Hydraulic Solutions FINAL

Caterpillar welcomes you to…
Tinaja Hills
Safety Slide - Facility/Classroom
• Note location of:
– Emergency Exits
– Nearest Fire Extinguishers
– Room Alerts
• Identify CPR certified personnel
• Identify First Responders
• Designate who will contact front office
• Notify staff of any medical alerts
• Emergency Procedures:
– Evacuation – Overflow Parking Lot
– Storm Shelter – Restrooms
– Medical Emergency/Injury
1. Assess the injury
2. Contact front office immediately (by radio, phone x4800 or in person)
3. Emergency #: 911
Safety Slide – Service Area/Shop
• Note location of:
– Emergency Exits
– Nearest Fire Extinguishers
– Room Alerts
• Do not enter working bays without staff authorization
because proper PPE will be required
• Be aware of moving equipment
Emergency
• Be aware of overhead hazards Meeting
• Notify staff of any medical alerts Area
• Emergency Procedures:
– Evacuation – South East Shop Yard
– Storm Shelter – Building Interior
– Medical Emergency/Injury
1. Assess the injury
2. Contact front office immediately
(by radio, phone x4800,or in person)
3. Emergency #: 911
Safety Slide – Field & Driving
• Obtain and display cone on vehicle at all times
• Only designated individuals will be given vehicle cones
• Obey all posted speed limits
– 25 MPH on roads
– 10 MPH in service area
• Obey posted “Do Not Enter” signs
• Do not stray from your program
• Drink plenty of water
• Be aware of wildlife and environmental hazards
• No unauthorized operation of equipment
• Notify staff of any medical alerts
Safety Slide –
Equipment Viewing & Operation
• No unauthorized equipment operation
• Closed toe shoes, long pants required
• Remove all hand jewelry
• Stay within the defined areas
• Use 3 points of contact
• Communicate level of experience to the Instructor
• Understand the safe operating limits of the machine
• Wear seatbelts AT ALL TIMES
• Know what to do if the machine gets out of control
• If you are not comfortable with what you are about to do – do not do it!
Demonstration & Learning Center (DLC) Safety
We are committed to the safety of all Caterpillar employees and visitors at our
Demonstration & Learning Centers.
As such, we have strict policies and procedures regarding the safe operation of
equipment, or while engaged with equipment.
DLC personnel are trained and authorized to provide safety-related direction to
Caterpillar employees and visitors who may operate or otherwise engage with
equipment while on site.
Failure to follow the directions of DLC personnel may result in termination of the
operation or activity, or your removal from the facility.
C&D
Items to Recycle in “Mixed Recycling” Containers:
Loose Paper (not neon colors)
Plastic Bottles marked #1 & #2
Aluminum Cans
Corrugated Cardboard (breakdown boxes)
Glass Bottles
Thank you for making safety a priority
during your visit.
We welcome any safety observations or suggestions you
may have as a result of your visit to Caterpillar.
Caterpillar: Confidential Green

Selling Cat® Hydraulic Solutions
Tips for Positioning and Selling More Hydraulics Parts and Service
Advanced Specialist Training

Tinaja Hills
May 2017
Your Workshop Facilitator
• At Caterpillar for 19 years

• Started as an engineer
• Moved to Parts Marketing with an emphasis on GET, including
overseas assignments in Singapore and Perth, Australia
• Spent six-plus years in the field calling on Cat dealers as a Cat
Parts Rep in Perth and Peoria Districts
• Now serves as Hydraulics Aftermarket Solutions Consultant Dan Carey
(ASC) for North America (1.5 years) Aftermarket Solutions Consultant
309-253-8596
• Partner with Cat dealers to grow their hydraulic parts business carey_daniel_r@cat.com
Caterpillar Confidential: Green

Workshop Agenda
Day 1 (Afternoon)
• Workshop Overview and Introductions [.5 hour]
• Introduction to Hydraulics [.5 hour]
• Hose and Couplings & Ask the Expert [2.5]
Day 2 (Full Day)

• Cylinders and Rods & Ask the Expert [2]
• Pumps and Motors & Ask the Expert [2]
• Hydraulic System Management and Contamination Control [1]
• Inspection/Walk-Around Activity [1.5]
• Sharing of Sales Best Practices [1]

WORKSHOP OVERVIEW & INTRODUCTIONS

Introductions
• Name, dealership & job role

• How long have you been in your current role?
• What’s your biggest challenge or frustration
when it comes to hydraulic parts and service
sales?
• What are your expectations for this class?

Purpose
This training is designed to provide a solid

understanding of the features, benefits and
differentiators of Cat hose assemblies,
pumps, motors, and hydraulic cylinders and
rods, including tips on how to sell them and
combat the competition.

Reason
By learning more about hydraulic systems, you

will be better able to position your dealership’s
parts and repair options, and work with your
customers to prevent costly, time-consuming
hydraulic problems and repairs.

Competency Standard
PSSRs/ISRs/PCAs and Parts Sales

Managers will be competent in hydraulic
sales when you can:
• Diagnose simple hydraulic problems
• Propose the appropriate hydraulic repair
options to your customers
• Handle common objections
• Close hydraulic sales for your dealership

Goals/Learning Outcomes
• Gain clear understanding of the hydraulic

system
• Review tools for analyzing and selling
hydraulic parts and service
• Understand positioning of Cat hydraulics
relatives to the competition
• Prepare for common objections and learn
how to overcome them

Expectations for the Workshop
• Highly interactive workshop

• Open, candid discussion
• Raise questions as they come up

INTRODUCTION TO HYDRAULICS

Introduction to Hydraulics
3 Key Reasons to Focus Your Efforts on Hydraulics
1 Represents a significant and growing portion

of a customer’s total operating cost Hydraulic Content
2 Customer decisions regarding hydraulic

system maintenance and service have a
dramatic impact on their bottom line
3 Increasingly hydraulic-intensive equipment
1930 --- 1960 --- 1990 --- 2020

Hydraulic System Evolution
Early hydraulic systems were simple Today’s system is complex and efficient to meet customer
and inefficient demand for more power, higher forces and more productivity

Hydraulic Parts and Service Strategy
FAST FACTS NEED FOR SPEED
Good News The #1 hydraulic customer

value driver
The hydraulic parts
45% of hydraulic business
business is significant,
is based on urgency
profitable and growing
Customers require and
demand fast service
Significant Portion of
Dealer Revenue
CLEAR DIRECTION
A large portion of dealer
parts and service The primary goal is to boost sales
revenue is generated by for three main product lines:
hydraulic sales
Hose and Couplings
Cylinders and Rods
Pumps and Motor

Hydraulics POPS by Region
HYDRAULICS POPS
ANZP 77.40%
APD ASIA 51.30%
GCN 36.90%
AFRICA/MID EAST 41.70%
C.I.S. 48.70%
EUROPE 28.60%
NORTH LACD 54.30%
SOUTH LACD 49.60%
CANADIAN 39.10%
EASTERN 39.80%
WESTERN 42.30%
CJL REGION 85.20%
Summary 45.80%
Increasing Level of Service Intensity

HYDRAULICS
WEAR & MAINTENANCE ENGINE & DRIVE TRAIN
“911 BUSINESS”
• Predictable and/or • Typically “unplanned” repairs • Typically planned overhauls

scheduled replacement • Turn around time is a key • Dealer specialization/core
• Highly competitive: many customer requirement competency
times sold one part at a measured in minutes and days
time
Service Labor Intensity

Customer Situational Segmentation

CAPTIVE FLEX URGENT
Evaluates cost of repair vs.

