MAKING PROGRESS POSSIBLE

MAKING PROGRESS POSSIBLEMAKING PROGRESS POSSIBLE

Gerry ShaheenNovember 3, 2006

Machine Business


Agenda

34

• Our Global Footprint

• From Good to Great

• New Products


We are a Full-Line Equipment Manufacturer…Over 200

different models

33


Serving a Variety of Industries

32

LandscapingUrban DevelopmentSite Development Housing Development


Paving

Serving a Variety of Industries

Landscaping

Mining Quarry and Aggregates Sewer & Water

Urban DevelopmentSite Development

Road Construction

31

Housing Development

Forestry Waste DemolitionScrap HandlingPipeline


14%12%

7%8%

7% 8%9% 9%

11%

0%

5%

10%

15%

1997 1998 1999 2000 2001 2002 2003 2004 2005

Machinery Business Trends

$13.4 $13.4$11.7 $11.9 $12.2 $12.0

$13.7

$18.8

$22.9

$0

$5

$10

$15

$20

$25

1997 1998 1999 2000 2001 2002 2003 2004 2005

(in b

illio

ns)

Net Sales *

Operating Profit %

* Primarily our design, manufacturing, marketing, and parts distribution operations for our machinery lines of business

30


Manufacturing Facilities Throughout the World

Continued investment•Equipment replacement and update

• Increased capacity• Machines• Components

•Supplier development• Capacity• Cost

Over 100 plants around the world• Serving markets around the globe• Increased velocity and flexible sourcing• Low cost producer opportunities• Reduced currency risks

29


Knowledge: Technology Leadership in the Industry

8,000+ engineers, distributed around the world.

Technology solutions that provide the best return on investment

for our customers

Robust research and development capabilities

28

Engineering Design Center - India Research & Develpment Center - China


Leadership Through Core Competencies

Power Management• Drive Trains• Engine Technology

Materials• Structural Components• Wear Components• Friction Materials• Lubricants

Controls• Electronics• Hydraulics• Mechanical

Manufacturing Process• Manufacturing Engineering• Assembly• Machining• Heavy Structure Fabrication• Heat Treat• Supply Chain Management

Serviceability• Diagnostics• Maintenance• Modularity• Remanufacturing

Technologies developed to address customers needs

27


Leadership Through Core Competencies

Technologies developed to address customers needs

26

Power Management• Drive Trains• Engine Technology

Materials• Structural Components• Wear Components• Friction Materials• Lubricants

Controls• Electronics• Hydraulics• Mechanical

Manufacturing Process• Manufacturing Engineering• Assembly• Machining• Heavy Structure Fabrication• Heat Treat

Serviceability• Diagnostics• Maintenance• Modularity• Remanufacturing


Product Support Capability

• Integrated product support capabilities ensure optimized utilization of products

•Worldwide parts availability•Proactive diagnostics and prognostics•Well trained service technicians•Service shops and rebuild centers

• Profitable business for Caterpillar and our dealer organization

25


Fulfilling Vision 2020

From Good to GreatFrom Good to Great

Strategic Goal: Number one for every major product line on every continent for markets we serve

24


Investments in Research and Development

0

200

400

600

800

1000

1200

96 97 98 99 00 01 02 03 04 050.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Investments in long term competitiveness, safety/environmental requirements and profitable business growth.

R&

D E

xpen

ses

(milli

ons

of d

olla

rs)

23

(per

cent

of s

ales

)


Emissions Reduction: A Driver for Differentiation

ACERT• Introduced in 2004

• On Highway Trucks

• Extended to all Applications• Competitive Advantages

• Performance• Operating Costs• Durability• Reliability

• Platform for the future• Emissions• Integrated Power Train

22


Year Model Engine2005 950H C7

962H C7966H C11 972H C13 980H C15 988H C18990H C27

Off-Road Tier 3 Progress

Year Model Engine2004 D8T C152005 D6RIII C9

D9T C18D10T C27

Year Model Engine2005 345C C13

365C C15385C C18

2006 324D C7325D C7330D C9

Year Model Engine2006 770F C15

771F C18773F C27775F C27777F C32

Year Model Engine2006 140M/143M C11

160M/163M C13

Year Model Engine2004 725/730 C11

735/740 C15

Year Model Engine2005 621G/623G/627G C15 / C9

631G/637G C18 / C9 657G C18 / C15

Over 180 models updated in the

2005/2007 period

21


Focus On Business and Customer Priorities

Business Priorities

• Quality

• Regulations

• Cost competitiveness

• Manufacturability/order fulfillment

Customer Priorities

• Quality/Reliability

• Safety

• Performance

• O&O costs

• Operator environment& interface

• Site management

• Serviceability

20


Caterpillar Production System: Focus on Quality and Velocity

Sustainable Performance• Production efficiency

•Reduce movement of work-in-process•Optimize ergonomics on the job•Process rationalization•Reduce inventories•Eliminate rework•Better utilization of work force

