 on page 11), shows the machine's first productive life. The cumulative owning costs per hour of a new machine during its early hours of operation are high and operating costs are low. However, the longer a machine is owned, the lower its owning costs become and the more its cumulative operating costs per hour increase. Over the same period of time, the net revenue a machine produces decreases with its age and use. This is primarily because the machine's availability is decreasing. When the machine's cumulative net revenue per hour becomes less than total cumulative net revenue per hour becomes less than total cumulative owning and operating costs per hour, the machine will stop yielding a profit. At this point, the owner should make a decision regarding the machine. Either accept lower productivity, do repairs and put it into less demanding work, or trade it. If the owner decides to keep the machine working in the same application, every hour it works will result in a loss. The Cat Certified Rebuild Program provides the user with the option of a "Second Life" by rebuilding the owner’s machine to new specifications at a fraction of the cost of a new machine (Figure 2 on page11). In a "Second Life", the owner can realize an increase in net profit because we have restored the original operating costs and net revenue curves that were experienced when they first purchased the machine. But it is done for less than the original purchase cost. In addition, the buyer can expect machine reliability to be that of a new machine. Demonstrating that our machines are built to be rebuilt for a "Second Life", and that it can be done economically is what the Cat Certified Rebuild Program accomplishes. We have two advantages over competition, our ability to provide parts support for non-current machines and the superior service capability of Cat dealers. These two advantages allow us to demonstrate our advantage in a tangible manner. It all adds up to another reason for a customer to select Caterpillar. In order for a dealer to use the Cat Certified Rebuild Program, the associated brand identification and to obtain program support, the dealer must sign an agreement, which governs the remanufacturing, and sale of Cat Certified Rebuilds. It may be terminated by either party upon notification and lapse of a specified period of time. C. Requirements for Participation Dealer participation in the Cat Certified Rebuild Program requires that the following criteria be met: 1. The machine rebuild must be substantially remanufactured by an authorized Certified Rebuild Dealer - not a third party. The basic machine including the operator's compartment and integrated hydraulics must be rebuilt. The power train does not include operator’s compartment, hydraulics, undercarriage, and body items in the rebuild. Caterpillar attachments which customers frequently rebuild themselves (i.e. dozer, winch, forks, bucket, ripper, dump body) are optional. Attachments which are not supplied by Caterpillar are not included, but the 100%parts are highlighted is SIS. 2. Caterpillar parts must be used exclusively. This could include a combination of new, reused, and remanufactured genuine Caterpillar parts. Caterpillar Classic Parts CANNOT be used in any type of certified rebuild. 3. Certain parts must always be replaced, and these are specified in the Cat Certified Rebuild 100% Parts (Highlighted Parts). Remember, 100% replacement parts are required unless the parts meet or exceed the Reuse and Salvage Guidelines. 4. The service hour meter reading must be reset to one during a full CCR. 5. If for any reason a new engine ECM is installed before or after a CCR is completed, the service hours meter reading must be set to the last known hour reading. This process is performed to help track the frame hours. 6. The dealer's Service Department must always conduct certain inspections. They must disassemble the machine and then completely recondition all items as specified in the Work Order. 7. Machine systems must always be reconditioned in accordance with standard Caterpillar repair procedures, Reusability Guidelines must be followed. Salvage procedures not explicitly stated in the Work Order must be discussed with Caterpillar before being utilized on a Cat Certified Rebuild unit. 8. The dealer is required to undertake, at their expense, a warranty of terms and conditions to Caterpillar's new machine warranty. The dealer may offset some of the possible expense by purchasing an Extend Protect Plan (EPP), from Caterpillar insurance. 9. When any rebuild is completed (not component rebuild) the customer will receive a new part manual. A customer’s rebuild copy of the parts manual (CCRC) is listed on the CCR web site under the CCR models for most machines. Also, the customer should get a list of parts that were added from the updates and service letter or copies of the updates and service letters that were added to the equipment. A CCR rebuild requires an additional manual to accompany the equipment. An OM&M manual is required to accompany the equipment when delivered. 10. The dealer must make available, for Caterpillar audit purposes, all of the forms and other information relating to the rebuild of the machine. 11. Program material must be used in a confidential manner and may not be distributed to unauthorized third parties. D. Description of the Certified Rebuild Process Dealers must not deviate below minimum standards but are free to go beyond these standards in their repairs if they consider this advisable for marketing reasons or because it conforms to the desires of the customer. Caterpillar supports dealer use of the term "remanufacturing" in conjunction with the Cat Certified Rebuild Program process. Caterpillar agrees to this use because the standards are being set by Caterpillar and an agreement exists between the dealer and Caterpillar or its subsidiaries to ensure that required standards are met. Caterpillar's Certified Rebuild Process is summarized on Figure 2 on page 12. The first step in the process is to develop a marketing plan which identifies those machines which are candidates and likely prospects. They will fall into two categories: (1) customer-owned and (2) dealer-owned. In both categories, completing a thorough Condition Appraisal is necessary to determine whether the unit is a likely prospect. In the case of a customer-owned machine, the Condition Appraisal will likely be conducted in the field. The Condition Appraisal Reports are available on the CCR web site. The appraisal should be very thorough and should include a visual and operational inspection as well as a review of the machine's history. If the machine has been serviced by the dealer, a complete review of its service history should be made prior to the actual machine analysis. One important part of the machine which needs to be inspected carefully is the main frame. A sound frame is essential to the ability of the machine to go through a full "Second Life". Take plenty of photos to help in the process later when developing the report in the office. Based on this analysis and past data, a determination is made on the overall condition of the machine. The machine may be found to be in such good condition that the Cat Certified Rebuild process is inappropriate. In this case, perhaps only Certified Power Train Rebuild or a Certified Power Train Rebuild Plus needs to be done to the machine. On the other hand, the machine may need substantial salvage work or excessive parts replacement and the cost of Cat Certified Rebuild would not allow for an acceptable profit. In this case, be sure to develop other alternatives for the customer or the dealer Used Equipment Department. If it appears there is an opportunity to realize an acceptable profit at price which represents good value, develop a quote and present it to the customer or the dealer Used Equipment Department. In addition, if it is a customer-owned machine, provide the appropriate information about the machine's condition, the Cat Certified Rebuild Program Standards which you intend to meet, the warranties you intend to offer, and any additional incentives to the customer. At this time, quoting an optional upgrade maybe the way to go, additional salvage work and new or rebuilt attachments for the machine (this is work over and above the minimum). The customer or Used Equipment Department should have all the information needed to make a decision. If the quote is rejected, be prepared to pursue other alternatives. If the quote is accepted, have the customer sign the work contract. Enroll the machine in the Cat Certified Rebuild Program through the CCR web site and then begin to disassembly the machine. After the machine has been disassembled and the components cleaned, it is very important to complete a thorough inspection of those components which could not be assessed previously. After having the detailed condition of the machine's major components, the Cost/Quality Watcher, described later in this guide, needs to develop a Cost Control Plan based on the Cat Certified Rebuild Work Order. After a Cost Control Plan is developed, it must be monitored very closely. If during the course of the rebuild it is determined that earlier decisions need to be reassessed, an alternative course of action should be cleared by the Cost/Quality Watcher. A job scheduling chart and a control chart would help coordinate each step of the rebuild process. It helps establish target completion dates for each individual Work Order Segment. As component repairs are completed, be sure that established timetables for completion are being met. Quality Control Records must be completed during engine assembly, dynamometer testing, torque converter assembly and transmission assembly. In addition, as the machine is assembled, all of the quality checks called out in the Work Order and on the Quality Control Record must be performed. After machine assembly has been completed and while it is in running condition, a final inspection is required. After final painting another inspection is required. If additional work is needed to resolve problems, the work is performed and then these points are inspected again before the machine is delivered. At this point, the Delivery Notice should be returned to Caterpillar with all relevant documentation and information. It is also appropriate, upon completion of the machine, to review the entire process and ask the people involved for suggestions on how the process could be improved the next time. Areas for review include work assignments, job sequence, tooling, work bay space availability, bay layout, component identification, parts ordering, storage, and ways to reduce repair time, and parts costs and how to improve parts reusability. This approach should be undertaken for every machine that undergoes the Cat certified Rebuild Program Process. A review will ensure improved performance, employee participation and profit as the team gains more experience. There will always be some risk involved in performing Cat Certified Rebuilds. However, by following the rebuild process you can minimize the risks. To understand and complete the process will require a team effort from many personnel within the dealership, including management. This process is more structured than the complete machine rebuilds dealers may have done previously. To maintain consistent high quality and acceptable cost control in a job of this nature, a structured approach is required. Figure 1 ... CCR Comparison Chart Figure 2 ... Cat Certified Rebuild Process II. CAT CERTIFIED REBUILD IDENTIFICATION GUIDELINES A. The Different Cat Certified Rebuild Options The Cat Certified Rebuild Program offers five different machine rebuild options and one commercial engine rebuild. The machine options are a full Cat Certified Rebuild, CCR, a Certified Power Train Rebuild, CPT, a Certified Power Train Rebuild Plus, CPT+, Certified Hydraulic Rebuild, CHR, and a Cat Machine Component Rebuild, CMCR. The commercial engine rebuild is the Certified Engine Rebuild, CER. CCR The full CCR Rebuild is the total machine from bumper to bumper. Every part of the machine is dismantled down to the frame, inspected and reconditioned. Use the CCR Work Order or follow a work order that includes all of the segments from the CCR Work Order that are needed to fulfill the requirements set by the CCR program for a CCR. Reviews all of the Service Letters for the machine and finish any Service Letters that are pending. Perform all of the Required Updates and then review any new Service Magazine Articles that were new after the media release, and work the important articles. After being reconditioning each component is then tested to ensure correct operation and then reassembled and painted to a like new machine. The machine is then tested to guarantee that it will perform like or better than a new machine. CPT The CPT is a power train rebuild which includes the engine, radiator, transmission, torque converter, final drives, and differentials segments. Use the CPT Work Order or follow a work order that includes all of the segments from the CPT Work Order that are needed to fulfill the requirements for a CPT. Review all of the Service Letters for the machine and finish any Service Letters that are pending for the components being worked related to the CPT components. Perform all of the Required Updates and then review any new Service Magazine Articles that were new after the media release and work the important articles for the CPT components. Each component is removed, inspected, reconditioned, reassembled, tested, painted and reinstalled. The machine is then tested to guarantee that it will perform like or better than a new machine. CPT Plus The CPT + is a CPT rebuild plus anything else the customer needs or wants reconditioned. Again use the CPT Work Order or follow a work order that include all of the segments from the CPT Work Order that are needed to fulfill the requirements for a CPT. Review all of the Service Letters for the machine and finish any Service Letters that are pending for the components being worked. Perform all of the Required Updates and then review any new Service Magazine Articles that were new after the media release and work the important articles for the CPT or Plus components. Additional test maybe required since there are added components to the CPT. CHR The CHR is only designed for Excavator. The CHR is designed to address all of the hydraulics on an Excavator such as: hydraulic cylinders, hydraulic valves, hydraulic pumps, hydraulic motors, swing drive, swivel, hydraulic tank, and hydraulic lines. Use the CHR Work Order or follow a work order that include all of the segments from the CHR Work Order that are needed to fulfill the requirements for a CHR. Review all of the Service Letters for the machine and finish any Service Letters that are pending for the components being worked. Perform all of the Required Updates and then review any new Service Magazine Articles that were new after the media release and work the important articles for the CHR components. The whole hydraulic system should be filtered (kidney lubed) to help ensure the system and fluid is free of contaminates. CMCR The CMCR is designed to address the engine and transmission/torque converter on machines. There is no separate work order for a CMCR. A CMCR for an Engine should use the Work Order Segment from the CPT. Follow the work order or similar work order to complete all the necessary operations for a CMCR. Perform all of the Required Updates that are listed for the engine. Also, the radiator of the machine that the engine is going in must be tested. The radiator must be tested to ensure that the cooling capacity of the radiator is more than adequate to provide significant cooling for the engine. If the radiator fails it must be reconditioned. A CMCR for a transmission/torque should use the Work Order Segment from the CPT; this can sometimes include two segments. Follow the work order or similar work order to complete all the necessary operations for a CMCR. Perform all of the Required Updates that are listed for the transmission and torque converter. The transmission/torque converter fluid must be filtered (kidney lubed) since there are other components that share the same fluid. CER A CER is used on commercial engines such as generators units, marine applications, etc., non-captive engines. Follow the work order or similar work order to complete all the necessary operations for a CER. Perform all of the Engine News Updates that are listed for the commercial engine then review any new Engine News Updates that were new after the media release and work the important articles for the CER. B. Presenting the CCR Options The Cat Certified Rebuild Program provides the dealer with an opportunity to present the customer with a few new and different options. The actual presentation of the product and the comparison with other options available to the customer such as a new machine, CCR, CPT, CPT Plus, rental, lease, used equipment, CMCR, or custom repair all need to be evaluated in order to ensure that the customer selects the option which provides them with the greatest benefit for their particular circumstances. It is important that customers realize exactly what can be expected in terms of life and reliability for each option. Cost per hours of operation over the life of the unit is also an important consideration. Many factors, including the customer’s future workload and their financial situation need to be taken into consideration as well. In most cases the dealership’s knowledge of customer’s circumstances is essential to making the proper recommendation to the user. Cat Certified Rebuild options are appropriate when: The machine is near the end of its first useful life or it is incurring increased operating cost, most of the power train needs rebuilt, and/or reduced availability. The customer wants the drive portion of the machine rebuilt or can utilize the machine effectively for a full second life. The engine and transmission/torque converter needs rebuilt but the rest of the machines’ power train is in good condition. If one or all of these statements are true, the best option is usually to propose a Cat Certified Rebuild option. The dealer needs to approach the customer with a single voice in making the recommendations. Sales and Product Support need to agree on the best rebuild option. Caterpillar and the dealer in becoming the preferred source for customer’s machinery requirements must build a long-term business relationship, regardless of the option. Any Cat Certified Rebuild options should never be offered with the intention of dismissing it, (without serious consideration). This diminishes its value as an option and makes it a less creditable alternative for future discussions. The sincere recommendation of the dealer is essential in order to inform the customer of the true value found in the Cat Certified Rebuild Process. Proposing the Cat Certified Rebuild and then offering a slightly less expensive option with no particular standards may result in getting the business but disappointing the customer in the long term. The dealers’ decision to propose a Cat Certified Rebuild and immediately go to lesser options is a strategy which ensures that the Cat Certified Rebuild will not be purchased by the user and this could eventually weaken dealer’s credibility. Customers are looking for the dealers’ “best advice.” While they want to know what their options are and understand them completely, they do not want the dealer to treat the