LoweringComponent CostsThat’s My Final Answer!
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How Can We Lower ComponentCost Per Hour?• Reduce component repair & rebuild costs• Increase component lives
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Questions To Consider• What’s more important to component
life—design, maintenance or application?• Does the application of a machine affect
component lives and repair costs?• How significant are application changes to
component lives and repair costs?
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Questions To Consider• Does good maintenance really enhance
component lives and reduce costs? Iscontamination control important?
• What has happened in the ComponentManagement arena since BIU in 1997?
LoweringComponent CostsThen & Now
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Then (In 1995)• Unsatisfactory major mining component life• Noncompetitive component rebuild costs• Product reliability issues• MARC health issues
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Unsatisfactory Component Life• Original life too low in difficult applications• Component second life 75% of original life• Component third life 45% to 55% of
original life• Payload contributed
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Causes Of Second And ThirdComponent Life Shortfalls• Dealer rebuild process• Reman quality• Component R & I process• Others?
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What Is The MAJOR ContributorTo Component Life Shortfalls?
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• Dealer rebuild process• Reman quality• Component R & I process
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Component R & I Process
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Dealer Audit Results
30
40
50
60
70
80
90
100
SHOP - 10%
CLEANLIN
ESS - 20%
COMP. ASSM. -
35%
TESTING - 1
5%
R&I - 20
%
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What Did We Do?• Documented R & I process• Developed CGM rebuild/installation
certification process• Increased emphasis on R & I process control
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Completed CGM Certification Audits1999: Finning Chile, Cashman, Westrac,
Hastings Deering, Gecolsa, Wheeler,Finning Canada
2000: Cat Reman Facilities, Wyoming,Rust, Ziegler
2001 YTD: Empire, Sotreq, Macrosa
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10/10/20 Payload Policy
“No more than 10% of payloads mayexceed 1.1 times the target payload,
and NO single payload shall everexceed 1.2 times the target payload.”
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Component Repair/RebuildCost Reduction• Develop repair/rebuild strategy• Enhance repair before failure capabilities• Establish contamination control standards
and procedures
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Repair/Rebuild Strategy• Dealer rebuild is the preferred source for 1st
and 2nd rebuilds when volume justifies• Reman for 3rd or other high value rebuilds• Cat to provide reman piece parts at
competitive prices to support dealer rebuilds
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Now (In 2001)• Generally, lives of original components have
increased 20% to 30%, depending on application• Generally, lives of rebuilt components have increased
to 85% to 90% of new• Component Rebuild Certification Program producing
desired results• Value of the Certification Program recognized by
customers worldwide• Continued focus on the R & I process
LoweringComponent CostsContamination Control
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What Is ContaminationControl About?
Why Is It ImportantTo Our Customers?
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Contamination Is The Top CauseOf Premature Wearout
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Believers• Newmont• Exxon-Mobil• Morrison-Knudsen• Simplot• Billiton• Caterpillar Inc.
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Effects Of ContaminationHydraulic System experts attribute 75% to85% of all component failures to particlecontamination in the fluid and NOT a weaknessin the system components.
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Component Life vs.Contamination Level
ISO22/19
21/17
20/15
19/16
18/15
17/14
16/13
15/12
14/11
13/10
12/09
Component Life Over Time
---
----------
----
Clean New Oil
Con
tam
inat
ion
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What Is Contamination?
Anything in a fluid thatdoes not belong
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Where Does ContaminationCome From?• Generated WEAR• Factory or Rebuild Assembly Process• Installation Process System• Debris from Previous Failure• Fluid Storage and Refill Practices
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ISO Standards
• 29 ISO Levels• Particle count doubles at each level
Contamination Particle CountIn 1 mL of Fluid
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ISO Code ChartISO Code
232221201918171615141312
Number of Particles / mL40,000 - 80,00020,000 - 40,00010,000 - 20,0005000 - 10,0002500 - 50001300 - 2500640 - 1300320 - 640160 - 32080 - 16040 - 8020 - 40
----- Very Clean (Fill Oil) -----(16/13)
---- Clean (Hyd. System) ----(18/15)
----------Very Dirty ----------
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ISO Cleanliness Code• Explained in ISO Standard 4406• Expresses amount of contaminant in
1 mL of fluid
15 microns5 microns2 microns
AC Calibration
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ISO Cleanliness Code• Caterpillar uses the 2 factor code:
Express as X/Y whereX # particles > 5 micronsY # particles > 15 microns
e.g. ISO 18/15
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Cat HydraulicSystem Clearances
Particles You Cannot See Are Harmful!