Machine use not critical
Segment Machine in for service or cost of downtime.
at the moment (back-up
Description conducting inspection Require same or next day.
machine or between jobs)
Prefer off the shelf.
Relationship Expertise Speed
Expertise Quality Quality
Segment (See The Need) Price Convenience
Value Drivers Convenience Relationship Proximity
(order of most to Quality Convenience Price
least important) Price Repair Options
Proximity
Dealer Service Capability

Voice of Customer: How They Select a Vendor
Top Reason for Vendor Selection…

RANK
Turnaround Time Exchange (same day) HIGH
Speed Fast Quote Exchange (next day)
Fast Pickup / Delivery Free Disassembly & Quote
(42%) Guaranteed Turnaround Time
Proximity Free Pickup & Delivery
Flat Rate Pricing (US)
Discounts / Merchandising Volume Discounts
Price Repair Flexibility Free SOS
(38%) Range of Repair Options Financing
Serviceable Repair Parts Train Techs
Consignment Inventory
Quality (12%) Train Operators
Pickup & Delivery
LOW
Expertise (8%) Kidney Looping

Voice of Customer: Competitive Environment
Hydraulic Shops Offer Number of Shops

Pickup & Delivery Calling on Customer
4+
NO
19% 1
26%
37%
YES 2-3
74% 44%
Note: Not as common in APD

Customers Have
Many Options

What percentage (estimate) of your

dealer parts revenue is generated
Interactive Segment by hydraulic parts sales?
Let’s Hear From You
Does your dealership offer pickup
and delivery? Why or why not?
Understand the Hydraulic System

Stress the Holistic, Integrated System to Customers
Cylinders and Rods

Pumps and Motors
Hose Assemblies
Valves

HOSE AND COUPLINGS

Hose and Couplings
Hose and Couplings 101 Quiz
1 True or False. Caterpillar has

elected to get out of the reusable
coupling business entirely.
Answer: False.
Caterpillar remains committed to the reusable couplings parts

lineup, with the exception of a small range of reusable coupling
sizes that were experiencing extremely low sales volume. We
continue to offer 1” and larger reusable couplings.
Hose and Couplings
2 ___________ is the leading

cause of hose failure.
Answer: Abrasion.
Hose and Couplings
3 ___________ and _________ are the

two leading factors customers consider
when making hose and coupling
purchase decisions.
Answer: Speed and Convenience

Hose and Couplings
4 The Cat XT ES (Enhanced Spiral)

Hose is _______ X (times) more
abrasion-resistant than the industry
standard.
Answer: The XT ES Hose is 20 times more

resistant than the industry standard.
Hose and Couplings
5 True or False. Cat hose and

couplings only fit Cat machines?
Answer: False.
Differentiate Cat
Our Longer History of Know-How Helps Customers

Caterpillar invented and patented spiral hose
Who invented the high pressure spiral hose? and the reusable coupling in 1967, which became
And when did they invent it? the Cat XT hose line.
Dec. 12, 1967 June 13, 1967

Differentiate Cat
Hose Innovation Drives Hydraulic Capability
10000 Higher Pressure

Cat hose technology enables machines Longer Impulse Life
9000 XT-6 ES Improved Flexibility
to lead the earthmoving industry Flexibility &
Abrasion
Abrasion Resistance
8000 XT-5 ES
XT-3 ES Flexibility &
Abrasion
Pressure (PSI)
7000 Flexibility &

Abrasion
XT-6 Hose
6000 XT-5 Hose 6,000 psi
XT-3 Hose 5,000 psi 1M Cycles
5000 3,000 psi 1M Cycles
1M Cycles
4000 Piston Pumps
Load Sensing Pilot Controls
3000 6,000 psi Relief Pressure
Gear Pumps 70 GPM System Flow
2000 Cable Controls Higher Breakout Force & Speed
2,500 psi Relief Pressure
1000 20 GPM System Flow
0
1960 1970 1980 1990 2000 2010 2020
Differentiate Cat
The Preferred Connection
https://www.youtube.com/watch?v=3Ju8u8_tR-Y
Differentiate Cat
Talk to Customers About Key Differentiation Points
1. UNRIVALED EXPERTISE
2. RUGGED DESIGN
6 Reasons
Cat Hose is 3. METICULOUS MANUFACTURING
Superior
4. SAFETY MINDSET
5. UNMATCHED SUPPORT
6. MIXED-FLEET SOLUTION
Differentiate Cat
1. UNRIVALED EXPERTISE
Caterpillar designed, tested

1968 and began manufacturing its
own high-pressure spiral hose
Caterpillar now a leading Innovative XT Cat Spiral Hose

1970s manufacturer of high-pressure becomes the industry standard for
hose and coupling products high-pressure applications
No other equipment
Today manufacturer is more
invested in this business
Differentiate Cat
2. RUGGED DESIGN
• System Approach Ensures Solid Connection

– Assembly products and tooling work as a holistic system
– Only way to achieve a reliable connection that helps optimize
hydraulic system safety and dependability
– Tested and validated with Cat Fluids for maximum performance
• Formulated for Flexibility

– Designed to work at half of the SAE bend radius—without
sacrificing extreme cold temperature flex capability or durability
– Enables easier routing in the tightest spaces
• Exclusive Cat XT ToughGuard™ Hose

– Exclusive, Caterpillar designed polyethylene cover
– Surpassed two million abrasion test cycles without failure
– Longer hose life in the toughest applications
ENGINEERED TO EXCEED INDUSTRY STANDARDS

Differentiate Cat
3. METICULOUS MANUFACTURING
.
Statistical process control verifies that every batch of

rubber has been mixed to exact specifications.
Couplings are forged and machined from high tensile

Hose dimensions are
strength steel. Then heat-treated and plated for
monitored to ensure precise
maximum durability and corrosion resistance.
diameters leading to
superior coupling retention
capability.
Hose routed through a cooling chamber to prevent

perforation during the high tensile strength wire
application process.
Differentiate Cat
3. METICULOUS MANUFACTURING
Coupling Manufacturing
Hose Manufacturing
Hose Assembly
Differentiate Cat
4. SAFETY MINDSET
• Rigorous and comprehensive testing

– Test every hose/coupling combination as a system—not as individual components
– Ensures a perfect fit that yields maximum safety and performance
– Use an array of measures to evaluate both raw materials and finished components:
• Rubber Compression • Abrasion • Ozone Resistance

