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74Maritime Reporter & Engineering News 2011 YEARBOOKMARINE PROPULSIONParkinson: We have continued to invest heavily in R&D, primarily focusing on power solutions that can help our cus- tomers deliver outstanding marine per- formance in a highly sustainable manner. Tetrault: One of our key initiatives in Caterpillar Marine Power Systems is to consistently win with our customers. The effort we have made to exceed our cus- tomers expectations is strongly illus- trated by the progressive product support programs we have initiated in recent years. We commissioned an extensive, comprehensive study of our customers to get an accurate picture of what the cus-tomer desired from Caterpillar MarinePower Systems and the Cat dealer net- work in terms of service. The results were astoundingly simple: our customers value consistent service around globe, regard- less of vessel location. We subsequently developed the Marine Service Assess- ment (MSA) program to objectively as- sess marine dealers and identify tacticalimprovements individual dealer locations can implement to deliver the legendary service our customers have come to not only expect but demand. We will con- tinue to actively engage our customers to determine how we can develop solutions to help them achieve superior results in their operations.In the customer support area, Caterpillaris investing heavily in training for both our dealers and our customers. We have three global learning centers where wehave many of our training assets, includ- ing engines, control systems, and even full diesel electric simulators. We are also supporting our dealers to build and develop their own training capabilities to allow an increased penetration of service training to the technical level without the need to travel to these major learning centers. With more than 1,000 new tech- nicians entering the Cat dealer network each year on a global level, service train- ing is a major need. What can our readers expect to see new from CAT in the coming year? Parkinson: We see systems integration as a key trend in the coming years and our product development strategy is to provide a complete product line offering the right products to deliver comprehen- sive power solutions for vessels around the globe. Emissions regulations remain a key industry driver and will continue to shape Caterpillar offerings this year and in the future. Emissions regulations are becoming increasingly challenging inNorth America and globally. In order to address these needs, Caterpillar has beenworking closely with the US EPA and has successfully developed what we call Emissions upgrade kits.? The goal of these kits is to allow our customers the option to reduce vessel emissions with- out having to replace the engine. Weve designed our solution to be a retrofit to be installed at the point of a major over- haul. EPA approval was granted in early 2011, and we now have a full offering of 3500 upgrade solutions. Globally, we see these kits as an advantage for customers who operate in waters where there are economic advantages for lowering vessel emission levels. I would encourage any customer with a 3500 engine to contactyour local Cat dealer and inquire aboutthese kits and how we can help you re- duce your operating costs.What do you count as the biggest chal- lenges in serving the maritime sector (ver- sus the other sectors you serve?); Parkinson: In comparison the different industries Caterpillar as a corporation isinvolved in, the marine industry offers dynamic and unique challenges. One ofthe key challenges is the overall mobility and complexity of the industry, which creates the need for highly-tailored prod-ucts and solutions. The industry is espe- cially challenging in terms of service:conditions vary from vessel to vessel, theres no such thing as a standard engine room. Often, the mobile nature of the ma-rine industry requires that we go to thevessel to perform service which presents unique challenges in comparison to a tra-ditional worksite. Tetrault: In terms of product support,today we are experiencing increased competition in the aftermarket from total service providers. These are entities that are capable of servicing the entire enginespace. The advantage they bring to the customer is simplicity in one single pointof contact. The disadvantage is a lack of specialization in the engines, and thecommon usage of non-original parts.Weve found that many of our customers were often not aware that these service providers were not using original parts. We encourage our customers who elect to use these service providers to demand original parts to the extent possible. Sec- ondly, we are experiencing increased competition from Parts Agents. These agents do not provide any service other than searching the globe for the parts atthe lowest cost. Often they bundle origi- nal and non-original parts, creating con-fusion and a lack of accountability shoulda part fail prematurely. What are the challenges in running an efficient manufacturing operation today? Parkinson: The global nature of ourbusiness requires efficient manufacturing operations worldwide. In 2010, more than two-thirds of Caterpillar sales as a corporation came from outside theUnited States. A key challenge to Cater- pillar in terms of manufacturing opera- tions is ensuring we remaingeographically close to our global cus-tomer base. In circumstances when we are not geographically close to cus-tomers, it is imperative to implement the correct logistics services to ensure were delivering the correct parts in a timely manner. To achieve optimal operational efficiency, Caterpillar utilizes the Cater- pillar Production System to streamlineprocesses and manufacturing activities while aggressively eliminating waste among Caterpillar facilities, suppliers and dealers. Created in 2005, the Cater- pillar Production System drives the cre- ation and development of enterprise-wide processes to improve safety, quality and velocity as well as cost management. CPS has been integral to Caterpillar as we strive to be a global leader in safe and efficient manufacturing operations. What do you consider to be the most im- portant trend in your business to be? (ie. whats happening today that will affect your business in the coming decade): Gruber:Across several of the marine segments, we have seen a trend of more and more diesel electric installations inmarine applications and we expect that pattern to continue. As a result of the in- creased diesel electric installations, thedemand for system integration has sub- sequently increased. Tetrault: In the aftermarket space, we are witnessing the consolidation of many of our customers under larger operating companies. This results in more global benchmarking on best practices, and ofcourse, capabilities. Caterpillar is very excited about this trend as it challenges us to constantly improve our dealer capa- bilities, parts inventories, and customer satisfaction. As the world becomes a smaller place, we need to ensure that wecan communicate, operate and perform atworld-class levels in any operating envi- ronment. In the customer support area, C Caterpillar is investing heavily in trainingfor both our dealers and our customers. We have three global learning centers where we have many of our training assets, including engines, control sys- tems, and even full diesel electric simulators. Jaime Tetrault Director, Global Product Support Globally, we have seen a strong growth surge in emerging markets, particularly Asia and Brazil. . Florian Gruber, Director, Global Sales