decision lightly or to simply present options without a recommendation. The recommendation of an option for a given customer requires that each of the options have a specific set of expectations and a clear definition since this is essential in defining the value to the user. If during the discussion, additional information comes to light which causes the dealer to shift from one option to another, this is entirely appropriate. If the machine in its current condition meets the criteria of being unreliable but being the right size for future requirements, then the Cat Certified Rebuild approach is probably superior to the custom repair. The Cat Certified Rebuild is designed to provide a “full second life.” Nothing extra is included beyond the absolute minimum requirement to reach this goal. In most cases to do less is to ensure that the customer will receive less value than they anticipate, especially since price difference is usually not significant. Transferring risks to the customer eventually shows up in the form of higher operating costs and less durability which ultimately leads to dissatisfaction if the customer expected the machine to perform like new. Dealer sales personnel can utilize promotional materials available from their dealerships and from Caterpillar in making a presentation to the user. Some dealers also develop a descriptive book of pictures based upon their past Cat Certified Rebuilds which details exactly how they go about completing the process. This reference material is extremely valuable in adding credibility to the fact that the process is complete and thorough. It is also very important that the customer understand exactly what support the dealer will be providing after the rebuild. Equipment Protection Plan (EPP) insurance is recommended by Caterpillar in addition to the standard parts warranty given to Cat Certified Rebuild options depending on the option. This should always be clearly explained in the initial discussions. Financing of the customer’s Cat Certified Rebuild can also play a big role in getting the customer’s agreement to purchase a Cat Certified Rebuild unit. Financing is often the same as on new machines for a full Cat Certified Rebuild and some Certified Power Trains may have financing help available. One important closing tool that salesmen have used extensively is the condition appraisal report, which provides a customer with a thorough and realistic view of the current status of their equipment. It lays out all the areas that could represent potential problems and negatively affect reliability while increasing the cost of operation . Dealers have indicated that increasing the customer’s awareness and knowledge of the process and scope of work of the Cat Certified Rebuild Program can be an excellent way to ensure complete understanding of the option. Although you do not wish to have the customer involved in the reuse decisions of individual parts for their own unit, it is important that the customer understand the thoroughness of the Cat Certified Rebuild process and the high quality unit that will result from Caterpillar’s involvement through issuing clear and concise standards. A demonstration of the thoroughness and the care which goes into the Cat Certified Rebuild process and the extent to which machines are updated to avoid future problems are important pieces of information. This can help the customer have confidence and make future decisions that could include the Cat Certified Rebuild Program offerings. Customer visits to the shop during the repair of his machine encourages and strengthens the customer’s understanding. It is important that customers make prior arrangements before visiting in order to ensure that you have time to properly inspect the work which is being done on the unit, and that the proper information is being presented to each individual customer. Prior to customer visits, ensure that your service personnel have been properly briefed on the objective of the Cat Certified Rebuild process. Make sure that your personnel understand they play an important role in supporting the sale if they have direct contact with the customer. C. Objections / Responses Presenting the options to the customer gives you the opportunity to identify and discuss their concerns or objections. Handling these objections in a professional and concise manner is important. Anticipating objections and developing a response is extremely important to an effective marketing effort. The following are few common objections reported by dealers and responses which have proven effective with users: Objection - I don’t need product updates. They’re too expensive and my machine has worked well in the past. Response - The Required Product Updates specified for your machine are only those which Caterpillar has previously identified as a known problem. Many of the Required Product Updates may already have been incorporated into your machine and the expense is reduced. Sometimes Required Product Updates include parts which would normally be replaced during any rebuild process. The large expensive Required Product Updates have been closely reviewed so that only those which are critically important are required. We have a list of optional upgrades which we can discuss with you to see if any of them would be required in your particular situation. Caterpillar tries to keep the cost of Required Product Updates as low as possible so that the Cat Certified Rebuild will represent good value to virtually all customers. Objection - If I do my power train components, can’t I get a reliable machine? Response - Addressing the power train is certainly important and is a wise investment as long as the other parts of the machine such as the hydraulics, electrical, frame, linkages, and operator’s compartment are operating in a generally reliable manner. If others parts of the machine, but not all, need to be repaired you could change to a CPT plus and improve the other components. Doing the Certified Power Train or a Certified Power Train Plus would provide dependability and reliability, which you would expect from a newer machine. In addition, the Certified Rebuild Power Train will carry a warranty that proves our confidence in the product. Objection - I just had my engine (any component) done last year. Can’t I exempt it from the rebuild process? Response - Caterpillar will provide some limited exemptions if the components have been rebuilt in the past 500 operating hours, and we can verify that it included all of the required parts and updates. If in fact we do have to rebuild your component, the cost will be held to the bare minimum because the required parts are relatively inexpensive. As a percent of the total machine, repairing a single component will not add significant cost when we develop the price for your machine. Objection - I don’t want to replace my undercarriage. It’s only about half worn out. Response - The undercarriage will be part of the inspection and if the under carriage is in good shape it may only be necessary to do a Certified Power Train or a Certified Power Train Plus. In order to assure reliability of the machine, for a full Cat Certified Rebuild we need to address it in the total. Undercarriage can cause a lot of downtime and problems. We want your machine to operate like a new unit. I can assure you that the undercarriage included in the rebuild price represents a good value. You won’t get a better price on Cat undercarriage through any other approach. Perhaps we can work out an arrangement for you to take your undercarriage so you can use it on another machine or we can give you a credit. Objection - I’m not sure it’s a wise decision to put this much money in a half used machine. Response – Cat Certified Rebuild provides a “full second life” at significantly less cost than a comparable new machine. This is based on the customers need for a fully utilized machine. Plans to trade the machine before the realization of the “full second life” should be considered in the Cat Certified Rebuild vs. purchase new decision. However, after your machine has completed the Certified Rebuild process it assumes a new identity. It’s no longer an old machine, but one that has been remanufactured this year. As such it assumes a significantly higher value, and this has been borne out by machines which have been resold or put into auctions after the rebuild process. The new identification from Caterpillar provides protection against having the value of your investment in the Cat Certified Rebuild Program diminished. There are other Cat Certified Rebuild options to explore if the time is not right for a full certified. Presenting the options in an effective manner is important step in the process to making a sale. A joint presentation by sales and product support is the most effective means of instilling confidence in the customer regarding the Cat Certified Rebuild and the Cat Dealer. D. Customer Involvement It is very important that the customer understands when the Cat Certified Rebuild option is presented; you are providing a “Second Life” for their Caterpillar machine. In doing so, many of the traditional decision-making points which involve the customer in the repair of their machine have been eliminated. Many of the reuse decisions have now shifted totally from the customer to the dealer because the customer is being quoted a firm price, and the dealer is providing a warranty on the machine. Research indicates, however, that customers like to be involved in the repair process and they like to be aware about what is being done to their units. It may be possible for you to incorporate options over and above minimum standards into your initial proposal to a customer who is considering a Cat Certified Rebuild. For example, there are usually optional product upgrades which may answer a specific need or problem the customer has experienced in the past. This is an ideal opportunity to bring the customer into the decision-making process. It is also possible to let the customer decide whether to recondition some attachments. This is another way to give the customer a voice in what is going to be done to their machine. E. Salesmen’s Compensation One of the most important issues to successful marketing is the decision on compensating your salesmen for a Cat Certified Rebuild sale. Cat Certified Rebuild is a product which may require a well coordinated selling effort from the dealers’ product support department and the new machine sales department. Some dealers have indicated that the Cat Certified Rebuild products are best sold under some type of dual commission structure when both individuals are involved. Other dealers solution is that they prefer to make a clear distinction and either compensate the product support salesmen or the machine salesman. It is extremely important that you recognize the potential for disputes to arise between the parts and service salesman and the machine salesman on this program, and take steps to avoid these disputes before they take place. An explicit set of clearly defined decisions on how the sales forces will be compensated is absolutely essential to effective merchandising. F. Dealer Profit Depending upon your current accounting system, profit can occur in the following areas resulting from the Cat Certified Rebuild sale: Parts Department Service Department Exchange Center Used Equipment Department Used Parts Department Finance Department All of these departments have the potential to make a profit. To ensure maximum profitability, strict cost control is absolutely essential. The following are items to be considered when defining the true profit contribution of a Cat Certified Rebuild unit (excludes CMCR or CHR). The individual profit goals and targets of the various departments need to be considered from a total dealership perspective. For instance, if the used equipment department would expect to make 15% gross profit over and above their costs on used equipment, but on a Cat Certified Rebuild can only make a 10% gross profit, they may express concern and a reluctance to put Cat Certified Rebuilds in the used equipment inventory. It needs to be kept in mind, however, that on this type of an arrangement the parts and service departments may have made as much as 35% gross profit combined over and above their normal direct expense levels. In some situations, profit to the dealership could be significantly enhanced when all the departments are considered. In looking at the profitability of the Cat Certified Rebuild, also remember that if it includes exchange items transferred at full customer selling price, there must be substantial profit built in to the individual components which needs to be taken into account. Such as, if an exchange engine is sold to the Cat Certified Rebuild for $20,000, and the actual repair of the removed engine at full selling price only amounted to $11,000, there is an exchange center profit of $9,000 which has accrued to the dealership as a result of the Cat Certified Rebuild. It’s important that you know how much profit is generated in this situation to assess the profit contribution of the Cat Certified Rebuild program. Another important consideration is the credit for used parts. In many situations, the Cat Certified Rebuild generates parts which cannot be reused in the Cat Certified Rebuild but do have a commercial value when sold through a used parts operation. For example, if a link assembly and roller shells are 50% worn, they still have a commercial value and could generate $4,000 in sales for the dealership. The cost of acquiring these goods is essentially written off against the rebuild unless a special credit was issued to the customer. It was included in the dealer’s purchase price of the machine. As a result, the used parts department has acquired parts at what amounts to a no cost basis and has generated a very profitable sale. You need to be aware of the value of parts which are sold as used parts or are put into other used equipment repairs. Parts which have a commercial value and are reusable should have a value assigned to them in order to define your true profitability on a Cat Certified Rebuild. Credits from Caterpillar generated from this program also need to be considered in assessing total profitability. Other benefits can accrue, such as fostering efficiency improving utilization and retaining experienced service personnel during periods of low business activity. Although you may not want to attribute specific profit contributions to the Cat Certified Rebuild, these savings are real. The contribution to good human relations should also be considered. When the Cat Certified Rebuild program protects some employees from layoff, the team members should be made aware of this fact. It is absolutely essential that an accurate estimate of total dealer profitability be made to assess the contribution of the Cat Certified Rebuild. This may not require a change in your formal accounting system, only an estimate of all the various factors which need to be considered. It is important that a joint overall dealer decision be made on whether or not to proceed on a given unit. This decision should not be made strictly based upon the judgment of only one department if their concern is that their department will receive less than normal profit from undertaking this type of rebuild. If management compensation systems exist which are derived from departmental profitability, it is important to determine profit splits based on total profitability. The consequences of addressing this point before it becomes a problem are usually a lack of commitment to overall efficiency, poor cost control, or an unmotivated sales effort which eventually results in the program not being a major factor in the dealer territory. G. Field Follow-Up A mechanic should be sent to the customer’s job site for a full shift, when a full CCR is returned to service to ensure that the machine is running like new and to correct any leaks or minor issues that may arise after a rebuild. After the Cat Certified Rebuild has been placed with the customer, some type of follow-up should be conducted (Not for CMCR). As a minimum, follow-up is needed to ensure that the customer upon taking delivery of the unit understands the basic warranty, the EPP, and parts policy, if offered. On a customer-owned unit which has been repaired, some dealers have found that taking a picture of the machine upon receipt at the dealer facility and at the time of delivery is an excellent way to keep the magnitude of the repair in perspective. If the repair can be associated with a particular mechanic or members of your staff who have participated in the rebuild of that machine, it may be worth documenting as a way of building customer support and staff enthusiasm. Copies of these pictures should be given to the customer. Customers appreciate these personal touches especially on a job the size of a Cat Certified Rebuild. As the machine goes back to work, be sure that the dealership has a clear definition in its own records of what major changes have been made to the original machine. Some type of indication in a new parts book of those pages which apply to the machine as it is currently being rebuilt. Provide the customer with a copy of the proper CCRC parts manual. Assemble the copy of the CCRC, any updates (or list of parts), upgrades, and PIPs, information used on the rebuild into a folder place and present it to the customer. Keep track of this same information for your own parts countermen and future Service Department reference. With this information the dealership should be able to accurately meet the parts need of the customer when they have questions or if problems arise. As with a new machine, include a new Operation and Maintenance Manual with the machine when it is returned to the customer’s job site. Small touches such as these help to complete the impression that the customer is receiving a new machine, only required with a full CCR. Without this type of information, the customer may experience difficulties in identifying and correcting service problems or undertaking the appropriate maintenance of the unit. Other optional follow-up activities which may be considered for our marketing plan include a personal visit or mail survey conducted a month or two after the machine has been placed in service. Some dealers have indicated that a machine revisit is very appropriate to the Cat Certified Rebuild. It may enhance the marketability of your program and may be a factor which affects the value of the Cat Certified Rebuild in the eye of customers in your territory. III. Work Order Purpose and Use The work order is the work plan for establishing the scope of work. A segmented work order subdivides the work into logical tasks that can be estimated and later measured, thereby establishing the basis for control. The Cat Certified Rebuild Work Order is the basic plan to be followed by the dealer. It describes all of the disassembly, assembly, reconditioning and testing functions to be performed and most of the acceptable salvage functions. It sets the minimum standard for the job. The Work Order is to be used with the service manual and other appropriate references. The dealer should assure himself that his employees understand and observe the warnings and safety precautions related to the operation, maintenance, and repair of Cat equipment. A. Segments and Operations The Cat Certified Rebuild Work Order is divided into segments. It is intended to illustrate an efficient way to plan the work as well as ensure that all