• Elongation • Hose Impulse • Coupling Salt-Spray
• Wire Tensile Strength • Flexibility • Metallurgical Analysis
• Temperature Adaptability • Burst Pressure • Dimensional Data
Abrasion Testing Impulse Testing Burst Testing

Differentiate Cat
5. UNMATCHED SUPPORT
• Replacement hose assemblies built to exact OEM specifications

• Multi-channel hose solutions
• Trained technicians
• Advanced tooling and resources
– Computer-controlled hose assembly machines
– OE Database (HIS)
– Pressure Test Benches (new for 2017)
– Hose Label Printers – QR codes
– Hose Container Workshops
• Hose routing standards and guides
• Inspection techniques (TA1)
• Contamination control processes
MEETING CUSTOMER NEED FOR SPEED AND CONVENIENCE

Differentiate Cat
6. MIXED-FLEET SOLUTION
• Cat Hose and Couplings: Comprehensive product line to service full market needs
• Meet or exceed industry standards
• Offer pressure ratings up to 6000 psi / 42.0 Mpa
• Cover a wide range of coupling sealing types
Termination Types Available

• ORFS • Snap to Connect
• JIC • Komatsu Flanges
• Code 61 Flanges • JIS – Metric
• Code 62 Flanges • JIS – Imperial
• CAT Flanges • DIN
• NPT • BSP
• SAE 45º • French GAZ
Know Product Lineup & NPIs
Know the Full Line of Hoses

Specification
Hose Type Caterpillar Hose Family Typical Application
(Meets or Exceeds)
XT-6ES* High Pressure SAE 100R15 Hydraulic Pressure Lines
294* / SAE 100R2AT (EN853 2SN) /
Low/Medium Pressure Hydraulic Pressure Lines
294 CPT SAE 100R16 (EN857 2SC)
716* / SAE100 R1AT (EN853 1SN) /
Low/Medium Pressure Hydraulic Return Lines
716 CPT Similar to EN857 1SC
844 / 844C Low/Medium Pressure SAE 100R4 Hydraulic Suction Lines
4901 Low/Medium Pressure Cat Proprietary High Temperature General Purpose – Fuel / Oil / Air
556 Special Application SAE 100R5 Engine Oil & Fuel Lines, Air Brake
1130 Special Application SAE J1402 Engine Oil & Fuel Lines, Air Brake
1028 Special Application SAE 100R7 Pilot Lines (Thermoplastic)
2760A Special Application Cat Proprietary Pilot Lines (Reduced OD Thermoplastic)
2929 Special Application Cat Proprietary Pilot lines (Rubber)
1543B Special Application SAE 100R7 Pre-filled Grease Line – Auto lube system
1543J Special Application SAE J2064 - Type C, Class 1 Air Conditioning lines
2771A Special Application SAE 100R14 Turbo oil lines (Stainless Steel outer braid / PTFE liner)
High Temp / Low Pressure – Fuel / Oil / Air
743 Special Application SAE 100R6
(not for bio diesel)
*ToughGuard version also available
Promote the Abrasion Resistance of

Cat XTTM ES Hose
Cat XT ES (Enhanced Spiral) Hose

• Abrasion resistant cover
• 20 times more abrasion-resistant than industry standard
Superior flexibility, even at cold temperature!

• ½ the SAE bend radius
• Compact design
• Fits better in tight spaces; uses less hose

Use Cutaway to Point Out the Key Features of

Cat XTTM ES Hose
Spiral or braided wire reinforcement is added

for strength to surpass pressure requirements.
A tough outer cover is applied to

resist oil, weather and abrasion.
The inner liner and cushion stock of the hose are made from
a high-quality rubber formula proprietary to Caterpillar.

Recommend Cat ToughGuardTM Hose for

Extreme-Abrasion Applications
Cat ToughGuard Hose

• Designed for extreme abrasion high-, medium- and
low-pressure applications
• Abrasion tested to 2 million cycles without failure
• Eliminates the need for most plastic/nylon guarding

Help Customers Select the Coupling Type They Need
Coupling Series Coupling Attachment Type Skive Required Hose Type
IN / ∞ Reusable YES XT-6ES (-16 to -32 only)
PL / + Reusable YES XT-5ES (-16 to -32 only)
TR / △ Reusable YES XT-3ES (-16 to -32 only)
IN / ∞/ MCSM Permanent YES XT-6ES
PL / + / MCSH / MCSX Permanent YES XT-5ES
TR / △ / S4G / ESA Permanent YES XT-3ES

XS6 Permanent YES XT-6ES / XT-5ES (-32 only)
XN* / XN4* / XN6* Permanent NO XT-6ES / XT-5ES / XT-3ES
MN Permanent NO 716 / 716CPT / 294 / 294CPT / 844 / 4901
JN Permanent NO 2760A / 2771A / 743
MH Permanent NO 2929 / 743
A/C Permanent NO 1543J
55 Permanent NO 1028
Screw Type Reusable Reusable NO 556 / 1130
*XN coupling range due for full release in all sizes by 2018
Introduce the New XN™ No-Skive

Permanent Couplings to Customers
• Hose skiving is no longer required

• Easier and faster build process
• Reduced assembly error
• Reduced contamination
• Simplified product line
• Lower priced assembly
Avail Mid-
Now 2017 2018
• -6, -8, -10, -12 (4 wire - XT-6/5/3) • -16 (4 wire – XT-6/5/3) • -20 (4 wire – XT-3)
• -24 (4 wire – XT-3) • -20 (6 wire – XT-5 & XT-6)
• -24 (6 wire – XT-5 & XT-6)
Note:
• XT Reusable couplings remain available for -16 to -32 sizes
• -32 options remain skive type – XS-6 XT-6 & 5 / S4G (XT-3)
Use Impulse Test Results to Prove Value of Cat
EN SAE CAT
(European Norm)
EN 4SP: 133% of WP SAE 100R12: 133% of WP CAT XT3-ES: 133% of WP

400 000 Cycles 500,000 Cycles 1,000,000 Cycles
100°C 121°C 121°C
½ Bend Radius
4SH: 400 000 Cycles 500,000 Cycles 1,000,000 Cycles
100°C 121°C 121°C
½ Bend Radius
4SH: 400 000 Cycles 500,000 Cycles 1,000,000 Cycles
100°C 121°C 121°C
½ Bend Radius
Match Hose and Couplings Inventory to Your

Machine Population & Sales Opportunity
Stock analysis service offered by

Caterpillar
• Identifies all the hose and couplings used
by a specific machine population
― Customer Fleet
― Region / Territory Fleet
• Items needed for processing:
― Serial number prefix
― Quantity of each prefix
― Current tooling capabilities
• Send to your Hydraulic ASC
Inspect and Consult
Know What to Look for During Inspections
Rubbing on sharp edges Rubbing on bolt head Rubbing hose-on-hose
Rubbing on tubes
Rubbing on harness Missing or Unsecured Clips
Also check for kinked hoses and hoses bent at the coupling

Inspect and Consult
Know When to Replace Hoses
Replace hoses immediately if they are:

• Leaking
• Abraded
• Blistered
• Hard/Stiff
• Heat-cracked
• Charred
Inspect and Consult
Help Customers Protect Against Contamination
• Cutting and assembling hoses can introduce

contaminants
• Cat Hose Cleaner Group uses compressed air to:
― Shoot a foam projectile through hoses, tubes and
couplings
― Clean out metal and rubber contaminants in seconds
• Once cleaned, customers should protect hose
assemblies and bulk hose with protective caps or plugs
Tip: Have your hose shop collect and bag used foam
projectiles. Pass on the bag to the customer to show
the cleaning process has been completed.

