Caterpillar and Yuchai Look at the Future of Remanufactured Engines

December 2012, the remanufacturing forum held in Beijing, reporters once again to see the Caterpillar global mining and Asia Pacific general manager Li Zhengyu and Caterpillar Remanufacturing affiliates Yuchai Remanufacturing Industry (Suzhou) Co., Ltd. Vice Li Ke, general manager, interviewed them on related topics.

Remanufacturing has become a must for Carter

Talking about the importance of remanufacturing business in the Caterpillar business segment, Li Zhengyu said that as a two-factor business of Caterpillar remanufacturing, on the one hand, manufacturing itself is a block business, and it is a certain scale for Caterpillar. Business; On the other hand, remanufacturing is very important for Caterpillar to promote the sale of machinery and engines, because customers can buy relatively low-cost spare parts, and the quality of these spare parts is the same as new, if Caterpillar does not do In this case, the customer may not buy Carter's machine, or may not buy Carter's engine . Therefore, Caterpillar attaches great importance to the remanufacturing business.

For Yuchai's joint construction of Caterpillar Yuchai Remanufacturing Company, Li Ke said that from the perspective of Yuchai, remanufacturing can really help the sale of new aircraft. At present, the habit of using remanufactured engines has been established in China. When the company goes to Yuchai, it will propose to purchase a new machine that requires follow-up services for remanufacturing. Especially large customers and professional customers, because they are professionals, unlike general end consumers, such as large companies, professional organizations, and contractors, they have strong judgment and strong sources of information. The understanding of remanufacturing is faster and more in-depth.

Like Li Ke, when it comes to the impression of large domestic group customers, Li Zhengyu also introduced the situation of many customers. Such as China Shenhua (601088, stock bar) and Jiangxi Copper (600362, stock bar) companies, they have all gone to Singapore to see Caterpillar's remanufacturing factories, and some also visited the US factory, they decided to buy in the study. When Caterpillar's heavy trucks, it is necessary to see how your remanufacturing capacity. For another example, Caterpillar's Singapore remanufacturing factory will have one or two batches of customers each week. It is not an agent or an end customer. It is basically a company in countries such as China, Australia, Indonesia, and India. Before buying machines, they must first judge the remanufactured production capacity, delivery time, supply volume, and production capacity of the company. Because many companies use Carter's mining trucks for more than 10 years and even 30 years, it is not feasible without follow-up support capabilities.

Remanufacturing management is far more complex than new manufacturing

When it comes to the management of remanufacturing, Li Zhengyu’s mouth has three words: it's complicated. He said that if you want to build a new engine factory, you only need to invest money, but also investing money does not necessarily make a qualified remanufacturing factory. For example, in a new factory, a part may have only one name; but in a remanufacturing industry, a part may have three or even four different states, and you have to define a name for it, then for the entire The management system is a very complicated one. Li Zhengyu said that one of the great features of the remanufacturing industry is that it cannot completely copy the things of others into its own company. New parts manufacturing is possible, but not remanufacturing, companies have to sum up their own experience and management model according to their own characteristics, even according to their own market.

Li Zhengyu mentioned that there is another point in remanufacturing. The value of each step of the old part after being processed is not the same, and the state of repaired is not the same. From the perspective of internal financial management, the value of this old part is much different. Money must be recorded on the books, and the complexity of remanufacturing can be realized at this time.

In addition, new batches or new machines are manufactured in large batches. For example, if there are 100,000 or tens of thousands of engines to be built, there may be only two or three models, and there are ready-made process flows. The process management is relatively simple. Remanufacturing is not the same. There may be 40 models and 60 models for 20,000 remanufactured engines. why? Because all the batches and models of engines in history have to be done, and the installation size of the engine is not the same, some will be installed on the bus, and some will be loaded on the truck. There are different configurations of the same model. . This complexity is simply a huge challenge for factory management. Li Zhengyu believes that the director of a new engine plant managing a scale of 5 billion yuan may not be able to manage a remanufacturing plant with a production value of 1 billion yuan. The management style, wisdom, and capabilities of remanufacturing are completely different, and the complexity is far greater than the new engine. factory.

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