CHANGES TO HYDRAULIC ROD AND CYLINDER CORE ACCEPTANCE CRITERIA Caterpillar

   November 2004

CHANGES TO HYDRAULIC ROD AND CYLINDER CORE ACCEPTANCE CRITERIA

Announcement

Caterpillar Remanufactured Products Group is announcing changes to the core acceptance criteria for hydraulic rods and cylinders (SELD0041-02,SELD0042-04, SELD0111-02). These changes have come about as a result of dealers? input, and Caterpillar?s desire to establish clear criteria for easy determination of core grading category.

Effective with cores inspected at Cat? core inspection facilities on January 1, 2005, the newly revised core acceptance criteria eliminates the penalty for partial core refund for bent, broken, and cracked rods and cylinders. Cores that previously received partial credit will now receive full credit. No credit will only be extended for cracked and broken eyes and end caps. This eliminates grading category uncertainty.

The new core acceptance criteria continues to use the same visual inspection methods. This new criteria provides clearer guidelines for core inspection.

Effective

Dates and Media Availability The new core acceptance criteria (SELD0041-02,SELD0042-04, SELD0111-02) will be effective at all Cat core inspection facilities as of January 1, 2005. The new criteria will be available on the dealer extranet at https://reman.cat.com. In addition to this website, copies of the revised criteria will be mailed to holders of the Remanufactured Products Guide. Dealers can also order the revised criteria (SELD0041-02,SELD0042-04, SELD0111-02) through normal literature order.

Applicability

The hydraulic cylinder and rod Core Acceptance Criteria (SELD0041-02,SELD0042-04, SELD0111-02) is not applicable to hydraulic front suspension groups (SELD0206-01).

Core Management

Please refer to the Caterpillar? Core Management Information System (CMIS 2) Parts Information application describing all reman part/CAF and related information. Also refer to other CMIS 2 inquiry applications such as Customer Profiles, Inspection Reason Codes, Inspection Line Inquiry, Add Charge Information, Entitlement Activity, Entitlement Inquiry, CCR Inquiry, CCR Entry, Shipment Processing; Process Packaging Grief; and Reporting to properly manage core returns and monitor inspection performance. This information will be available to all dealers worldwide after your CMIS 2 conversion date.

For the latest updates of Reman Policies and Core Management (SELD0122), Core Management Systems & Operations Procedures (SELD0040), and Shipping Instructions (SELD0039), go to the Reman website and click on Procedures and Policies (listed under Reman Program Information).

If you have any questions regarding core return processing, feel free to call your Corinth Dealer Service Representative toll free at (800) 537-2928 or use our e-mail address -- reman_core_operations@cat.com. For assistance with technical questions, call the Peoria Reman Customer Satisfaction Hot Line also toll free at (888) 88-REMAN or use our e-mail address--Reman_Help@cat.com.