Labor-Guidelines-overview-for-dealer-22-09-15-TRG.pptx

CAT

1. Customer Services Support Division Labor Repair Guidelines Repair Data Development September 2015

2. 2 Customer Services Support Division What are Labor Guidelines Commercial Engine Labor Guidelines Machine Labor Guidelines Timed Repair Guidelines (TRG ) ERLG

3. What do Labor Guidelines Contain? Repair segments (repair options) with labor required Include all start- bys , follow the D&A manual Mostly Remove & Install (010) jobs of major components Lists what components are included and excluded for each segment Use SMCS code structure and descriptions for: Component Job Modifier Quantity 3 Customer Services Support Division

4. 4 Customer Services Support Division Where do labor times come from Data sources Author experience Product group supplied Dealer supplied info Analyzing dealer work order data (soon) Time studies Using Cat dealer technicians at Cat dealers, or at Caterpillar facilities In the field at a customer’s site using a Cat dealer technician

5. 5 Customer Services Support Division Who uses Labor Guidelines

6. 6 Customer Services Support Division How are labor guideline models prioritized for development? Population Warranty labor impact to the enterprise Dealer feedback or requests Gaps in product line coverage Product Group requests (NPI) New technology

7. How are Time Studies Developed? Contact Service Operations Rep Help locate iron, provide serial number prefix Facilitate discussion with dealer Coordinate between product group, dealer Shipping machine or iron. CatUsed inventory, Dealer Inventory Duration, location, special safety/customer requirements Travel plans Research product Vis model, D&A manual, s/n model coverage, claims on components. Make component priority list for technician Perform on-site data capture Communicate serviceability issues to Product Groups Compile data Create document and publish on dealer.cat.com/TRG 7 Customer Services Support Division

8. 8 Customer Services Support Division How are time studies developed? At a Cat dealer using a Cat dealer technician Use an average seasoned technician Used and new machines/engines Use special tooling, power hand tools Adhere to safety, D&A manual steps Additional time is added to the final wrench time To accommodate variances Account for parts procurement Writing service reports etc.

9. 9 Customer Services Support Division How we capture and measure labor time Utilize a custom Excel spreadsheet Standing close to technician in the service bay Capture each repair step detail, time stamped SMCS codes and descriptions Wrench time and non wrench time captured Detail time multiplied by (x) number of technicians used

10. What We Record - Wrenching Time includes wrench turning, removing gasket material, washing parts, installing gaskets, inspecting parts, adjustments and lubrication of components, getting tools out of and back into the toolbox, looking up torque specifications and more… Additional uplift is added to the actual wrench turning time This adjustment allows for those aspects of the repair that are not time studied, but are still a part of the repair. 10 Customer Services Support Division

11. What We Record – Non-Wrenching Bathroom breaks, phone calls, breaks, and safety meetings are lumped into a general category Everything else we classify it into 5 different categories ( this helps us get an idea of how a tech spends their time while performing the job: Parts (ordering parts) Documentation (looking at SIS, D&A, etc ) Tooling (Running to tool crib or wherever special tools are kept) Clean Up (cleaning up tools, around the machine, etc ) Facility (Anything that takes excessive time due to facility layout) 11 Customer Services Support Division

12. 12 Customer Services Support Division Types of labor times available Equipment Repair Labor Guidelines (ERLG) Display info obtained from Builder files, no details, guide Time Requirement Guidelines (TRG) Pdf document, active in Warranty Claims system , time study details, limits labor exceeding TRG Commercial Engine Labor Guidelines Pdf document or spreadsheet, time study details, guide and TRG Machine Labor Guidelines Pdf document, time study details, source for Builder file labor, guide

13. Benefits of Using Labor Guidelines Provides a predictable estimate of repair time Reduces warranty claim administrative time Promotes an efficient repair, lowering owning & operating costs Can be used to quote revenue repair estimates Influences amount of labor being claimed Data could be used to develop standard repair options for high frequency repairs 13 Customer Services Support Division

14. 14 Customer Services Support Where to find Labor Guidelines Dealer.cat.com/TRG

15. 15 Customer Services Support Division https://smi.cat.com

16. 16 Customer Services Support Division https:// smi.cat.com (through SISweb)

17. 17 Customer Services Support Division Cat Dealer labor time study participation Altorfer , Inc. Cashman Equipment Company Carolina Tractor & Equipment Cleveland Brothers Equipment Dean Machinery (currently Foley, Inc.) Empire Southwest, LLC. Gregory Poole Equipment Co. Hawthorne Machinery Co. Holt Texas Ltd. J.A. Riggs Tractor Company John Fabick Tractor Company Johnson Machinery Co. MacAllister Machinery Co., Inc. Michigan Cat Southworth -Milton, Inc. Pantropic Power, Inc. Patten Industries, Inc. Peterson Machinery Co. PON Power AS Ring Power Corporation Thompson Tractor Co., Inc. Toromont Industries, Ltd. Warren Power and Machinery, Inc. Western States Equipment Wyoming Machinery Company Ziegler, Inc.