required functions are performed. The basic structure follows a logical sequence with (1) machine disassembly followed by (2) reconditioning of the removed components coupled with any required salvaging, followed by (3) machine assembly, (4) testing and (5) painting. The Work Order contains both segments and operations. Each Segment has its own unique segment number followed by an Operation number 00. The Segment and "00" Operation provides a summary job description and total job time (where appropriate and blank at the present time) for all Operations which follow with the same segment number. Times for optional jobs shown parenthetically are not included in the Segment totals. Each Segment is divided into Operations. The Operations define the individual task to be performed in some detail. The operation provides a basis for communication, job control and evaluation. Operations are identified with a segment number and with operations numbers "01 and up." B. Job Times The Work Order with Hours contains a column that is blank and will stay blank. The CCR team is working on trying to recover the approximate times per segments from dealers throughout the Americas. The times when established will only be a reference and should not be used as a quoting factor. The hours will be gathered, averaged, and posted in a PDF on the CCR web site. The CCR group will be requesting dealers to share their Segment hours in order to create the averages for the Segment hours. The Segment hours will continue to be updated with every rebuild performed. The Caterpillar average times will be provided only as a guide, and are based on actual times obtained from the dealers. Dealers are not required to adopt these times. With experience, the Caterpillar average times should be achievable by all dealers with adequate facilities, tools, a motivated experienced work force, good supervision, and adequate communication and controls. Many of the times will be too high for dealers once they gain more experience and develop better methods. C. Job Descriptions Each Operation shown on the Work Order With Operations is self-explanatory and contains a description of the work to be performed. Dealers are strongly encouraged to read the work order from cover to cover to get a basic understanding of its scope and contents. Dealers are also encouraged to involve their entire Cat Certified Rebuild Team in the same exercise, having them study and then discuss the jobs to be performed. This way, everyone will be on common ground and begin to appreciate the thoroughness and quality required in Cat Certified Rebuilds. The final product depends entirely on the knowledge, dedication, skill and accomplishments of each person comprising the team. D. Recondition and Salvage Segments Recondition Segments identify the work which must always be performed regardless of the condition of the unit. Salvage Segments describe jobs added based on the condition of the unit. The separation of reconditioning from salvaging is intended to allow the dealer to establish his base hour (without salvage) before the unit is disassembled. Some salvage work will be identified during the initial inspection, but many salvage activities can only be determined after the units have been disassembled. After machine and component disassembly, most of the additional work can be identified and an appropriate control time established. Recondition and Salvage Segments Whether the salvage activities are from separate Segments or are combined with reconditioning is up to each dealer. If salvage work involves welding or machining for example, and this work is done in another work center, or by another person, separate salvage segments are easily justified. IV. Usage of the Cat Certified Rebuild Work Order The primary purpose of the Cat Certified Rebuild Work Order is to provide a complete description of the work to be done, and to serve either as a model for the dealer's work order or to be used as is. The dealer can provide the individual tear-out pages to servicemen as their job instructions. Required salvage activities can be circled on the work order or otherwise identified, or those jobs not required can be crossed out. When the work is completed, the actual time can be entered for comparison purposes. The disassembly and assembly Segments provide a sequential plan for doing the work. A two-man team can perform some of these functions together, while other jobs should be performed by one person. The assembly Segment description sequence should be especially helpful. A. Literature References The literature references contained in the Work Order are important and should be understood before proceeding with the work. They are included to save the dealer from having to research the SIS system to obtain this information. All of the significant references available from SIS to the date of the publication have been included. The dealer should only be concerned about identifying recently released information. B. Dealer Modification of the Work Order The dealer can create his own Work Order Segments and Operations as the dealer deems necessary. One example would be combining the inspection together, have the same person performs both reconditioning and salvaging activities. Another modification would be where the dealer creates additional Segments to accommodate his flat rate program. An example would be a separate Segment to reshell rollers or to recondition idlers. Any modification should improve the dealer's ability to control costs, identify opportunities for job improvements or sharpen his ability to estimate future jobs. C. Job Scheduling and Control Controlling Cat Certified Rebuild turnaround time is a critical element when rebuilding most machines. Many dealers will be able to rebuild the user's machine in four to five weeks without having to use Parts Exchange and/or multiple shifting; this time can be further reduced. In each situation, using a chart or a project management program can help the dealer determine the critical path required to accomplish a given turnaround time. The accompanying sample scheduling chart Figure 1 at the end of this section illustrates a five-week turnaround time using the job times shown in the D8K Cat Certified Rebuild Work Order. It assumes a single shift, eight-hour day operation by the dealer, but conservatively estimates a seven-hour productive day for each serviceman. Generally speaking, each "x" shown in the chart represents a full or partial seven-hour day for one or two servicemen, depending on whether the job is considered a one-man or two-man job. The hours required to complete each segment are summarized by Work Center. Depending on the dealer, separate work centers may or may not mean different servicemen perform the work. One reason for showing the Work Center summaries is to identify the amount of work assigned to that group. Of special concern, is the number of estimated work hours assigned to the two-man disassembly/assembly crew? Quite often the jobs assigned to the bay mechanics form the critical path. The total days allowed for specialization are jobs, such as engine reconditioning, depends on the day the component is scheduled for installation during machine assembly. In our example, the engine is to be installed on the fourth assembly day. Therefore, the charts suggest the engine be completed two days before, allowing delivery to the assembly bay the day before, assuring uninterrupted assembly on the scheduled day. In the sample scheduling chart Figure 1 at the end of this section, Time Available By Segment, the "x's" represent the number of days on which work needs to be done, while the "-'s" represent additional days available without disturbing the overall schedule to be performed. The scheduled hours are allocated by schedule. In the sample scheduling chart Figure 1, the "x's" represent the actual dates on which work is work center are shown to the right. Typically, salvage work on a component has to be scheduled within the reconditioning time period. Besides the main shop and yard work that is performed by the bay mechanics, the engine reconditioning, the track roller framework, and the cab work are also often involved in the critical path. Modular cab work can often extend turnaround time if not carefully managed. In fact, each segment can prove to be involved in a critical path from time to time. Therefore, the dealer is encouraged to use a job scheduling and control chart, Figure 1, to plan each and every rebuild. Once the plan has been formulated, it should be relatively easy to determine "must be done by" dates for each segment. Each area should be evaluated to ensure that the assigned dates can be met, and then the completion dates should be followed to ensure compliance. D. Return-By-Dates Each component should be assigned a "return-by" date to assure completion before it is needed in reassembly. It is desirable to disassemble and inspect each component as soon as it is available for reconditioning. This will permit determination of the salvage work required and permit the early ordering of parts not on the automatic parts list. Where components cannot be reconditioned in time to meet the "return-by" date, alternatives should be considered depending on the reason for delay: 1. Using a new component. 2. Using parts exchange rebuilt to Cat Certified Rebuild standards. 3. Using Caterpillar remanufactured parts. 4. Obtaining a used core in better condition from another source (e.g., used parts) and rebuilding it. 5. Obtaining used parts that meet reusability guideline. These and other alternatives are more easily considered when the possible delay is discovered early. E. Cost Control The Cat Certified Rebuild by definition is a process which should ensure that a machine is rebuilt to a quality standard that approaches new. To ensure the quality a set of standards and a ridged set of guidelines are outlined for each Cat Certified Rebuild machine. Also a warranty equal to new emphasize the quality aspects of the rebuild process is provided. The magnitude of the service job involved makes it essential that the job be closely controlled with respect to accumulated cost against a predetermined plan in order to ensure maximum dealer profit. The customer should not be involved in the cost control aspect of the job because he has given the dealer latitude to perform the job to a predetermined specification for a firm price. Depending on the accounting system employed by a specific dealers, there could be several service department cost centers with shared responsibility, i.e., engines, undercarriage, transmissions, main shop, etc. This shared responsibility makes monitoring the job difficult. Cost and quality are both factors which need to be kept in mind. It is necessary to strike a balance. The cost/quality watcher described in another section of this guide has the responsibility to follow the Cat Certified Rebuild job and act as the ultimate decision-maker. By auditing the job's progress and approving deviations, the cost/quality watcher should assure that any cost added to the job segments results in improved quality and that the job schedule is adhered to. In summary, the cost/quality watcher is to act as if he were a knowledgeable customer who is doing the repair on his own behalf. The cost/quality watcher should be intimately involved in all decisions which involve changes to the cost control plan. It is absolutely essential to establish a detailed standard for each Cat Certified Rebuild based on machine condition. In order to meet standards established by Caterpillar, the dealer must rebuild with a predetermined minimum amount of labor and parts content. The Cat Certified Rebuild Parts Manual clearly identifies parts which are always to be replaced such as bearings, gaskets, seals, hoses, V-belts, wiring harnesses, etc. The machine, depending on what type of rebuild, and components must be totally disassembled, inspected, reassembled and tested to ensure that quality standards are met. The basic cost involved in the minimum repair/reconditioning operation is a given which the dealer can estimate easily based upon the configuration of the machine. For example, on a D8N, depending on the configuration, dealer averages estimate that around 1,491 hours of labor for a CCR (673 hours of labor for a CPT) and an average of around $134,000 for a CCR, ($65,000 for a CPT) of parts at dealer net prices +/-10% will be invested in the rebuild. You may wish to alter this estimate based upon your dealership's efficiency and the cost factors which are appropriate. This represents a significant portion of the total cost of parts and labor. It can be determined before the machine is even inspected. Once the recommended field inspection has been conducted, the dealer should have the ability to accurately judge anticipated cost with accuracy in excess of 90%. Total actual cost can be determined after disassembly. Controlling cost depends upon a plan and close adherence to this plan. A A good approach for developing a target cost for a job once the machine is in the shop is to open the Cat Certified Rebuild Work Order with all the basic segments of disassembly, reconditioning, salvage, assembly, etc. The machine and all components should then be completely disassembled and each work center should inspect and determine an accurate estimate of the total labor hours and parts required. Using the Work Order With Updates can determine items over and above the minimum required parts necessary to achieve the Cat Certified Rebuild standard. The servicemen should also identify the salvage operations which could be substituted for parts replacement. The inspection process should result in a detailed cost estimate which should be reviewed by the cost/quality watcher. Costs which are not justified should not be allowed. The sum of all the various segments after input has been received from areas outside the work bay should result in an accurate estimate of the total labor hours and the total parts requirements for the Cat Certified Rebuild job. This approved estimate should form the basis for completing the Cost Control Plan. The Cost Control Plan, Figure 2 at the end of this section was a spread sheet that the Cat Certified Rebuild group developed in order to track and monitor the costs of the rebuild. Cost monitoring spread sheets are available in many software forms that will work on your computers, IPads, and cell phones. After committing to the final version of the cost control plan, the cost/quality watcher should question and challenge any charges, proposed or actual which exceed the control amounts. If an individual cost center needs to deviate from a maximum predetermined amount (i.e., $50) or a certain number of labor hours (i.e., two hours), there should be an agreement that the cost/quality watcher will be contacted. He may have alternatives to suggest which can keep the cost down. For example, substituting a used part or salvaging an item which was scheduled for replacement with new. Questions of a quality nature should be settled in all cases with the cost/quality watcher’s input. The end result should be Cat Certified Rebuild done at a minimum cost with quality approaching new. The other result is a total dealer profit which achieves above average levels. Controlling costs is the key to establishing these above normal profit levels. A sample of a Cost Control Plan, Figure 2, for a D8K can serve as a guide in establishing your own approach to controlling the Cat Certified Rebuild process. The example is intended to demonstrate the approach, and should not be used as a reference due to changing economic factors. The basic components of the cost control plan include a description of the work order segment and various categories of parts and labor. The first main category of cost is termed "Basic" parts and labor. These costs are costs which you must incur on every tractor depending upon the configuration of the machine. They can be established in detail by using the service work order and putting your own target times into the always required portions of the work order. The main determinant of this category of cost is the configuration of the machine The second category is a "From Inspection" category. This section includes costs which are over and above the basic parts and labor requirements. This is primarily a function of the condition of the machine. The inspection of the unit after disassembly should allow specific salvage operations from the service work order to be specified as well as additional parts requirements over and above those which are always required for any given parts manual page. The third category of parts and labor cost is "Updates." Since the cost of updates is fairly low, let's assume for the purpose of this example that all updates are always going to be required. Based on experience, it is recommended that you include only the high dollar updates (i.e. over $300) that you know will be required after disassembly. The update totals by segment as well as the individual update costs at dealer net levels are listed. You should note however that in the completed example, these are shown at consumer list prices. There is a caution to be added on the last category of Figure 2 the "Reman/L.P.O./Exchange." If you use an item which falls into this category, be sure that if it is used instead of items in the "basic", from inspection, or "update" categories, these totals are deleted from their respective category to avoid double counting. For example, on the cost control sheet, if you have an internal flat rate price on a completely reconditioned D342 engine of $12,000 (U.S.) on all running D8K engines, including updates, but excluding a new block or crankshaft, do not include any estimate under "basic," "from inspection," or "update" for segments 17 or 18. One other factor which you need to consider is that there may be situations where you already have built in an above normal level of profit. For example, on your own exchange items (i.e., steering clutches), you may have the same price internally as if it were sold to a customer. There may be some situations where core considerations and internal transactions do not really give you an accurate picture of the normal parts and labor profit. If you buy a repair on a local purchase order (L.P.O.), such as a radiator repair, this repair needs to be set aside in a separate category to ensure that your costs are properly understood. In this way, after the rebuild has been completed, you can easily identify and address those areas which are directly under the control of the Certified Rebuild. The purpose of the Cost Control Plan is to ensure that the Cat Certified Rebuild does not simply become another big job where costs are incurred without too much concern because the job is large. The profitability of a Cat Certified Rebuild is a function of how well the day-to-day decisions that affect cost are managed. The quality aspects of the job are extremely important but the quality should not be used as an excuse for adding costs which do not directly benefit the user. The Cost Control Plan acts as a road map for the cost/quality watcher and provides a way to determine whether or not the plan and objectives for accomplishing the repair are being met. It also provides an interim checklist which will assist in determining after the rebuild has been completed what areas need to be addressed on future rebuilds. F. Cost/Quality Watcher The Cost/Quality Watcher is a key individual in the Cat Certified Rebuild process. It is the Cost/Quality