CONDITION MONITORING GUIDELINES

Executive Summary

CONDITION MONITORING GUIDELINES

The following guidelines are intended to provide framework and alignment of development between Caterpillar and dealers in Condition Monitoring.

OPERATIONAL DEFINITION

Condition Monitoring is the proactive process of evaluating equipment health, transactional history, and site/asset application data inputs to provide maintenance, component replacement, and repair recommendations. Condition Monitoring includes the analysis of electronic telematics data, fluids analysis results, equipment inspections, service history and site analysis to create value-added service recommendations for a ‘repair before failure’ strategy.

Condition monitoring will typically include the following elements:

• Monitoring of multiple data elements to create a complete picture of asset health.
• Identification of trends to establish baselines and determine ‘exception’ criteria.
• Analytical models to detect abnormalities and predict potential failures to maximize scale and efficiencies
• Workflow tools to support the creation and delivery of proactive recommendations
• Closed-loop feedback on actions taken and value/accuracy of the recommendation to improve the analytical models and suggested recommendations
   

• Caterpillar will develop applications in the Condition Monitoring space that align to and enable Caterpillar’s Service Strategy & Customer Value Agreement (CVA) growth.  
• Caterpillar’s  goals include:
  • Improve customer support – consistently deliver differentiating customer value throughout the equipment lifecycle
  • Manage component risk and extend maintenance intervals
  • Lower CVA cost to serve – improve monitoring efficiencies
• Leveraging our global footprint and equipment population, Caterpillar will develop analytics to drive predictive maintenance and repair capabilities and recommendations for customers through dealers
  • Customers may receive recommendations, alerts, or other Condition Monitoring communications through the applicable customer equipment management applications.
• Caterpillar will build a Condition Monitoring tool (next gen Equipment Care Advisor (ECA)) to drive Caterpillar and dealer condition monitoring services that will provide direct linkage to CVA tracking and leverage predictive analytics
• If the Caterpillar application does not meet unique dealer, regional or customer needs, Caterpillar may provide and commercialize Condition Monitoring APIs that correspond to a Caterpillar application to allow dealers to innovate and develop a customer facing application to meet unique dealer and customer needs in their region. 
• In order to provide equipment health alerts or notices, Caterpillar Condition Monitoring applications will have access to multiple data sources, and where appropriate, Caterpillar will provide a subset of the data via an API to dealers.
• Where Caterpillar applications meet specific customer or market requirements, dealers should use and drive adoption of the Caterpillar application.
• Caterpillar will gather dealer input for future enhancements that benefit all dealers based on Caterpillar Digital Operating Model. Caterpillar will continue to evolve and expand its capabilities in Condition Monitoring, analytics, and closed-loop feedback solutions.
• Dealers should leverage Caterpillar Condition Monitoring applications to deliver consistent recommendations across dealers and drive a common customer experience in alignment with the Operational Excellence Programs, especially for those customers who span multiple dealers.

CATERPILLAR APPLICATIONS