Sell Against the Competition
Sell More Hose and Couplings Using 3-Point Plan
TARGET THE RIGHT CUSTOMERS ASK THE RIGHT QUESTIONS PROVE THE VALUE OF CAT
• Determine how much the customer • Who do you purchase your hoses • Point out Cat features and benefits to
spends on hoses per month/year from today? demonstrate how Cat hose and
• Prioritize customers based on • Why do you use that supplier? Price, couplings compare to other offerings
opportunity service, convenience? • Discuss the cost of downtime per
• Assess which hose service(s) would • How well do the hoses you currently hour for a hose failure on one of their
be of interest, including branch, on- purchase perform, and how long do primary machines, and how downtime
site and mobile solutions they last? will decrease with Cat hoses
• What are your expectations of Cat • Talk about Cat hose service offerings
products? • Determine if the customer is
interested in on-site services to
reduce their O&O costs

Hose Assembly Tooling

Cat Crimping Machines
Crimping
machines for
Permanent
couplings
Model CMC2 CMC6 CSC6 CPC325
1” XT-6ES 1.5” XT-6ES 1.5” XT-6ES 2” XT-6ES

Crimping capability 1.25” XT-3ES 2” XT-3ES 2” XT-3ES 2” XT-3ES
1.25” LMP* 3” LMP* 3” LMP* 4” LMP*
508-7865 (12V DC) 358-4532

508-7870 (1PH 110V)
508-7866 (24V DC) (3PH 220-440V 50/60Hz) 423-4361
Power options 508-7871 (12V DC)
508-7867 (1PH 230V) 457-6037 (1PH 230V 50 Hz) (3PH 220-440V 50/60Hz)
508-7872 (1PH 230V)
508-7868 (1PH 115V) 457-6038 (1PH 230V 60 Hz)
Entry level DIM** customers
Advanced DIM** customers Large mining machines
Target application Portable applications Professional workshop
Mobile hose van High volume production
Service tech van
Computer controlled. Computer controlled.
Micrometer controlled Micrometer controlled
Compatible with Cat pressure Compatible with Cat pressure
Control machine machine
testing equipment for testing equipment for
(manual, no computer) (manual, no computer)
integration. integration.
*LMP = Low / Medium Pressure
**DIM = Do It Myself
New New
Hose Assembly Tooling Sell Against the Competition
Cat Cutting Machines

Cutting
machines
for all hose
types
Model EM3 E EM3 DC EM6 E EM6 M EM6 P EM115
1” XT-6ES 1” XT-6ES 1.5” XT-6ES 1.5” XT-6ES 1.5” XT-6ES 2” XT-6ES

Cutting capability 1.25” XT-3ES 1.25” XT-3ES 2” XT-3ES 2” XT-3ES 2” XT-3ES 2” XT-3ES
1.25” LMP* 1.25” LMP* 3” LMP* 3” LMP* 3” LMP* 3” LMP*
517-2531 508-7861 517-2539 517-2540 444-5974

Part Number 516-9368 (12V DC) (1PH 110V) (3PH 400V) (3PH 400V) (3PH 380-460V)
Power options (1PH 220V) 517-2534 508-7862 516-9369 516-9370 480-3911
(24V DC) (1PH 230V) (3PH 220V) (3PH 220V) (3PH 220-240V)
Entry level DIM**
Large Workshop /
customers Mobile hose van Small / Medium Medium / Large
Target application Mobile hose van High volume
Portable applications / Small Workshop Workshop Workshop
production
Service tech van
*LMP = Low / Medium Pressure
**DIM = Do It Myself
New New New New New New
Cutting Blades
• TM G – standard steel grooved blades – supplied fitted to machine
• TM C – steel blade specially coated to produce a precise straight cut, less smoke and contamination – available to purchase separately
Promote the Value of Cat Hose Container Workshops to

Targeted Customers
• Consult with customer to select the best

configuration for them (3 sizes available)
• Stock the workshop to support
customer’s unique equipment population
needs

Offer Multi-Channel Solutions
• Parts Counter / PartStore / Parts.Cat.Com • Hose Assembly workshop within a Shipping Container
• Hose Maintenance & Rebuild kits • On-Site permanent service
• Critical Spares – Individual hoses or kits • Full site coverage
• Service department (workshop) • Dealer or Customer managed
• Approved Sales & Service Centre (ASSC) / • Add value through Inspections & Hose Management
Second Level Dealer (SLD) • Target Large Construction Projects / Mine sites
• Dealer Rental business
• Customer Workshop or Site location • On-Site call out service

• Multiple Tooling options • 24 x 7 coverage
• Recommended Stocking List • Full market focus
• Product and Assembly Training • Scheduled & Breakdown
• Ensure replenishment process is in place • Contracts & Projects
• Add value through Inspections & Hose Management

Meet Customer Expectations on Timely Turnaround
Does your dealership have hose assembly capability within 30 miles (50KM) of
your customers?
• Hose shop at main, branch and/or rental stores?
• Mobile hose vans?
• Hose container workshops?
• Customer managed hose shops?
• Delivery services (drop boxes)?

Take Advantage of Marketing Materials
• Hose & Coupling Reference Guide, 9th edition (PECP5030)

• H&C Value Story Brochure (AEXQ1395)
• Cat Hydraulic Hose Solutions for Mining (AEXQ1465)
• H&C Solutions Brochure (PEDJ0292)
• Coupling Identification Guide (PEGP2007)
• Hose Training Video and Workbook (PEGT6025)
• Quick Reference H&C (PEGJ0001)
• Cat Hydraulic Hose – Need for Speed (PEHJ0354)
• Cat ToughGuard Hose (PEHJ0077)
• XT Reusable Couplings (PEDJ0289)

Take Advantage of Marketing Materials
• Fact Sheet
• Press Ad/Poster
• Rollaway Banner
• Direct Mail - Postcard
• Web Banners
• eDirect Mail
• Landing Page
• Video