Watcher job to ensure that a cost control plan is established and adhered to, while at the same time ensuring that quality standards are being met. This individual should be available to set up the cost/quality control plan and then follow through the rebuild with the mechanical staff. It is their job to act as coordinator and ensure the timely completion of various work order segments. This includes jobs which take place within the dealership and work is performed by an outside supplier. The Cost/Quality Watcher should be an employee of the Service Department or someone who regularly works with the Service Department. They fill a role which can most accurately be described as "a demanding customer who is looking to achieve new machine performance at the least possible cost." They want to be sure it is done right, and at a cost that represents good value. The cost/quality watcher needs to be technically competent. They must know the cost, the risks, and the time required for the various alternative approaches which may be considered during the course of the rebuild. They are always looking for the least cost alternative which will yield acceptable quality and completion times. The alternatives available may be various salvage approaches, replacement with new, exchange, or possible a used Caterpillar part which meets the reusability criteria. The Cost/Quality Watcher must also be concerned with completing the job in a timely manner. Timely completion is essential in the effort to control costs. There is a high correlation between excessive turnaround time and cost overruns. Sufficient time should be provided for each Work Order Segment to ensure quality, but an effort should be made not to allow excessive elapsed time. The Cost/Quality Watcher needs to be a negotiator. They need to question people about the alternatives and challenge costs. It is only through challenging costs before they are incurred that the cost/quality watcher can have an impact upon meeting objectives. The Cost Control Plan should be the primary tool for managing the job to ensure a timely and profitable completion. The complete machine rebuild, whether for used equipment or revenue sales should be managed based on condition of the unit which determines the cost factors. The selling price should be used to manage the job. It is extremely important that all cost elements within a work order segment be understood by the cost/quality watcher. The Cost Control Plan is essential to avoid cost overruns. The Cost/Quality Watcher must also develop a good working rapport with the main shop personnel who are assigned to perform Cat Certified Rebuilds, as well as personnel in specialization areas who work on components. They need to be available for consultation and active involvement. Mechanics or shop supervisors, if they have questions or decisions to make, should have the cost/quality watcher participate. Specific guidelines should be set up on when to get them involved. Experience indicates that the cost/quality watcher function is essential to achieving planned profitability. Without this individual actively involved in repair decisions, excessive job times or unnecessarily replaced parts often go unchallenged. The cost/quality watcher’s job is a dynamic one which requires a concerned individual who is capable of making sound judgments based on practical experience. Selecting the right person, giving them the time and authority to make critical decisions and explaining their role to all involved parties is essential to the successful implementation of the Cat Certified Rebuild concept. G. Specialized Activities and Outside Work Specialized Jobs Many dealers will have specialization areas do much of the work required to recondition components. These areas include: Engines Undercarriage Components Engine Components Welding Transmissions Machine Shop Torque Converters Paint Removal/Sandblasting Hydraulic Components Painting Steering Clutches & Brakes Other highly specialized jobs deserving separate attention include: Cab Interiors Air Conditioning Some jobs are often done by outside suppliers: Radiator Reconditioning Metal Spray Re-chroming H. Specialization Areas vs. Main Shop Bays It is highly desirable to have specialized functions performed by people skilled and efficient in these activities. Although some of them could be performed by the two bay mechanics, this has significant drawbacks. First, assigning any of these functions to the bay mechanic extends the turnaround time. Second, it takes up more bay space. Third, it may impact on job time and quality. If some of the listed specialization areas are not included in the dealer's service operations, and turnaround time is important, work should be assigned to other servicemen, rather than to the two bay mechanics. Wherever the work is done, the people involved must be aware of the Certified Rebuild standards. I. Salvaging Techniques Much of the required salvaging involves severely worn parts that can be welded, chromed or metal sprayed and machined to standard. Where Reusability Guidelines exist, there should be no problem. However, some dealers use these same techniques for components now covered by these guidelines. In some cases, they contact Caterpillar for correct and/or specifications. In other instances, they measure a new part to get necessary data. Most of these activities would be acceptable for Cat Certified Rebuild. If a salvage operation not specifically called out in the Salvage Segment of the Work Order is being considered, contact your Cat Certified Rebuild coordinator. Rebuild coordinator. Some salvaging techniques developed by outside suppliers are not acceptable, e.g., welded cylinder heads. Welding of other cracked gray iron castings has not been demonstrated to be effective. Re-chroming or metal spraying done by reputable outside suppliers is acceptable provided it is done according to Cat Reusability Guidelines. On some critical components (i.e., crankshafts) this is an unacceptable approach. Some salvage procedures published by Caterpillar (e.g., welding equalizer bars for D9L Tractors) are not acceptable for Cat Certified Rebuild machines. J. Team Concept The Cat Certified Rebuild concept emphasizes personal commitment to rebuilding machines into a quality product at every stage of remanufacture. The team involved must recognize from the beginning that the resulting product is being rebuilt to a quality standard which is like new. This standard must be met to ensure user satisfaction. Quality control is completely in the hands of the remanufacturing team. Everyone on the team should have a personal commitment to meeting the remanufacturing objective. This must be accomplished at a cost which permits the dealer to realize an acceptable total profit while at the same time resulting in a price which represents a good value to the user. The reputations of the individuals involved in the dealership in total and Caterpillar are in the hands of this team. K. Special Recognition Team identity and motivation is often enhanced by special recognition. Besides direct involvement in organizational and rebuild evaluation meetings, and in quality circles, it may be practical to have permanent team members issued a Cat Certified Rebuild Team patch for their uniform, hat, etc. Where a permanent Cat Certified Rebuild work bay exists, a sign may be used to identify its location. It is also possible that all members of the rebuild team could be pictured with the product upon its completion and this picture supplied to the customer at the time of sale. Each of these special recognitions will help encourage team pride, adherence to quality standards, and improved efficiency. L. Managing Quality and Efficiency Improvement Management must effectively solicit suggestions from team member. These suggestions must be encouraged anytime, but ideally they should be sought in an organized manner. Discussions are often most effective when they take place away from the workstation. Improved quality and efficiency should result from job repetition. Maintaining a well-organized and committed team is important in activities where the procedures and standards remain constant. This allows for quality and efficiency improvements at the same time. M. Reusability/Replacement/Salvage Decisions In most situations the work bay team should consist of two mechanics. They are responsible for machine disassembly and assembly, and for component reconditioning assigned to them. Much of the reconditioning done in the bay is not covered by reusability guidelines. They must work to a "like-new" standard that leaves many decisions up to their judgment. When in doubt they must consult with the Cost/Quality Watcher. The parts ordering procedure indicates that parts identified as high dollar parts should be reviewed by the Cost/Quality Watcher before the requisition is processed. The work bay team will be involved in deciding when a component should be salvaged. Other decisions the team will make concern the many cosmetic blemishes which involve straightening, removing gouges, repairing cracks, building up worn areas, or grinding rough or heavily rusted areas. Good judgment must be used to ensure "like-new" standards apply. N. Disassembly and Assembly The disassembly and assembly sequences, however, are spelled out very clearly with the assembly descriptions accompanied by specifications and literature references to ease the assembly process. Using the current disassembly and assembly manual will be helpful. It is suggested the Cat Certified Rebuild Work Order sequence be followed, rather than invent a different one. Following the Cat Certified Rebuild Work Order will help to ensure the completeness. It will also help to monitor assembly progress as explained separately. O. Reconditioning The bay servicemen have a limited amount of time between when the main frame leaves for reconditioning and when it returns. It is highly desirable that all reconditioning activities assigned to them be completed during this period. Once the frame has returned, reassembly can begin. If the frame is returned on schedule and bay reconditioning has not been finished, then the component reconditioning or machine reassembly must suffer. It is essential that the bay mechanics make productive use of their time, but care must be taken not to assign more work than can be accomplished in the scheduled period. P. Handling Removed Parts and Components During a machine disassembly, removed components and related hardware not destined for a specialization area should be properly grouped, identified and stored. Normally this involves portable flats or dollies, shelves, stands and boxes. Related hardware should be stored in individual containers, properly labeled. The hardware should be in wire or perforated metal baskets to facilitate easy cleaning. Components destined for specialization areas should be delivered as soon as practical after they have been removed. Other components not eligible for early disassembly and inspection should be placed in a secure area, ideally in or adjacent to the repair bay. Q. Team Composition The team can be comprised of any number of people, but ideally should be limited to the number who can benefit from enough task repetition to maximize quality and productivity. The major advantages come from creating specialists where quite often, none currently exist. For example, on track-type machines these specialized activities may include: 1. Machine disassembly/assembly. 2. Main frame reconditioning. 3. Roller frame reconditioning. 4. Hydraulic system reconditioning (tank, valve, pumps). 5. Implement control reconditioning (hydraulic cylinders). 6. Implement reconditioning (dozers, rippers, winches). 7. Final drive reconditioning. 8. Modular cab reconditioning. 9. Control linkage reconditioning. This presumes existing specialization areas for engines, transmissions, torque converters and steering clutch reconditioning, roller re-shelling, idler rebuilding, track shoe re-grousering, track assembly, sandblasting and painting. R. Effective Job Assignments Quite often some of these specialized activities can be performed by the assembly/disassembly team while waiting for the main frame to be reconditioned. To be effective, the disassembly/assembly team should have assigned reconditioning duties, and not be expected to plan their own work. The efficiency/productivity of the team concept is highly dependent upon having to meet an established turnaround time target. S. Parts Reusability A key element in controlling parts cost is reuse. Implementation of parts Reusability Guidelines is essential to profitable Cat Certified Rebuild. No attempt has been made to estimate what a typical Cat Certified Rebuild parts cost will amount to since each machine varies significantly based upon its condition and configuration. It is extremely important that all parts cost be challenged. Past practices and strong preferences for "new" parts based upon a past bad experience or a "feeling" need to be identified and addressed when they are causing high new parts usage. Discussions as to which parts are reusable should be encouraged by the Cost/Quality Watcher. And when decisions are made to replace a high number of parts, the cost of the rebuild will reduce total dealer profitability. On the other hand if parts are reused which should not be, the quality and the performance of the product will be adversely affected. This will seriously damage the reputation of the dealership and Caterpillar product. If sound factual reasons exist not to reuse parts, they should be replaced. Always use the least cost source for parts which meet the minimum standards for providing a full "second life" and which meet the specific dealer program guidelines. As part of a good parts reusability program, it will be necessary to carefully review the Reusability Guidelines with involved parties. Records of parts usage by Segment should be kept and carefully analyzed at the conclusion of each rebuild in order to improve performance on future similar jobs. Major dollar items should be retained for a review after the rebuild and for discussion towards improving future rebuilds. In order to ensure that a cost-effective approach is taken to parts reusability, it is important to review the Caterpillar Reusability Guidelines. There is also an index of publications on reusability or salvage parts available from Caterpillar (form number SEBF8029). If reusability guidelines are not available in your dealer service library, they may be requested from Caterpillar Literature. Subscription for the printed Caterpillar Reusability and Salvage Guidelines are available refers to SEBF9318 for the current and complete list. T. Parts Procurement Completely remanufacturing a machine is a major undertaking that must be carefully managed to ensure efficient use of time and materials. On the D8N, for example, approximately 637 to 1400 hours of labor, depending on rebuild, are required to perform basic disassembly, reconditioning assembly, testing, etc. When this type of work which must be done on every tractor, it is important that a system be established to eliminate as much non-productive time as possible. The control of parts required to perform the complete machine rebuild represents a major investment of time for bay mechanics. It can also represent a substantial amount of time for mechanics in the specialization area. In addition to the large investment in labor, thousands of dollars worth of parts are consumed in a complete machine rebuild. These parts arrive at their assigned locations and must be managed effectively to ensure timely and efficient completion of the jobs. One method for controlling parts is to assign each part ordered to its Work Order Segment, and even to a parts manual page. The receipt of each of these parts then should be tied to a specific Work Order Segment which may possibly have a different parts order. Each of the Caterpillar "required replacement parts" should be assigned to a segment. Once you establish a list of parts for "always replaced items," using the Work Order Segment in effect provides a rough bill of material for the required parts. This list can be compiled from SIS, SIS Bill Of Material (BOM), or by hand using the parts manual. This list will, of course, be for a specific serial number machine. However, we have found that in the case of the D8K Tractor the list for a given machine, assuming a constant configuration, will provide at least 85% of the parts applicable to the D8K Tractors excluding attachments. If a dealer chooses to use this type of list as a starting point to make up their own bill of material, they could develop their own from the parts reference manual. As other models have been added to the program, the degree of commonality has varied substantially. It is recommended that the SIS BOM be used to order parts that are required. Ordering parts by Work Order Segment can help minimize confusion. On some Segments with many small, hard-to-identify parts, it may be advisable to place a separate parts order for each parts book page in these segments. Parts ordering should take place at the earliest possible time. It is important to coordinate the delivery of these parts to the Service Department in order to ensure that they are properly stored in the work bay or specialization area for maximum efficiency and to avoid confusion. Back orders in particular can cause problems, and specific lists of parts by work order segments or parts book page can assist in minimizing these problems. Each area of the service shop should use the SIS BOM or SIS to order required parts. This will involve the main shop, the engine shop, transmission shop, etc. Parts should be delivered to a service work area following normal dealer practices but they should be clearly marked so as to eliminate the need for sorting. In the main shop bay it is advisable to have storage racks, shelves, or boxes to separate the parts as they are received. If you wish to develop a bill of materials it should be developed with these specialization areas in mind. It is also advisable to include often-required updates in your standard bill of materials. U. Customer Parts Manuals After the machine has gone through the Cat Certified Rebuild process, it is the dealer's responsibility to retrieve an updated parts manual for the customer that include the new part added during the rebuild. The CCR team has created a CCRC parts manual that reflects the new configuration of the machine as it is delivered to the user. Never give the customer a CCRP parts manual. The warranty personal will update SIMSi after the delivery notice is received with the rebuild information which will help in the future when repairs are needed. It is recommended that a record of the updated parts book be kept on file in the main store or a branch store where the customer does his parts and service business. This record could be a photo static copy of the insert which is placed on the back of the inside cover of a Parts Manual prepared for a Cat Certified Rebuild machine. On a CCR a new identification number that is assigned to the machine consists of the original serial number prefix and the last five digits at 75,000 and above, in USA. This will alert parts personnel that a unit has undergone the Cat Certified Rebuild process. The CPT identification plates use the original serial number. The machines are all likelihood contains updates and is different from the machine which left the factory. This should be reflected on the pages identified for the