MICRONS
Smallest VisibleTo The Eye
40
Human Hair
80
2Fuel
530
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Caterpillar Fluid Cleanliness StandardsFill Oil ISO 16/13
Fuel ISO 20/17/13
Hydraulic Systems ISO 18/15
OHT Final Drives / Diff ISO 21/17
Transmissions ( Electronic ) ISO18/15
Transmissions ( Mechanical ) ISO 21/17
Engine Rollout ISO 18/15
Pumps & Governors ISO 16/13
Injector Calibration Fluid ISO 15/13
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Particle Counter
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Portable Contamination Kit
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150 GPMKidney Loop Cart(5W-90W)183-9301
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OHT Axle/Final Drive/WheelGp./Diff. Off-Line Filtering
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90 GPMKidney Loop Cart(5W-50W)188-3242
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90 GPMKidney Loop Cart(5W-50W)194-2897
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Transfer Cart and FluidRecovery System
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When Do We Use Filter Carts?• When contamination exceeds specs• With extended oil changes• After any failure which created debris• After rebuild break-in• Fuel and oil dispensing
Worldwide Filter Cart Sales
NACD 37
COSA 20
CACo 21
CAPL 24
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What percent of your customerspresently employ contaminationcontrol as part of their normal
maintenance program?
What do these customers sayabout the benefits of a
contamination control program?
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How do you plan to increasecustomer awareness of the
importance of a contaminationcontrol program?
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What Is Contamination Control?• Awareness, Measurements, Standards• Build it Clean, Keep it Clean
Why Is It Important?• Helps maximize component life• Helps get lowest cost-per-ton
LoweringComponent CostsApplication Management
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How does machine applicationinfluence component life?
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What application factors do YOUthink affect component life?
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Application Factors Like…
• Payload- Overloading, Underloading- Distribution—10, 10, 20 Rule
• Haul road condition• Haul road profile• Mine operational efficiency
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Powertrain Repair Cost Breakdown
793 Mining Truck
40%
4%9%7%
40% EngineConverterTransmissionDifferentialWheel Groups
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A Case Of Overloading?
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Payload problems?
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An Increase In Payload Causes:• Decrease in component lives/Increase in costs
– Wheel Groups—Significant– Differentials—Significant– Engines—May or May Not Be Significant
• Slight increase in production• Insignificant change in fuel efficiency
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Where is the haul road?
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Lowering Component Costs
• Component lives?• Machine productivity?• Fuel efficiency?
What is the impact of haul road rollingresistance changes on:
And…
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Are the changes significant?
And…
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What additional costs willthose changes drive?
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What Is Rolling Resistance?• The force that must be overcome to roll
a wheel over a surface• Affected by ground conditions and load• Normally 1.5% of GMW per inch of
tire penetration
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Increase In Rolling Resistance Causes:• Decrease in component lives
– Wheel Groups—Significant– Differentials—Significant– Engines—May or May Not Be Significant
• Significant decline in productivityand fuel efficiency
• Increase in MARC costs• Significantly higher repair costs
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An Increase In Haul Road GradeAlone Causes:• Significant decrease in differential and wheel
group lives• Minor changes in engine life• Minor changes in productivity
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SummaryWheel Gp/Diff
LifeWheel Gp/DiffLife Cost/Hr
EngineLife & Cost/Hr Production
FuelEfficiency
PayloadIncrease
Haul RoadResistance
Increase
Haul RoadGrade
Increase
SignificantDecrease
VerySignificantDecrease
VerySignificantDecrease
SignificantIncrease
VerySignificantIncrease
VerySignificantIncrease
InsignificantChange
May or MayNot Be
Significant
No Change No Change
SignificantDecrease
SlightIncrease
No Change
SignificantDecrease
InsignificantChange
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What Can You Do?• Emphasize the importance of minimizing
rolling resistance– Improve productivity– Lower fuel consumption and cost– Longer component lives– Lower component cost/ton– Keep motor graders and wheel dozers running
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What Can You Do?• Be alert to haul road profile changes
– Steeper grades significantly reduce certaincomponent lives and increase cost/hr
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What Can You Do?• Emphasize the importance of
contamination control– Higher component lives & lower cost/hr– Reduced downtime from unexpected failures
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