Non-Cat Hose Assembly Reverse Engineering App

Non-Cat Hose Assembly Reverse Engineering App
• Helps dealers service non-Cat assemblies with Cat hose & coupling
components
• Improves dealer response time for mixed fleet customers
• Paired with HIS, allows Cat dealers to be a one-stop-shop hose assembly
supplier
• User friendly, interactive App is easy to learn and use
• Available end of 2017 or early 2018
LET’S HEAR
FROM YOU!
Interactive Segment • Consider each of the common objections as
they’re brought up on the screen
How Would You Respond?
• Turn to your tablemates and discuss the one or
two key points you would make in response
• Prepare for just a couple of minutes per objection
• Be ready to share your ideas with the group
LET’S HEAR FROM YOU!
• Does your dealership have hose assembly capability
within 30 miles (50KM) of your customers?
• Hose Shop at Main, Branch, and Rental stores?
• Mobile Hose Vans?
• Hose Container Workshops?
• Customer managed hose shops?
• Delivery services (Drop boxes)?
Interactive Segment
“The Cat Hose products have always been

priced higher than other options I can buy.
What’s different?”
Interactive Segment
“My operators and service techs don’t have

time to run a hose over to your dealership for
replacement. How can you speed up the
hose service you offer so I can keep my
machines up and running?”
What is the biggest challenge you

face in hose and couplings sales?
What is the competitive landscape in

Interactive Segment
Overcoming Sales your region?
Roadblocks
What advice would you give others
about how to effectively position and
sell hose and couplings?
What’s your specific sales

approach?
HOSE AND COUPLINGS
ASK THE EXPERTS

DAY 1 WRAP UP!
CYLINDERS AND RODS

Cylinders and Rods
Cylinders and Rods 101 Quiz
1 The primary factor used to

determine which type of cylinder is
required is _________.
Answer: Pressure.
Cylinders and Rods
2 A dealership’s _______ ______ service

restores cylinder tube surface (cross
hatch) to original finish.
Answer: Light hone.

Cylinders and Rods
3 _________ _________ uses friction

heat to fuse the rod and eye together,
producing a strong, continuous bond at
the critical rod/eye joint.
Answer: Inertia Welding.

Understand the 3 Types of Cylinders & Application-

Specific Design
BOLT-ON HEAD THREADED GLAND THREADED CROWN
Working Pressure 3000 – 6000psi Up to 3000psi Up to 3000psi
Cost to Manufacture $$$$ $$ $$$
Ability to Service Moderate Moderate Difficult

Know Cylinder Wear Parts
Wiper Seal Buffer Seal Piston Seal Piston Wear Band
Rod Seal (U-Cup) Rod Wear Band Head Seal

Cylinder Applications by Model
r
Boom Lift Angling Articulation Steering Front Lift Lift

Stick Tilt Dozer Blade Lift Suspension Front Tilt Tilt
Bucket Steering Lift Blade Tip Hoist Front Bucket
Tilt Centre Shift Rear Boom
Ripper Ripper Rear Stick
Scarifier Rear Bucket
Side shift Swing / Slew
Steering Side shift
Wheel Lean Stabilizer
Note: Some applications may use either type depending on equipment size / design
Typical Cylinder Type Used

Bolt-On Head Threaded Gland
Sell Seal Kit Packages For Fast, Easy Servicing
Cat wiper, U-cup, and buffer seals are

designed to work together to provide optimum
sealing performance in Cat hydraulic systems

Recommend Forged Rods for Extreme Applications
• Extreme, high-stress service applications

(ripper, tilt, etc.)
• 1-piece steel forging
• Stronger than friction welded rod eye joint
• Replacement is new only
• No Reman available

Promote the Advantages of Position-Sensing Cylinders
• Designed for hydraulic systems integrated with electronics

• Provides enhanced operator control that improves productivity
• Embedded sensor provides position feedback to operator
• Integrated with Cat Grade Control and Auto Carry technology
• Requires special calibration tooling to service

Promote the Advantages of Position-Sensing Cylinders
Machine Family Function

Backhoe Loaders Boom, Extention, Stick
Small Excavators Bucket
Medium Excavators Bowl, Bucket
Large Excavators Bucket
Motor Graders Steering
Off Highway Trucks Steering
Large Mining Trucks Steering
Paving Products Left Side, Legs, Rear Toe, Right Side, Steering
Track Type Loaders Lift, Tilt
Small Track-Type Tractors Angle, Lift, Tilt
Medium Track-Type Tractors Angle, Lift, Tilt
Large Track-Type Tractors Lift
Medium Wheel Loaders Steering
Large Wheel Loaders Lift, Tilt
Underground Mining Lift, Tilt
Wheel Tractor Scraper Apron, Bowl, Hitch
Know Position-Sensing Cylinder Repair Options
Repair/Rework
• Sensor replacement Calibration Procedures
• Reseal/Reseal and light hone

• Rod straightening
• Rod re-chroming
• Re-rod
• Cylinder re-tube
Media Number: PELJ0749

Hydraulic Cylinder Seal Kit Stocking

Analysis Service
Items needed for processing: Contact Dan Carey
1. Serial number prefix Carey_Daniel_R@cat.com
309-253-8596
2. Quantity of each prefix
• 64% of all hydraulic cylinder seal

kits are sold over the counter!
• Target the DIM customer
• Build awareness
Media No. PEHP9573
Hydraulic Cylinder Group Stocking

Analysis Service
Provide list of Cat Serial Numbers to:
Dan Carey Boom Cyl

Multiply by 2 as there
Carey_Daniel_R@cat.com are 2 per machine

Number of
Stick Cyl
Number of
Bucket Cyl
Number of
309-253-8596 Machines
Cyl Gp PN Supported
Machines
Cyl Gp PN Supported
Machines
Cyl Gp PN Supported
2043614 197 2043615 163 2043696 167
3412172 103 3412177 88 3579784 71
We can identify the cylinder groups 3585972

3891041
83
72
3412807
874898
47
41
2478853
3412814
68
59
for your machine population by 3412790

0875491
68
43
2897763
2144500
40
30
3408949
3412182
58
47
serial number.
3604624 28 3751722 30 1185931 43
3119507 19 3604626 28 3579766 41
7Y4601 15 3412802 27 7Y5100 16
Medium/Large HEX available today 7Y4906 14 2003525 26 1913118 10
1913118 12 2426839 25 1433199 8
Rest of products by Dec 2017 3991890 11 1184000 20 3568788 7
Differentiate Cat
Talk to Customers About Key Differentiation Points and

Their Benefits
• Patented design and proprietary

materials provide improved service life of
cylinders
• Repair options, including reseal, light
hone exchange, reman or new meet
customer needs based on application
and age of equipment
Differentiate Cat
Educate Customers on the Advantages of

Induction Hardened Rods
+/- 4 MM
Competition • Greater strength and dent resistance

• Greater bending resistance
• Lowers operating costs
• Increases seal life
Differentiate Cat
Educate Customers on the Advantages of

Induction-Hardened Rods
Competition
Induction-Hardened Cylinder Rods Competition’s Soft Steel Rods
• Hardness beneath the surface

• No hardness beneath the surface
• Greater resistance to bending and denting
• Easier bending and denting
• Longer rod and seal life
• Greater risk of system contamination
• Less risk of system contamination
• New and Cat Reman
Differentiate Cat
Friction/Inertia-Welded Rod Eyes
Inertia-Welded Rods
Arc-Welded Rods
Inertia welding uses friction heat to fuse the

rod and eye together, producing a strong,
Competition continuous bond at the critical rod/eye joint.
Differentiate Cat
Friction/Inertia-Welded Rod Eyes
Inertia-Welded Rods
• Continuous bond delivers superior strength at rod/eye joint