Parts Manual. V. Post Completion Review The Cat Certified Rebuild should include a process of cost improvement. At the completion of each Cat Certified Rebuild, a thorough review should be conducted by the Cost/Quality Watcher, mechanics, welders, parts people, etc., who work on the job. The objective of this review is to determine areas which could be done differently in the future with a possibility of shortening turnaround time, improving cost effectiveness and increasing quality. It is important that an attitude be established towards undertaking improvement on a regular basis. Management should have a receptive attitude and require this follow-up activity. It is desirable to go over the rebuild review as soon as possible after the machine has been completed. This will ensure that the experiences of those involved in the rebuild are still fresh and that ideas which came up during a rebuild can be communicated in specific terms. A record for suggestions made during the meeting should be prepared to ensure that this information is captured and feedback is given to individuals who made suggestions. If possible, indicate the actions and explain the reasons. This will encourage future participation. It is extremely important that good communications take place among all parties involved in a Cat Certified Rebuild process. The Cost/Quality Watcher is a focal point. In some cases, ideas for improvement may involve people outside the service department. These people should be participating in the review process whenever their functions are involved. There is a natural tendency on the part of many dealer mechanics to wish to be exempted from specific control. While the individuals who work on Cat Certified Rebuild in the service area need to be given enough latitude to do their job efficiently and effectively, it is important that they have specific directions supplied on what their expected job consists of in order to avoid misunderstandings. If their procedures and approaches are not consistent with the quality standards, time requirements, or the organizational environment, they must be specifically appraised with respect to their shortcomings and should be requested to develop suggestions on how they can achieve the desired results. The post-completion review is a good opportunity to address this situation. Although it is one of the last steps in the Cat Certified Rebuild process, it is an extremely important one and is critical to the profitability of the program. Without a commitment to improvement, Cat Certified Rebuild profitability could deteriorate and the process may yield less than acceptable profits. Time and attention is required to develop and incorporate ideas for improvement on future units. W. Communication Thorough and frequent communication is essential to the success of a Cat Certified Rebuild. It is essential that involved personnel be aware of the requirements of this program. This includes bay mechanics, parts personnel, and specialization area mechanics. These individuals should be included in planning sessions, progress reports, and post-rebuild critiques. Mechanics and parts personnel should be asked for suggestions and encouraged to participate in discussions. Effective two-way communication and employee recognition assists in overcoming objections to close control and detailed definition of the work to be performed. It is essential that employees realize that success or failure of the program rests heavily on their judgment, expertise, and attention to detail. If this understanding is effectively communicated, they are likely to take pride in the accomplishments of the Cat Certified Rebuild product. By providing people adequate time to review and digest program materials and by using group discussions, frequent communication and displays of interest by the Cost/Quality Watcher, the opportunity for misunderstanding and resulting cost and quality problems should be minimized. Some of the more significant problems arise when servicemen, including those in the specialized activities such as welding, engine rebuild, etc., understand their job to be "business as usual" and their objectives do not conform to the objectives of the program. Many are quick to indicate that they are in fact performing to traditionally accepted standards and are fulfilling their responsibilities. It is necessary to provide an explanation of why the Cat Certified Rebuild standards may be different. Doing a rebuild to achieve a full "second life" requires a different approach than a repair. To ensure that program objectives are met, a strong effort must be made to develop and maintain a free communications flow between all personnel involved in the process as well as dealer management. Figure 3 ... Sample Job Scheduling and Control Chart Figure 4 ... Sample Cost Control Plan V. Determining the Actual Price and Quote for a CCR A. Proposal and Price Quote A formal, professional-looking proposal and price quotation is recommended as the final step in "asking for the order". Key sales literature such as a warranty statements, etc., can be added to the formal price quotations. Notice that the Cat Certified Rebuild prepared form provides for quoting only a basic Cat Certified Rebuild price, plus optional attachments and updates. We do not recommend giving a detailed price breakdown - i.e., by system or component. This minimizes the tendency of the prospective buyer to try to negotiate over specific parts of the job. If any negotiation is undertaken, it must be on the basic price quoted for the complete job - not on individual components or systems. Use and change the quotation form as needed to fit your situation. In many situations it may be advisable for the salesman delivering the proposal and price quote to be prepared to review with the prospect the Condition Appraisal Report - particularly the Component Summary Section on page 3. While the Report is not intended to be left with the prospect, reviewing it with them adds credibility to the proposal by demonstrating the thoroughness of the machine appraisal inspection. A well-developed and professional quote package, along with a professional presentation, significantly professional quote package, along with a professional presentation, significantly improve the probability of selling the option. B. Placement/Distribution A Cat Certified Rebuild should be presented to users as a new and distinct option. It is another means to enhance user satisfaction with Caterpillar and the dealer. Positioning of the Cat Certified Rebuild option in terms of its emphasis depends upon the dealer management's decision. A marketing strategy is the key element necessary to ensure a professional and thorough approach with customers. The Cat Certified Rebuild should not be used with customers as a last resort option. If, in fact, the customer has already made a decision to purchase a competitive unit, it is unlikely at that point that they will decide for any Caterpillar option. It is much better to introduce the Cat Certified Rebuild before the decision-making process reaches this point. This, however, needs to be carefully weighed against the fact that placing new Caterpillar machines in the field is a primary goal which enhances long-term dealer and Caterpillar strength. Also another feature is the "Second Life" capability of Caterpillar equipment that supports the sale of new equipment. Dealer salesmen should know the availability of used equipment built to Cat Certified Rebuilds standards, and expected turnaround times of customer machines when they discuss this option with customers. C. Promotion Cat Certified Rebuild should be promoted as another equipment option. The buyer who is looking for increased reliability or improved performance without incurring the cost of a new machine should consider a Cat Certified Rebuild machine. The promotion effort should aim at a targeted group of prospects. Not everyone will be a candidate for a Cat Certified Rebuild machine. Concentrate on owners of high hour machines, those who are considering purchase of new competitive brands because of price, and those who need an additional machine but are reluctant to invest in new. These are probably the best prospects to target for promotion efforts. Dealer-developed promotion material is a very effective tool in promoting Cat Certified Rebuild. The use of local examples, pictures of dealer's service operations and personnel, and customer testimonials provides a useful bond between the customer and dealer. It also cements the relationship between the customer and dealer and the relationship between Cat Certified Rebuild and Caterpillar. This type of an approach needs to promote Cat Certified Rebuild in a clear and concise manner particularly when it is developed in conjunction with other dealer service options. Developing dealer-produced materials which clearly differentiate Cat Certified Rebuild is essential in order to avoid confusing the customer with respect to the dealer's offering of products and services. It must be understood that Cat Certified Rebuild applies exclusively to those models included in the program. Some owners of other models are naturally going to inquire about getting their machines remanufactured under Cat Certified Rebuild program. We are continuing to evaluate additional models - both from the standpoint of value to the owner and profitability for the dealer. We will continue to add models when the opportunity warrants the development effort. It is important that your promotional materials not imply that certification is available on models not included in the program. Specification Sheets are available on each Cat Certified Rebuild model. These can be used to support personal sales calls and for inclusion in proposal/price quote presentations. Two four-color brochures are available from Caterpillar to use as pre-call mailers or in personal sales calls. PEDP9132 - "The Cat Certified Rebuild and Cat Certified Power Train" General for all models. These brochures describe in general terms the process used to remanufacture a machine to Certified Rebuild standards. They are excellent for telling the "factory" story, but should not be used as a substitute for locally prepared literature which talks specifics. There are presentations located on the CCR web site There is a promotional video on the CCR web site. Use CCR hats to identify members of your Cat Certified Rebuild shop teams, or to identify salesmen at Cat Certified Rebuild machine displays, open house programs, customer meetings, etc. As experience is gained with Cat Certified Rebuild, customer testimonials should be developed and used in future promotion material and as a direct selling aid. Local testimonials seem to have more creditability with customers than national testimonials. If Cat Certified Rebuild units exist in a dealer's territory with several years of history, they should be investigated for the possibility of providing a basis for a dealer-produced direct mail brochure or a magazine article. Dealers participating in the Cat Certified Rebuild program are not prohibited or in any way restrained from developing their own programs. It is important, however, to use terminology which is not confusingly similar to that used in promoting Cat Certified Rebuild. Dealers should not use the word "Certified" when promoting rebuilt machines not included in the Caterpillar program. D. Training Developing and implementing a training plan is vital for proper introduction of Cat Certified Rebuild. Most people in the dealer organization will be unfamiliar with the concept of Cat Certified Rebuild. This new approach needs to be clearly defined to ensure a good understanding by everyone who has contact with customers. And it must be clearly distinguished from other types of service repairs. A training plan may take the form of an internal written communication or a brief training meeting. It should stress the difference between Cat Certified Rebuild and other types of service work performed in your shop. Everyone must understand that the goal is to restore machines to like-new condition in terms of performance, reliability and cost of operation. In order to accomplish this goal there is not much that can be deleted from the Cat Certified Rebuild process and still meet the standards on a well worn unit. An important point to be stressed is that this machine in many ways will be close to a new machine. Point out that the unit has a new identity and is priced accordingly. Make it clear that the procedures which are going to be used in the process are different from those which are undertaken in normal service repairs. These are important points that everybody in the organization must understand when discussing Cat Certified Rebuilds with customers as an option available from your dealership. A more explicit and intensive type of training must be given to individuals who are actually involved in the Cat Certified Rebuild process. Take time with your mechanical staff to ensure they understand their role in the process. Point out that their job is to ensure the thoroughness and quality of the rebuild. Emphasize that should the opportunity arise, they should not discuss or solicit customer opinions for component salvage or replacement options. It is very important to devote extra training time for the mechanics that are actually doing the work. Try to instill pride in the fact that they are a team that is going to remanufacture a Cat machine to Cat specifications. After the rebuild, review the experience with the team in detail and ask their help in finding opportunities for improvement on the next job. This is an ongoing part of the learning process. We recommend that you begin slowly, perhaps with one rebuild team working on a dealer owned machine, and then expand this as volume warrants. Sales force understanding is vital to success. The Cat Certified Rebuild option does not compete against used equipment or new machine sales. This point needs to be clearly understood. It's important to be able to offer the customer alternatives, but management must decide on how to coordinate the sales effort. It is essential that the customer receive the impression that the dealer organization is truly professional and well organized. This will enhance the chance of success. Be prepared to explain the commission structure and plan for compensating the sales organization for success in selling the Cat Certified Rebuild unit. This should be covered with both product support salesmen and machine salesmen as well as any other individuals involved. Cat Certified Rebuild is a long-term option to meet customer needs. Therefore, be prepared to invest an appropriate amount of time and effort in getting the concept properly understood and implemented within the sales organization. Caterpillar training materials are available to supplement dealer developed material. Most of the details should be worked out before holding training meetings. A review of available Caterpillar support materials is essential. This material will help structure a program and develop controls within the organization before introducing it to staff. A key individual in the concept of Certified Rebuild is the Cost/Quality Watcher. They should be appointed and designated for each facility where a Cat Certified Rebuild is to be performed. This position is crucial to the smooth work flow and proper time and cost control of the Cat Certified Rebuild Process. Consider involving the Cost/Quality Watcher in the training process as background for the tasks they will be asked to perform. E. Finance The sale of a Cat Certified Rebuild Machine to many customers will represent a significant investment. A financial support package will often be needed to assist in completing the sale. This may involve special financing through Cat Financial. This requirement could exist for customer owned machines or possibly on machines available for sale from the Used Equipment Department. A plan should be in place to address this need prior to introduction of the program to customers. Once developed, the financial support plan should be reviewed periodically to determine its applicability. The Cat Certified Rebuild Process will, in fact, restore machines to a full productive life, and this needs to be reflected in financing arrangements with customers. Discussions with independent financial institutions will require a clear disclosure of the Caterpillar support for this program as well as a detailed presentation of the particulars of the dealer's own program. Dealers with in-house finance capabilities should review this entire program and decide what standards of support can be made available to assist in the sale of this option. For NACD dealers, Caterpillar Financial Services Corporation (CFSC) may offer retail financing for dealer sold used units or for customer owned units under the Cat Certified Rebuild Program. The warranty on Cat Certified Rebuild products is the selling dealer's responsibility. Warranty support by Caterpillar during the initial six-month or one year warranty period is limited to new parts or Caterpillar Remanufactured Parts utilized in the rebuild. (Refer to Caterpillar Warranty statement for Parts and Components - New and Remanufactured, for additional details). Normal new parts warranty practices will apply. There will be times when the rebuilding dealer and the selling dealer are different. Both dealers must have signed a Cat Certified Rebuild Agreement. The dealer who makes the sale to the end user is responsible for providing the warranty. F. Equipment Protection Plan (EPP) Customer perception of the quality of a rebuild product is significantly influenced by the dealer's offering with respect to extended warranties. Caterpillar encourages dealers to offer Equipment Protection Plan on customer-owned Certified Rebuild machines as well as machines sold from dealer used equipment inventory. The extended protection plan proves the quality because the product is backed for a substantial period of time. Relatively speaking, this is more important than with a new machine. This conclusion has been borne out through dealer experience and customer focus groups. The EPP is a means of effectively overcoming customer concerns regarding the quality of the product. The impact of Equipment Protection Plan is significantly greater with Cat Certified Rebuild than with new Caterpillar machines. Under the Cat Certified Rebuild Program Agreement, the selling dealer is given the option to provide the customer with an Equipment Protection Plan. To qualify for Caterpillar support, the dealer must select one Equipment Protection Plan option measured from the date of delivery. The list of CCR/CPT/CHR Equipment Protection Plan options are on the Cat insurance linked from the CCR web site. The following components are to be covered in terms of the extended protection plan: Engine (excluding radiator, fan, and attachments), torque converter, flywheel clutch, transmission, transfer gears, drive motor and drive pump, drive shaft, universal joint, differential and drive axle, transmission pinion, bevel gear, steering clutch, steering brake and final drive gear train (up to but not including sprocket and wheels). Components essential to the engine's operation such as a fuel pump, oil pump, water pump, turbocharger, etc., are covered. Attachments not covered are alternator, starter, air conditioning compressor, etc. Selling the Equipment Protection Plan support to users as a separate (add-on) charge item, is counterproductive to an effective marketing