Equipment Management Solutions A Dealer Perspective

1
Equipment Management SolutionsA Dealer
Perspective

• 2004 S.O.S. Dealer Conference
• Finning (Canada)
• Lee Egan
• Director, Equipment Management Solutions

2
Finning International

• Revenues 2003 Employees
• Canada 1.01 Billion 2717
• UK 654 Million 2387
• Hewden 448 Million 3804
• South America 393 Million 2456
• Total consolidated 2.5 Billion 11,409

3
Finning (Canada)

• Serving Western Canada and The Far North,
• 34 full service branches in Alberta, British
  Columbia, North West Territories, and Yukon (800
  miles X 1600 miles 1.28 mil. sq miles)
• Over 1000 mechanical technicians, 395 field
  service trucks
• Climate (Hot 90 to110, moderate 70, extreme
  cold 30 to - 55)
• Strong in all Markets
• Mining (Oils Sands, Coal, Copper, Diamonds, Gold,
  Silver)
• Forestry (small wood, Coastal large wood, log
  sorting, pulp paper, sawmills)
• Construction (Urban, Roads Hwys, Dams -
  Municipal/Provincial)
• Pipelines (Northern oil and gas to local
  refineries, Eastern Canada, and to U.S.)
• Power Systems (Gas Compression, EPG, Industrial,
  Marine, Rail, Truck)

4
(No Transcript)
5
EMS Direction

• Corporate Goal
• To be the industry leader in Equipment Management
  Solutions
• Equipment Management becomes a core competency
• Purpose
• Integrate an array of currently available and
  future added value services and technology into a
  package of flexible, cost effective, individually
  designed Equipment Management Solutions for each
  Finning customer

6
Product Support Services
Opportunity to Integrate!
SOMA
Kidney Looping
GMS
Cat Care
CTS
CHS
Filtration
PM
TMR
Fluid Management
Quick Evac
Filter Cleaning
Component/System RM
Contamination Control
Product Link
Filter/Oil Disposal
Operator Training
Technical Training
7
Equipment Management Solutions
8
EMS Beginnings

• Cat Product Link technology triggered new ideas
  dealer capabilities to better serve our
  customers.
• Finning launched first Global Maintenance System
  (GMS) in January 2002.
• Invested over 350,000 U.S. in development
  pilot testing.
• Web based system providing PM Scheduling, PM
  Parts, PM Checklists, and PM Service Quotes
• Sourced and integrated local mapping system with
  Satellite photo and pipeline and forestry road
  detail availability. (best available /
  non-competitive)
• Currently 650 units on GMS with aggressive growth
  targets in place (triple by 2006).

9
GMS Screen Shot
10
GMS Mapping System
11
EMS Evolution

• In another corner of our business a new
  opportunity was looming.
• Cat G3500 G3600 Gas Compression engines were
  struggling to keep certain customers satisfied.
• Poor availability, product problems, and multiple
  nuisance downtime events.
• Customer looking for a solution (Waukesha?)
• Creative PSSR was certain a custom PM program to
  address problem areas would help.
• CSA group contacted for assistance (developed PM
  plans, checklists, scheduling) no small task!

12
EMS Phase 2

• While PMs were providing good results
• Initially customers wanted to monitor everything
  we did ensure that we were adding value.
• No free reign no maintenance decisions
  implemented unless everyone agreed.
• Customers wanted more.
• High customer dependency and investment in a
  complex power system required closer monitoring ,
  more detailed inspections, more data, more
  trending, and predictive decisions.
• Expanded our centralized support capabilities
  added Reliability Engineer and Data Coordinators.

13
KPIs Identified

• Four Key Areas of Delivery
• Scheduling Preventive Maintenance
• Information Management (Key)
• Predictive Maintenance
• Condition Monitoring

14
EMS - G.L. Pilot Process

• Completed PM checklists (electronic) forwarded to
  EM OPS Center for review, consolidation and
  follow-up items cataloguing (by Review
  Analyst).
• Review Analyst forwards suggested follow-up
  items with PM Work Orders to Branch for set up
  (warranty, policy, customer cost, etc. to be
  identified and necessary approvals obtained prior
  to scheduling maintenance).
• Branch to keep EM Group informed of all
  unscheduled repairs.

15
PM Checklist review
Technicians comments
16
PM Checklist review
Example of monitoring the number and quantity
of Fluid Top-Ups for a particular component. EM
analyst sends this data to the branch for review.
17
SOS Review
Example of SOS Follow - Up Please add these
"Follow-up" notes for the next scheduled visit
for           Lafarge           988F
          2ZR02291   BE SURE TO INSPECT
HYDRAULIC ELEMENTS FOR FOREIGN MATERIAL AS THE
LAST (2) HYDRAULIC SOS RESULTS HAVE INDICATED
A/R. ALSO, SUGGEST RESAMPLE COMPARTMENT WITH
PARTICLE COUNT.
18
SOS / PM Checklist / Work Order Review
Example of using MS Office Task Forms For
tracking the three levels requiring review.
19
Predictive Maintenance
X

• Essential to maximizing life and cost
  efficiency
• Change parts too soon, costs go up.
• Change parts too late, reliability availability
  goes down.

X
X
X
X
20
Condition Monitoring key in preventing
premature failures
1
__ Oil Consumption __ Crankcase Blowby __ Valve
Rotator Height __ Cylinder Compression Test
2
Cylinder
3
4
5
X
6
Hours
1250
2500
3750
5000
6250
21
Submittal Sheet
All what you need on one single page!
22
Current Status

• Further success is being realized more
  customers, more units, and..expanding into the
  compressor and other systems on site acceptance
  of the Finning process.
• Growing Pains
• - Lack of system to filter and trend data
• Outsourcing solutions to help manage information
• Growth is outpacing support capabilities
• Continuing to add non-revenue generating
  resources daunting, without big picture certainty

23
Leverage Successes

• Power Systems EMS opportunity and success has
  convinced us we have a major opportunity to
  leverage these concepts.
• Applying this to our other industry segments can
  and will improve overall position in the
  marketplace
• When properly applied we shift customer focus
  from price of our commodities to the added
  value of a solutions resource
• We help to improve their business and form a
  close dependency relationship

24
EMS - SOS Opportunity

• EMS will provide an opportunity for enhanced
  testing capability and a requirement for superior
  information management
• EMS should drive need for increased optional
  tests (TBN, TAN, etc.)
• Increased opportunity for Particle Indexing and
  Particle Quantification ???
• Information Management
• Magnetic Plug Filter Trending (Info Pictures)
• Diverse graphing capability
• Alarm Sets
• Customers demanding tools that provide far more
  enhancements and added value than what TAM offers
  today.