Mr. Eric HerzbergSenior Fellow, LMI

Mr. Jay WaltonGeneral Manager, Cat Defense, Caterpillar

Mr. Stuart PaulDeputy Branch Head, Aviation Readiness Branch, OPNAV N832B

Colonel John KuenzliCommander, Army Materiel Command's Logistics Support Activity

Ms. Ellen GriffithDirector, Business Operations, WR-ALC/OB

Caterpillar Defense

Mr. Jay WaltonGeneral Manager

CATERPILLAR DEFENSE• Who we are

• Provide the Lowest Owning & Operating Costs

• Big data examples

Who is Caterpillar Defense?

MILITARY POWERPACKS

VEHICLES & MACHINES

LIFE CYCLE SUPPORT

REMANUFACTURING

VEHICLE CUSTOMISATION

MARINE & EPG

SYSTEMS

TRUCK ENGINES FMS

ARMOR, REMOTE

CONTROL, 2-MAN CABS

Large Population of Cat Engines & Machines

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6

1. Preventive Maintenance 2. S.O.SSM Fluid Analysis3. Inspections4. Repair Before Failure5. Operator Training6. Record keeping

6 Ways to Lower Maintenance Costs and Improve Readiness

Analytics Maturity Model

BU

SIN

ES

S

INT

EL

LIG

EN

CE

A L E R T S

Q U E R Y / D R I L L D O W N

A D H O C R E P O R T S

S T A N D A R D R E P O R T S

D A T A A V A I L A B I L I T Y

S O P H I S T I C A T I O N

AD

VA

NC

ED

A

NA

LY

TIC

S

O P T I M I Z A T I O N

F O R E C A S T I N G / E X T R A P O L A T I O N

S T A T I S T I C A L A N A L Y S I S

P R E D I C T I V E M O D E L I N G

BU

SIN

ES

S V

ALU

E

CO

MP

ETI

TIV

E A

DV

AN

TAG

E

Davenport model of Analytics Maturity

Engine Data Findings

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Fuel Consumption

Fuel costs are 40% of overall costs

Contaminated fuel can create injector issues that can burn up to 12% more fuel and shorten injector life by 3x

Capturing fuel savings from good maintenance can lower operating costs by 5-10%

Oil Consumption When oil consumption increases by 3x an overhaul is required

Maintenance

Repairing your engine after failure leads to an average increase in cost of 190%

40%-60% of all engine downtime is associated with cooling system problems

45% more injector life with proprietary Cat Fuel Filters

Caterpillar © 2017. All Rights Reserved

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Why Repair Before Failure?

• Take advantage of parts designed to last multiple lives

• Failure costs twice as much money

• Failure takes 2-10 times longer to repair

• High risk of contingent damage to other parts

• 90% of failures are preventable

10% NOT PREVENTABLE

90% PREVENTABLE

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Red River Army Depot Partnership with Cat Defense

Condition Based Maintenance/Overhaul

• Caterpillar Reuse & Salvage Guidelines • Approved by TARDEC• FSR troubleshooting & proprietary data

Is the Army winning or losing at maintenance? Results:

• Over 35% more throughput: > 880 Engines repaired

• $4.5MM Cost savings

• No carry-over FY16 and FY17

Information provided with permission from RRAD

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S.O.SSM Services and NPINew product Small population New wear material content

What is normal for this new wheel loader axle?

Caterpillar © 2017. All Rights Reserved

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S.O.SSM Services and NPI

Results: well within the corporate populationResults decrease after 2000 hours This is the Break-in affect

Caterpillar © 2017. All Rights Reserved

Operator trainingis needed

Caterpillar © 2017. All Rights Reserved

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1. Preventive Maintenance 2. S.O.SSM Fluid Analysis3. Inspections4. Repair Before Failure5. Operator Training6. Record keeping

6 Ways to Lower Maintenance Costs and Improve Readiness

Davenport model of Analytics Maturity

Thank You For Your Service

Mr. Jay WaltonGeneral Manager

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Thank you for your Service

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Analytics of ThingsE Q U I P M E N TT E L E M AT I C S

F L U I DA N A LY S I S

I N S P E C T I O N S

P R O D U C T I O NS E N S O R S

F L E E T M A N A G E M E N T S Y S T E M S

E R P S Y S T E M S

J O B S I T E /W O R K E RD ATA

A N A LY T I C S

SY

ST

EM

S

AN

D

SE

NS

OR

S

SITEOPTIMIZATION

OPERATOR/WORKER

PRODUCTIVITY

EQUIPMENT UPTIME

ALERTS

RECOMMENDATIONS

INSIGHTS,PREDICTIONS &FORECASTING

Repair Before Failure

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525,000+ Connected

Assets

Caterpillar Telematics and Fleet Monitoring

Operator Induced Fault CodesProvide Training & Feedback

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Analytics provide:

• Jobsite Assessment

• Fleet Design and Sizing

• Production Monitoring/ Reporting

• Haul road optimizations

• Operation improvement consultation

EXAMPLE: Customer’s Crusher Relocation Dilemma

What-if studies on various fleet combinations using site simulation capabilities

• Recommendation resulted in 27% cost savings for this customer

• Replicated in 3 other sites

Job Site Solutions

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Customer Value Journey