• Longer rod life
• Lower operating costs
• New and Cat Reman
Arc-Welded Rods
• Weaker weld makes rod susceptible to cracking

Competition and breaking
Inspect and Repair
Know What to Look for During Inspections
Check for:
• Oil leaks indicated by dirt or oil buildup Damaged cylinder rod
around the cylinder lip seal
• Oil/dirt ring on rod
• Oil leaks at hose connections
• Damage to cylinder rods Leaking head lip seal
• Damage or wear to linkage pins
Cylinder connections
Inspect and Repair
Differentiate by Offering Reseal and Light Hone
Light honing
• Detects and corrects minor cylinder bore damage
(up to .010”)
• Restores cylinder tube surface (cross hatch) to
original finish
Why light honing makes sense

• Piston seal and piston wear band will equal
original design life
• Increases seal life due to better lubrication
• Creates the proper sealing surface for the seals
• Brings the tube to the correct size and roundness
Inspect and Repair
Offer Washing and Testing

Shows Expertise in Contamination Control and System Management
Cylinder Washer Cylinder Tester

Use Framework to Recommend Best Repair Option
Uncertain OWNERSHIP Longer

Primary
Lower UTILIZATION Higher
Purchase
Sensitive PRICE Prefers Guaranteed
Driver(s)
Flexible TURNAROUND Fast
• Extends Life • Extends Life • Reset Component To • Older and Lower Utility • Core Exchange • Core Not Available
• Before Failure • Before Failure Zero Hours Machines • Typically After Failure • Typically After Failure
• Genuine Cat Seals • Same Benefits As • Before or After Failure • New Component • Genuine Cat Reman • Factory New
• Light Hone To Remove Level 1 But May Also • Core Exchange (No Core Exchange) • Immediate Availability • Immediate Availability
Attributes
Rust, Scratches, and/or Include Genuine Cat • Same Benefits As • Typically After Failure
Cylinder Distortions Differentiated Parts Level 1 and Level 2 • Immediate Availability
• Proper Reassembly • Immediate Availability
• Pressure Tested (Exchange)
Target
20 – 40% 30-50%
Price Point
< 30% 30-60% 40-60% 100%
Relative to
Enhanced reuse & salvage results in lower price point
Factory New
Level 1 Reseal with Level 2 Reseal with Level 3 Dealer
Level 4 Classic Level 4 Cat Reman Level 5 New
Light Hone Light Hone Plus Rebuild/Exchange
Extend Component Hours Reset Component Hours To Zero

Current Reman Components Strategy: Groups!
• Past Strategy: Reman Rod and Cylinder Assemblies

• Current Strategy: Reman Rod and Cylinder Groups
• Why: When the cylinder assembly (tube) needs to be serviced, the rod is usually
also due for service; therefore, the complete group is a more suitable offering
• Groups available for many applications
– About 50% of new price
– Same design advantages as new
– Inertia-welded for high rod eye strength
– Induction-hardened for superior bending and dent resistance
• Always reseal with new seals

Build Your Dealer Exchange Program
• Review historical hydraulic cylinder group

consumption
• Recondition per reuse and salvage guidelines
• Stock low volumes to meet critical customer
requirement for speed – demand-driven
stocking
• Available off the dealers shelf for fast
turnaround
Lear How Ziegler Improved their Exchange Program
• Performed a market study

• Found competition usually quoted only one repair option:
repairing the customer’s existing cylinder, which required
more than one day in the shop, but was often at a lower
price point than the Ziegler offering
• Established a more competitive fixed price for hydraulic
cylinder repairs
• Removed pricing variation that had previously existed from
branch to branch
• Focused on hydraulic cylinder exchanges as a differentiator
• Leveraged their shuttle system’s ability to deliver parts
through their territory within 24 hours
• Charge customers a fixed-price equivalent to a cylinder
hone and reseal; Any additional charges required to bring
the cylinder core back to new are addressed after the initial
transaction
• Offers customers an immediate solution
Old vs New Exchange Cylinder Pricing

“Pay the price of a repair and take back a cylinder today”
Old Pricing New Pricing
Base price: Hone, reseal and Base price: Hone, reseal, and
power polish plus extras $2,800 power polish $1,100
based on historical averages (Removed extras based on
(such as machining, piston, historical averages)
head, nut, and machining)
+ +
+ +
Core charge:
Lose 50% for damaged rod $10,000 Add charge for damaged rod $4,000
Lose other 50% for damaged
Add charge for damaged
barrel
barrel $3,600
Net Price for Good Core: $2,800 Net Price for Good Core: $1,100
Net Price for damaged Rod: $7,800 Net Price for damaged Rod: $5,100
There is a charge of $11,700 only if a
core is not returned.
Old vs New Exchange Cylinder Pricing

What has really changed?
• Removed the extras based on historical averages from the base price
resulting in more of a repair-based price.
• If a customer wants a fixed price up-front, the dealer can still provide them
with a quote based on a visual inspection. This same concept applied to the
old pricing methodology as well.
Develop Sales Plan to Combat Competition
• Replacement Cylinders
• OE Component Manufacturers
• Parts Brokers / Online stores
• Engineering companies (Copy Cat design)
• Cylinder Repairs
• Local hydraulic repair shops
• National specialists
• Do it Myself customers
• Seals & Seal Kits
• Specialist seal distributors
• Kitting companies
Channel 1 - Repair Options Scenario #1

Interactive Segment
“Cylinder repairs at your Dealership take too

long. I only have a few pieces of equipment
and I can’t afford to have them out of
production for an extended period of time.”
Interactive Segment
“Cat cylinder and rods have always been

priced higher than will-fit options I can buy.
What’s different?”
What is the biggest challenge you

face in cylinder and rod sales?
What is the competitive landscape in

Interactive Segment
Overcoming Sales your region?
Roadblocks
What advice would you give others
about how to effectively position and
sell cylinders and rods?
What’s your specific sales

approach?
CYLINDERS & RODS
ASK THE EXPERTS

PUMPS AND MOTORS

Pumps and Motors
Pumps and Motors 101 Quiz
1 True or False. Caterpillar uses

off-the-shelf, industry standard
pumps in our machines?
Answer: False.
Pumps and Motors
Pumps and Motors 101 Quiz
1 Most pump and motor sales are

transacted _________?
Answer: Over the counter.