• Benefits for our employees, customers and shareholders

• Improved as-delivered quality• Improved velocity (order-to-delivery)• Improved productivity•Reduced costs•Safety excellence

19


Technology to Enable Customer Success

•Operator Comfort

•Increased Visibility

•Increased Productivity

Ergonomics

18



•Versatility

•Reduced Fuel Consumption

•Enabler for Automated Features

• Increased Productivity

ErgonomicsProgrammable Hydraulics

17




•Control and Guidance•Automated Functions

•Ease of Operation

• Improved Work Output

•Fleet Management•Asset Management

•Health Monitoring

•Productivity

Remote Connectivity

16

“…the biggest advancement I have ever seen…not only increased safety, but can cut schedules by 30%.“

Dwayne McAninch, CEO of McAninch Corp.2005 Award of Excellence




Remote Connectivity

•Reduced Parasitic Loads

• Increased Performance•Reduced Fuel Consumption

•Lower Operating Costs• Increased Durability

Integrating components to maximize productivity

in each application

Power Management

15


Simplification: Improved Technology/Component Commonality

New Motor Grader Platform•39% cost reduction in the frame

•From 9 to 5 models•From 6 to 4 rear frames•From 5 to 3 front frames•From 3 to 2 transmissions

Customer Benefits• Improved Reliability• Improved Parts Availability• Increased Uptime•Lower O&O Costs

Component commonality and simplification drive business and customer benefits.

14


Accelerated Product Development Cycles

Shorter Time to Market for Improved Competitiveness

By the end of 2008 we will have updated most, if not all of our equipment. And we’ll start again in 2010.

13


Robust Product Development Process

Taking superior products to the market requires knowledge, solidprocesses and discipline

• Customer requirementsmanagement

• Embedded 6 Sigma: emphasis on rigor, data, and metrics

• Higher engagement of all functions, including our supplier partners

• Virtual product development andtesting

12


New Products

Some of the New Products Being Introduced

11


Caterpillar New Products – M Series Motor Graders

• Intuitive joystick controls• Unmatched visibility• Operator ergonomics• Productivity & performance

• Electro-hydraulics• Accugrade ready

• Tier 3 Emission compliant • ACERTTM Technology

The New Standard for Ease of Use and Operator Ergonomics

10


Caterpillar New Products – Quarry and Construction Trucks

•Improved operator efficiency

•Superior cab access & egress

•Reduced operating costs

•Regulatory compliance

•New platform for future generations

F Series - 2006 Introduction, Complete 5 model update

9


Caterpillar New Products – E Series Backhoe Loaders

• Improved operator environment• Increased versatility

• Extendable Stick• Superior serviceability• Innovative technology

• Load sensing hydraulics• Priority flow• Accugrade

E-Series – 2006 Introduction

8


H Series - 2005 / 2006 Introduction

• State of the Art Technology• Load Sensing Hydraulics

• Fuel Efficiency• Enhanced Machine Information• Unmatched Operator Comfort

and Efficiency• Tier 3 Emission Compliant

• ACERTTM Technology

Caterpillar New Products – H Series Medium Wheel Loaders

7


Caterpillar New Products: D Series Hydraulic Excavators

•Increased Performance•Greater breakout force•Faster cycle times•Power Management

•Increased Versatility•Work tool integration•Programmable flows and pressures

•Enhanced Operator Environment •Tier 3 Emission Compliant

•ACERTTM Technology

D Series: 2006 / 2007 Introduction

6


Caterpillar New Products: Mining Trucks

2008 / 2009 Introduction•Proprietary electric drive

•Two models over 200 tons•Mechanical drive upgrade

•Five models•Complete truck integration

•Unique Caterpillar strength•State of the art C175 engine

•Tier 4 – integrated solution •More alternatives with the addition of electric drive

Mining Trucks: Dual Path Product Strategy

5


Equipment Management Solutions

• Monitoring / Analysis & Decision / Solutions

• Machine Control and Guidance

Remote connectivity:• Delivers productivity and efficiency gains• Improved fleet management• Strengthens customer relationships

4


Integrated Solutions Capability

A complete line of products, integrated with comprehensive business solutions…

Financing Logistics Remanufacturing Countertrade Insurance Product Support

3


Maximized Value

The strongest distribution network in the industry

• 182 independently owned dealers• 105,000 employees• 3,000 branches and rental stores in 180

countries

2


Best Product Wins

1

MAKING PROGRESS POSSIBLE - library.corporate...

Documents

Transcript of MAKING PROGRESS POSSIBLE - library.corporate...