Remanufacturing might just be one of the most important seeds Caterpillar planted 46 years ago. What began as a narrowly focused effort to remanufacture a single series engine has grown exponentially. Today, the value proposition that remanufactured parts and components offer our customers and the contribution they make to Caterpillar’s profitability are more than significant.
In its simplest form, Cat® Reman facilitates an exchange business where customers trade a used part for a remanufactured one at a fraction of the price of a new part. Caterpillar then takes the traded-in (core) part, strips it down to the lowest-level component, and puts it through our remanufacturing process — during which it is turned into a component with a new serial number. It can then be sold as a remanufactured part or become a component of a remanufactured sub-assembly or engine.
Supports our strategy
At Caterpillar, everything starts with the customer. Our goal is to make our customers more successful with our products and services than our competitors’. When it comes to ensuring customer success, remanufacturing couldn’t be a better fit, allowing customers to purchase like-new parts for a fraction of the cost of buying new, while keeping resources in circulation. The end result is that remanufactured parts help lower total owning and operating costs for customers, creating a compelling selling point for new machines and engines.
Analytics drive operational excellence
The fundamental remanufacturing concept is a great example of operational excellence in that it conserves resources, requires fewer raw materials and reduces the time it takes to manufacture parts and components. Beyond that, Cat Reman’s use of analytics to reduce process variability, increase productivity and conserve resources in manufacturing is world-class. The analytics team transforms data into actionable information they use to guide decisions and improve processes.
The group takes a broad view of how analytics can be utilized. “When we look at analytics, we are looking at the entire Cat Reman business,” says Principal Analytics Manager Doug Hampton. “Our goal is to improve operations on both the cost side of the business and the sales side. The cost side of the business is concerned with material costs and warranty costs, whereas sales projects are focused on increasing both sales of existing products and designing products we don’t offer today.”