Differentiate Cat
Understand Customer Buying Requirements
How Pumps and Motors Sold are Sold Customer Buying Criteria
Pump and Motor Sales By Channel • Availability

6% • Fast turn around time
(2-3 days for rebuilds)
• Quality of service
• Value for the price
35%
59%
Customer Buying Behavior
• Typical pump and motor repairs are performed

after failure
Over the Counter Service Shop Ebusiness
• Customers are driven by convenience and
turnaround time of the repair

Differentiate Cat
Be Confident that Cat Pumps and Motors
• Cat Pumps and Motors are designed,

manufactured and tested to meet the unique
performance requirements of the Cat equipment
models they are used in
• Ensures they achieve the specific machine

performance, reliability, durability, operating costs
and productivity requirements
• Cat Remanufactured Parts and Components

(Reman) provide same-as-new performance and
reliability at a fraction of the cost of new parts

Differentiate Cat
Know that they ARE Designed by Caterpillar
• Our purchase agreements with suppliers ensure Cat

pumps and motors truly are unique in the marketplace
• Customized specs are consistently enhanced to
accommodate equipment improvements, increasing
productivity and extending equipment life
• Settings are fine-tuned to accommodate each machine’s
unique electronic controls and settings, optimizing
machine performance
Know the 3 Types of Pumps
GEAR VANE PISTON

Gear Pumps
Fixed displacement gear pumps are used in open-

center applications, and are improved designs.
Most Caterpillar gear pump applications have been
developed to require increased pressure and
temperature capabilities, pushing these pumps to
new technological limits. They are optimized for
rugged journal bearings, high pressure end plates,
and high temperature pressure seals. Smaller units
often contain integrated valves to improve overall Gear
hydraulic system density.
Vane Pumps
Fixed displacement vane pumps are used in open-center

implement applications. Caterpillar refined the design of
cam-rings, pressure plates, and pressure seals, for
tougher duty cycle requirements, including increased
pressure limits.
Vane
Piston Pumps
Caterpillar piston pump applications have been highly
refined to satisfy ever demanding customer needs for
reduced hydraulic system density, increase service life
goals, and improve overall value. Caterpillar designs
remain on the cutting edge of technology for computer
simulation and analysis, resulting in highly refined,
customized pump and motor designs. The piston pumps
utilized in Caterpillar machines reflect a long relationship of
collaborative teamwork and relentless drive toward
continuous improvement. This level of collaboration has
achieved depth of technical understandings such that
teams know the detailed tradeoffs in minute parametric
features, and customize each pump to optimize life in its Piston
particular application.
Inspect and Repair
Learn Pump Differentiation Points

Know What Parts are Serviceable: Piston Pump
Swash Plate Bearing

Piston Barrel
Housing Drive Shaft
Head
Shaft Seal
Retaining Plate
Swash Plate
Bearing
Inspect and Consult
Help Customer Select Best Repair Option for Them
GEAR VANE PISTON
• Reseal/Sections Kits/Rebuild • Reseal/Rebuild • Reseal

• Dealer Exchange • Dealer Exchange • Rebearing/Reseal
• Cat Classic • Cat Classic • Rebuild (New/Reman Piece Parts)
• Cat Reman • Cat Reman Group • Dealer Exchange
• New Pump/Motor Group • Cat Reman Vane Cartridge • Cat Reman
• New Vane Cartridge • New Pump/Motor Group
• New Pump/Motor Group
Inspect and Consult
Inspection Options
• TA1 Inspection
– Walk Around
– Performance Check
• ET Data
• TA2 Inspection
– Pressure and flow measurements
• SOS Reports

Inspect and Consult
Pumps and Motors

TA1 Inspection
Check for:
• Unusual noises – cavitation, bearings
• Leaks around pumps and motors
• Performance checks
• TA1 forms found at
• https://dealer.cat.com/en/ps/equipment-
management/cm/c/inspections-data/ta1-
ta2.html

Inspect and Consult
Know the Impact of Fluid Contamination on Pumps
• Gear
– Accelerated gear and housing wear
• Vane
– Accelerated cam ring and vane tip wear
– Vane sticking in rotors
• Piston
– Accelerated wear between
• Barrel and port plate
• Piston and barrel
• Piston and swash plate
• All pumps and motors
– Accelerated bearing wear

Build Your Dealer Exchange Program
• Review historical hydraulic pump and motor

consumption
• Target highest opportunities by equipment
models and customers
• Rebuild/Repair per reuse & salvage guidelines
• Make available off the dealers shelf for fast
turnaround
Stress Your Expertise and Dealer Support Services
• Trained technicians
• Commitment to contamination control
• Performance testing
• Caterpillar parts reuse guidelines
Know Repair Indicators; Consult with Customers
• Leaks
• Insufficient pump flow or motor output
torque/speed
• Decrease in implement or travel speed
• Excessive noise, heat or vibration
• S•O•S reports indicate fluid contamination

Use Test Center to Differentiate from Mom-and-Pops
• Ensures performance to specifications

• Avoids risk of failure due to workmanship
Have Game Plan to Combat Competitive Forces
• Local hydraulic shops Caterpillar is a major target for pumps and

motors due to the size of our field population.
• Parts brokers
• Online stores
• “Will-Fit” parts suppliers
– Hydraulex Global/Metaris
– G.A. Ricambi
• Distributors and repair shops for major manufacturers
– Parker
– Rexroth
– Sauer
– Kawasaki

Use Marketing Materials to Highlight Differentiation
Dealer Sales Guide

Customer Value Brochure

We have heard you!

ACSD and GASD have had several dealers approach us in the last few
months to ask for help in making Caterpillar more competitive in the
hydraulic pump & motor repair business.
Specifically, dealers have pointed out instances where our pricing,
serviceability, and parts availability is not competitive with our OEM
suppliers in the aftermarket.
What are we doing about it?

• Focused on one consistent repair options framework
• Implementing engineering and purchasing standards to drive
consistency to the dealer on all NPI & top opportunity part numbers
• Full review the a world wide market study & adjustment where
warranted on all aspects of the business from pricing, stocking, part life
cycle, availability, and more
• Focused in providing a consistent product to the field to win competitive
bids
One team with a common goal
• Engaged & accountable sub-teams from all areas of the business working to deliver a
consistent & competitive dealer experience to win back the pump and motor business
Part Life Pricing

Cycle sub- sub-team
team
Dealer
Market Study Repair Capability
development Options sub-team
sub-team sub-team
Engineering
Hydraulic pump and motor
Purchasing Standards
strategy alignment project
Standards sub-team
sub-team
Sales
Lead
Execution
Generation
sub-team
sub-team
What are we doing about it?