effort. Providing an extended protection plan as part of the standard Certified Rebuild offering to users, and including an amount in the price as a non-discernible (i.e. not a separate charge) item, is recommended by Caterpillar as the best approach. The amount included to cover Equipment Protection Plan should not represent a charge for the parts support provided to the dealer free of charge by Caterpillar, but should only include anticipated labor costs by the dealer in order to render warranty service and administer the warranty. In offering Equipment Protection Plan, the dealer must indicate clearly to the user that the warranty is a dealer warranty and not a Caterpillar warranty. It is required that two separate and distinct warranty statements be provided to the end user if an extended protection plan is provided. This ensures clarity of terms and conditions to a user. It is important that a clear distinction be drawn between the scope of coverage of the initial warranty and the Equipment Protection Plan. G. Dealer Requirements Delivery Warranty terms must be specified to the user at the time of sale, lease or rent for dealer owned equipment, or at time of delivery of a user owned machine. This should be followed by submission of a Delivery Notice to Caterpillar. The dealer should note upon the Delivery Notice if the Equipment Protection Plan is not offered. If it is offered, the dealer must file for the extended warranty. NOTE: A dealer rental fleet is considered a bona fide user and qualifies for Equipment Protection Plan support. The dealer rental fleet should be shown as the user on the Delivery Notice. NOTE: If a customer determines later that he wants an Equipment Protection Plan, the selling dealer must send Caterpillar a revised Delivery Notice before the six month initial warranty period expires. Claims The selling dealer has the responsibility for administering the Equipment Protection Plan. Caterpillar will provide parts credits at Dealer Net price levels and the dealers is required, under terms of the Cat Certified Rebuild Agreement to provide parts and labor being provided free of charge to the end user. For a dealer to receive assistance under terms of the Cat Certified Rebuild Equipment Protection Plan, the dealer must submit a standard Caterpillar warranty Claim referring to the Cat Certified Rebuild Identification Number, new number if it is a CCR. The claim must be properly completed to ensure that it is processed under terms of the Cat Certified Rebuild Warranty. The Cat Certified Rebuild Identification Number is essential on all claims. In some circumstances, the selling dealer may wish to make arrangements with another dealer to provide the initial or Equipment Protection Plan service to the end user. In these situations the following applies. INITIAL WARRANTY The selling dealer, except in cases where new parts warranty applies, is responsible for the warranty expense. In cases where new parts warranty applies, Caterpillar will provide only the repairing dealer with warranty support. Service claims, when completed in accordance to normal Caterpillar parts warranty practices, may be submitted directly to Caterpillar by the repairing dealer. NOTE: Reimbursement for parts warranty service claims will be limited to only those costs normally associated with parts warranty. Any expenses beyond Caterpillar's normal reimbursement practices must be resolved between the dealers involved. Equipment Protection Plan Under the terms of the Cat Certified Rebuild Program, Caterpillar's obligation for support during the extended protection plan period is limited to only the approved repairing dealer. Settlements between dealers are the responsibility of those parties involved. SIMS In addition to the warranty claims, dealers are required to enter all service work performed into the Service Information Management System. Ensure that the Cat Certified Rebuild Identification Number is used when reports are submitted. Records All records necessary to substantiate clams must be available and must be maintained by the dealer available for Caterpillar personnel to perform periodic audits. H. Dealer Options for Equipment Protection Plan Cat Filter Usage Caterpillar or Caterpillar dealers cannot void warranty if the user installs other than Caterpillar filters on the Cat Certified Rebuild product. However, if a non-Caterpillar filter is found to be the cause of a warranty failure, then Caterpillar and the dealer are not liable. Therefore, if a machine is sold with an Equipment Protection Plan, the dealer should advise the user to use Caterpillar filters on the Cat Certified Rebuild Unit. Use of Exchange Components To maximize machine availability, the use of Dealer Exchange Components to satisfy Dealer Extended Warranty is encouraged. When Exchange Components are used the dealer will be reimbursed at the Dealer Net price of the new parts used to restore the failed component removed from the machine to its pre-failed condition, not to Dealer Exchange Standard. Additional Cost resulting from specified Dealer Exchange Standards will be the responsibility of the dealer or customer and will not be an item which may be claimed from Caterpillar. VI. Enrollments, Deliveries and Credits Once an agreement has been signed between the customer and dealer the Cat Certified Process has just began. Check to ensure that the machine that you are going to work on is not part of the CCR program. If the machine is not part of the CCR program a new model request form should be submitted. The form, New Model Request for Machine or Engine Rebuilds is located on the CCR web site. Completing and submitting this form will guarantee that the media will be completed by the time the machine arrived at the dealership. When the machine arrives at the dealership it should be enrolled into the CCR program by submitting a Cat Certified Rebuild Enrollment Request found on the CCR web site. Enrolling the machine will generate identification plates and decals for the machine that will be shipped to the dealership. These items should arrive to the dealership prior to the completion of the machine, so place these items in a secure location for future use. A. Certified Rebuild Enrollment Request The enrollment form is broken up into three sections: dealership information, what type of rebuild, and machine information. Fill in all the information before submitting the form. The dealership information section consists of six fields that must be filled. 1. Enter your name, the person that is responsible for the rebuild. 2. Enter the dealership’s name. 3. Enter the dealership’s code. 4. Enter the dealership’s address. This address is where you want the plates and decals to be shipped. 5. Enter your email address. If the email address is not entered you will not get a copy of the enrollment. 6. Enter the phone number of the person responsible for the rebuild. After the dealership information is completed move on to the type of rebuild information. This section gives the model and some information about the machine. Fill out all of the required boxes and as many of the other boxes as necessary. 1. Enter the model number. 2. Enter the original serial number. This maybe a rebuild number also. 3. Enter the expected completion date. 4. Check the appropriate boxes as needed for ID plates. 5. Check the circle for the ownership of the machine at time of rebuild. 6. Check what type of rebuild is going to be preformed, only one button can be checked: a. Caterpillar Certified Rebuild i. Power Train (CPT) ii. Machine (CCR) iii. Hydraulic (CHR) iv. Power Train/Hydraulic: use the Power Train button (CPT) b. Caterpillar Engine Rebuild i. Commercial or Marine Engine (CER) c. Caterpillar Certified Rebuild Upgrade i. Australia and Indonesia only (CCRU) d. Certified Machine Component Rebuild i. Captive Engine or Transmission/Torque Converter (CMCR) 1. Enroll the Machine serial number not the Engine or Transmission serial number 7. Enter the hour meter reading. 8. There is a Comment field to help indicate if there may be a change or a problem later. The machine information section must be filled in completely. If the information is not applicable to your machine enter N/A in the box. 1. Enter the machine model number. 2. Enter the machine arrangement number. 3. Enter the engine model number. This is used for a CER also. 4. Enter the engine serial number. This is used for a CER also. 5. Enter the engine arrangement number. This is used for a CER also. 6. Enter the transmission serial number. 7. Enter the transmission arrangement number. Make sure that all of the necessary boxes and buttons are filled in correctly and select Submit. This sends the form and information to the Certified Rebuild group. Upon receipt of the request the certified rebuild group will create identification plates from the information. The certified rebuild group will mail identification plates and machine decals to the dealership’s address specified on the enrollment form. If the machine was enrolled when received from the customer the identification plates and machine decals should arrive to the dealership prior to completion of the rebuild. Make a copy of the enrollment form prior to submitting in order to keep in the folder for your records. VII. Delivery Notice The purpose of the Delivery Notice is to provide all the information required to ensure proper Caterpillar identification of the machine within the warranty and data system. It is also used to enroll a machine for parts policy support in those areas of the world where applicable, and it provides a basis for issuing credits if applicable. Also, the warranty process starts when the delivery notice is received. So if you rebuilt an inventory machine as a CCR product do not delivery the machine until it is sold. The delivery notice was three parts the top section is the dealer/customer information, the middle is for parts Exclusion, and the bottom is the cost/warranty section. Let’s begin at the top with the dealer and customer information. Fill in all the boxes, most of the boxes are require information. 1. Enter the Remanufacturing Dealer 2. Enter the Remanufacturing Dealer code 3. Enter your email address. If the email address is not entered you will not get a copy of the enrollment 4. Enter the Machine Model Number 5. Enter the Original Serial Number of the machine 6. Enter the Customer name, If Inventory or Rental use Dealer’s name 7. Select the related industry that the machine will be going too 8. Enter the Delivery Date, if Inventory wait to sent the Delivery Notice until the Machine is Sold 9. Enter the Country in which the machine is going Next is the Exclusion section of the Delivery Notice. 1. Check the top box if there are any Exclusions 2. Check any boxes of excluded components Remember that Mining Exclusions can only be used on CCR’s!!! The last section of the Delivery Notice form is the cost and warranty section. There are also a couple of miscellaneous items in this section. NOTE: Make a copy of the delivery form prior to submitting in order for the warranty department to have a copy for their records. 1. Enter the type of Currency you are reporting 2. Select the correct rebuild box 3. Enter the total cost of the rebuild; if a CPT was performed you may need to enter a CPT Plus parts cost also. 4. Enter the total man hours worked on the rebuild. 5. Enter the part credits, if applicable 6. All Final inspection items completed, Select Yes or No 7. Warranty explained and statement issued, Select Yes or No 8. Product link installed, Select Yes or No, Product Link Required since 1/2013 9. Did you want Caterpillar Extended Protection Plan, (EPP) Select Yes or No a. Selecting Yes Does Not Enroll the Machine into EPP 10. Was the Hydraulic system include as part of the CPT, Select Yes or No 11. Check Delivery Notice to ensure all boxes are filled and select ‘Submit’ VIII. Parts Credit (if applicable) For NACD dealers, a parts credit claim should be filed using the online parts credit claim procedure. For all other dealers, a parts credit claim must be sent to Caterpillar, along with a copy of the Final Inspection form, Product Update record, as well as copies of dealer parts invoices to support the use of the new Caterpillar parts qualifying for credits. If the remanufacturing dealer decides to sell a completed Cat Certified Rebuild machine to another dealer, they should determine whether or not the purchasing dealer has signed an "Agreement for Sale of Cat Certified Rebuild Machines" with Caterpillar. If an agreement has been signed by the purchasing dealer, the remanufacturing dealer should transfer copies of invoices, Update Record and the Final Inspection form, along with the Delivery Notice to the dealer who purchases the unit. Upon the sale of the unit to the bona fide end user, the selling dealer becomes eligible to file the Delivery Notice with Caterpillar and receive appropriate support including warranty support, and the parts policy in those areas, where it is applicable. Delivery to a bona fide user must take place before any Caterpillar warranty support is received. Major parts credits may be claimed after completion of the rebuild. If the dealer who purchases a Cat Certified Rebuild machine from another dealer has not signed either agreement regarding this program or if the unit is not sold to a bona fide end user, the unit may be identified as a Cat Certified Rebuild machine, but Caterpillar will not provide credits or support an extended power train warranty or parts policy. In this case, the last dealer who had an agreement with Caterpillar is still responsible for the initial warranty on the machine. This dealer is also responsible for any additional warranty obligations incurred at the time of sale. Under no circumstances will Caterpillar issue credits to a rebuilding dealer directly if the unit is sold to a purchaser who does not qualify as a bona fide user. If the machine is sold to another dealer, the credits where applicable should be reflected in the price negotiated between two dealers. Most units will be sold directly to a bona fide end user by the remanufacturing dealer, and the situation discussed above will seldom arise. In the event of a physical or ownership transfer of a machine once it has been placed with the end user, the responsibility for administering the user support commitments remain with the dealer who sold to the first end user. Dealers may or may not wish to transfer warranty or parts support if the machine moves outside their territory or changes ownership. It is possible however for the dealer who sold the unit to make arrangements with another dealer to discharge the responsibilities on a prearranged basis. If a unit is placed into a dealer rental fleet, a delivery notice should be filed. It qualifies for all parts credits, extended power train support and the parts policy. The user identified on the delivery notice should be the dealer's name and RENTAL FLEET. If the unit is placed with a bona fide user for a period in excess of six months, the user who has rented the unit should be specified as the user on the Delivery Notice. If the machine is placed into the rental fleet and receives initial substantial use, regardless of contract terms, the Delivery Notice must be filed. If the certified rebuilt machine is placed in the dealer’s inventory a delivery notice should NOT be submitted until the machine is sold or moved out of inventory. Sending in the delivery notice will start the warranty process. This is the same time that the dealer is able to file for part credits on the parts used on the machine. Remember that there are additional part credits for an inventory machine. Part credits are not available for all of the certified processes. There are NO part credits for a component rebuild, CMCR. Part credits can vary depending on the incentive, for more information on part credits percentages review the Information Release Memos (IRM) on the CCR web site. IX. Quality The subject of quality relating to the Cat Certified Rebuild needs to be viewed in a very broad sense. The product being presented to users as a Cat Certified Rebuild is remanufactured to a factory-controlled standard, warranted by the dealer and backed by Caterpillar in the eyes of the user. It is expected to perform like a new machine both in terms of cost of operation and reliability. It is equally important that the unit be new in appearance and in operational characteristics. Adherence to the minimum parts usage and quality standards must be supplemented with good judgment and experience in order to ensure user acceptance. There is no standard answer regarding how good is good enough. The acid test will always be “If Caterpillar was remanufacturing this unit would it meet the intended quality standards for a Caterpillar product?” In the eyes of the user the Cat Certified Rebuild assumes the identity of a Caterpillar product. A decision to compromise any of the explicit standards set forth with respect to always replaced parts, required updates, or parts reusability guidelines; or a decision not to recondition certain components, not to perform required tests or not to make the quality checks outlined in the reference material, could invalidate Caterpillar support of the rebuild. The final proof of quality if the customer is satisfied with the initial condition, performance and appearance of the Cat Certified Rebuild and retains that satisfaction after experiencing the availability, reliability and operating cost during a normal ownership cycle, and only then the test has been passed. Most customers’ expectations will exceed the minimum warranty period. These expectations will probably vary by major component or system and should meet or exceed the customer’s expectations. A consistent, high quality Cat Certified Rebuild requires the establishment of minimum standards. Only genuine Cat parts are acceptable for use in a Cat Certified Rebuild machine. This applies not only to new and remanufactured parts, but also to all parts reused at the time of rebuild. This requirement is optional for attachments supplied by Caterpillar (i.e. dozer, bucket, ripper, winch, forks, dump body), and does not apply to attachments not supplied by Caterpillar. To achieve minimum standards, Caterpillar requires that certain parts always be replaced. These parts were determined through studies conducted by dealer and Caterpillar personnel. The list of required parts has been validated by the dealer who participated in the pilot phase of the Certified Rebuild Program for each model. Below is a generic description of some of the parts that must be replaced with new Caterpillar parts or Caterpillar Remanufactured Parts or Components. Gaskets Seals, O-ring. Brake linings. Bearings (not over or under sized), bushings and rod ends. Plugs and corks. Lock bolts, Lock nuts Locks and cotter pins. Hydraulic hoses (XT hose – reuse couplings where possible). Radiator hoses, v-belts, grommets, water regulators. Knobs, gauges, seat cushions, arm rests, step treads and switches. Wiring assemblies Track and carrier roller shells and link assemblies. Welded idlers are acceptable to the program as well as re-grousered shoes unless otherwise specified. Ground engaging tools must be replaced (e.g., dozer cutting edges, end bits and ripper tips.) Filters, elements and batteries. Muffler and rain cap. The following general guidelines also apply. The use of dealer exchange components is acceptable to the program. However, the components must meet Caterpillar Certified Rebuild standards – i.e., required replaced parts, updates and so forth. Where available to dealers, Caterpillar Remanufactured alternators and starters can be installed. Use of other Caterpillar Remanufactured Products is highly desirable and recommended but is not required if dealers perform comparable repairs in their own facilities. It is suggested that hardware should be reused where possible without compromising quality unless defined as a required part. They are all selected for specific reasons to ensure reliability. Keep in mind that the aforementioned replaced parts constitute a required minimum and should not be interpreted to be an average parts dollar requirement. Our experiences show that based on the condition of the machine, additional parts are required to rebuild a machine to meet the quality and performance standard of the Caterpillar Certified Rebuild Process. Any parts which are worn or damaged to a point where they are unlikely to yield a trouble-free “second life” should be replaced. To provide specific guidance on required parts replacement the Cat Certified Rebuild Part manuals, CCRP, are available for each model. A copy of the CCRP manual may be found on the CCR web site under the CCR model tab. These publications will provide specific direction on the minimum standards of the program. These books are intended exclusively for use by dealers in the Certified Rebuild process and should not be provided to anyone outside your organization. A Cat Certified Rebuild Customer, CCRC, parts manual should be provided to the customer with the completed Certified Rebuild machine for parts reference purposes. These parts manuals are located on the CCR web site under the CCR models section. The CCPR manual differs from the traditional parts book in several respects, and contains much useful information to improve quality and efficiency. IMPORTANT – The parts that must be replaced to comply with the Cat Certified Rebuild program are identified. The CCRP manual utilizes standard parts book pages for easy reference. The form number of the original parts manual is at the top of each list of required parts in the Cat Certified Rebuild Parts Manual. The CCRP manual will not be updated to reflect engineering or part number changes. They reflect the standard parts manuals as they existed at the time of publication. Before ordering required parts, always consult the NPR for the most current part number. Some important updates are not called out due to the assumption that the NPR will be used to ensure that the latest available parts are utilized. The user of repair kits, seal kits and gasket kits is acceptable to the program. There are many kits available in the parts manual and other reference materials but they are not usually called out as required. If an oversize or undersize part is indicated as available from Caterpillar, it is usually acceptable for use in the program. One exception is Cat Remanufactured Crankshafts. Some of these crankshafts have a maximum grind that is not acceptable, and are so identified in the Work Order. A CCPR manual should be available, both in the shop and in the Parts Department. After the machine has been disassembled, use the CCPR manual to (1) Identify and order the required parts and (2) Identify and order additional parts as determined by the inspection of the parts and components. The Required and Optional Updates will not be in the CCPR manual. It is recognized that after the initial disassembly of the machine, several components, such as the engine and transmission, are moved to specialization areas for disassembly and reconditioning. These areas will need a copy of the appropriate pages of the CCPR manual to assist them in ordering required and inspection generated parts and parts relating to updates. IMPORTANT: IT IS NECESSARY THAT THERE BE NO DEVIATION FROM THE REQUIREMENTS ON THE MINIMUM REPLACED PARTS. THIS IS NECESSARY TO ENSURE THE OVERALL QUALITY OF THE FINAL PRODUCT. A few specific parts require additional discussion: A. Engine / Transmission & Torque Converter If a new or completely dealer reconditioned engine/transmissions/torque converter/final drive and other major components were installed in the machine 500 hours or less prior to the Cat Certified Rebuild, and if the required parts were replaced and the required updates were incorporated, then the engine/transmission/torque converter need not be reconditioned again if it meets all requirements and passes a dynamometer/hydraulic test. However, if reconditioning was accomplished prior to one year before the Caterpillar Certified Rebuild, the component must be rebuilt per the Cat Certified Rebuild instructions. If the engine/transmission/torque converter/final drive and other major components were rebuilt more than 500 service meter hours prior to the Cat Certified Rebuild of the machine, or if it cannot be verified that all required parts and updates were incorporated, the engine/transmission/torque converter/final drive or other major component must be completely disassembled, inspected, reconditioned, assembled and tested. B. Crankshafts Crankshafts worn (ground) beyond .025 inch are not acceptable and must be replaced by a Caterpillar new of remanufactured crankshaft. Any undersized crankshaft used in Cat Certified Rebuild products must be sourced from the Caterpillar Remanufactured Product program. C. Camshafts Any dealer or outside supplier rebuild or salvage of a camshaft not explicitly specified as acceptable in the Work Order is prohibited. D. Cylinder Heads Any Caterpillar Remanufactured Head is acceptable. Cracked heads which have been repaired by welding process or other means not controlled by Caterpillar are not acceptable. One exception is that it is permissible to use heads that have been welded in the intake and exhaust port area – i.e., built up and machined. All cylinder heads should be closely checked to ensure that they are genuine Cat Parts and meet the criteria outlined above. E. Alternators and Starters Caterpillar Remanufactured Alternators and Starters are required to be installed if they are available to the dealer. Any 19-Amp alternator must be replaced with a Caterpillar Remanufactured 50 Amp Alternator (or in a few selected applications a 35-Amp Alternator) if the remanufactured component is available. If it is not available, a new 35-Amp or 50-Amp alternator must be used. Alternators or starters meeting these requirements which have been used 500 or fewer service meter hours need not be rebuilt or replaced. F. Wearing Undercarriage Components If upon completion of a Customer Track Service measurement and inspection, it is found that some genuine Caterpillar components are worn 10% or less, these components need not be replaced. Generally speaking, the most worn component of a group or set determines the statue of the complete group or set. In the case of rollers, if some track roller shells are worn 5% and some 15%, all the 15% worn shells must be replaced. Good judgment is required since new and worn shells mixed on the machine can appear cosmetically different. If any link assembly components are worn more than 10%, the entire assembly must be replaced. For example if the bushings are worn 15% and the links are worn 8%, the link assembly must be replaced. It is acceptable to use welded idlers and re-grousered shoes on Caterpillar Certified Rebuilds. These components must adhere to Caterpillar guidelines and criteria for welding and re-grousering. Caterpillar specifications must be observed during this rebuild process. Appearance must be like new. Rebuilt (welded) roller shells are not acceptable to the program, but rollers may be re-shelled. G. Track Type Tractor Equalizer Bars Repairing of the equalizer bars on Track Type Tractors is a salvage procedure that is recognized under the Certified Rebuild Program. Refer to REHS1406 for update service and repair of equalizer bars. H. Scraper Hitch Components Special reusability and repair guidelines are in effect for scraper hitch components. These are called out in the individual scraper Work Order. Special care and attention needs to be directed to these areas of the machine. I. Loader Lift Arms Special reusability and repair guidelines are in effect for loader lift arms. These are called out in the individual loader Work Order. Special care and attention needs to be directed to these areas of the machine. J. Loader Levers Approved salvage procedures for linkage pins are limited to building up the pin bores with weld, and machining to standard. Weld repair of cracks in loader levers is not permitted. K. Linkage Pins (Solid) Approved salvage procedure for linkage pins are limited to chroming procedures. Chrome may be applied per Caterpillar Guideline For Reusable Parts SEBF8072. The maximum allowable chrome thickness on a pin is .005” depth for use on a Certified Rebuild component. The maximum chrome thickness on the diameter of the pin is .010”. L. Hydraulic Cylinder Components Special guidelines pertain to hydraulic cylinder components as outlined in salvage sections of the Work Orders. Chroming of cylinder rods is always permitted as outlined in Guideline For Reusable Parts SEBF8072. Rods for steering cylinders, scraper bowl lift cylinders, and truck suspension cylinders must be replaced with new or remanufactured if the cylinder rod is damaged. Welding new rod stock to the eye or straightening the rod is unacceptable salvage procedures for these types of cylinders. M. General Purpose Hardware It is suggested that general purpose hardware be reused if doing so will not compromise the quality of the Certified Rebuild process. Close inspection is required. Some types of hardware which have self-locking devices will be specified as required, as well as some hardware in high stress applications. N. Muffler This item is shown as a required part. But if documentation exists indicating that it was installed less than six months ago; is genuine Cat; and examination shows no evidence of external or internal damage, the replacement requirement is waived. O. ROPS Hardware All hardware that attaches the ROPS mounting brackets to the tractor and the hardware used to mount the ROPS structure to the mounting brackets must be replaced. P. ROPS Structure Cutting, welding and repairing of the ROPS structure must be limited to that which is described in Special Instruction SEHS6929, Inspection, Maintenance and Repair of Rollover Protective Structures (ROPS) and Attachment Installation Guidelines. Q. Air Conditioning The disassembly, reconditioning, assembly and testing of air conditioning systems require special attention. Refer to SENR5664 for Reconditioning Procedure For Air Conditioners on Caterpillar equipment. R. CAT CERTIFIED REBUILD Decals and Identification Plate The Cat Certified Rebuild identification plate must be affixed to the machine as well as all other warning decals or plates required to comply with all local, state and federal safety laws. The original identification plates must remain on the machine. Place the new identification plate next too or near the original plates. There are countries that require the original identification plates be on the machine if being relocated in their country. Correct location of the Cat Certified Rebuild decals is discussed in the “CCR and CPT Decal Application Guidelines’ found on the CCR web site under the ‘Reference Information’ tab. If customers choose to not have their machines marked with Cat Certified Rebuild decals, this requirement is waived. S. Safety Related Items Backup Warning Alarm The Cat Certified Rebuild must be equipped with an operable backup alarm. Electric or Air Horn The Cat Certified Rebuild must be equipped with an operable forward warning horn. Fire Extinguisher If installed, a fire extinguisher of the required capacity and type must be checked to ensure that it is fully charged and in operable condition. Safety The Cat Certified Rebuild must conform to safety requirements and local law. Refer to the safety section in the Operation and Maintenance Manual. T. Integrated Quality Checks To help assure the quality of Cat Certified Rebuild, certain checks must be made and recorded during the rebuild. These include only those identified as critical to the rebuild process. Many other procedures must be followed and measures made during the rebuild to assure a high quality product. The required forms are: 1. All Torque Converter & Transmission test sheet 2. Any Engine Quality Sheet 3. All Dynamometer Test Sheet 4. Cat Certified Rebuild Quality Control Record 5. Cat Certified Rebuild Product Update Record 6. Cat Certified Rebuild Product Optional Upgrade Record Use the Testing and Adjusting manuals provided for the different models in order to correctly set the pressures, setting and specifications. Use the Disassembly and Assembly manual in order to use the correct torque settings. Continued reference should also be made to the published specifications from all sources to assure highest quality rebuilds. Servicemen must complete these forms. This step deserves special consideration. Many servicemen who work in specialized activities will be accustomed to completing quality control forms. For example, quality records are routinely associated with dynamometer testing. For other jobs, especially main shop activities such as machine assembly, many servicemen have never been required to complete quality control records. In fact, some may be offended when asked to do so, assuming this indicates a lack of trust concerning their work habits. This possible situation reinforces the need to involve the servicemen ahead of time to assure their understanding of the uniqueness of this program, and to obtain their willing cooperation. The completed quality control records, product update record forms, and the product upgrade records are to be retained in the machine history folder for possible audit during the warranty period. X. Remanufacturing Overview The subject of quality relating to the Cat Certified Rebuild needs to be viewed in a very broad sense. The acid test will always be “If Caterpillar was remanufacturing this unit would it meet the intended quality standards for a Caterpillar product?” A decision to compromise any of the explicit standards set forth with respect to always replaced parts, required updates, or parts reusability guidelines; or a decision not to recondition certain components, not to perform required tests or not to make the quality checks outlined in the reference material could invalidate Caterpillar support of the rebuild. A. Required Parts Replacement Generic description of some of the parts that usually must be replaced with new Cat Parts or Cat Remanufactured parts or components: Gaskets Seals, O-ring. Brake linings. Bearings (not over or under sized), bushings and rod ends. Plugs and corks. Lock bolts, Lock nuts Locks and cotter pins. Hydraulic hoses (XT hose – reuse couplings where possible). Radiator hoses, v-belts, grommets, water regulators. Knobs, gauges, seat cushions, arm rests, step treads and switches. Wiring assemblies Track and carrier roller shells and link assemblies. Welded idlers are acceptable to the program as well as re-grousered shoes unless otherwise specified. Ground engaging tools must be replaced (e.g., dozer cutting edges, end bits and ripper tips.) Filters, elements and batteries. Muffler and rain cap. The following general guidelines also apply. The use of dealer exchange components is acceptable to the program. However, the components must meet Cat Certified Rebuild standards. Where available to dealers, Cat Remanufactured alternators and starters should be installed. Use of other Cat Remanufactured Products is highly desirable and recommended but is not required if dealers perform comparable repairs in their own facilities. Hardware should be reused where possible, without compromising quality, unless defined as a required part. The replaced parts just mentioned constitute a required minimum and should not be interpreted to be an average parts dollar requirement. Our experiences show that based on the condition of the engine, additional parts are required to rebuild an engine to meet the quality and performance standard of the Cat Certified Rebuild process. Any parts that are worn or damaged to a point where they are unlikely to yield a trouble-free additional life should be replaced. Reference books Cat Certified Rebuild Parts manual (CCRP) are available to provide specific guidance on required parts replacement for each model. These books are intended exclusively for use by dealers in the Cat Certified Rebuild process and should not be provided to anyone outside your organization. A CCRC parts manual should be provided to the customer with the completed Cat Certified Rebuild for parts reference purposes. Parts reference manuals will not be updated to reflect engineering or part number changes. They reflect the standard parts manuals as they existed at the time of publication. Before ordering required parts, always consult the NPR for the most current part number. Some important updates are not called out due to the assumption that the NPR will be used to ensure that the latest available parts are used. 100% Replacement Parts identified in the Parts Manual are to be replaced unless they meet the Cat Reuse and Salvage Guidelines. The use of repair kits, seal kits and gasket kits is acceptable to the program. There are many kits available in the parts manual and other reference materials but they are not usually called out as required. If an oversize or undersize part is indicated as available from Caterpillar, it is usually acceptable for use in the program. One exception is Cat Remanufactured Crankshafts. Some of these crankshafts have a maximum grind that is not acceptable, and are so identified in the work order. A set of parts reference manuals should be available, both in the shop and in the parts department. Use the parts reference manuals to 1) Identify and order the required parts and 2) identify and order additional parts as determined by the inspection of the parts as determined by the inspection of the parts and components. The parts reference manual should also be used to order parts pertaining to required and optional updates. IMPORTANT: IT IS NECESSARY THAT THERE BE NO DEVIATION FROM THE REQUIREMENTS ON THE MINIMUM REPLACED PARTS. THIS IS NECESSARY TO ENSURE THE OVERALL QUALITY OF THE FINAL PRODUCT. A few specific parts require additional discussion: B. Engine If a new or completely dealer reconditioned engine components were installed in the engine 500 hours or less prior to the Cat Certified Machine Rebuild, and if the required parts were replaced and the required updates were incorporated, then the engine component need not be reconditioned again if it meets all requirements and the engine passes a dynamometer test. However, if reconditioning was accomplished prior to one year before the Cat Certified Machine Rebuild, the component must be rebuilt per the Cat Certified Machine Rebuild instructions. If the engine components were rebuilt more than 500 service meter hours prior to the Cat Certified Machine Rebuild, or if it cannot be verified that all required parts and updates were incorporated, the engine component must be completely disassembled, inspected, reconditioned, assembled and tested. If this issue arises call a member of the CCR team to discuss the options. C. Crankshafts Crankshafts worn (ground) beyond .025 inch are not acceptable and must be replaced by a Cat new or remanufactured crankshaft. Any undersized crankshaft used in Cat Certified Machine