Usage:
This is the text of a speech given to Truck Fleet Equipment Superintendents by R. J. Hovey, Manager, Product Support Department, Caterpillar Engine Division.
Power units make our business go - but the engine is not the reason that our companies exist. The enterprise exists to satisfy its own customers, to provide its service, product or function in as effective and cost efficient a manner as possible. Maintenance management's key role is to avoid disappointing those customers. This means that loads must be moved efficiently and arrive at their destination on time. If we do this well, our company is perceived as dependable and we get more business.
Dependability and low operation costs require planning for major maintenance and downtime. We have to work with dispatchers to anticipate "Out of Service" and to schedule alternate equipment so deliveries can be made and drivers kept busy. A major benefit comes from handling the repair in an orderly, efficient manner. We avoid the "fire drill" excitement and disruption of work routines. We plan for repairs rather than reacting to crisis.
But the question is, how do we know if the power unit needs work if it has not failed? With Caterpillar engines, there is a wealth of experience, both at dealer and factory levels, from which you can draw. Couple this with modern diagnostic technology and your own good recordkeeping, and you can put YOURSELF in charge of repair situations.
We are finding that the "fine tuning", which many are doing in an attempt to maximize engine life, may not be justified. For instance, what determines how long you keep a power unit? Chances are the engine's mechanical integrity is only one of several factors. Chassis conditions; things such as rust, accident damage or abuse; may cause you to trade even though the engine is in good shape. Special tax incentives, depreciation of equipment, or de-sign advances may dictate a change. Other factors may include a change in your hauling requirements which necessitate higher or lower horsepower, contract expiration, or a change in the working season. Many variables not connected with the unit's condition can force you to make a trade or sell decision.
The key to management control is to match the power unit's life to your company's business needs, not necessarily to maximize the power unit's mechanical life. This approach toward your power units will drastically influence the timing and amount of repairs you schedule. For years, good maintenance managers have worked with operations management to determine future business considerations and their effect on power units. Today, though, a frequent cause of major maintenance is still BREAKDOWN - that frustrating, budget-busting repair that causes havoc with your schedule.
The planning element you need is a clear definition of how long the power unit is needed "on line". This may work out to exactly one engine life, but more likely it will come out to two and a half or some other fraction. If it is two and a half, you know that at least two overhauls will be necessary. There is no escaping it.
So the management question is when to make the overhauls. Do you run to failure, hoping that the damage is only minimal, or do you make the decision to overhaul a running unit? The question is not new. Conventional wisdom has long argued, "If it isn't broken, don't fix it!" This argument comes from the hope that, somehow, this particular unit might be the one to escape the need for repair altogether. Wishful thinking.
What happens to costs if you do run an engine to failure? The lubricating systems will be contaminated with metal particles throughout the oil passages. The engine must be removed, completely disassembled and thoroughly cleaned. The repair labor time goes up significantly, and the risk of a repeat failure from overlooked particles can be high.
Major castings and forgings are critical to the cost of repair. Suppose a rod goes through the block or a bearing saddle breaks. Repair costs double or triple. Components what were designed to be reused are lost.
Let me cite an example. One owner was planning to run a truck engine 750,000 miles, or approximately 15,000 hours. He expected to trade it then because a hauling contract would expire, dictating a change in his equipment needs. He would need one overhaul during that period of time. An in-chassis overhaul, before failure, would cost him $3,700. If he ran to destruction, internal damage would make his most cost effective choice a Caterpillar Remanufactured Engine for approximately $10,000. The difference - $6,300 or $0.0088 per mile ( $0.247 per hour).
Even if he repaired six months early, his cost would be less. Borrowing the $3,700 repair cost at, let's say 15 percent simple interest for six months would be only $278 - far less than the $6,300 gamble! Fine tuning repair timing is just not worth the risk. Think about it - $278 versus $6,300.
If I leave you with one thought, let it be this. Executive attention to planned overhauls will contribute significantly to profitable business operations, and will enhance your company's reputation for dependability. Equipment managers need to work closely with operations management to determine expected equipment life. Then, you can control the optimum time for repairs and the extent of those repairs.
There will always be the unexpected breakdown or failure. But the opportunity to serve your customers without delay and to improve profits rests with YOU and your ability to anticipate and plan major overhauls.