Phases of the project
Information Repair options Standards & process Legacy

Develop the repair Align all NPI to the repair Evaluate & align the top
Market study
options framework options framework 32 machines and then
(information
by opportunity focused
needs, scope,
on profitable growth
dealers, etc..)
Purchasing
Standards
sub-team Sales Execution
sub-team
Repair Options Engineering

Standards Lead
sub-team
sub-team Generation sub-
Market Study team
Development
sub-team Part Life Cycle sub-team
Dealer Capability sub-team
We Pricing sub-team
are Hydraulic pump and motor strategy alignment
here
project
Where are we headed? Sell Against the Competition
Repair
Current state option
Market Study
Jun-Jul framework
Jan-Feb
Sub-team Mar
Current Strategy? recommendations
Stakeholder Apr
approval
Measure Phase Dealer interview
Aug-Sep Sep-Oct
Future Strategy May
Execution May
Market study & Dealer feedback is critical to this
project’s success
NPI Legacy
Interactive Segment
“Your pump prices are too high. Your quotes

are often 30 to 40 percent higher than the
competition. I’d like to work with you, but
how can I justify that large of a gap in price?”
Interactive Segment
“Your pump manufacturing materials all

come from the same place. How can they be
that different?”
PUMPS AND MOTORS
ASK THE EXPERTS

HYDRAULIC SYSTEM MANAGEMENT
& CONTAMINATION CONTROL

Hydraulic System Management
Understand the Hydraulic System

Stress the Holistic, Integrated System to Customers
Cylinders and Rods

Pumps and Motors
Hose Assemblies
Valves

Understand Why the Hydraulic System is So

Important to Customers
• Greatest impact on profits

• Helps control costs
• Extends equipment life
• Minimizes downtime
• Adds resale value
• Allows for planned service intervals

Impact on Profitability
One Percentage Point Change Impact On Profit
Productivity 2.5% - 4.5%
Availability 1.7% - 3.5%
Operating Cost 0.5% - 3.5%
Resale Value 0.5% - 1.5%
Interest Rate 0.7% - 1.2%
Price 0.5% - 0.9%

What Happens When the Hydraulic System is Jeopardized?
The impact of hydraulic system:

• Cylinder drift
• Jerky steering
• Accelerated component wear
• Increased fuel usage
• Possible component failure
• Slower performance

Hydraulic system efficiency can erode 20% before

the operator detects a problem
 Cylinder drift
 Jerky steering
 Accelerated component wear
 Increased fuel usage
 Possible component failure
 Slower performance
What Does a 20% Loss
in Efficiency Really Cost?
Lost Fuel
• Price of diesel per gallon: $4.00
• Hourly fuel usage (320C): 5 gallons
• Hours per week: 40
• Weeks of work per year: 45
• 20% increase in fuel: $7,200/year
Hydraulic system efficiency can erode 20% before

the operator detects a problem
Take a 3-Pronged Approach to Manage Hydraulic Systems
1 2 3
Prevent Detect Inspect
Contamination Control S·O·S Services Planned & Consultative

How much emphasis do you and

your dealership place on hydraulic
system management on your
Interactive Segment customers’ behalf?
Let’s Hear From You
How well do your customers
understand the importance of
hydraulic system management?
Prevention
Know the Negative Effects of Contaminants
Fluid contamination damages a

hydraulic system in three ways
Reduces System Efficiency Increases Fuel Consumption Accelerates Component Wear
Efficiency losses usually occur slowly and can reach 20%

before the operator detects a loss in performance
Up to 85% of hydraulic pump, motor, cylinder and

valve failures can be traced to contamination

Prevention
Success Formula for Combating Contamination
What elements ensure a clean hydraulic system?
Clean Facilities + Clean Fluid + Clean Assembly + Clean Culture =

16/13 ISO factory cleanliness =
18/15 ISO ongoing machine cleanliness =

Use S•O•S Services: The Most Important Tool in

Determining Hydraulic System Health
• Detects problems early

• Helps customers schedule downtime
• Monitors positives as well as negatives
• Enables customers to better manage budgets
• Helps customers maintain a complete service history

Ways to Prevent Contamination
Use Cat filters and fluids; follow recommended

change intervals
• 3 filter options address different cleanliness levels
• Cat HYDOTM Advanced Hydraulic Oil permits
6,000-hour drain intervals with use of SOS
• 6,000 drain interval avoids opening the
compartment earlier and potential contamination

Consult with Your Customers; Be Their Trusted Advisor
• Keep the hydraulic system closed

• Use care when changing work tools
• Monitor hydraulic system temperatures
• Listen to your operators

Perform Inspections
• Daily—Leaks, damage, fluid levels

• 250-hour—All lines and hydraulic oil cooler
• 500-hour—Filter change and S.O.SSM Services
• 2,000-hour—Engine and hydraulic system
performance (pressures, cycle times, drift)

Perform TA1 Visual Walk-Around Inspections
• TA1 forms are available from

Caterpillar online at:
• https://dealer.cat.com/en/ps/equipme
nt-management/cm/c/inspections-
data/ta1-ta2.html
How many of you are using the Cat Inspect App to conduct
inspections? What’s your experience been using the App?

Use Available Resource to Communicate Value of

• Quick Reference Guide (PEGJ0042-02)

– Repair Indicators for Engine, Drive Train and
Hydraulics
• Cat Hydraulic System Support (PEHJ0238)
– Dealer support for hose assemblies, pump and
motor repair, cylinder repair and contamination
control
• Cat Hydraulic Systems Management (PEGP6028-05)
– Checklists for controlling contamination and
performing other system management activities

INSPECTION / WALK-AROUND
ACTIVITY

SHARING OF SALES BEST PRACTICES

WORKSHOP WRAP UP!
Recap of Learning Objectives
• Workshop Overview and Introductions

• Introduction to Hydraulics
• Hose and Couplings
• Cylinders and Rods
• Pumps and Motors
• Hydraulic System Management and Contamination Control
• Inspection/Walk-Around Activity
• Sharing of Sales Best Practices

CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well
as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.
VisionLink is a trademark of Trimble Navigation Limited, registered in the United States and in other countries.
© 2017 Caterpillar. All Rights Reserved.
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What safety procedures should be followed in facility/classroom areas?

What safety procedures should be followed in facility/classroom areas?

What safety procedures should be followed in service/shop areas?

What safety procedures should be followed in service/shop areas?

Caterpillar welcomes you to…

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Advanced Specialist Training

• At Caterpillar for 19 years

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Day 2 (Full Day)

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• Name, dealership & job role

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This training is designed to provide a solid

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By learning more about hydraulic systems, you

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PSSRs/ISRs/PCAs and Parts Sales

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• Gain clear understanding of the hydraulic

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• Highly interactive workshop

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3 Key Reasons to Focus Your Efforts on Hydraulics

1 Represents a significant and growing portion

2 Customer decisions regarding hydraulic

3 Increasingly hydraulic-intensive equipment

1930 --- 1960 --- 1990 --- 2020

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Hydraulic System Evolution

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Hydraulic Parts and Service Strategy

FAST FACTS NEED FOR SPEED

Good News The #1 hydraulic customer

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Hydraulics POPS by Region

Increasing Level of Service Intensity

• Predictable and/or • Typically “unplanned” repairs • Typically planned overhauls

Service Labor Intensity

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Customer Situational Segmentation

Evaluates cost of repair vs.

Dealer Service Capability

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Voice of Customer: How They Select a Vendor

Top Reason for Vendor Selection…

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Voice of Customer: Competitive Environment

Hydraulic Shops Offer Number of Shops

Note: Not as common in APD

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What percentage (estimate) of your

Understand the Hydraulic System

Cylinders and Rods

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Hose and Couplings 101 Quiz

1 True or False. Caterpillar has

3 ___ and _ are the