Rebuild products must be sourced from the Caterpillar Remanufactured Product program. D. Camshafts Any dealer or outside suppliers rebuild or salvage of a camshaft not explicitly specified as acceptable in the work order is prohibited. E. Cylinder Heads Any Cat Remanufactured Head is acceptable. Cracked heads, which have been repaired by welding process or other means not controlled by Caterpillar, are not acceptable. One exception is that it is permissible to use heads that have been welded in the intake and exhaust port area – i.e., built up and machined. All cylinder heads should be closely checked to ensure that they are genuine Cat Parts and meet the criteria outlined above. F. Alternators and Starters Cat Remanufactured Alternators and Starters are required to be installed if they are available to the dealer. Any 19- Amp alternator must be replaced with a Cat Remanufactured 50 Amp Alternator (or in a few selected applications a 35-Amp Alternator) if the remanufactured component is available. If it is not available, a new 35-Amp or 50-Amp alternator must be used. Alternators or starters meeting these requirements, which have been used 500 or fewer service meter hours, need not be rebuilt or replaced. G. General Purpose Hardware Hardware may be reused if doing so will not compromise the quality of the Cat Certified Machine Rebuild process. Close inspection is required. Some types of hardware, which have self-locking devices, will be specified as required, as well as some hardware in high stress applications. H. Cat Certified Machine Rebuild Decals and Identification Plates The Cat Certified Machine Rebuild serial number must be affixed to the machine as well as all other warning decals or plates required to comply with all local, state and federal safety laws. Correct location of the Cat Certified Machine Rebuild decals are discussed in the CCR and CPT Decal application guidelines found on the CCR web site. I. Product Updates During and even following the production of a machine, many product improvements are developed and introduced. Some of these improvements are improved parts and components; others are specification changes, such as revised torques. Cat Certified Rebuild standards require that certain updates be incorporated into units undergoing the Cat Certified Rebuild process. Some of the required updates may have been installed at the factory while others may have been installed after delivery. The product identification number (serial number) plus inspection of the machine are keys to determining which updates are to be added to bring a specific rebuild up to the minimum standard. Product updates are broken down into three categories, Reference Updates, Require Updates, and Optional Upgrades. The lists are located on the CCR web site under the specific model and serial number. A Reference update is an article that informs that an item had been changed or is new. This change is not critical to the operation of the equipment and is not necessary to change for improvement of the operation. An example of a reference update would be a new or improved hood is available. These are published to let the dealer know of some items that are available if something is found and could be replaced with something new. Required Updates are updates which represented substantially improved productive capability, reliability or improve operating costs for the machine versus the expense. A good example of a Required Update is the transmission sun gear on an Off Highway Truck. The Off Highway Truck transmission sun gear is a very beneficial update for the operation and performance of the transmission for most customers and therefore it is in the required list. The following should be noted regarding the required updates: The listing of updates in the Product Update Record provides a brief description of the update. Always read the Service Magazine article and/or Special Instructions referenced in the listing for additional details. Always check for additional service magazine articles that have been published since the last revision of the CCR or CPT media to ensure that the product updates the most current. Use the good value method on the list of additional service magazine articles. A Product Update Record must be completed for each machine as it is assembled, initialed, signed, and a copy filed at the dealership. The effective serial number for each update was included if it was available. The quantity of the new required part is listed. The update listing provides the Cat Certified Rebuild Work Order Segment number. The Required Updates are listed in Work Order Segment sequence. Some of the parts used in the required updates are parts which must be replaced according to the CCPR manual. The required updates supersede installation of required parts. The update list is complete and is provided to assist in explaining to customers all of the improvements incorporated in machines covered by the Certified Rebuild process. Care should be taken to avoid double ordering of parts. Parts Manuals provided to the customer, the CCRC, for reference should indicate updates installed on the machine. To be compatible with the part numbers in the CCRP manual, the part numbers in the update listings have not been changed to reflect the latest Numerical Parts Record (NPR) information. Before ordering the listed parts, consult the NPR. J. Optional Upgrades The third update is an Optional Upgrade. An Optional Upgrade is usually a more costly improvement or enhancement which was not installed at the factory. The Optional Upgrade could be a retrofit or a complete upgrade package. A good example of an optional upgrade is the horizontal muffler on the machine. There are benefits to the horizontal muffler, but considering the expense, it did not represent a good value for most customers, in most situations. Optional upgrades, although not required to meet Cat Certified Rebuild standards, should be carefully considered and recommended on an individual basis. These upgrades are listed on the Product Upgrade Record. The optional upgrade listing uses the same format as the required update listing. Review the optional upgrades and determine which ones add value in a given situation. For example, if the idlers on a tractor need to be changed and there is an upgrade for idlers then that makes good sense. Making some optional updates "standard" for your dealership's Cat Certified Rebuilds could be appropriate. When reviewing optional upgrades, ask the questions "To what degree will the upgrade improve the marketability of the machine?" or "Will customers perceive the upgrade to truly add value to the machine?” Optional upgrades provide flexibility and an opportunity to match the final Cat Certified Rebuild product to users' needs. They should be presented to users at the time that you are quoting the machine as a positive benefit which will provide improved future performance on Cat Certified Rebuild units. A list of optional upgrades, which indicates their total parts cost, may be found under the serial number prefix on the CCR web site. Optional upgrades are also totaled for cost by Work Order Segment. This information could be useful in developing quotes to customers. K. Product Improvement Program/ Product Support Programs The Product Improvement Program (PIP) and Product Support Programs (PSP) undertaken to support various models have not been considered in Caterpillar's evaluation of required updates. The PIPs and PSPs have not been reviewed and none of the requirements are listed as items under the required update listing. The dealer has the responsibility to research and administer the PIPs and PSPs for the desired serial number. PIP/PSP completion information can be used to check against machine history folders and/or SIMS II inquiries to determine whether or not this work has been completed. This information may have significant bearing on the cost of a Cat Certified Rebuild. If PIPs or PSPs are currently in effect and the machine meets the requirements of the program, they are eligible for claims to be filed through normal channels. Claims for Cat Certified Rebuilds on parts covered by PIPs/PSPs could be affected as described in the parts credit form. L. Final Inspection Customers expect a Cat Certified Rebuild to perform and a full CCR to appear very much like a new machine after hundreds of man hours and thousands of dollars in parts have gone into its remanufacture. Many quality control checks have been incorporated into the Cat Certified Rebuild process to ensure a quality product. Performance is very important, however, customers also expect the controls, the condition of the operator's compartment, and the response of the machine to be directly comparable to a new machine. Appearance and feel are expected to be like a new unit. The final inspection process is a very important part of the Cat Certified Rebuild. The purpose is to ensure that customers' expectations are met. The inspector should understand the Cat Certified Rebuild process, its intent and objectives. They must also understand customer expectations. The dealer may choose to have their new machine inspector or another person experienced in inspecting machines perform the final inspection. It is desirable for the inspector to be totally objective and somewhat disassociated with the rebuild. The Cat Certified Rebuild Final Inspection Form or an equivalent can be used. A sample copy is available on the CCR web site. It serves as a communications tool to the shop regarding the quality of the work performed and identifies any deficiencies which must be corrected, then rechecked prior to delivery. It also serves as a communication tool to Caterpillar indicating that the necessary inspections have been completed. A copy is to be retained by the dealer for future use in case of an audit or machine problem. XI. Final Inspection Procedure A. Data Recording The inspector should record all requested data regarding the machine, the owner and so forth. If it is a dealer-owned machine at the time of inspection, this should be indicated. The visual and fluid level portion of the inspection is very important. The inspector should walk around the machine, carefully noting any defects such as missing or loose parts. The inspector should next get into the operator's compartment, if necessary, and note any defects in this area. Finally, the inspector should check all fluid levels. Operation - Part 1 During this portion of the inspection, the inspector uses diagnostic tools to check for engine RPM's, power train pressures and hydraulic pressures. Specifications for each test must be recorded on the form. The machine is brought up to operating temperature, the test performed, and the results recorded. Any necessary adjustments should be made to bring the machine into the acceptable specification. Operation - Part 2 During this portion of the Final Inspection, the inspector should operate the machine, complete with attachments, whenever possible, for approximately two hours. It is very desirable to put the machine to work in a situation which simulates a real application, i.e., dozing under load or actually loading, etc. This is not always possible, and is not an absolute requirement. As a minimum, the machine should be operated in a machine lot or in the dirt for two hours, driving the machine forward and in reverse, making turns in both directions to simulate actual field operation. The inspector should use the Inspection Form as a guide for the things that need to be checked during this portion. All defects should be noted and corrected. B. After Operation At this point, the machine should be parked, preferably on concrete or asphalt surface, shut down and allowed to cool for an hour or so. A thorough inspection should then be made, looking for loose fittings, leaks, and other defects. These should be recorded and corrected. When the "After Operation" portion of the inspection is completed, the inspector should return the Final Inspection Form to the shop. The shop should use the form as a guide to correct any indicated defects. The shop must sign off on each repair and after all defects have been repaired, the unit should be retested for those items. C. Visual - After Paint After the machine has been painted, if necessary, an inspection should be made using the Final Inspection Form. The inspector should look for defects in the paint and areas which relate primarily to appearance. All guards should be on the machine as well as the decals, the Caterpillar Certified Rebuild Identification Plate and the information/warning plates. After the final portion of the inspection, the inspector should note any defects and they should be repaired. Once the defects have been repaired the inspector should SIGN THE FORM. One copy should be filed in the service history folder at the dealership. We have described the final inspection procedure as if the selling dealer and the remanufacturing dealer are one in the same. There may be cases where the selling dealer may not be the remanufacturing dealer. In this case the selling dealer can do a second final inspection if he chooses but this is not required. Since the selling dealer assumes the warranty obligation with the first end user, it is highly desirable that they take precautions to ensure that the machine has not deteriorated in any way since the inspection completed by the remanufacturing dealer. D. Machine Appearance & Identification Appearance plays a big role in developing a positive customer perception regarding quality and thoroughness of the Cat Certified Rebuild. Customer surveys have indicated that appearance is extremely important in the user's buying decision. It is critical also that all personnel within the dealership associated with the Cat Certified Rebuild Process be aware of the importance of "like-new" appearance of the final product. E. Proper Identification The completed machine rebuild process should be identified in a thorough and complete manner in conformity with the Cat Certified Rebuild requirements. Caterpillar provides items of required identification to clearly identify the machine as a Cat Certified Rebuild. 1. A CCR rebuild machine would require four new plates and two decals. DO NOT remove any of the old serial number plates. If for some reason the old identification number plate is lost or destroyed, there are web sites to visit to retrieve replacement plates. If original PIN plate has been damaged and need a replacement, there is a procedure to get a replacement. It will, however, contain a "Duplicate" stamped on the replacement PIN plate. The link is: https://dealer.cat.com/cda/layout?m=372775&x=7&id=2482572 . PIN plates may also contain additional "CE" mark plate to signify that the machine was built compliant to the European Union regulations when it was initially built. If a replacement CE plate is needed, here is an instruction: https://dealer.cat.com/cda/files/4257974/7/replacement_CE_plate_process.pdf. A new CCR identification plate containing a new Cat Certified Rebuild identification number is to be installed below the original or duplicate serial number identification plate, usually on the frame. A new Service Information Plate contains serial numbers of important components that are on the machine. This plate should be affixed to the machine on the dash or firewall of the operator's compartment. A new engine identification plate that has the engine model number, arrangement number, and serial number is provided and should be placed on the engine near the original engine plate. The last plate is the transmission identification plate. This plate has the serial number and arrangement number of the transmission that is on the machine. Place the transmission plate on the transmission near the original transmission plate. Prior to the installation, check the Cat Certified Rebuild identification tag to ensure that it contains accurate and complete information. In the event of any defect, notify the Cat Certified Rebuild Contact promptly. 2. A CPT rebuild machine requires three new plates and two decals. A new Cat Certified Power train plate contains serial numbers of important components that are on the machine. This plate should be affixed to the machine on the dash or firewall of the operator's compartment. A new engine identification plate that has the engine model number, arrangement number, and serial number is provided and should be placed on the engine near the original engine plate. The last plate is the transmission identification plate. This plate has the serial number and arrangement number of the transmission that is on the machine. Place the transmission plate on the transmission near the original transmission plate. Prior to the installation, check the Cat Certified Rebuild identification tag to ensure that it contains accurate and complete information. In the event of any defect, notify the Cat Certified Rebuild Contact promptly. 3. Two Cat Certified Rebuild or Power Train Rebuild identification decals are also provided, which are to be installed on each side of the machine. The decals should be positioned according to the ‘CCR and CPT Decal Application Guidelines’ that is found on the CCR web site. All standard Caterpillar identification decals and the tag should be utilized. Any additional tags, decals or other identification which had previously appeared on the machine should be retained. If replacement tags are needed, they should be requested through the appropriate Caterpillar procedures. All required markings and decals, other than Cat Certified Rebuild identification, should be obtained through the normal parts ordering procedure. Identification indicating the unit is a Cat Certified Rebuild can only be obtained by sending an "Enrollment Request Form" to the Cat Certified Rebuild Coordinator electronically. If additional or duplicate materials are required due to loss, defects or other reasons contact your Cat Certified Rebuild Coordinator and explain the circumstances. XII. Check List for the Dealer When Performing a Cat Certified Rebuild A. Required Items Needed to Save for CCR, CPT, CHR, CER Rebuilds and Audits o Enrollment (Correct Serial Number, rebuild option, complete information). o Delivery Notice (Correct values in the correct fields). o Quality Control Record (Initialed & Signed). For Audit o Product Update Record (Initialed & Signed). o The mechanic reviews the updates needed signs off on the ones he performs and indicates the others.). For Audit o Product Available Optional Upgrade Record (Initialed & Signed). o Only if Available Optional Upgrades were used. For Audit o Original S/N plate intact (Duplicate can be ordered). For Audit o Decals on the machine-CCR, CPT, CHR, CER o Service Information plate in Cab o PIPs checked and worked (Perform any PIP that is available for the machine). For Audit o Newer Service Magazine Articles reviewed (Always check for new service magazine articles that were published since the last revision of the media to ensure that the product is up to date. Use the good value method on the list of additional service magazine articles.). For Audit o Save the work order for the machine for an audit review o Save the parts list ordered for an audit review o Final Inspection report. For Audit B. Customer needs o Warranty statement provided to customer. For Audit o Customer get Part Manual (Use the CCRC part manual provided by the CCR group or order a part manual, compare it to SIS and insert all of the new parts numbers) o Customer get a new OMM (CCR only) o Pictures or video. For Audit